Key dates:
Approved: 24 April 2024. Phased approach based on company size and turnover.
Applies to:
EU companies with more than 1,000 employees and a global turnover of €450 million+. Non-EU companies with a turnover of €450 million+ generated in the EU market.
What it says:
The provisional agreement says companies must implement due diligence strategies to mitigate human rights violations and negative environmental impacts from their operations. Companies of a certain size will also have to adopt a plan to ensure that their business strategy is compatible with limiting global warming to 1.5°C, in line with the Paris Agreement.
Penalty:
Companies found in violation will be subject to sanctions, including fines and compliance orders. Victims impacted by malpractices will be owed compensation.