DUE DILIGENCE:
HOLDING CORPORATIONS
ACCOUNTABLE FOR ENVIRONMENTAL
DAMAGE
DOES THE POLLUTER PAY?
“WHAT IS THE ‘POLLUTER PAYS’
PRINCIPLE ABOUT?
Knowing policies that assign responsibility for environmental
damage is important because it helps to ensure that those
responsible for causing harm to the environment are held
accountable
for
their
actions.
By
holding
polluters
accountable for the environmental damage they cause,
policies can incentivize companies and individuals to adopt
more environmentally sustainable practices and reduce their
environmental impact.
Moreover, policies that assign responsibility for environmental
damage can help to protect communities and individuals who
may be negatively afected by environmental degradation.
When polluters are held accountable for their actions, afected
communities may be able to seek compensation for any harm
they have sufered. This can include compensation for
property damage, loss of income, or medical expenses related
to environmental health problems.
Additionally,
policies
that
assign
responsibility
for
environmental damage can help to facilitate environmental
cleanup eforts. For example, some policies require companies
to clean up contaminated sites or restore damaged
ecosystems.
By
holding
polluters
responsible
for
environmental damage, these policies help to ensure that the
costs of environmental cleanup are borne by those who
caused the damage, rather than by taxpayers or afected
communities.
Overall, knowing policies that assign responsibility for
environmental
damage
is
important
for
promoting
environmental sustainability, protecting communities and
individuals, and facilitating environmental cleanup eforts.
The "polluter pays" principle is a concept that states that those
who cause pollution should be responsible for cleaning it up
and paying for any damage it causes. This principle has been
efective in mitigating the negative impacts of pollution and
has led to policies and measures being put in place to identify
and reduce pollution levels, as well as compensate those who
are afected. However, implementation can be challenging,
especially when it comes to holding companies accountable
for their subsidiaries' actions, and legal processes can be
lengthy and expensive. As pollution becomes more complex
and widespread, the principle continues to be applied to more
challenging cases.
DIRECTIVE OF THE EUROPEAN
PARLIAMENT AND OF THE
COUNCIL ON CORPORATE
SUSTAINABILITY DUE DILIGENCE
AND AMENDING DIRECTIVE (EU)
2019/1937
DIRECTIVE OF THE EUROPEAN
PARLIAMENT AND OF THE
COUNCIL ON CORPORATE
SUSTAINABILITY DUE DILIGENCE
AND AMENDING DIRECTIVE (EU)
2019/1937
The behaviour of companies across all sectors of the
economy is key to succeed in the Union’s transition to a
climate-neutral and green economy in line with the
European Green Deal and in delivering on the UN
Sustainable Development Goals, including on its human
rights-
and
environment-related
objectives. This
requires
implementing
comprehensive
mitigation
processes for adverse human rights and environmental
impacts in their value chains, integrating sustainability
into corporate governance and management systems,
and framing business decisions in terms of human
rights, climate and environmental impact, as well as in
terms of the company’s resilience in the longer term.
EU companies operate in complex surroundings and,
especially large ones, rely on global value chains. Given
the signifcant number of their suppliers in the Union
and in third countries and the overall complexity of
value chains, EU companies, including the large ones,
may encounter difculties to identify and mitigate risks
in their value chains linked to respect of human rights or
environmental impacts. Identifying these adverse
impacts in value chains will become easier if more
companies exercise due diligence and thus more data is
available on human rights and environmental adverse
impacts.”
“(56) In order to ensure efective compensation of
victims of adverse impacts, Member States should be
required to lay down rules governing the civil liability of
companies for damages arising due to its failure to
comply with the due diligence process. The company
should be liable for damages if they failed to comply
with the obligations to prevent and mitigate potential
adverse impacts or to bring actual impacts to an end and
minimise their extent, and as a result of this failure an
adverse impact that should have been identifed,
prevented, mitigated, brought to an end or its extent
minimised through the appropriate measures occurred
and led to damage.