EU Legal Affairs Committee Adopts Mandatory Due Diligence
Legal Affairs Committee MEPs voted in favor of a new EU law that requires companies to comply with human rights and environmental standards within their value chains.
The draft legislative initiative calls on the European Commission to urgently present a law that ensures companies are held accountable and liable when they harm –or contribute to harming– human rights, the environment and good governance. It must also guarantee access to legal remedies for victims.
The draft legislative initiative calls on the European Commission to urgently present a law that ensures companies are held accountable and liable when they harm –or contribute to harming– human rights, the environment and good governance. It must also guarantee access to legal remedies for victims.
- EU due diligence rules would require companies to identify, address and remedy their impact on human rights and the environment throughout their value chain.
- Rules should apply to all companies operating in EU internal market, including those from outside the EU.
- Companies should be held liable for their actions and be fined for causing harm or contributing to it, unless they can prove that they have acted in line with due diligence obligations and taken measures to prevent such harm.
- The rights of victims or stakeholders in third countries would also be better protected.
- MEPs call for a ban on importing products linked to severe human rights violations such as forced or child labour.