Towards an Effective Environmental and Human Rights Due Diligence Law
In Autumn, the European Commission will discuss the scope of the upcoming Due Diligence law, human right abuses,
and the duties to impose on companies.
Make your voice heard: Members and non-members have time until 30 September to share their feedback on our first draft discussion paper: “For a Coherent and Integrated EU Approach to Due Diligence.
The upcoming European due diligence legislation has the potential to improve the sustainability performance of companies. Requiring European companies to implement Human Right Due Diligence (HRDD) would have many benefits, including a level playing field across sectors, and improved corporate risk assessment and management.
However, the challenge is how to ensure the effective implementation of due diligence processes. In other words, how can a company make sure that its efforts have a real positive impact on the workers in the supply chain, the environment, local communities, and society at large?
In the next months, the European Commission will define the details of this legislative proposal, particularly regarding three aspects:
Human rights abuses and other types of violations, with special reference to vulnerable groups
The companies covered by the legislation
Will only EU companies be covered, or also those placing products or providing services in the internal market? Large companies or every company? Will the law be sectorial or non-sectorial? Which business activities will be covered (parent/subsidiaries/contractors in the supply chain)?
The duties imposed by the legislation on companies
Will it be only reporting or due diligence? In case of the latter, a due diligence approach would require companies to actively analyse, mitigate as well as remedy any adverse impacts on human rights based on and connected with their own activities in business relations.
By this year’s end, the German Presidency of the Council will support an EU action plan to strengthen corporate social responsibility in global supply chains. A legislative proposal will be tabled by the Commission early 2021.
Make your voice heard
CSR Europe is fully engaged in this EU policy dialogue. With our Community of Practice 'Beyond Due Diligence', we are promoting an in-depth dialogue involving experts from different industrial sectors. The result was the first draft discussion paper ‘For a Coherent and Integrated EU Approach to Due Diligence’.
The CSR Europe network, as well as supply chain sector initiatives and other stakeholders are invited to share their feedback by 30th September.
The final draft of the discussion paper will be presented at the webinar ‘The Landscape of Due Diligence Regulations’ on October 14th. Make sure to secure your spot.
For more information:
Project Manager, Sustainable Raw Materials and Supply Chains