The EU’s Corporate Sustainability Due Diligence Directive proposal (Directive) is a commendable effort to create a harmonised due diligence framework aimed at improving companies’ responsible business conduct and accountability in their activities. However, more must be done to ensure the regime is proportionate, workable and conducive to achieving the primary goal of the legislation, while respecting the due diligence preferences and approaches of other jurisdictions. Specifically, the EU must focus on strengthening the risk-based nature of the new regime, minimising the potential for diverging application, tackling the onerous civil liability regime and addressing the unduly extraterritorial nature of the law.
Updated recommendations to the Corporate Sustainability Due Diligence Directive
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