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EU: New business sustainability law must be strengthened to protect human rights

EU: New business sustainability law must be strengthened to protect human rights

 


New legislation governing the human rights and environmental obligations of businesses in the EU, known as the Corporate Sustainability Due Diligence Directive, risks being undermined by exemptions and loopholes, Amnesty International said today.

A new report was released todayClosing the loopholes: Recommendations for an EU corporate sustainability law that works for rights holdersidentifies some serious gaps in the proposed legislation, which will be voted on by the European Parliament on June 1, before final negotiations between the EU’s governing bodies begin later next month.

Hannah Storey, Amnesty International’s Policy Adviser on Business and Human Rights, and author of the report said:

This new law could set a legal benchmark and protect people in Europe and beyond from corporate harm, closing a legislative loophole that has allowed companies to commit widespread rights abuses around the world and escape responsibility.

However, the scope of the law as currently drafted by the European Commission and EU member states is very narrow. It will fail to stop abuses related to the end-use of many products, such as rubber bullets and other law enforcement equipment, which can still be exported to police or security services outside the EU and used to commit abuses.

It will fail to stop abuses related to the end-use of many products such as rubber bullets … which can still be exported to police or security services outside the EU and used to commit abuses.

Hannah Storey, Amnesty International Business and Human Rights Policy Adviser

Legislation fails to sufficiently address the impact of businesses on climate change. It forces large companies to adopt climate mitigation plans, but contains no obligation to implement them. Nor does it hold them accountable for the damage they may cause to the climate, despite climate change being fundamentally a human rights issue.

Amnesty International calls on EU legislators to strengthen what was proposed by the Commission and Member States and develop strong legislation to stop corporate harm and support victims in accessing justice.

Barriers to justice rise along gender and race lines

Victims of human rights violations have the right to effective remedies. The Corporate Due Diligence Directive (CSDDD) will create an urgently needed pathway to redress for victims of corporate-related harm, but it does not address the barriers victims face when trying to access justice.

Hannah Story said: When indigenous peoples, workers in garment supply chains, poor farmers and human rights defenders are confronted with massive corporate power and influence, the scales of justice are not balanced.

When indigenous peoples, workers in garment supply chains, poor farmers and human rights defenders are confronted with massive corporate power and influence, the scales of justice are not balanced.

Hannah Storey, Amnesty International Business and Human Rights Policy Adviser

This directive could greatly improve access to justice, but the legislation fails to address existing barriers such as high costs and lack of access to information, meaning victims are more likely to be left without a remedy.

Missing links in the value chain

The CSDDD requires companies to conduct human rights and environmental due diligence in relation to their operations and their value chain.

According to international standards, the value chain normally refers to the full range of activities necessary to create a product, including the extraction of raw materials and the use of a product or service.

However, the use of products is excluded from the CSDDD definition of value chain.

Limiting the definition of the value chain that companies are required to assess as part of their human rights and environmental due diligence, including failing to account for the end use of their products, is likely to result in significant abuses of human rights, said Hannah Storey. .

Sources

1/ https://Google.com/

2/ https://www.amnesty.org/en/latest/news/2023/05/eu-new-business-sustainability-law-must-be-strengthened-to-protect-human-rights/

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