Just and sustainable economy: Commission lays down rules for companies to respect human rights and environment in global value chains
On 23 February 2022 the European Commission has adopted a proposal for a Directive on corporate sustainability due diligence. The proposal aims to foster sustainable and responsible corporate behaviour throughout global value chains. They will be required to identify and, where necessary, prevent, end or mitigate adverse impacts of their activities on human rights, such as child labour and exploitation of workers, and on the environment, for example pollution and biodiversity loss. For businesses these new rules will bring legal certainty and a level playing field. For consumers and investors they will provide more transparency.
This means that there is an immediate need for companies to prepare for this comprehensive reform.
In the following, we would like to take a closer look at questions relevant to companies, including,
- Who will be affected by the new obligations?
- What are the obligations for companies?
- New obligations for the management
- How will the new obligations be sanctioned in the event of a breach?
- When will the new obligations come into force?
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