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Commission study shows the need for EU-level legislation on due diligence throughout the supply chain on #HumanRights and #EnvironmentalImpacts

...70% of  the 334 business survey respondents agreed that EU-level regulation on a general due diligence requirement for human rights and environmental impacts could provide benefits for business.

Justice Commissioner Didier Reynders said: “Companies told us they believe that EU rules would here provide legal certainty and a harmonized standard for businesses’ duty to respect people and the planet. As working towards climate neutrality is among the top priorities of this Commission, I will make sure the results of this important study are taken into account for future work.”

The study was launched in December 2018, as part of the Commission’s Action Plan on Financing Sustainable Growth. It examines options for regulating due diligence in companies’ own operations and through their supply chains for adverse human rights and environmental impacts, including relating to climate change. This study also feeds into the objectives of the European Green Deal, which highlights that sustainability should be further embedded into the corporate governance rules across the EU, as many companies focus too much on short-term financial performance compared to their long-term development and sustainability aspects. More information on the study can be found here.

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