The new EU directive adopted on May 24, 2024, requiring large companies to ensure human rights respect in their value chains signals a new era for corporate accountability.

(Brussels) – The new EU directive adopted on May 24, 2024, requiring large companies to ensure human rights respect in their value chains signals a new era for corporate accountability, Human Rights Watch said today. Human Rights Watch issued a question-and-answer document about the provisions, strengths, and weaknesses of the new law.

The document describes how the EU Corporate Sustainability Due Diligence Directive (CSDDD) will require companies to conduct due diligence. Under the new law, large companies will be required to identify, mitigate, prevent, and remedy harmful human rights and environmental impacts in their operations and their value chains; that is, the company’s business partners involved in production, distribution, transport, and storage of the company’s products. It provides for regulatory oversight and the possibility of initiating civil lawsuits against corporations in European courts.

“The EU’s Due Diligence Directive represents a landmark shift from voluntary corporate responsibility to mandatory obligations for corporations to prevent and address human rights abuses,” said Tirana Hassan, executive director at Human Rights Watch. “This groundbreaking law is a major victory for rights groups, trade unions, and civil society networks at the forefront of the fight for corporate accountability. Despite fierce opposition from powerful corporate lobbyists seeking to thwart or indefinitely postpone this law, this directive is a testament to the strength and perseverance of those advocating for justice and accountability in the corporate sector.”