Webinar recording: Compliance Update with Taylor Wessing: What is the current status of LkSG/CSDDD, CSRD, EUDR, CBAM & BattVo?
published on
20.2.2025
Increasing regulatory requirements in the area of sustainability and compliance are putting companies under increasing pressure. SMEs in particular are confronted with a large number of new ESG requirements - from the Corporate Sustainability Reporting Directive (CSRD) to the EU Deforestation Regulation (EUDR). Digital solutions are essential to minimize legal risks and make processes efficient. In this webinar with Taylor Wessing, you will learn how companies can successfully implement their compliance requirements and prepare for upcoming regulations using Tacto as their central supplier portal.
In a constantly changing regulatory landscape, companies face the challenge of not only understanding ESG (Environmental, Social, Governance) requirements, but also implementing them efficiently. The latest developments in the Supply Chain Duty of Care Act (LKSG), the Corporate Sustainability Due Diligence Directive (CSDDD) and other ESG regulations such as the EU Deforestation Regulation (EUDR) or the Carbon Border Adjustment Mechanism (CBAM) are causing uncertainty - especially among industrial SMEs.
In our webinar "Compliance Update with Taylor Wessing: What is the current status of CSRD, CBAM, EUDR & LkSG?", he and Caroline Wiedemann (Client Development at Tacto) will provide practical insights into how companies can secure themselves at an early stage despite regulatory uncertainties and set up their supply chains in a legally compliant manner with the help of Tacto's central supplier portal.
The German Supply Chain Due Diligence Act (LKSG) has been binding for companies with more than 3,000 employees since 2023 and for companies with 1,000 or more employees since 2024. However, although the reporting obligation has been postponed - reports for 2023 and 2024 do not have to be submitted until the end of 2025 - the due diligence obligation remains in place. The German government is currently discussing suspending the LKSG until the European CSDD enters into force. The future of the law could therefore depend on the election results.
Nevertheless, the Federal Office of Economics and Export Control (BAFA) remains active and continues to carry out inspections. For example, 1,230 inspections and 206 complaints have already been registered. Companies should therefore not be lulled into a false sense of security, but should continue to take their due diligence obligations seriously.
The Corporate Sustainability Due Diligence Directive (CSDDD) is intended to replace the LKSG in the long term, but its final version has not yet been determined. Due to political disagreements, the scope of application has been adjusted several times. The thresholds for affected companies have been increased, which means that smaller companies could be affected later or not at all.
Another moment of uncertainty: the EU Commission has included the CSDDD together with the Sustainability Reporting Directive (CSRD) in the so-called "omnibus" procedure. The aim is to reduce regulatory requirements - however, this is once again causing delays and ambiguity.
The Corporate Sustainability Reporting Directive (CSRD) obliges companies to report comprehensively on their ESG strategy. While large listed companies already have to report for 2024, stricter rules will apply from 2025 for companies with more than 250 employees and a turnover of EUR 50 million.
However, many EU countries, including Germany, have not yet transposed the CSRD into national law. Implementation before the end of 2025 seems unlikely, as it will take time to form a government after the federal elections in February 2025. Companies should nevertheless prepare themselves, as the requirements could also become relevant retroactively. Companies are therefore faced with a dilemma: do they report in accordance with EU requirements or wait and see what the German legislator decides? In any case, it is advisable to get to grips with the European ESG standards (ESRS) at an early stage.
The EU Deforestation Regulation (EUDR) sets new standards for companies that import products such as wood, soy or cocoa. From 2025, they will have to prove that their goods do not contribute to deforestation. The requirement for geodata, which must be provided for each production site, is particularly challenging.
While the LKSG provides for an obligation to make efforts, the EUDR is a prohibition regulation - companies may no longer import affected products into the EU without proof that they are deforestation-free.
The Carbon Border Adjustment Mechanism (CBAM) is intended to prevent CO₂-intensive products from being preferentially imported from third countries without environmental requirements. Companies have had to submit quarterly reports on the CO₂ emissions of their imported goods since 2023. From 2026, they will have to buy CO₂ certificates to offset emissions.
From 2025, registration as a CBAM applicant will be mandatory - a measure that should be initiated in good time, as the processing time can take up to six months.
The new EU Battery Regulation not only requires technical changes to batteries, but also includes extensive due diligence obligations along the supply chain. Similar to the EUDR, companies must ensure that raw materials such as cobalt or manganese have been mined under socially and environmentally responsible conditions. Implementation begins in August 2025, so affected companies should prepare now.
The multitude of ESG regulations presents companies with major challenges. Nevertheless, there is a clear guideline: uniform due diligence and reporting obligations should be efficiently bundled. Synergies between the LKSG, CSRD, EUDR and other regulations help to avoid duplication of work and make compliance processes efficient.
Modern software solutions such as those from Tacto offer a central platform for managing all ESG compliance requirements and ensuring transparency in the supply chain. For SMEs in particular, it is crucial to automate processes and be prepared for future regulations with structured data management.
ESG regulation remains dynamic - political discussions, the omnibus procedure and national implementations will continue to bring about changes in the coming months. However, companies that take action now, structure their supply chain data and optimize their reporting processes will have a clear advantage.
It remains to be seen to what extent simplifications will actually be implemented. However, one thing is clear: sustainability and transparency in the supply chain will continue to play a central role in procurement - and well-prepared companies can use this as a strategic advantage.
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