EU Parliament Backs Company Checks on Suppliers’ Environmental Impact in ‘Groundbreaking’ Vote

The European Parliament voted in favour of corporate climate transition plans that will require companies to identify their suppliers’ impact on human rights and the environment. 

The new rules are set to strengthen the corporate sustainability due diligence directive, which was proposed by the EU’s main legislative body, the European Commission earlier this year. 

According to lawmakers, the “groundbreaking” draft law will mandate large companies to check whether their suppliers are damaging the environment or breaching human rights. 

The new directive will also require large companies to publish their plans on cutting carbon emissions to reach net zero. They will also have to take mitigation action if their suppliers have been found to damage the environment.  

Negotiations with EU member states, who can veto the agreement, will start in June. 

In a press conference following the vote, Lara Wolters, who led the report on corporate sustainability said this new vote was “the piece that was missing after the CSRD,” referring to the EU’s upcoming sustainability reporting requirements for companies. 

“The European Parliament’s support is a turning point in the thinking about the role of corporations in society. A corporate responsibility law must ensure that the future lies with companies that treat people and the environment in a healthy way – not with companies that have made a revenue model out of environmental damage and exploitation,” Wolters said.   

Stay ahead with ClearVUE.Business 

Governments and clients are paying attention to which companies are embracing sustainability.  

Forward-thinking businesses will see this as an opportunity to create a future-proof strategy that strengthens their clients’ loyalty, their compliance with legislation, and their bottom line. 

At ClearVUE.Business, we provide this strategy and more. 

Our platform ClearVUE.Zero measures your emissions in real-time, so your climate transition plans are measured and can be easily reported. 

Our team of sustainability experts work with you to break down your climate transition plans in small, actionable steps that yield big results.  

See our strategy in action.

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