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24 Feb 2020

EU Commission releases study on options for regulating due diligence

The research highlights that:

  • The majority of stakeholders responded that the current regimes of voluntary measures have failed to significantly change the way businesses manage their social, environmental and governance impacts, and provide remedy to victims.

  • Only 1/3 of business respondents stated that they currently undertake some form of due diligence which takes into account all human rights and environmental impacts. In their response, civil society is united in its call for mandatory and enforceable EU due diligence rules, while a majority of businesses are recognising the value of enforceable EU rules.
  • A majority of stakeholders favour a cross-sectoral approach for an EU law, which will ensure effective harmonisation, legal certainty, a level playing field, and allow for a non-negotiable standard for business relationships throughout the supply chain.