Questions and Answers: Proposal for a Directive on corporate sustainability due diligence

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  5. Questions and Answers: Proposal for a Directive on corporate sustainability due diligence

EU-level legislation on corporate sustainability due diligence will advance the green transition, and protect human rights in Europe and beyond. 70% of companies participating in the 2020 preliminary Study on due diligence as well as the 2021 Open public consultation agreed that a harmonized EU legal framework is needed. The new proposal sets out a corporate due diligence duty to identify, prevent, bring to an end, mitigate and account for adverse human rights and environmental impacts in the company’s own operations, its subsidiaries and their value chains. The rules will only apply to large limited liability companies with substantial economic strength.