Duty of European vigilance: Parliament votes in favour of directive
Thursday 1andIn June, the European Parliament finalized and voted on numerous amendments to the proposal for a directive on the duty of vigilance which will oblige multinationals to better respect human and environmental rights throughout their supply chain (cf.European vigilance: further progress towards the CSDD Directive).
With this text, EU companies will be legally responsible for violations of human and social rights (forced labour, child labour, abusive expropriations, insecurity of buildings, etc.) as well as environmental damage (forestation, pollution, contamination of drinking water...) throughout their international supply chain, i.e. within their subsidiaries but also at their subcontractors and trading partners. In the event of an infringement, they could bear heavy fines (up to 5% of their net world turnover). For their part, non-EU companies concerned by the text could be excluded from European public procurement.
Theenterprises with more than 250 employees, with a turnover of more than EUR 40 million in the EU and 150 million internationally. Financial sector actors will be impacted. The scope of application has been expanded by Parliament, with the European Commission initially proposing to target only groups of more than 500 employees and the Council, saving the financial sector. Victims could benefit from a civil liability mechanism and access to European justice.
For NGOs, which denounce strong lobby pressure, this text still has serious shortcomings, while human rights violations and environmental damage caused by the activities of multinational corporations are increasing.
If an important first step is taken, the European Council and the Commission still have to decide on the final text. The « trilogues », interinstitutional negotiations between the Commission, the Council and the European Parliament, which should not be of any rest...
However, the text should be completedbefore the end of 2023for progressive implementation from 2024-2025.
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