Clifford Chance

Mandatory Human Rights and Environmental Due Diligence: What an EU-level law will mean for business

19 January 2021

On 29 April 2020, the European Commissioner for Justice, Didier Reynders, announced his intention to introduce a legislative initiative on mandatory human rights and environmental due diligence (“mHREDD”), and has observed that there is a need for "real regulation, with obligations and with liability".

On 4 November 2020, the Global Business Initiative on Human Rights (GBI) and Clifford Chance hosted a business dialogue to explore what the proposed mHREDD law is likely to look like and what it will mean for business.

Building on that discussion, this briefing provides a practical overview of the proposed mHREDD law and the processes that will lead to eventual legislation, and shares key considerations for business – as well as other interested stakeholders. It also provides information about the current consultation launched by the European Commission to inform the legislative proposal that it expects to publish this year.

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