Expert discussion on the European Union Directive on Due Diligence in the field of corporate sustainability
08.04.2024
On April 8, 2024, an expert discussion on the European Union (EU) Directive on Due Diligence in the field of corporate sustainability was held.organized by UNDP in Kazakhstan as part of the project to develop National Action Plan in the field of business and human rights. The Secretariat of the National Contact Point took part in these discussions along with representatives of the business community and government agencies of Kazakhstan. The purpose of the discussion is to familiarize with the new EU Directive on due diligence in the field of corporate sustainability. The speaker of the discussion was O. Uvarova, international expert of the UNDP on business and human rights. It is worth noting that the new EU Directive sets the standard of corporate due diligence on sustainable development for enterprises operating in the EU. In this case, sustainable development is directly linked to environmental issues, climate change and human rights. The new due diligence requirements apply not only to the direct actions of enterprises, but also to its subsidiaries and supply chains. Enterprises located in the EU, as well as non-EU enterprises that conduct certain business with the EU, may become responsible for the actions of their suppliers. According to the Directive, it is expected that enterprises will: • integrate due diligence into their risk management policies and systems, as well as at all relevant levels of activity; • have a due diligence policy developed in consultation with the company's employees and their representatives; • identify and assess adverse impacts on human rights and the environment; • prioritize (if necessary) the response to these adverse impacts based on their severity and probability; • prevent and mitigate, as well as minimize and prevent the extent of potential and actual adverse impacts on human rights and the environment; • ensure that the actual negative impacts are eliminated; • work constructively with stakeholders; • create and maintain a mechanism for notification and filing complaints; • monitor the effectiveness of primitive measures; • ensure public reporting on the due diligence carried out; • adopt and put into effect climate change plan. It is worth noting that due diligence obligations are obligations of means, not obligations of result. This means that businesses are not expected to be able to guarantee that adverse impacts will not occur or that they will always be stopped. But enterprises are expected to take "appropriate measures" that are able to achieve the objectives of due diligence, that is, effectively eliminate adverse effects in a way commensurate with their significance. The more serious and likely the impact, the higher the expectations regarding the measures taken. The Directive is expected to enter into force 20 days after the vote. Voting is scheduled for April 24, 2024. EU member states will have 2 years after its entry into force to implement the Directive into national legislation.
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