There will be fines of up to 5% of global billing in case of violation.
He European Parliament approved the legislative proposal press and promote human rights and the environment in large companies. In this way, the companies within the European Union (EU) will be obliged to identify and eliminate practices that promote child laborhe forced laborthe pollution wave environmental degradation and the diversity loss throughout the entire value chain of its operations.
The proposal went ahead with a total of 366 upvotes, 225 against and 38 abstentions. The so-called directive on due diligence of sustainability companies provides for fines of up to 5% of the global turnover of corporations that do not meet the requirements.
In addition to protect human rightscompanies will have to develop a transition plan for limit global warming to 1.5°C.
The proposal also requires companies to take action with respect to those affected by their activityincluding human rights and environmental activists, introduce a grievance mechanism and regularly monitor the effectiveness of the due diligence policy.
The companies that must carry out the new measures
According to official documentsthe new rules will apply to EU based companiesfrom all sectors with more than 250 employees and one turnover of more than 40 million euros. As well as those who have more than 500 employees and a global billing above the €150 million.
For their part, non-European companies with a turnover that exceeds €150 millionwith at least 40 million generated in the EUwill also be covered.
Source: Ambito
