END OF THE ROAD FOR TRANSNATIONAL CORPORATIONS ?

The document analyzes the French corporate duty of vigilance law passed on March 23, 2017, which requires large companies to prevent human rights and environmental violations in their supply chains. It uses case studies involving Total's palm oil biorefinery, Société Générale's financing of LNG terminals in the US, and French supermarkets' banana sourcing in Ecuador to demonstrate the law's necessity. The report concludes by advocating for a binding UN treaty to internationalize these standards and ensure victims' access to justice globally.

• The French law on the 'duty of vigilance', passed on March 23, 2017, legally obliges parent and outsourcing companies to identify risks and prevent serious violations of human rights, fundamental freedoms, and the health and safety of people and the environment within their corporate groups and supply chains, both in France and abroad.
• The law applies to any company with more than 5,000 employees in France or more than 10,000 employees worldwide, though this high threshold excludes some companies in high-risk sectors like the garment or extractive industries.
• Under the law, companies must establish a vigilance plan including risk-mapping, procedures to assess subsidiaries and suppliers, risk mitigation actions, a whistleblowing mechanism, and monitoring measures.
• Total S.A. is criticized for its biorefinery project in La Mède, which uses palm oil as a primary source; the report argues that the project will double France's palm oil imports and likely cause deforestation and high greenhouse gas emissions despite Total's reliance on unreliable certification schemes like RSPO.
• Société Générale's role as a financial adviser for the Rio Grande LNG terminal and Rio Bravo Pipeline in Texas is highlighted as a violation of its duty of vigilance due to risks including methane leakage, threats to the Laguna Atascosa reserve's biodiversity, and lack of consultation with the indigenous Esto’k Gna people.
• French supermarket chains (including Carrefour, Auchan, and Casino) are identified as having significant power over the Ecuadorian banana supply chain, where workers face inadequate living wages, exposure to toxic pesticides like paraquat, and systemic disregard for union rights.
• The report argues that voluntary standards, such as the UN Guiding Principles on Business and Human Rights and OECD Guidelines, are inadequate because they lack enforcement mechanisms and fail to provide victims with access to justice and compensation.
• Since 2014, an Open-ended Intergovernmental Working Group (IGWG) at the UN has been negotiating a legally binding international instrument on transnational corporations and human rights, though the European Union has been reluctant to participate.

APA

Friends of the Earth International (n.d.). END OF THE ROAD FOR TRANSNATIONAL CORPORATIONS ? https://www.foei.org/wp-content/uploads/2017/10/end_of_the_road_for_tncs_foef-aaf-oct17_ENG.pdf

Chicago

Friends of the Earth International. END OF THE ROAD FOR TRANSNATIONAL CORPORATIONS ? n.d. https://www.foei.org/wp-content/uploads/2017/10/end_of_the_road_for_tncs_foef-aaf-oct17_ENG.pdf.

Wikipedia

{{cite report |author=Friends of the Earth International |title=END OF THE ROAD FOR TRANSNATIONAL CORPORATIONS ? |url=https://www.foei.org/wp-content/uploads/2017/10/end_of_the_road_for_tncs_foef-aaf-oct17_ENG.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{friendsoftheearthinternationalndend, author = {{Friends of the Earth International}}, title = {{END OF THE ROAD FOR TRANSNATIONAL CORPORATIONS ?}}, institution = {Friends of the Earth International}, url = {https://www.foei.org/wp-content/uploads/2017/10/end_of_the_road_for_tncs_foef-aaf-oct17_ENG.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }