Kaicoaching

What are the benefits of these new rules?

For citizens Better protection of human rights, including labour rights. Healthier environment for present and future generations. Increased trust in businesses. More transparency enabling informed choices. Better access to justice for victims. For companies Harmonised legal framework in the EU, creating legal certainty and level playing field. Greater customer trust and employees’ commitment.

Which companies will the new EU rules apply to?

Companies Large EU limited liability companies: Group 1: +/- 9,400 companies - 500+ employees and net EUR 150 million+ turnover worldwide. Group 2: +/- 3,400 companies in high-impact sectors. - 250+ employees and net EUR 40+ million turnover worldwide, and operating in defined high impact sectors, e.g. textiles, agriculture, extraction of minerals.

What are the estimated costs of the new rules for companies?

Businesses will have to bear: The costs of establishing and operating the due diligence procedures. Transition costs, including the expenditure and investments to change a company’s own operations and value chains to comply with the due diligence obligation, if needed.

Why does the EU need to foster sustainable corporate behaviour and responsible corporate governance?

A broad range of stakeholder groups, including civil society representatives, EU citizens, businesses as well as business associations, have been calling for mandatory due diligence rules. 70% of the businesses who responded to the public consultation sent a clear message: EU action on corporate sustainability due diligence is needed. Businesses play a key role in creating a sustainable and fair economy and society.