Written by Stefano Spinaci (2nd edition, updated on 31.05.2023).
Companies can play a key role in building a sustainable economy and society. At the same time, their global value chains can pose risks to human rights and the environment. A growing number of EU companies have taken initiatives to deploy due diligence processes, often using existing voluntary international standards on responsible business conduct. Some Member States have meanwhile started developing their own legal frameworks on corporate due diligence.
To avoid fragmentation, and give businesses and citizens legal certainty, Parliament called on the Commission in a legislative-initiative resolution to introduce mandatory due diligence legislation. In February 2022, the Commission proposed a directive laying down rules on corporate due diligence obligations, directors’ duties, civil liability and protection of persons reporting breaches.
The legislative file follows the ordinary legislative procedure. The Council reached political agreement on a general approach in December 2022. In Parliament, eight committees sent opinions to the Committee on Legal Affairs (responsible for the dossier), which adopted its report on the Commission proposal in April 2023. Once Members have voted on the report in plenary, the co‑legislators can start interinstitutional negotiations on the final text.
Versions
- May 2023: Corporate sustainability due diligence: Could value chains integrate human rights and environmental concerns? (2nd edition)
Proposal for a directive of the European Parliament and of the Council on corporate sustainability due diligence and amending Directive (EU) 2019/1937 |
Committee responsible: | Committee on Legal Affairs (JURI) | COM(2022) 71 23.2.2022 |
Rapporteur: | Lara Wolters (S&D, the Netherlands) | 2022/0051(COD) |
Shadow rapporteurs: | Axel Voss (EPP, Germany) Adrián Vázquez Lázara (Renew, Spain) Heidi Hautala (Greens/EFA, Finland) Jorge Buxadé Villalba (ECR, Spain) Gilles Lebreton (ID, France) Manon Aubry (The Left, France) | Ordinary legislative procedure (COD) (Parliament and Council on equal footing – formerly ‘co-decision’) |
Next steps expected: Vote in plenary |

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