Companies urge EU to extend human rights, environmental rules

February 11, 2022

The letter comes after a delay in the publication of the EU Commission’s proposed legislation.

The EU Commission should extend its planned rules on human rights and environmental due diligence to cover all companies regardless of size, according to a group of more than 100 organisations.

In a letter sent to the EU Commission, the signatories expressed concerns about the impending legislation on mandatory human rights and environmental due diligence.

The group of companies and organisations called for the legislation to be broader and more effective. Signatories include Ikea, Aviva Investors, and Danone, as well as several organisations including the Ethical Trading Initiative and the International Cocoa Initiative.

The letter set out five key points the signatories wished to see in revised proposals. These include extending the legislation to encompass all companies active in the EU's internal market regardless of size, as well as taking into account a wider scope of company activities, including all operations and the full value chain.

The letter argued that the proposed legislation should “drive meaningful action on impacts on people and planet” and hence discouraged the EU commission from overreliance on audits, which might make the legislation a tick-box exercise.  

It also argued for “robust engagement” with affected stakeholders, including anyone who might be at risk from negative impacts of a company’s activity, such as workers and affected groups, unions and human rights and environmental defenders and campaigners.

Finally, the letter called for legal consequences if standards are not met, including administrative penalties and provisions for civil liability. It said that such consequences would ensure a high standard of commitment from companies as well as access to remedies or compensation for those harmed.

“We firmly believe that strong and ambitious EU legislation would make a tangible contribution to improving human rights and environmental conditions along global value chains, while helping businesses become more resilient and future-oriented,” the letter said.

A full copy of the letter can be found here. Read our last update on this story here.