European Parliament is deciding its position on what an EU law on corporate due diligence should look like. Richard Gardiner (a Senior Campaigner for Corporate Accountability at Global Witness) on 2 September 2020 explains more and more recently (11 November 2020) a group of 87 organisations and media freedom groups call on the EU to to protect journalists against gag lawsuits (SLAPPs)
As the European Parliament begins developing proposals for a new – and momentous – law to hold business to account for its impact on people and planet, Richard Gardiner sets out how this process came about and what needs to happen now to ensure this really delivers results.
Where are we now?
Following the publication of the European Commission study on due diligence requirements through the supply chain earlier this year, in April, European Commissioner for Justice Didier Reynders announced to the European Parliament Responsible Business Conduct Working Group that he will introduce EU rules on corporate accountability and corporate due diligence in early 2021.
In response to this announcement, Members of the European Parliament are now starting work to develop a European Parliament position on what an EU law on corporate due diligence could look like. This work will take place within the European Parliament Legal Affairs Committee and will be led by MEP Lara Wolters.
The goal of this work is to influence the final Commission legislative proposal and ensure that the Commissioner follows through on his commitment to present an ambitious framework for this law.
Potential to be a real game changer?
Global Witness has long advocated for mandatory corporate accountability rules to tackle corporate abuse against people and planet.
Our recently published report ‘Defending Tomorrow’ shows that while land and environmental defenders continue to act as the first line of defence against climate breakdown, far too many businesses, financiers and governments either fail to protect them or – in the worst examples – can be complicit in the violence they face.
These brave people play a vital role challenging companies operating recklessly, rampaging unhampered through virgin forests, protected wetlands, indigenous territories and biodiversity hotspots. They are on the frontline of our global, collective fight against climate change. However, despite their importance to the preservation of our planet, our report shows that 212 land and environmental defenders were murdered in 2019 – the bloodiest on record, with the deadliest sectors for this violence being mining, agribusiness and logging.
Our findings show that an average of four land and environmental defenders are killed every week since the Paris Agreement was signed in 2016. These are reinforced by our previous investigations on continued deforestation, minerals that fuel and fund conflict, and grand-scale corruption.
There is clearly a legislative gap when governments and citizens have no legal means to hold corporations accountable for their human rights and environmental abuses. As the world’s largest trading bloc, the EU is now looking to lead the global debate on corporate accountability and this new law will shape not only corporate behaviour within the EU but also globally.
What needs to be in this new law?
Civil society united in their calls for the EU to introduce legislation on corporate due diligence. We have consistently pointed to the fact that voluntary measures have proved to be vastly insufficient and new legislation is urgently needed to establish clear, robust and enforceable cross-sectoral requirements on all business enterprises, including financial institutions, to respect human rights and the environment.
As the European Parliament begins to discuss the details of corporate accountability legislation, Global Witness is part of a coalition of NGOs that has published its call to action for the key elements needed to hold businesses to account:
- The new law must apply to all businesses, including finance, of all sizes and sectors acting in the EU.
- Business must have a duty to address all the adverse human rights, environmental and governance impacts in their global supply chains.
- Businesses must conduct Responsible Business Conduct (RBC) Due Diligence to identify, cease, prevent, mitigate, monitor and account for their adverse risks.
- Businesses must engage and consult with all relevant stakeholders, including human rights defenders and indigenous peoples, as part of their RBC due diligence.
- Businesses must be made liable for the human rights, environmental and governance adverse impacts in their global value chains.
You can read the full paper here.
So what happens next?
The months between now and the end of the year promise to be extremely interesting on the topic of corporate accountability across all the EU institutions. Firstly, the European Parliament will aim to finalise its advice to the Commission by end 2020 in order to ensure that it can be taken into account in the Commission proposal. Secondly, the Commission has draft plans to release a public consultation on the new due diligence legislation in Autumn 2020 to get public input on how to draft their proposal.
