Mandatory Human Rights and Environmental Due Diligence
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EU | Effective: TBD
Mandatory Human Rights and Environmental Due Diligence
Applicable to:
- EU companies employing at least 500 persons with a turnover of over EUR 150 million
- EU companies operating in sectors at high risk of human rights abuse employing at least 250 people with EUR 40 million turnover
- Non-EU companies with a turnover of more than EUR 150 million in the EU
- Non-EU companies from a high-risk sector with a turnover of at least EUR 40 million from their EU operations
The proposed EU directive establishes a corporate due diligence duty to identify and mitigate potential negative impacts on human rights and the environment within their operations or their value chains. In case of violations, a company must carry out remediation efforts, including financial compensation for the affected parties. Following the directive, the member states should establish legal liability for any reported damages.