ABSTRACT
Faculty: Faculty of Law, University of Helsinki
Degree Programme: Master of Laws
Study Track: Obligation Law
Author: Sofia Korvenmäki
Title: Corporate Sustainability Due Diligence Directive: The Need for Legally Binding Regulation and Its Impacts on Legislation
Level: Master’s Thesis
Month and Year: December 2022
Number of Pages: XII + 65
Supervisor: Ellen Eftestøl
Where Deposited: Library of the University of Helsinki
Abstract:
This study examines the need for the Corporate Sustainability Due Diligence Directive, its central content and its possible impacts on the Finnish legislation. The topic of the study can be regarded as societally important as companies have an important role in the transition towards more sustainable economies. In the recent years, the amount of corporate responsibility legislation has been rapidly increasing, which represents the legalization of corporate responsibility.
The Corporate Sustainability Due Diligence Directive would impose the largest companies and certain large companies operating in high-impact sectors a mandatory due diligence duty relating to their adverse environmental and human rights impacts. It means that the companies should integrate due diligence into corporate policies, identify actual and potential adverse impacts relating to their business operations, prevent and mitigate potential adverse impacts and bring actual adverse impacts to an end or minimize their extent, establish and maintain a complaints procedure, monitor the effectiveness of the due diligence policy and measures and publicly communicate about due diligence. Companies’ due diligence duty is even enforced by administrative sanctions and civil liability. In addition to the above, the Corporate Sustainability Due Diligence Directive includes a proposal to specify the content of directors’ duties to cover sustainability matters.
In the Corporate Sustainability Due Diligence Directive, it is question about a new type of legislation. The Directive, and the national law that will be enacted thereunder, will have significant impact presumably on operations of all companies.
Keywords: Corporate Responsibility, Due Diligence, Corporate Sustainability Due Diligence Directive, Company Law
