In a critical vote in today’s plenary session, the Socialists and Democrats led a progressive majority for binding new rules on making sure businesses behave responsibly, both inside and outside the EU.
After three years of negotiations, Parliament has reached a common position on what responsible business means in the Corporate Sustainability Due Diligence Directive. Companies will be required to identify, prevent and correct any damage caused – such as environmental harm or human rights abuses – throughout the entire value chain of their operations, from design and production to sales and distribution. There will be sanctions on companies that fail to comply with the rules – such as possible penalties of up to 5% of a company's turnover – and CEOs should take personal responsibility for due diligence, with direct links to remuneration.
With a negotiating mandate now agreed, S&D MEP Lara Wolters will lead the European Parliament’s negotiations with the Council as a part of the trilogue talks.
Lara Wolters, European Parliament rapporteur for due diligence, said:
“Over the years, irresponsible business practices have cost thousands of lives and destroyed thousands of livelihoods. Thousands of children left parentless and thousands of families left homeless, all in the name of corporate greed.
“As the world’s largest single market, the EU has the power to fix the damaged chain. Greedy companies should no longer be able to turn a blind eye to the damage they do to the environment and human rights, no matter where it takes place in their value chain; either in or outside the EU.
“Today’s vote is a landmark moment. It is a commitment to reach an agreement with EU governments on binding rules for responsible business conduct. Now, our job is to deliver on Parliament’s ambition.
“The conservatives did their utmost to dilute and undermine our work. Despite the unity built among the political groups in the legal affairs committee, the EPP has played irresponsible politics to undo the hard-fought consensus we had reached in the committee vote.
“Instead of voting to protect people and planet, the EPP Group today showed that their real priority is protecting the profits of their boardroom benefactors.”
Notes to editors – Main achievements for the S&D Group
Links:
[1] https://socialistsanddemocrats.eu/newsroom/sds-after-winning-todays-crucial-vote-responsible-business-conduct-our-job-now-deliver