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Duty of Care of Parent and Subcontracting Companies

France Current 2017

The law address supply chain due diligence, it requires certain companies based in France to have due diligence plans in place to prevent serious human rights impacts in connection with their operations, including the activities of their suppliers and subcontractors.

Issuer name

Parliament

More information

Companies will have to make public disclosures regarding their due diligence plans and can face fines for failure to implement due diligence efforts. The law applies to France’s largest companies, including those that employ at least 5,000 employees in France, or 10,000 employees in total. This includes French companies activities and operations abroad, as well as the activities of subcontractors or suppliers with whom an established commercial relationship is maintained.

Organizations covered by the instrument

Large private and listed companies

Target organization notes

Any company which employs, at the end of two consecutive financial years, at least five thousand employees in its midst and in its direct or indirect subsidiaries whose head office is located on French territory, or at least ten thousand employees in its midst and in its direct or indirect subsidiaries, whose head office is located in France or abroad, draws up and effectively implements a vigilance plan.

Industry scope

All/none specified

ESG coverage - E (Environment)

Waste & Hazardous Substances

ESG coverage- S (Social)

Human Rights, Employment Conditions, Policies and Practices, Social Impacts & Value Creation

ESG coverage- Eco (Economic & General)

Procurement and Supply Chain Management

Status

Current

Country

France

Region

Europe

Date of publication

2017

Issuer type

Governments (governmental department, agency)

Reporting requirements

Public law and regulation

Mandatory or voluntary

Mandatory

The geographical scope

National/federal

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