Last night we reached a deal in @EP_Legal on the due diligence directive. This is a huge step forward to a European law that will make companies conduct business responsibly. But what is in the deal? 🧵
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🐦🔗: https://n.respublicae.eu/larawoltersEU/status/1648392216765669386
Throughout their value chain, both upstream and downstream, companies are expected to address adverse impacts on human rights and the environment - including climate and corruption.
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🐦🔗: https://n.respublicae.eu/larawoltersEU/status/1648392219777179666
Companies will need to have in place a due diligence policy. When a company finds a potential human rights or environmental risk, it should take measures accordingly to prevent or end impacts.
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🐦🔗: https://n.respublicae.eu/larawoltersEU/status/1648392223614967826
In identifying, preventing, prioritising and remedying those risks, companies shall continually engage with affected stakeholders. Such stakeholders can be victims, but also trade unions, NGOs and human rights defenders.
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🐦🔗: https://n.respublicae.eu/larawoltersEU/status/1648392228392390663
No more impunity - our deal makes companies liable for not doing due diligence properly, which means they have caused or contributed to a harm they could have avoided. We guarantee measures to redress the balance in victims’ favour.
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🐦🔗: https://n.respublicae.eu/larawoltersEU/status/1648392237967876103
In the agreement, we set a great step towards genuine action by companies on the climate crisis. Companies need to introduce ambitious climate plans, in line with the Paris Climate agreement, including Scope 1, 2 and 3 emissions.
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🐦🔗: https://n.respublicae.eu/larawoltersEU/status/1648392242871017496
Directors also need to take responsibility for overseeing due diligence, and bonuses should be tied to their efforts
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🐦🔗: https://n.respublicae.eu/larawoltersEU/status/1648392246771720211
Contrary to the Council, we have a strong set of sanctions in our deal. When companies do no conduct due diligence properly, they can e.g. face fines or a product can be taken from the market until a company takes action.
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🐦🔗: https://n.respublicae.eu/larawoltersEU/status/1648392250852778000
With this deal companies will have to do business responsibly, across the EU and beyond. Next week @EP_Legal will vote on the agreement. When approved, full steam ahead to the vote in plenary!
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🐦🔗: https://n.respublicae.eu/larawoltersEU/status/1648392255160418305
Companies must remediate any harm in full dialogue with those affected, including compensation or rehabilitation. This is a core part of the international guidelines and completely missing from the Commission proposal.
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🐦🔗: https://n.respublicae.eu/larawoltersEU/status/1648392233177980934