In-scope companies would have to publicly identify “actual and potential” adverse impacts of their operations on the environment and/or human rights.

By Paul A. Davies, Michael D. Green, and James Bee

On 23 February 2022, the European Commission (the Commission) published a proposal for a Directive on Corporate Sustainability Due Diligence (the Directive). If approved, the Directive would require large companies based in the EU (and certain large companies based outside of (but operating in) the EU) to conduct due diligence on a number of ESG-related issues throughout their supply chain, with failure to do so leading to possible fines or civil liability.