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Parliamentary questions
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12 June 2019
Answer given by Ms Malmström on behalf of the European Commission
Question reference: E-002110/2019

Under Directive 2014/95/EU(1) on disclosure of non-financial information, as of 2018 large companies must publish reports on their policies related to environmental protection, social responsibility, treatment of employees and the respect for human rights. The reports should include information on the due diligence processes implemented by the undertaking and on the principal risks linked to its operations, adverse impacts in value chains and how the risks are managed.

Moreover, as announced in its 2018 Action Plan on Financing Sustainable Growth(2), the Commission is assessing the possible need to require corporate boards to develop and disclose a sustainability strategy, including appropriate due diligence throughout the supply chain, and measurable sustainability targets.

At the end of 2018, a study was launched on the requirements for European companies to identify, prevent, mitigate and account for abuses of human rights and fundamental freedoms, serious bodily injury, environmental damage (including to climate) or health risks in their supply chains. This study will also cover issues related to child labour.

On a more general note, it is worth recalling that the Commission uses a broad range of tools to address environmental, labour and human rights concerns in global supply chains.

These include EU development cooperation, the conditionalities as regards respect for human and labour rights underpinning the trade preferences granted under the EU’s Generalised Scheme of Preferences, binding provisions on the ratification and effective implementation of core International Labour Organisation conventions in EU free trade agreements and trade impact assessments, sustainability impact assessments and ex-post evaluations.


Last updated: 13 June 2019Legal notice