New EU law will see companies held to account over human rights abuses

Human rights are those fundamental rights that all individuals hold simply by virtue of being human, such as rights to life and freedom of thought. Picture: iStock

The European Union will soon require thousands of large companies to actively look for and reduce human rights abuses and environmental damage in their supply chains. And although it’s an EU law, it will also cover foreign businesses, including American ones, that have operations in the region.

The European Parliament approved a draft of the new rules in June 2023, and now EU member states and the European Commission will negotiate to finalise the law, which is expected to begin rolling out in phases a few years from now.