Green Light for Corporate Responsibility: EU Parliament Passes Duty of Care Directive

The Corporate Responsibility Directive has recently been the subject of debate among the Council of Member States, with Finland playing a key role in revising its content. After much discussion, the European Parliament finally approved the directive on Wednesday, which requires companies to adhere to a duty of care in their value chains. The aim of the directive is to address issues such as child labor, labor exploitation, biodiversity loss, and environmental pollution.

The directive was passed by the European Parliament with 374 votes in favor, 235 against, and 19 abstentions. Green MEP Heidi Hautala expressed her optimism about the outcome after working on the directive for a long time. Along with Lara Wolters and Manon Aubryn, Hautala starred in a documentary about the development of the Corporate Responsibility Directive.

Under the directive, companies with at least one thousand employees and a turnover of at least EUR 450 million are required to comply with the duty of care. Although there were some delays and debates about certain clauses, such as class action lawsuits included in the directive, Finland’s government ultimately agreed to these terms.

The core legislation of the directive remained unchanged after Belgium managed to secure necessary majority support from member states during its presidency in March. However, it still awaits final approval from the Council of Member States before it can come into effect. Overall, this marks an important step towards corporate responsibility and accountability across Europe.