DUTY OF CARE

May 2024

On 24 May 2024, the Council adopted the Directive on companies’ duty of care with regard to sustainability. This is the final stage in the decision-making process.

The directive introduces obligations for large companies regarding the negative impact of their activities on human rights and environmental protection. It also sets out the responsibilities associated with these obligations. The rules apply not only to the activities of companies themselves, but also to those of their subsidiaries and business partners throughout the company’s chain of operations.

The guidelines to be drawn up by the European Commission will be essential to guide companies in setting up their due diligence system.