Overview
Passed on March 27, 2017, the French Corporate Duty of Vigilance Law requires large companies to develop and implement vigilance plans to identify and prevent human rights, environmental, and safety risks across their operations and global supply chains.
Specific Due Diligence Obligations
The Supply Chain Act lists seven specific due diligence obligations that a company must comply with:
- Companies must establish, publish, and effectively implement a vigilance
plan. This plan aims to identify and prevent risks of human rights violations
environmental damage, health and safety issues, and corruption within their own
operations and throughout their supply chain.
- The vigilance plan must include risk mapping that identifies, analyzes, and ranks
risks.
- The vigilance plan must include procedures for assessing the situation of
subsidiaries, subcontractors, and suppliers.
- The vigilance plan must include appropriate actions to mitigate risks or
prevent serious violations.
- The vigilance plan must include an alert mechanism for reporting potential or
actual risks.
- The vigilance plan must include a monitoring scheme to follow up on the
implementation and effectiveness of measures.
- Companies must publish their vigilance plans and provide annual updates on
their implementation and effectiveness. These reports should be accessible to
the public.