A Sustainable Corporate Governance Directive for the EU

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The European Commission plans to adopt a legislative proposal for a sustainable corporate governance directive, the so-called EU Due Diligence Law, in the fourth quarter of 2021. The objective of the legislation is to create a level playing field for companies that secures that environmental and social interests are implanted in business strategies. It wants to support companies in their long-term management and incentivize sustainable business models to withstand short-term pressures. National due diligence laws and legislative proposals calling for mandatory due diligence exist in some EU member states, like France, Netherlands and Germany.

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