A year ago, in its resolution of 10 March 2021, the European Parliament called upon the Commission to propose Union rules for a comprehensive corporate due diligence obligation. Approximately two years ago, the Commission answered that call by its proposal for an EU directive on Corporate Sustainability Due Diligence.
According to the Commission, the behaviour of companies across all sectors of the economy is key to the success of the Union’s transition to a climate-neutral and green economy in line with the European Green Deal, and in delivering on the UN Sustainable Development Goals, including on its human rights- and environment-related objectives. This requires implementing comprehensive mitigation processes for adverse human rights and environmental impacts in their value chains, integrating sustainability into corporate governance and management systems, and framing business decisions in terms of human rights, climate and environmental impact, as well as in terms of the company’s resilience in the longer term.
Given the present and upcoming national legislation on human rights and environmental due diligence, (think, for example, of the French Loi relative au devoir de vigilance of 2017 and the German Sorgfaltspflichtengesetz of last year) the new proposal on Corporate Sustainability Due Diligence constitutes an important next step towards legislation on the EU level.
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