New EU rules seek to set mandatory human rights and environmental due diligence requirements for any businesses operating in the Single Market.
The European Commission published in February a proposal for a Directive on Corporate Sustainability Due Diligence. The proposed rules address the regulatory fragmentation on environmental and human rights due diligence and foster responsible and sustainable corporate behaviour across value chains.
With this proposal, the Commission aims to set a global golden standard on due diligence and recognises the transformative role businesses can play in enhancing sustainable practices and in building a robust, socially responsible, and sustainable economy. To read a more in-depth analysis, please find one by clicking here.
Brief overview:
The scope of application would extend to two groups of companies operating in the EU. First, those with 500 or more employees and with an EU-generated turnover of above EUR150 million. And secondly, companies with between 250-500 employees and an EU-generated turnover of above EUR40 million, where at least 50% of the specified turnover was generated in high impact sectors.
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