The study coauthored by UC3M Business María Montes-Sancho, analyses the potential European Added Value of a measure requiring companies to carry out due diligence on social, environmental, and governance risks in their own operations and supply chain. There is evidence of human rights violations and environmental negative impacts related to business activities. The measure proposed by the authors could increase firm compliance to international principles of responsible business conduct, increase access to remedy for victims, improve legal certainty, and create a level playing field for businesses. The study also reviews possible sources of costs and benefits for companies and, based on original analysis, suggests that stronger environmental and social accountability practices could contribute to improving EU firms' performance. From qualitative analysis, it suggests a potentially significant impact in addressing risks of environmental damages and human rights violations in global value chains, thus supporting EU commitment to human rights and environmental protection.

The full study is available at the following link:

https://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_STU(2020)654191