Jurisdiction(s):
United Kingdom

EU corporate human rights and environmental due diligence regime: scope, obligations, enforcement, civil liability and UK implications

Published on: 17 March 2021

Published by a LexisNexis Environment expert

Legal News

Article summary

The European Parliament has backed a legislative initiative report obliging companies operating within the EU internal market to identify and remedy their effects on human rights and the environment. It also endorses sanctions for non-compliance and the provision of legal support for third-country victims of corporate misconduct. Adopted by 504 votes in favour, 79 against and 112 abstentions, the report presses for a binding EU law to ensure businesses are held to account and made liable where they cause—or contribute to causing—harm to the environment, human rights and good governance...

Who would fall within the scope of the proposed law?

In short, both EU and non-EU businesses. The proposed law would apply to:

large undertakings governed by the law of an EU Member State or established in the territory of the EU, regardless of sector and irrespective of public ownership or control
publicly listed and high-risk small and medium-sized undertakings (with acknowledgement that some may need less extensive and more formalised due diligence processes)
undertakings established outside the EU but...

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