• Reuters

EU Draft Law to Require Companies Check Suppliers for Human Rights Abuses

February 21, 2022

[Image Credit: REUTERS/Yves Herman]

Cited article by Simon Jessop and Jan Strupczewski, Reuters


HRRC supports the European Commission's draft law that would reduce corporate complicity in human rights abuses and violations of environmental regulations. While the law is still in draft form and undergoing discussions, it presents significant progress towards addressing these issues.


Article Summary


The European Commission is unveiling a draft law to help ensure large companies in the EU verify that their suppliers are not utilizing slave or child labor and are complying with environmental regulations. The law, titled Corporate Sustainability Due Diligence, is still in draft and will have to undergo lengthy discussions and negotiations with the European Parliament and EU governments before going into practice. This process is likely to take a year or more, and may see alterations made.


In its current form, the law won't apply to all firms, and approximately 99% would be exempt. However, it will apply to about 13,000 EU firms and 4,000 companies outside the EU that are operating with the 27-nation bloc. The measures implemented would directly further the Paris Climate Agreement goals, as well as generate financial turnover for the EU.