Corporate duty of vigilance and care in value chains

Reporting
- Only large companies and SMEs operating in high-risk sectors or regions must publish a due diligence plan including a risk mapping exercise, an alert mechanism and a report gathering mechanisms
Due Diligence
- Duty of vigilance to respect human rights, labor rights and the environment
- Identify, prevent, mitigate and cease environmental harm, human rights and labor rights violations, or any risks thereof, throughout their value chain
- Extent of the obligation is proportionate to the size of the company and to the means at its disposal to identify the risks and to take effective measures to prevent or remedy damage, or proven risks of damage, linked to its activities

Human Rights
- Encompasses all human rights and labor rights
- Possible references to norms of international humanitarian law
- International standards on the protection of vulnerable groups
Environment
- Covers environmental protection in general
Broad ranging

Subsidiaries
Direct Suppliers
Indirect Suppliers
- The proposal covers adverse human rights impacts caused or contributed directly linked to the companies operations, products or services by its business relationships
Full Value Chain

Large Companies
- Defined as any company with over 250 employees and an annual turnover exceeding EUR 50 million, or an annual balance sheet total exceeding EUR 43 million
SMEs
- Intends to apply to all companies established or active in Belgium
- Additional obligations for SMEs operating in high-risk sectors and regions
  High-risk sectors are those likely to fuel, directly or indirectly, armed conflicts, human rights violations, and to support corruption and money laundering such as: trade in minerals and metals (gold, tin, tantalum and tungsten as referred in EU Regulation 2017/821); and, sectors for which OECD sector guidelines have been developed (minerals, agricultural products, clothing, footwear, extractive industries, finance)
  To provide legal certainty, the King can define high-risk sectors and activities
All Sectors

Monitoring
- A regulator will ensure companies comply with their responsibility to respect human rights, labor rights and the environment in their value chains
Administrative Sanctions
- Possible exclusion of companies from public procurement contracts in case of breach of duty of care
- Level 5 criminal sanction for breaching duty of vigilance obligations: fine between 250.00- 100,000.00 euros and/or imprisonment of up to one year
- Companies could face criminal fines of up to 1,600,000 euros for a breach of their duty of vigilance

Civil Liability
- For damages throughout their value chains and made possible through their investments
- Based on real control or influence over an entity
- Joint and several liability is possible
Facilitating Access to Justice
- Includes provisions on collective redress, reversal of the burden of proof and injunctive measures