The French Members of the National Assembly (Lower House of French Parliament) have announced the adoption of the Draft Law on the duty of vigilance for parent and subcontracting companies.

The draft law mandates large companies to establish and implement a vigilance plans that identify and prevent risks associated with their activities, throughout their supply chains.

The adopted draft law provides the new elements:

  • The content of the due diligence plan to be established by the parent or subcontracting companies is specified
  • A company’s stakeholders, like trade union representatives or civil society groups, could be involved in the development of the vigilance plan.
  • The MPs have increased the maximum fine in the event of damage due to the failure to publish or implement a plan.

The draft law will be forwarded to the Senate for text review.

Source URL 1: Law Proposition on the Duty of Vigilance of Companies Mothers and Companies Donating to Order

Source URL 2: Corporate duty of vigilance: another step forward towards the French law’s adoption