Supply chain due diligence obligation one step closer to becoming law
EU lawmakers aim to make high-risk sectors such as mining, agriculture and textiles more responsible.
Large companies operating in the EU are one step closer to bearing legal responsibility for environmental and human rights breaches in their supply chains, as the EU Council and Parliament have now reached a deal on the corporate sustainability due diligence directive.
The regulation is expected to make supply chain due diligence a legal obligation for more than 16,000 corporations with EU operations, making them vulnerable to litigation and fines of up to 5% of turnover if environmental or human rights violations emerge among their suppliers and distributors.
