News

Six political parties in the Netherlands submit corporate accountability bill

Today, six Dutch political parties (ChristenUnie, D66, PvdA, GroenLinks, SP, Volt) have formally submitted the Bill on Responsible and Sustainable International Business Conduct to the Dutch House of Representatives. The bill obliges enterprises to conduct business with respect for human rights, the environment, and the climate in accordance with the OECD Guidelines for Multinational Enterprises. The bill is of crucial importance for the Netherlands and the EU.

In this bill, companies will be obliged to address abuses such as child labour, modern slavery, and climate change impacts. Dutch NGOs call on all Dutch politicians to act quickly and start the political process without further delay.

Addressing abuses in supply chains
The bill is in line with the OECD Guidelines for Multinational Enterprises, a framework for responsible business conduct that companies are already familiar with. Under the bill, companies will be obliged to map their value chains, including (possible) negative impacts on human rights, the environment, and the climate. If negative impacts exist, the company must address and remedy them. An independent regulator will monitor compliance with the law.

Effective and ambitious bill
The bill covers a wide range of human rights violations, environmental damage, and climate harm across the entire value chain. If passed, it would greatly improve access to justice for victims of human rights abuse or environmental harm. Companies that cause or contribute to negative impacts will be obliged to provide remedy and can be held liable in court. In many aspects, the bill is likely to be more effective than the European Commission’s proposal for a Corporate Sustainability Due Diligence Directive (CSDDD) that was published in February 2022.

Broad support for legislation
Over 65 companies and 60 civil society organisations and trade unions have been campaigning for this bill through the Sustainable and Responsible Business Conduct Initiative (IDVO.org). In 2021, over 40,000 Dutch consumers signed a petition calling for corporate accountability legislation. Research by polling company YouGov shows that 80 per cent of Dutch citizens are in favour of strong legislation that requires companies to prevent human rights violations and environmental damage abroad.

An English translation of the Bill for Responsible and Sustainable International Business Conduct is available here.

Search