EU agrees rules for corporate sustainability due diligence directive

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🗞️ Driving the news: The European Union has informally agreed on new corporate sustainability due diligence legislation 
• This will apply to large EU and non-EU companies, especially in the textile and apparel sector, mandating integration of "due diligence" into their policies and risk management systems

🔭 The context: The legislation targets companies with significant employee counts and high turnover, focusing on mitigating negative impacts on human rights and the environment
• This includes addressing issues like child labor, labor exploitation, pollution, and excessive water consumption.

🌍 Why it matters for the planet: These rules aim to ensure businesses align with global warming limits and tackle detrimental effects on ecosystems
• Companies must identify, assess, and remedy their impact, and that of their partners, on people and the planet.

⏭️ What's next: Formal approval from the European Parliament, Legal Affairs Committee, and EU Council is pending
• Upon approval, companies will be obligated to implement these measures, with supervisory authorities overseeing compliance and imposing penalties for non-adherence.

💬 One quote: Lead MEP Lara Wolters stated, "This law is a historic breakthrough. Companies are now responsible for potential abuses in their value chain, 10 years after the Rana Plaza tragedy."

📈 One stat: Large companies, defined as those with over 500 employees and a worldwide turnover higher than €150m, are primarily targeted, alongside smaller high-risk sector companies.

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