In June 2023 Parliament adopted its position for negotiations with member states on rules to integrate human rights and environmental impact into companies’ governance. Companies will be required to identify, and where necessary prevent, end or mitigate the negative impact of their activities on human rights and the environment such as on child labour, slavery, labour exploitation, pollution, environmental degradation and biodiversity loss.
They will also have to monitor and assess the impact of their value-chain partners including not only suppliers but also sale, distribution, transport, storage, waste-management and other areas.
The European Parliament has consistently called for more corporate accountability and mandatory due diligence legislation. The European Commission proposal was introduced on 23 February 2022. It complements other existing and upcoming legislative acts, such as the deforestation regulation, conflict minerals regulation and draft regulation prohibiting products made with forced labour.
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