📢 The Duty of Vigilance: An Essential Leverage for Economic, Environmental, and Social Transition
Ten years ago, the tragic collapse of the Rana Plaza in Bangladesh revealed to the world the urgency for businesses to be more vigilant regarding human rights and environmental standards. Since this event, pressure has mounted for companies to take full responsibility for their value chains, placing this issue at the heart of the economic and ecological transition.
The European Union, as part of its ambition for a more sustainable economy, has established a new legal framework regarding human and environmental rights. This framework imposes a legal responsibility on companies for any proven violations. Now, any company failing to meet its obligations can be held legally accountable for the social and environmental impacts of its activities, including those of its supply chain.
💼 Who is Affected? This duty of vigilance directly applies to companies with more than 1,000 employees and an annual turnover of over 45 million euros. However, it also has indirect implications for all businesses, large or small, throughout their entire value chain. Whether it concerns waste management, transportation practices, or other aspects of operations, all companies must now map and assess real and potential risks.
🌍 Between Law and Economy: The duty of vigilance is part of a crucial approach to sustainable finance and goes beyond a mere legal issue. It directly challenges companies on their role in the ecological transition, requiring them to audit their practices in relation to the Paris Agreements and align with the European taxonomy criteria. This legal framework compels companies to conduct in-depth analyses of their environmental, social, and governance (ESG) impacts, thus laying the groundwork for more just and responsible growth.
🛠 A Pillar of the Green New Deal: This system is also a cornerstone of the European Green New Deal. Companies are encouraged to rethink their organizational models and strategies to integrate long-term sustainability, starting with the design of their products and services. Sustainable finance plays a central role here, providing the necessary tools and funding to support this transformation toward a more transparent and engaged economy.
This legal framework is a true game-changer. It demands a fundamental transformation from companies, not only to remain compliant but also to actively contribute to a fairer and more sustainable economy. The goal? To create a world where the pursuit of profit no longer comes at the expense of human rights and the environment, but in harmony with them. 🌿
