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EU Member States Reach Agreement on Corporate Due Diligence Directive

Posted on March 18, 2024

Posted in Environmental, Social, and Governance, European Environmental and Public Law

Following extended negotiations, the directive was endorsed with a significantly narrower scope that would reduce the number of companies affected.

By Paul A. Davies, Michael D. Green, and James Bee

On 15 March 2024, EU Member States endorsed the Belgian Presidency’s political deal on the Corporate Sustainability Due Diligence Directive (CSDDD), despite Germany abstaining from the vote.

The CSDDD would require companies to conduct due diligence to identify and assess environmental and human rights issues across their value…

UK House of Lords Considers New Bill on Mandatory Human Rights and Environmental Due Diligence

Posted on December 14, 2023

Posted in Environmental, Social, and Governance

The Private Members Bill, if passed, would establish the UK’s first law mandating business due diligence on human rights and the environment.

By Paul A. Davies, Michael D. Green, and James Bee

On 28 November 2023, Baroness Young of Hornsey (Baroness Young) introduced the Commercial Organisations and Public Authorities Duty (Human Rights and Environment) Bill (the Bill) to the UK House of Lords. The Bill seeks to establish the UK’s first law mandating certain companies to conduct human rights and environmental due diligence, and would also introduce an overarching duty for companies to prevent environmental and human rights abuses within their operations and value chains.

The Bill aims to level the playing field among businesses, provide clarity on legal obligations, and enable a greater level of access to justice. It also aims to align UK law with voluntary international standards, such as the United Nations (UN) Guiding Principles on Business and Human Rights, the Organisation for Economic Co-operation and Development (OECD) Guidelines, and the International Labour Organization (ILO) Multinational Enterprises Guidelines.

European Commission Proposes New Supply Chain Due Diligence Rules for Large Companies

Posted on February 24, 2022

Posted in Environmental, Social, and Governance

In-scope companies would have to publicly identify “actual and potential” adverse impacts of their operations on the environment and/or human rights.

By Paul A. Davies, Michael D. Green, and James Bee

On 23 February 2022, the European Commission (the Commission) published a proposal for a Directive on Corporate Sustainability Due Diligence (the Directive). If approved, the Directive would require large companies based in the EU (and certain large companies based outside of (but operating in) the EU) to conduct due diligence on a number of ESG-related issues throughout their supply chain, with failure to do so leading to possible fines or civil liability.

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