Sustainability Due Diligence

Law & Sustainable Business
ESG

Since 2011, internationally operating business enterprises are expected to integrate human rights and environmental due diligence in their corporate decision-making and risk management. This expectation is firmly based in the 2011 UN Guiding Principles on Business and Human Rights and the 2011 version of the OECD Guidelines for Multinational Enterprises.  

Due diligence in this context can be described as a process through which enterprises can identify, prevent, mitigate and account for how they address the adverse impacts that their operations, including those of subsidiaries and of business partners in their value chains, may have on rights holders and the environment. Especially in recent times, the topic of responsible business conduct (RBC) in global value chains has attracted attention from European legislators, resulting in a growing number of regulatory instruments imposing obligations on companies to implement and carry out RBC-related due diligence.  

The researchers focusing on this topic address the diverging issues this type of regulation raises in connection with liability, contracts, public supervision and European coordination as well as the European level playing field. The research also addresses access to remedy, both judicial and non-judicial, and the effectiveness of the adopted and envisaged regulatory instruments. 

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