European Parliament votes in favour of due diligence directive

Our latest research, Superlist Social, showed that supermarkets are not yet investigating all their high risk supply chains on human rights violations. Therefore we are very pleased to see that last week the EU Parliament approved the Corporate Sustainability Due Diligence Directive, expected to be transposed across the EU in the next couple years. It establishes a corporate duty for businesses to identify, mitigate, and prevent negative human rights and environmental impacts in operations and supply chains. The directive will require companies to conduct due diligence on human rights and environmental-related issues in their operations and supply chains, across the following areas:

• Integrating due diligence into policies and management systems
• Identifying and assessing risk and impacts
• Conducting risk management
• Remediating and mitigating risk and impact
• Having a grievance mechanism
• Monitoring the effectiveness of due diligence measures
• Producing an annual report reflecting on due diligence efforts

Who does it apply to?

• EU companies with more than 250 employees and a global turnover of €40 million
• Parent company of a group that had 500 employees and a global turnover of more than€ 150 million