Responsible Business Practices in the world/EU/Germany

HOW WILL THE NEW RULES BE ENFORCED? RESPONSIBLE BUSINESS PRATICES

The CSDDD will be enforced at Member State-level. The Commission proposes three enforcement
mechanisms: administrative supervision and sanctions, civil liability, and financial incentives.

•Administrative supervision and sanctions:
Member States would designate an authority to supervise and impose administrative sanctions, including fines
and compliance orders. At the European level, the Commission will set up a European Network of Supervisory
Authorities that will bring together representatives of the national authorities to ensure a coordinated approach.
Natural and legal persons would be entitled to submit “substantiated concerns” to any supervisory authority
alleging that a company is failing to comply.

•Civil liability:
Member States will ensure that victims have access to compensation for damages resulting from the
companies’ failure to comply with their due diligence obligations.

•Financial incentives:
Implementation of the emission reduction plans will be embedded in the financial incentives of directors of EU
companies by linking their variable remuneration to their contribution to fulfilling these plans.