2023-12-14 13:18:58
“Agreement early this morning after a whole night of negotiations on the creation of a European duty of vigilance for large companies. This is a major step forward in pushing globalization upwards on a social and environmental level. », posted this Thursday, December 14, 2023 at 7:54 a.m. on X (ex Twitter) Pascal Canfin, Renaissance MEP, and president of the Environment Committee of the European Parliament.
« HISTORY! 7 years after the pioneering law passed by France in 2017, a Directive on the duty of vigilance was adopted this morning by the European Union »added Dominique Potier, socialist deputy for Meurthe-et-Moselle, at the initiative of the French legislation.
Temporary exclusion from the financial sector
“After 4 years of combat, this is a decisive step against the impunity of companies that destroy human rights and the planet, agrees Manon Aubry, who participated in these twenty hours of Trilogue negotiations between the European Parliament, the Council, which represents the States, and the Commission, as president of the Left group in the European Parliament. However, she points out a “shadow in the picture”. « France took advantage of the opacity of European negotiations to guarantee the total irresponsibility of the banks. she assures.
In fact, financial institutions are “temporarily” excluded from the scope of the text of the European directive, even if a review clause provides for a subsequent examination of their possible inclusion. The text must still be voted on in January or February 2024 by the European Parliament. It will then have to be transposed within two years in the different Member States of the European Union.
A text that is essential for any large company
The agreement, fiercely concluded by Member States and MEPs, “establishes obligations for large companies regarding actual or potential negative impacts on human rights and the environment, whether from their own operations, those of their subsidiaries or business partners”summarizes the Council of the EU.
“This will result in a number of companies that will have to account for the consequences of their activities on human and social rights as well as on the environment throughout their entire production chain.estimates Me Emmanuel Daoud, who defends NGOs and companies on the basis of the duty of vigilance within the Vigo cabinet. “It’s an intelligent way to extend the protection of these rights without creating a distortion of competition.”
Identify risks in vigilance plans
In practice, the companies concerned will have to identify and anticipate violations of the environment or human rights by mapping them within a vigilance plan. They are even asked to “terminate commercial relationships (with the entities concerned) when these impacts cannot be avoided or stopped”specifies the Council press release.
French companies with more than 5,000 employees have become accustomed to calling on specialized lawyers to establish their risk mapping, but also to train employees internally. “So that theyare able to understand what the risks are and the measures to put in place to identify them through internal reporting,” explains Me Aurélie Vucher-Bondet, du cabinet Cornet Vincent Segurel.
Easy access for victims
The text also requires companies to develop a climate transition plan aligned with the trajectory of the Paris agreements. This is a satisfaction for MEPs and NGOs, who feared that the environment would be excluded from the scope of the directive.
The draft directive also provides for a civil liability mechanism linked to “duty of vigilance”, as well as increased access for victims to European justice. “We obtained a limitation period of 5 years from the moment the violation ceased”specifies Manon Aubry, rather reassured on this aspect.
Business concern
While the French law on the duty of vigilance applies to companies with more than 5,000 employees, the European directive targets those with more than 500. This worries Medef, which wants “analyze everything” before commenting on the European agreement. “Europe goes much further than French law in this areaconfided at the beginning of the week a representative of Medef. And we fear that SMEs will not have the means to meet the multiple obligations that will be imposed on them. ».
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