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

Featured Stories

  • 2024 P/C Combined Ratio Best in More Than a Decade
  • Judge Backs 17% State Farm Rate Hike in California
  • 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.

Space War: Marsh Sues Willis Over Aviation Insurance Hires Soliciting Clients
In Tesla’s Wake, More Big Companies Propose Voting ‘Dexit’ to Depart Delaware
Capital One to Pay $425 Million to Settle Claims Over Savings Accounts
Driverless Trucking Firm Aurora Puts Human Back in Driver’s Seat

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
EEOC_SealAustin, Texas Bar to Pay $42K Over Pregnancy Discrimination Lawsuit
EU to Propose Removing Business Barriers to Enhance Competitiveness Amid US Tariffs
Former Progressive CEO Renwick, 69, Dies
Hack of Contractor Was at Root of Massive Federal Data Breach
More News Features

Read This Next

  • Panel of EU Lawmakers Backs Watered Down Supply Chain Audit Law
  • Brett Favre's Defamation Suit Against State Auditor Can Move Forward, Court Says
  • Coinbase Hackers Had Access to Customer Data Since January
  • Judge Recommends Approving 17% State Farm Rate Hike in California
  • US House Bill Reintroduced to Rid Federal Insurance Office of Subpoena Power

Insurance Jobs

  • Senior Risk Control Consultant - Richmond, VA
  • B2B Copywriter—Business Insurance - Hartford, CT
  • Analyst, Financial Systems Management - Hartford, CT
  • Lead Associate – US Incoming Specialty Group - Tampa, FL
  • Account Executive/ Underwriter, Excess Casualty - Charlotte, NC
MyNewMarkets
  • 5 Ways to Prepare for Healthcare Liability Changes in 2025
  • What's Next For Workers' Comp?
  • Soft D&O Market May Come to an End as Risk Complexities Rise
  • Exclusions: Active Assailant Coverage - Oh My!
  • 10 Things to Know About Insuring Boats & Marinas
Claims Journal
  • State Farm Still Wants a 30% Rate Increase in California
  • No NOAA Large-Disaster Data Could Hurt Insurer Grasp of Secondary Perils, Says AM Best
  • Marks & Spencer Says Cyberattack to Cost $403 Million
  • APCIA Says Record Shows 'Minimal Complaints' on Hurricane Milton, Helene Claims
  • Mitchell: Claims Frequency of Battery Electric Vehicles up as Sales Face Tariff Threat
Academy of Insurance education
  • May 22 Commercial Property: Five Bombs and How to Defuse Them
  • June 5 E&O and Hard Markets: How Trying to Keep a Client Might Cause Trouble
  • June 12 Rating AI Tools: Balancing Functionality and Security
  • June 19 Can You Hear Me? Yes, I Am Listening!

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