ESG Update: EU Business and Human Rights Developments: EU Parliament Proposes Mandatory Due Diligence and Corporate Accountability Legislation
Sullivan & Cromwell LLP - April 8, 2021
EU Also Establishes Global Human Rights Sanctions Regime
European Countries and Courts Take Other Steps on Corporate ESG Accountability
The EU is currently in the process of developing ambitious and far-reaching mandatory corporate due diligence and accountability legislation, which would require companies incorporated or operating in the EU to assess, report on and address risks of human rights, environmental and good governance-related violations in their operations and supply chains. Germany is currently developing a similar proposal applicable to German entities, as are other European countries.
Several European courts have also taken recent steps to expand corporate accountability for human rights violations of foreign subsidiaries.
The EU has also recently established a global human rights sanctions regime which enables it to penalize individuals and entities accused of human rights violations, or those associated with such persons or entities.
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