Global companies will be held more accountable by host of new laws
In July groundbreaking human rights legislation was adopted by the E.U. encompassing manufacturing supply, raw materials and other parts of companies’ supply chains. Though it will not enter into force until 2027, MSN reports some global companies are already moving closer to compliance thanks to local laws supporting human rights due diligence which includes modern slavery.
Companies everywhere must “respect human rights”
The Corporate Sustainability Due Diligence Directive (CSDDD) is the name of a new rule passed earlier this year by the E.U. The CSDDD requires European companies to identify and prevent human rights abuses in their supply chains including modern slavery. If they don’t, they face increasing legal risks, according to the Minderoo Foundation, an Australian philanthropic organization. And legal risk is a major issue for investors. The CSDDD will hopefully see investors using their leverage to foster positive change.
Minderoo stated:
“Investors play a crucial role in driving ethical business practices and ensuring companies respect human rights in their operations.”
Amnesty International said the CSDDD “should send a message to all companies everywhere that they must respect human rights”. Prior to the CSDDD being passed some large Dutch pension funds were already raising the alarm about slavery in corporate supply chains. This rule is a first step towards addressing those concerns.