The European Parliament’s legal committee adopted a report on Wednesday calling on the European Union to legally require companies to protect human rights and the environment in their supply chains.
The move is intended to increase EU scrutiny of companies over the impact their operations have on the environment and people globally, not just in the 27-country bloc.
The report urged the European Commission, the EU executive, to propose mandatory due diligence requirements on environmental and human rights risks for all companies and sectors established in the bloc. State-owned undertakings and the financial sector should be included, it said.
“Today, there is no common European set of rules that holds companies liable for harm done to human rights and the environment in their supply chains,” said EU lawmaker Lara Wolters, who drafted the report.