National Framework Climate Laws Performance and key learnings

The document advocates for a comprehensive EU directive on corporate due diligence to prevent environmental harm. It argues against size-based thresholds for companies, citing the seafood and timber industries as examples where small and medium enterprises (SMEs) can cause significant damage. It emphasizes the necessity of a 'life cycle' approach to value chains, particularly for fossil fuels (addressing Scope 3 emissions and methane leakage) and plastics (addressing pellet pollution). Finally, it calls for mandatory, detailed public reporting to ensure corporate accountability, using the automotive sector's emissions and battery supply chains as a case for transparency.

• The proposed EU legislation should adopt a 'non-exhaustive list' to define adverse environmental impacts, including climate change, pollution of air, soil, water and noise, hazardous substances, waste production, and loss of biodiversity, forests, habitats, and species.
• Due diligence obligations should apply to companies of all sizes, including SMEs, because thresholds create loopholes and smaller companies can still cause significant environmental damage, as seen in the seafood industry where the cumulative impact of several SMEs can equal that of one large business.
• The EU Timber Regulation (EUTR) serves as a precedent that due diligence is feasible for companies of all sizes, with some Member States providing significant technical assistance to SMEs, such as Germany providing training to 4,000 operators in 2019.
• Due diligence must cover the entire life cycle of a product to be effective. In the fossil fuel sector, this is critical because Scope 3 emissions—produced when fuels are burned—account for 60-90% of the overall greenhouse gas footprint for these companies.
• Fossil fuel companies often use 'intensity' targets and ignore methane leakage in the value chain, which can mask absolute emission increases and undermine the transition to net zero.
• A life-cycle approach is necessary for plastics to address issues like pellet pollution—estimated at 167,000 tonnes leaking into the European environment annually—and the greenhouse gas emissions from 'cracking' fossil fuels.
• Mandatory public reporting and transparency are essential for accountability, particularly in the automotive sector to disclose real-world emissions data and the supply chains of batteries for electric vehicles.

APA

Henriot, C., & Berthier, A. (2021). National Framework Climate Laws Performance and key learnings. ClientEarth. https://www.clientearth.org/media/kjxj2rje/clientearth-briefing-close-the-loop-addressing-businesses-adverse-environmental-impacts.pdf

Chicago

Henriot, Clotilde, and Anaïs Berthier. National Framework Climate Laws Performance and key learnings. ClientEarth, 2021. https://www.clientearth.org/media/kjxj2rje/clientearth-briefing-close-the-loop-addressing-businesses-adverse-environmental-impacts.pdf.

Wikipedia

{{cite report |last1=Henriot |first1=Clotilde |last2=Berthier |first2=Anaïs |title=National Framework Climate Laws Performance and key learnings |publisher=ClientEarth |date=July 2021 |url=https://www.clientearth.org/media/kjxj2rje/clientearth-briefing-close-the-loop-addressing-businesses-adverse-environmental-impacts.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{henriot2021national, author = {Henriot, Clotilde and Berthier, Anaïs}, title = {{National Framework Climate Laws Performance and key learnings}}, institution = {ClientEarth}, year = {2021}, month = jul, url = {https://www.clientearth.org/media/kjxj2rje/clientearth-briefing-close-the-loop-addressing-businesses-adverse-environmental-impacts.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }