On 10 March 2021, The European Parliament considered and adopted an outline proposal for the “EU Directive on Mandatory Human Rights, Environmental and Good Governance Due Diligence” (the Directive). The European Commission has now been tasked with drafting a formal legislative proposal for the Directive, to be presented to the European Parliament in summer 2021. Whilst the Directive is not expected to come into force until late 2022 or early 2023, companies falling within its scope will need to start gearing up to ensure they’re ready when the new requirements kick in.
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