Status: Proposal

Law - Luxembourg - Corporate duty of vigilance on sustainability law

Corporate duty of vigilance on sustainability law

Summary Table

Obligations
  • Reporting
  • Due Diligence
Normative scope
  • Human Rights
  • Environment
  • Other Social Matters
  • Broad ranging
Company scope
  • Large Companies
  • SMEs
  • All sectors
Value chain scope
  • Own Operations
  • Subsidiaries
  • Direct Suppliers
  • Indirect Suppliers
Administrative enforcement
  • Monitoring
  • Administrative Sanctions
Judicial enforcement
  • Civil Liability
  • Facilitating Access to Justice
  • Other
Obligations
  • Reporting
  • Due Diligence

    The nature of the due diligence obligations must be assessed in a way that is proportional to the company's leverage towards its business partners. Big corporations have the financial and logistical means to map risks and exercise leverage over their business partners throughout their entire value chain, and should therefore be held to an obligation of result. On the other hand, small companies lack the financial means to generate positive change through their value chain, and should therefore only be held to an obligation of means.

Normative scope
  • Human Rights
  • Environment
  • Other Social Matters

    Broad non-exhaustive list of adverse impacts, including but not limited to

    • Poor or dangerous working conditions
    • Restricting access to collective bargaining
    • Generally, any negative impact on the full enjoyment by a person or group of persons of internationally recognized human rights and humanitarian law
  • Broad ranging
Company scope
  • Large Companies
  • SMEs
    • All companies would be covered under the proposal, regardless of employees number and annual turnover.
  • All sectors
Value chain scope
  • Own Operations
  • Subsidiaries
  • Direct Suppliers
  • Indirect Suppliers
Administrative enforcement
  • Monitoring
  • Administrative Sanctions
Judicial enforcement
  • Civil Liability
  • Facilitating Access to Justice

    Reversal of the Burden of Proof

    Victims will be able to bring collective claims before national courts

    Civil society organisations and Trade Unions can be mandated to represent plaintiffs before the courts

  • Other
    • Where multiple companies have contributed to an adverse impact, they shall be jointly and severally responsible for damages
Law

Loi relative au devoir de vigilance des entreprises en matière de durabilité

Luxembourg
Area Corporate Law
Reporting
Due diligence
Due diligence and remedy