EU Parliament Legal Committee and govt agree on new rules on Corporate Sustainability

The European Parliament Legal Committee and EU governments today agreed on new rules for large companies that will require them to check and remedy negative social and environmental impacts in their operations.

According to media reports, the rules will also apply to some 4,000 international corporations with a significant foothold in the European Union.   

 

Under the agreement, EU-based companies of a certain size will be accountable for



adverse human rights and environmental impacts, involved in their value chain, such as child labor, slavery, pollution, and biodiversity loss.

 

The Corporate Sustainability Due Diligence Directive will be mandatory for about 13,000 large companies based in the bloc. It also includes those headquartered elsewhere that do major business in the EU.

The agreement still has to be confirmed by the European Parliament and EU states.