Mandatory human rights and environmental due diligence in practice: key insights from France and Germany

Resumen

On 25 July 2024, the Directive on corporate sustainability due diligence (Directive 2024/1760) entered into force. According to the European Commission, Member States have to transpose the Corporate Sustainability Due Diligence Directive (hereinafter «CSDDD» or «Directive») into national law and communicate the relevant texts to the Commission by 26 July 2026. Meanwhile, member states of the UN have been gathering for the 10th time to discuss a potential international treaty on BHR that would, essentially, oblige the states that sign to implement mandatory human rights and environmental due diligence (hereinafter «mHREDD») laws. Potential legislative initiatives on mHREDD are being discussed worldwide, including in Canada, Brazil, Colombia, South Korea, Tunisia and Mexico. This makes it an ideal time to evaluate the experiences of countries that have already implemented mHREDD laws. As BHR practitioners from France and Germany, our analysis highlights the experiences in these two countries: France, the global pioneer with its Duty of Vigilance Law (LdV) enacted in 2017, and Germany with the more recent implementation of its Supply Chain Due Diligence Act in 2021 (hereinafter «LkSG»). We publish a first summary of the most important aspects from our view, based on a larger article we published recently, that will be updated and complemented with new insights.