The power of multinationals: fewer rules, more damage

The European Due Diligence Act, intended to hold companies accountable for human rights and environmental protection, is at risk of being significantly weakened. 11.11.11 calls on Belgium and other EU countries to oppose this erosion. Because Europe is in danger of giving up its leading role in the field of sustainability and human rights. 

The European Due Diligence Act obliges companies to ensure that no human rights violations or environmental crimes occur in their production chain. This means that businesses held responsible for, for example, child labour or ecological damage at their suppliers. But less than a year after the introduction of this law, the European Commission already wants to weaken the rules considerably.

The proposed changes include that companies will only have to check their direct suppliers and no longer the entire chain. The obligation to stop working with companies that are guilty of exploitation or pollution will also be relaxed. In addition, companies will only have to monitor their efforts every five years instead of annually and companies will no longer be obliged to actually implement their climate plans, reducing them to non-binding promises. 

Certain multinationals have lobbied heavily against the Due Diligence Act, arguing that the rules impose too much administrative burden and weaken their competitive position. The European Commission, led by Ursula von der Leyen, appears to be responding to this pressure and is now proposing relaxations that should give companies more 'breathing space'.

Yet this is a flawed argument: many large companies have already adapted to the regulations and want a level playing field in which sustainability is a norm. By weakening the rules now, the companies that do not want to adapt are rewarded. 

The consequences are enormous. Child labor, modern slavery and ecological crimes can more easily remain under the radar, because companies only have to check their direct suppliers. In many cases, companies can therefore continue to work without any problems with suppliers who are guilty of human rights violations or environmental pollution.  

The reporting obligation is being significantly weakened, which means there is less pressure to truly do business sustainably. After all, the weakening of European environmental rules threatens to undermine the Green Deal, causing Europe to abandon its leading role in the field of sustainability and human rights. 

11.11.11 calls on Belgium and the other EU Member States to oppose the proposed relaxations and demanded that the Duty of Care Act be retained in its original form, so that companies remain obliged to take responsibility for abuses in their entire production chain. Belgium must actively oppose the erosion of this crucial legislation. Belgium is a pioneer when it comes to human rights. We must not let go of this ethical compass.

Read the joint statement from 170 NGOs, trade unions and companies

The Belgian EU presidency was still proud of the agreement reached on the duty of care law. Now that Von der Leyen threatens to throw that law in the trash, it is up to Belgium, other member states and the European Parliament to resist. After all, the proposal of the European Commission still has to be discussed by the member states and the European Parliament. If these relaxations do go ahead, the message is clear: companies are allowed to make profits again at the expense of people and the planet.