On 23 February, and following approval by the College of Commissioners, the European Commission presented its long-awaited draft directive on due diligence. Although NGOs had been worried that repeated postponements would mean a watering down of the text, the broad definition of companies coming under its scope has been retained and the text imposes a wide range of due diligence obligations on them, even including them having to alter their strategies when their business activities run counter to climate objectives.
After many months of waiting, the EU draft directive on due diligence is finally on the table and once finally agreed must be transposed by 2025. Despite the delay, the EU Commission’s text takes up most of the MEPs’ main thrusts (c.f. article No.12408). In accordance with their recommendations, and in comparison with current French and German legislation, the text provides for the creation of national authorities in charge of investigating human rights and environmental abuses linked to contractors along with the competence to sanction them. The text would also serve to prevent legal ‘fragmentation’ on due diligence and provide ‘legal certainty’ in relation to direct initiatives by companies.
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Article authors
Antoine Piel
Section Head at Mind HR