EU postpones CSDDD implementation giving breathing space to Bangladesh apparels

The European Commission has proposed a two year postponement of the Corporate Sustainability Due Diligence Directive (CSDDD), pushing its entry into force to 2028 or 2029, depending on company size, as part of its broader Omnibus Initiative. 

The delay is intended to give member states and businesses more time to prepare for the directive's far-reaching due diligence obligations.

BKMEA Executive President Fazlee Shamim Ehsan said, "This delay provides valuable breathing space for our member factories to strengthen their human rights and environmental safeguards."

Although the content of the directive is currently under review, EU lawmakers have emphasised that the fundamental principles and the level of protection embedded in the original draft will be maintained. 

A final agreement on the revised directive is expected by the first quarter of 2026.

In a related development, the newly elected German government has reaffirmed its intention to adapt the existing Supply Chain Due Diligence Act (LkSG) in line with the forthcoming EU CSDDD. 

During the interim, Germany plans to suspend LkSG reporting requirements but will continue to enforce the core due diligence obligations, with sanctions limited to serious human rights violations.

BKMEA's Ehsan welcomed the EU's cautious approach and Germany's alignment strategy.

"We are committed to supporting our exporters in meeting the evolving expectations of European buyers," he said.

The postponed timeline offers garment and footwear exporters in Bangladesh an opportunity to prepare for a harmonised EU-wide legal framework while aligning ongoing efforts with national initiatives on sustainability and ethical business practices.