With 19 votes against 3 and 3 abstentions, MEPs on the Legal Affairs Committee adopted their position on so-called corporate sustainability due diligence. Firms would be obliged to identify, and where necessary prevent, end or mitigate the negative impact of their activities, including that of their business partners, on human rights and the environment. This includes child labour, slavery, labour exploitation, pollution, environmental degradation and biodiversity loss.

More firms to be liable for impact on human rights and environment

Companies would also be required to evaluate their value-chain partners when carrying out their “due diligence”, MEPs say. This should include not only suppliers, but also activities related to sale, distribution and transport. Adverse impact would have to be mitigated and remedied by adapting the company’s business model, providing support to SMEs or seeking contractual assurances.

MEPs extended the application of the new rules, compared to…