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The EU is working on mandatory supply chain due diligence, to fight against human rights and environmental violations

The EU is working on several mandatory supply chain due diligence schemes.   

After the conflict minerals regulation (gold, tantalum, tungsten, tin) (applicable on 1 January 2021) and the 2020 proposal for battery parts (which is likely to cover nickel and cobalt), this proposal carried by Commissioner Reynders could have a much broader impact, and apply to all sectors. 

... the EU is looking at making multinationals responsible for human rights — and perhaps environmental violations — throughout their supply chains. This turns the issue from a trade thing into a due diligence corporate governance thing and puts it into the enthusiastic hands of Didier Reynders, the Belgian justice commissioner, who is super-keen. ... At an EU level, assuming they will be compulsory, the rules could be implemented by expanding existing corporate reporting requirements. More excitingly, the EU could create mandatory due diligence as a legal standard of care for companies to “identify, prevent, mitigate and account for actual or potential human rights and environmental impacts”, with serious fines for violation.


transportation, supply chain, due diligence, human rights, sustainability