CEU Electronic Theses and Dissertations, 2023
| Author | Sumesh Shiwakoty |
|---|---|
| Title | European Commission's Proposed Corporate Sustainability Due Diligence Directive: Potential Compliance And Implementation Challenges And What The Proposed Legislation Can Learn From The Expereinces Of Similar Due Diligence Laws |
| Summary | On 23rd February 2022, the European Commission published a draft Corporate Sustainability Due Diligence Directive (Draft Directive). Although, the Draft Directive still needs to go through the European Parliament and the Council before it becomes binding. However, if it passes legislative scrutiny and gets approved, it will create legal obligations for the EU companies as well as various global companies doing business in the EU over a specified threshold to conduct various environmental and human rights due diligence throughout their global supply chain. Though this Draft Directive has the potential to be a milestone in establishing the practice of sustainable and human rights due diligence globally, the success of this legal regime would require wider support and seamless compliance. This paper would thus focus on the potential compliance challenges for the companies as well as touch upon implementation challenges authorities may face. While doing so, the paper will examine similar laws with special emphasis on the French 'Duty of Vigilance' law of 2017 (Vigilance law) and the United Kingdom's Modern Slavery Act of 2015 (MSA) and what Draft Directive can learn from experiences of those laws. Deriving conclusions from the experiences of those similar due diligence laws, the paper will warn that obscurity in certain places in the text of the Draft Directive and not learning lessons from the experiences of MSA and Vigilance Law may also create challenges for the seamless compliance with Draft Directive. The paper will conclude with recommendations on how the European Commission should incorporate the lessons learned throughout the journey of Human Rights Due Diligence (HRDD), as well as findings from other scholarships, into the Draft Directive. Moreover, the paper further illustrates various areas of the Draft Directive, which further research and scholarships could help strengthen. |
| Supervisor | Schmidt-Kessen, Maria José |
| Department | Legal Studies MA |
| Full text | https://www.etd.ceu.edu/2023/shiwakoty_sumesh.pdf |
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