Skip to content
  • MyNewMarkets.com
  • Claims Journal
  • Insurance Journal TV
  • Academy of Insurance
  • Carrier Management
Insurance Journal - Property Casualty Industry News

Featured Stories

  • Cat Bond Investors Told to Brace for Jamaica Payout
  • Berkley Explains Property Market, Company Appetite
  • Articles
  • Jobs
  • Markets

Current Magazine

current magazine
  • Read Online
  • Subscribe
  • Login
  • Front Page
    • National
    • International
    • Most Popular
    • Magazine
    • Forums
    • Blogs
    • Videos/Podcasts
    • Newsletters
  • News
    • Most Popular
    • National
    • International
    • East
    • Midwest
    • South Central
    • Southeast
    • West
  • Magazines
  • Research
  • Directories
  • Jobs
  • Features
    • Events
    • Forums
    • Market Directories
    • Quotes
    • Polls
    • Rankings & Awards
    • Insurance Giving Back
  • Subscribe

Panel of EU Lawmakers Backs Watered Down Supply Chain Audit Law

By Huw Jones | March 19, 2024
Email This Subscribe to Newsletter
  • Article

A panel of lawmakers in the European Parliament on Tuesday backed a draft law requiring large companies in the bloc to check if their supply chains use forced labor or cause environmental damage.

The rules, known as the Corporate Sustainability Due Diligence Directive, have been watered down by European Union states to overcome a lack of support from Germany and other member countries, worried about piling red tape on companies.

The legal affairs committee voted 20 in favor, 4 against and no abstentions, on the scaled back version agreed by EU states last week.

EU Backs Supply Chain Audit Law After Italy Switches Sides

Full parliament is expected to rubber stamp the deal on April 24.

“It is high time that this legislation is adopted, to stop corporate abuse and to give companies clarity in what is expected of them,” said Lara Wolters, a center-left Dutch lawmaker on the committee who led negotiations with EU states on the draft law.

“I’m looking forward to the plenary vote and confident that it will be adopted swiftly.”

The rules are due to come into force in 2028, applying to companies operating in the EU that have more than 1,000 employees and a net worldwide turnover above 450 million euros ($488 million).

The rules originally sought to target companies with more than 500 employees and a turnover of 150 million euros.

The requirement to prevent, end or mitigate harms to human rights and the environment, such as child labor and biodiversity loss, applies to a company’s “upstream” partners in design or manufacture, and “downstream” partners who transport, store and distribute products.

Financial companies, however, will only have to consider “upstream” partners in their checks. An earlier draft had also included some downstream activities.

Companies will have to prepare plans setting out how they will transition to a low carbon economy, including deadlines for meeting targets, with key actions and investments needed to reach them.

Penalties for not complying with the rules can include fines of up to 5% of net worldwide turnover.

($1 = 0.9224 euros)

(Reporting by Huw Jones; editing by Simon Jessop and Jason Neely)

Copyright 2025 Reuters. Click for restrictions.

Topics Legislation Europe

Was this article valuable?

Thank you! Please tell us what we can do to improve this article.

Thank you! % of people found this article valuable. Please tell us what you liked about it.

Here are more articles you may enjoy.

Update: Catastrophe Bond Investors Told to Brace for Jamaica Payout
AI Learning and Artificial Intelligence Concept. Business, modern technology, internet and networking concept.Viewpoint: Insurance and AI – A Double-Edged Sword
A futuristic female cyborg in profile looking up with a glowing red brain visible through a transparent helmet.The Future of the Agency in a World of AI
‘Massive Legal Siege’ Against Social Media Companies Looms

Written By Huw Jones

More From Author

Interested in Legislation?

Get automatic alerts for this topic.

Email This Subscribe to Newsletter
  • Categories: International & Reinsurance NewsTopics: Corporate Sustainability Due Diligence Directive, environmental social and governance (ESG) criteria, supply chain, supply chain risk management, supply chain risks
  • Have a hot lead? Email us at newsdesk@insurancejournal.com
More News
Chemical Board Investigators Digging Into Fatal Tennessee Explosives Plant Blast
Kumamoto, Japan - Nov 29 2019 : Facebook, Amazon, Apple, Netflix & Google (FAANG), high performance IT technology companies, is both an acronym & a buzzword to investors and people.Federal Judge Decertifies Apple App Store Class Action
Brown & Brown Reports Strong Q3 Revenue Growth of 35.4%
The Hartford Q3 Net Income Up 41%
More News Features

Read This Next

  • Panel of EU Lawmakers Backs Watered Down Supply Chain Audit Law
  • Can a More Unified Front Be Formed Against Legal System Abuse?
  • North Carolina Supreme Court Lets Stand Greg Lindberg's Civil Fraud Liability
  • Judge Rules Feds Can't Withhold Disaster Relief Until States Cooperate on Immigration
  • All Commercial Insurance Lines Except One in 'Soft-Market Territory': WTW

Insurance Jobs

  • Insurance Account Executive - Remote/ Brooklyn, NY
  • Property Liability Claims Supervisor - Wilsonville, OR
  • Business Development Representative - Remote/Pittsburgh, PA/Allentown, PA
  • Regional Sales Manager - Irving, TX
  • Senior Underwriter - Denver, CO ( Hybrid)
MyNewMarkets
  • Bigger Piece of the Pie: Surplus Lines Market Hits New Record as Specialty Lines Continue to Grow in Prominence, Market Share
  • Death and Insurance (Not Taxes): Part One
  • AI for Agents
  • How to Attract the Next Generation to Insurance
  • 5 Evolving Trends Shaping Architects and Engineers Coverage
Claims Journal
  • Exonerated Trader Tom Hayes Sues UBS For $400M Over Libor Accusations
  • PepsiCo Resolves Lawsuit Over Gatorade Bar Health Claims
  • Five New Members Join CAPA Board of Directors
  • J&J Talc Cancer Suits Jump 17% After Failed Settlement Effort
  • Canada Pension Fund Sued by Young People Over Climate Risks
Academy of Insurance education
  • October 21 E&S Property Underwriting
  • October 23 Gotchas That'll Getchya - Latest Policy Language That'll Get You Sued
  • October 30 Challenges in Agency Mergers – Reducing Staff Flight and Avoiding E&O Claims
  • November 6 Risk and Insurance for Digital Nomads

Insurance News

  • News by Region
  • News by Topic
  • Yesterday

Site Search

Features

  • Insurance Markets Directory
  • Forums
  • A.M. Best Company Ratings
  • Industry Events
  • Agencies For Sale
  • Newswire
  • Insurance Jobs
  • Rankings & Awards

Connect with us

  • Email Newsletters
  • Magazine Subscriptions
  • For Your Website
  • RSS Feeds
  • Twitter
  • Facebook
  • LinkedIn
  • Do Not Sell My Info

Insurance Journal

  • Submit News
  • Advertise
  • Subscribe
  • Reprints
  • Link to Us
  • Contact Us

Wells Media Group Network

  • Insurance Journal
  • MyNewMarkets.com
  • Claims Journal
  • Insurance Journal TV
  • Academy of Insurance
  • Carrier Management
© 2025 by Wells Media Group, Inc. Privacy Policy | Terms & Conditions | Site Map