The European Commissioner for Justice, Didier Reynders, tried to reassure MEPs in the European Parliament’s Committee on Legal Affairs (JURI) on Thursday 22 April about his ambitions for the future corporate due diligence.
With the European Commission’s proposal expected in June, MEPs wanted to ensure that the institution would maintain the same level of ambition as in the report adopted by Parliament on the subject in March (see EUROPE 12675/10).
“We envisage a holistic approach where corporate due diligence obligation is underpinned by directors’ duties”, Mr Reynders said, promising to build on the work done by the European Parliament.
“Let me assure you that specific attention will be given to costs and burdens for companies, including indirect costs and in particular for SMEs”, he also said.
The impact assessment is still underway, but the Commission is considering a possible range of solutions for targeted support, such as guidance, tools, funding, or technological solutions for traceability.
On corporate liability, the Commission is looking at ways to introduce civil liability, but also a real control by supervisory bodies and “going as far down the supply chain as possible”.
However, he acknowledged that there could be different degrees of responsibility with, for example, “an obligation of result when one is closer to the company’s operations” and “due diligence when one is further away”.
The Commission also promises to ensure alignment and coherence between this future proposal and the one presented on Wednesday (see EUROPE 12703/10) on sustainability reporting by companies. (Original version in French by Marion Fontana)