European Commission proposes new Directive on corporate sustainability due diligence aimed at establishing legal accountability for global value chains

On 23 February 2022, the European Commission (the Commission) proposed rules that will require certain companies to identify and, where necessary, prevent, end or mitigate adverse impacts of their activities on human rights and on the environment in their global value chains. The new rules are intended to advance environmental and human rights objectives in Europe and beyond. While some European Union (EU) Member States have adopted their respective national rules and some companies are undertaking voluntary initiatives, the Commission and the European Parliament have articulated a need for a common regulatory framework in that respect.

Source EY

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