Corporate sustainability due diligence: How to integrate human rights and environmental concerns in value chains? [EU Legislation in Progress]

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.

Please accept YouTube cookies to play this video. By accepting you will be accessing content from YouTube, a service provided by an external third party.

YouTube privacy policy

If you accept this notice, your choice will be saved and the page will refresh.

Accept YouTube Content

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)