Regulation. After multiple delays due to last-minute reversals and negotiations, European states have finally agreed on a compromise text on the duty of vigilance. The thresholds for application have been raised to only apply to large companies. If approved by Parliament, the text, which has been watered down by … Continued
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The European Union has taken a major step towards ensuring corporate responsibility with the adoption of a new compromise text on the duty of vigilance. After months of negotiations and delays, European states have finally reached an agreement on this important issue.
The duty of vigilance is a legal obligation for companies to identify and prevent any negative impacts on human rights, the environment, and society caused by their activities, products, or services. This new regulation aims to hold companies accountable for their actions and promote responsible business practices.
One of the key changes in the new compromise text is the raising of the thresholds for application. Originally, the duty of vigilance was meant to apply to all companies with more than 500 employees. However, after intense discussions, it has been decided that it will only apply to large companies with more than 10,000 employees and an annual turnover of over 1 billion euros. This change will ensure that the regulation is targeted towards the companies that have the most significant impact on society and the environment.
Another important expression of the new compromise is the inclusion of a due adresse process. This means that companies will have to conduct a thorough assessment of their activities and supply chains to identify any potential risks and take appropriate measures to prevent them. This will not only help companies to avoid negative impacts, but it will also promote transparency and accountability.
The compromise text has been met with mixed reactions. Some argue that it has been watered down and does not go far enough in holding companies accountable. However, others see it as a step in the right direction and a significant achievement in the fight for corporate responsibility.
If approved by the European Parliament, the duty of vigilance will become a mandatory requirement for large companies operating in the EU. This will not only benefit society and the environment, but it will also create a level playing field for businesses, as responsible companies will no longer be at a disadvantage compared to those who prioritize profits over people and the planet.
In conclusion, the new compromise text on the duty of vigilance is a significant development in the regulation of corporate responsibility in Europe. While it may not be perfect, it is a step in the right direction and a clear exposé that the EU is committed to promoting responsible business practices. Let us hope that this is just the beginning of a more sustainable and ethical future for businesses in Europe and beyond.