FAQ.- How are SMEs affected by the Directives

SMEs are not directly covered by the directive, so they don’t have any obligations under it and cannot face enforcement or civil liability. However, they might still be affected if they are business partners of larger companies that do fall under the directive. In such cases, SMEs may be asked to provide information about potential or actual negative impacts and address these in line with the larger company’s obligations.

To protect SMEs and ease the burden, the directive includes safeguards. Larger companies must focus their information requests only where impacts are most likely to happen, and they are required to adapt their practices, make necessary investments, and offer support to SME partners when needed. Additionally, SMEs will receive specific guidance and resources, like tools and capacity-building programs, to help them integrate sustainability practices into their operations.