Lawmakers in the European Parliament passed a resolution to tackle environmental and human rights issues in the supply chains of EU businesses by 504 votes to 79 on Wednesday (10 March) ahead of the Commission’s proposal on corporate due diligence later this year.
The report introduces mandatory due diligence to ensure supply chains do not include environmental or human rights violations and calls for fines and sanctions for those found breaching the rules. It also demands better access to justice for victims in third countries.
While some European companies monitor their supply chains, others do not. The resolution aims to level the playing field and fix the patchwork of current legislation and voluntary schemes.
“Existing international due diligence instruments have failed to provide victims of human rights and environmental adverse impacts with access to justice and remedies because of their non-judicial and voluntary nature,” according to the resolution.
“The time for voluntary standards is over,” said Lara Wolters, a Dutch socialist MEP who is the lead author of the Parliament report. “Due diligence should be exercised by all companies with risks in their supply chains,” she said during at a debate in the assembly’s plenary on Monday (8 March).
“The status quo means companies doing the right thing are at a competitive disadvantage. That time is at an end. Businesses fully understand that mandatory standards are the only path to a level playing field and to business certainty,” she told EURACTIV.
The original full article can be found at euractiv.com