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Many EU companies are causing or contributing to environmental damage through their own operations or global value chains, creating a huge environmental footprint worldwide.
As the largest trading bloc in the world, the EU has the responsibility to take action to stop business activity from causing and contributing to serious and irreversible environmental harm and loss of natural resources at home and abroad.
As the European Union (EU) develops a directive on sustainable corporate governance, this briefing outlines why and how environmental protection must be integrated into companies’ due diligence requirements alongside respect for human rights.
The scope of the directive must include the environment in order to effectively contribute to the sustainability objectives enshrined in the EU Treaties and the Green Deal, as well as to meet the EU’s climate-related commitments. Establishing mandatory environmental due diligence requirements at the EU level is crucial for ensuring that companies respect the environment.