strengthening-corporate-responsibility-the-case-for-mandatory-due-diligence-in-the-eu-to-protect-people-and-the-planet-coll-en-035b5afe5d594640.pdf

The report by ClientEarth and Global Witness advocates for a comprehensive EU-wide mandatory due diligence framework to replace failing voluntary corporate commitments. It highlights the EU's role in driving global deforestation and human rights abuses, particularly in the agricultural sector. The authors propose a system based on OECD Guidelines that covers all EU-based companies and investors, regardless of size, and includes strict transparency requirements, a robust penalty regime, and access to justice for affected parties outside the EU.

• EU consumption and investment significantly contribute to global deforestation; a European Commission study indicated that EU imports were responsible for over one-third of all deforestation embodied in crop and livestock products traded between regions from 1990 to 2008.
• Voluntary corporate commitments to eliminate deforestation are largely ineffective, with none of the 500 largest companies and financial institutions in forest-risk supply chains on track to meet their 2020 goals.
• Existing EU reporting requirements, such as the Non-Financial Reporting Directive, are insufficient because they do not mandate due diligence and often lack clear information on concrete risks and targets.
• Effective due diligence should be an iterative, risk-based process consisting of four key steps: identifying and assessing risks, taking action to cease or mitigate them, monitoring effectiveness, and ensuring stakeholder participation.
• The report argues that due diligence must go beyond mere legality, as national laws in producing countries may be contradictory or lack necessary protections for forests and local communities.
• The proposed legislation should apply to all EU-based companies or those providing goods and services in the EU, including financiers and investors, to avoid fragmentation and ensure a level playing field.
• To be effective, the framework requires a dissuasive penalty regime for failures in risk mitigation and reporting, as the absence of penalties has weakened the application of previous directives.
• The report warns against over-reliance on third-party auditors and industry-led certification schemes (such as RSPO or RTRS), stating they are not substitutes for rigorous corporate due diligence.
• The authors recommend that the EU use Article 114 of the TFEU, potentially combined with Article 192(1), as the legal basis to harmonise due diligence rules across the internal market.

APA

ClientEarth (n.d.). strengthening-corporate-responsibility-the-case-for-mandatory-due-diligence-in-the-eu-to-protect-people-and-the-planet-coll-en-035b5afe5d594640.pdf. https://www.clientearth.org/media/anxpmqvt/strengthening-corporate-responsibility-the-case-for-mandatory-due-diligence-in-the-eu-to-protect-people-and-the-planet-coll-en.pdf

Chicago

ClientEarth. strengthening-corporate-responsibility-the-case-for-mandatory-due-diligence-in-the-eu-to-protect-people-and-the-planet-coll-en-035b5afe5d594640.pdf. n.d. https://www.clientearth.org/media/anxpmqvt/strengthening-corporate-responsibility-the-case-for-mandatory-due-diligence-in-the-eu-to-protect-people-and-the-planet-coll-en.pdf.

Wikipedia

{{cite report |author=ClientEarth |title=strengthening-corporate-responsibility-the-case-for-mandatory-due-diligence-in-the-eu-to-protect-people-and-the-planet-coll-en-035b5afe5d594640.pdf |url=https://www.clientearth.org/media/anxpmqvt/strengthening-corporate-responsibility-the-case-for-mandatory-due-diligence-in-the-eu-to-protect-people-and-the-planet-coll-en.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{clientearthndstrengtheningcorporateresponsibilitythecaseformandatoryduediligenceintheeutoprotectpeopleandtheplanetcollen035b5afe5d594640pdf, author = {{ClientEarth}}, title = {{strengthening-corporate-responsibility-the-case-for-mandatory-due-diligence-in-the-eu-to-protect-people-and-the-planet-coll-en-035b5afe5d594640.pdf}}, institution = {ClientEarth}, url = {https://www.clientearth.org/media/anxpmqvt/strengthening-corporate-responsibility-the-case-for-mandatory-due-diligence-in-the-eu-to-protect-people-and-the-planet-coll-en.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }