Comparison between proposals on human rights due diligence Directive, including Parliament amendments

On June 1, 2023, the European Parliament adopted amendments to the European Commission’s Directive on human rights and environmental due diligence proposal submitted in February 2022. These amendments strengthen the alignment of the Directive with the UN Guiding Principles on Business and Human Rights.  

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Comparison between EU Council and Commission proposals on human rights due diligence Directive

For updates on the Parliament’s amendments (June 2023) to the Commission’s proposal.

On November 30, 2022, the European Council released its proposal for a Directive on human rights and environmental due diligence based on the proposal submitted in February by the European Commission. While providing clarifications on important elements such as prioritisation of impacts, the Council’s draft misses the opportunity to set ambitious due diligence as it removes several key aspects such as directors’ duty of care.

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EU proposal on products made of forced labour

On September 14, 2022, the European Commission released the proposal for a Regulation on prohibiting products made with forced labour on the Union market. The initiative was first  announced last year by President von der Leyen in her State of the Union speech on September 15, 2021. This Regulation does not target a specific sector or region.

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EU proposal to protect journalists and human rights defenders against abusive lawsuits

On April 27, 2022, the European Commission published a proposal for a Directive on protection against Strategic Lawsuits Against Public Participation (SLAPPs). SLAPPs are court proceedings initiated against persons who engage in public participation on matter of public interest to deter them by intimidating them and draining their resources. Such lawsuits are often initiated by powerful entities such as lobby groups, corporations, and state organs, and they often involve an imbalance of power – financial or political – between the claimant and the defendant. SLAPPs are typically disguised as civil or criminal claims such as defamation and constitute a threat to the right to freedom of expression and information.

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New York introduces Bill on fashion sustainability and social accountability

On January 5, 2022, the Fashion sustainability and social accountability Act (Assembly Bill A8352) was referred to the legislative Consumer Affairs and Protection Committee of the New York State. If passed, the Act would be the first of its kind in the US, requiring fashion retail sellers and manufacturers, on pain of a fine based on annual revenues, to disclose environmental and social due diligence policies.

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EU import ban: ‘Human rights are not for sale’ says von der Leyen

On September 15, 2021, the European Commission President Ursula von der Leyen in her annual State of the European Union speech announced that the European Commission will propose a ban on products made with forced labour, stating that “There are 25 million people out there, who are threatened or coerced into forced labour. We can never accept that they are forced to make product and that these products then end up for sale in shops here in Europe”.

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Right to information under the new Norwegian human right due diligence law

On June 10, 2021, Norway adopted the Act on business transparency and work with fundamental human rights and decent work (in Norwegian), joining the small group of countries to impose human rights due diligence on (large) companies. While the act lacks on important issues (such as civil liability) interestingly, it creates an obligation for companies to provide information upon public request. None of the other legislation on business and human rights, either adopted or being currently discussed contains such obligation (see comparative table).

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Update to the EU draft Directive on mandatory human rights due diligence

On March 10, 2021, the European Parliament adopted a resolution submitting to the Commission and Council a draft Directive on corporate due diligence and corporate accountability.

While the draft Directive incorporates certain elements proposed in September by the Committee on Legal Affairs, others have been left out such as the constitution of criminal offense in case of intentional repeated infringements.

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Keeping up with developments on human rights obligations for business

While the European Union is currently working on a Directive setting up mandatory human rights due diligence, worldwide, bills are being discussed to increase corporate accountability. The comparative table below provides an overview of key provisions of national legislation.

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First draft on EU mandatory human rights due diligence out

See update on the EU Parliament draft Directive adopted on March 10, 2021.

On September 2020, the EU Parliament Committee on Legal Affairs published a draft report containing a text of proposed Directive on mandatory human rights due diligence and recommendations to the EU Commission.

According to an EU Commission study, currently, only 37% of business respondents conduct environmental and human rights due diligence and only 16% cover the entire supply chain.

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