Resource Center

In the last years, emerging legal frameworks on corporate due diligence reflect the increasing desire to support companies in their endeavour to perform due diligence in their value chains and foster business conduct that respects human rights, children’s rights and the environment. On the other hand, they also bring fragmentation and risk undermining legal certainty and a level playing field for companies in the single market. Companies play a key role in advancing the green transition and protecting human rights. They are required to identify and prevent, end or mitigate adverse impacts of their activities on human rights, such as child labour and exploitation of workers, and on the environment. The proposal adopted by the European Commission aims to foster sustainable and responsible corporate behaviour throughout global value chains. For businesses these new rules provide legal certainty and a level playing field. For consumers and investors they will result in more transparency. The proposal applies to the company's own operations, their subsidiaries and their value chains. Including accompanying measures, the new EU rules contribute to building a sustainable economy and society by providing a framework for businesses to comply with their corporate due diligence duty.