Jurisdiction
For products sold in Netherlands
Law Summary
This proposed Dutch law would introduce a general duty of care requiring companies (meeting size criteria) engaged internationally to conduct due diligence on human rights and environmental impacts in their value chains, aligned with OECD guidelines, and report annually. Parliamentary progress is ongoing.
Law Obligation
- Commit to due diligence in their value chain through a policy document, including a due diligence plan. This policy is integrated into management systems and regular business processes. Additional regulations may be set for policy document formation, publication, and contents
- Identify and analyse risks of negative impacts in the business activities and relationships
- Develop action plans to prevent and mitigate adverse impacts
- Action plans are to be implemented, prioritising impacts based on severity and likelihood. Further regulations may be set for risk analyses, action plans, and prioritisation
- Cease activities causing negative impacts on human rights, labour rights, or the environment. Implement conclusions from due diligence monitoring
- Report annually on due diligence measures, disclosing non-confidential data in accessible reports
- Establish a well-functioning remediation mechanism or cooperate with an existing one, enabling stakeholders to file complaints. Disputes may be submitted to a dispute resolution committee or court of law, with potential further regulations set by the Minister.
