Segnalazione dal Parlamento Europeo: First green light to new bill on firms’ impact on human rights and environment

First green light to new bill on firms’ impact on human rights and environment

• New “due diligence” rules apply to EU and non-EU companies with over 1000 employees and 450 million euro turnover 
• Human rights and environmental impact will be integrated into companies’ governance 
• Companies will also prepare transition plan limiting global warming to 1.5°C 
• Fines for non-compliance and firms’ liability for damages 

On Tuesday, the Legal Affairs Committee approved a bill, agreed with EU governments, requiring firms to mitigate their negative impact on human rights and the environment.

MEPs on the Legal Affairs Committee adopted with 20 votes for, 4 against and no abstentions new, so-called “due diligence” rules, obliging firms to alleviate the adverse impact their activities have on human rights and the environment, including slavery, child labour, labour exploitation, biodiversity loss, pollution and destruction of natural heritage. The requirement to prevent, end or mitigate their negative effects also concerns companies’ upstream partners working in design, manufacture, transport and supply, and downstream partners, including those dealing with distribution, transport and storage. (...)