The European Commission recently unveiled its long-awaited proposal for a directive on corporate sustainability due diligence, which is designed to tackle human rights and environmental impacts across value chains (the "CSDD").
The CSDD would impose a corporate due diligence duty on in-scope large companies operating in Europe to help ensure that they contribute to sustainable development and the sustainable transition of economies. The due diligence measures would require the identification, prevention and mitigation of human rights and environmental impacts connected with companies' own operations, as well as in relation to their subsidiaries and value chains. Non-compliant companies could be subject to pecuniary sanctions and civil liability, imposed by designated supervisory authorities operating throughout the European Union.
Please see our related briefing on mandatory human rights due diligence here.