By: The Guardian
March 10, 2021
Big majority in EU parliament vote for corporate due diligence along entire supply chains, which will include UK businesses
The EU took a step closer to holding companies to account for environmental damage and human rights abuses committed by their subsidiaries and suppliers overseas, with a vote in the European parliament on Wednesday.
MEPs voted by a large majority, 504 to 79 (with 112 abstentions), to push forward with proposed legislation that would require companies to conduct due diligence throughout their supply chain, to root out abuses and environmental harm such as deforestation and pollution.
The European commission is expected to table a law in June based on the MEPs’ vote. The legislation should oblige companies to identify, address and remedy any aspects of their supply chain that could infringe human rights, the environment or good governance. The rules would apply to all businesses operating within the EU, including those based outside EU member states, such as UK companies.