And finally, the German Presidency of the European Council have indicated that due diligence is a key political priority for their Presidency and they will aim to have Council conclusions on this topic by the end of the year. At Global Witness, we will continue to engage with all the European institutions to ensure that EU policy makers live up to their commitments to introduce a meaningful and impactful new law.
SLAPPs: More and more journalists and civil society organisations are being sued by powerful businessmen and politicians. The International Press Institute (IPI) has joined a group of 87 organisations and media freedom groups calling on the EU to ensure those with a watchdog role are protected from gag lawsuits.
‘SLAPP’ stands for Strategic Lawsuit against Public Participation. It’s a form of legal harassment designed to intimidate critical voices into silence. Expensive and unscrupulous law firms market this attack-dog service to powerful and wealthy individuals who can afford to drag on abusive proceedings for years just to shield themselves from unwanted public scrutiny. [see also: https://humanrightsdefenders.blog/2020/01/28/ngos-demand-that-rules-against-strategic-lawsuits-against-public-participation-slapp-are-upgraded/]
This scrutiny is the lifeblood of healthy democratic societies. The European Court of Human Rights and other national and regional courts have consistently and explicitly recognised in their judgments the important role a free press, and more broadly civil society, plays in holding the powerful to account. Their judgments reaffirm the obligation states have to create an environment that is conducive to free speech. Because without this, democracy weakens and dies.
The holes in our laws that allow powerful people to hammer their critics into submission are a hole in European democracy. Cases of abuse pepper the continent. Poland’s second-biggest daily newspaper, Gazeta Wyborcza, has received over 55 legal threats and lawsuits by a number of actors, including from Poland’s ruling party, since 2015.
French businessman Vincent Bolloré and companies affiliated with the Bollore Group have blanketed journalists and NGOs in libel suits to stop them covering his business interests in Africa. In Spain, meat producer Coren is demanding €1 million in damages from an environmental activist for criticising its waste management practices, having previously threatened activists and scientists who were researching nitrate levels in its local waters.
The people we depend on for information about what is happening around us are being distracted, impeded, or entirely blocked from pursuing their work by these costly and resource-intensive legal attacks. The situation is becoming skewed beyond recognition. When it comes to certain people, governments, companies and topics, it’s not writers, film makers or journalists who decide what we read, watch and talk about.
It’s not even the courts, for SLAPPs rarely make it to a hearing, let alone a court judgment. Rather, it’s the oligarchs and their associates in politics, through the lawyers they pay, who are shaping the narrative and preventing the truth from emerging.
We’ve seen a worrying pattern emerge in Europe of government officials or beneficiaries of large public contracts adopting the tactics of celebrities and oligarchs to shield themselves from the heightened level of scrutiny that their positions or financial links to government warrant. The fact that the threats are often cross-border ratchets up the costs for journalists and activists, who find themselves summoned to court far from home in Europe’s most expensive legal jurisdictions.
Awareness of this problem is growing. European Commission Vice-President Věra Jourová has promised to ‘look into all possible options’ to counter the threat SLAPPs pose to European democracy. One promising solution lies in the institutions of the European Union, and it could help realter the balance between pursuers of SLAPPs and the public’s right to be informed of matters in the public interest.
EU-wide legislation should be adopted to protect people across the European Union from SLAPPs. This has to be a priority. As in other parts of the world, rules should be in place across the EU to allow SLAPP suits to be dismissed at an early stage of proceedings, to sanction SLAPP litigants for abusing the law and the courts, and to provide measures to allow victims to defend themselves.
When we consider the importance of public watchdogs such as investigative journalists, activists, and whistleblowers to the rule of law and the fight against corruption, the absence of safeguards is a threat not only to press freedom but to the proper functioning of Europe’s internal market and, increasingly, to Europe’s democratic life.
The reality is that for every journalist or activist threatened with violence in Europe, a hundred more are silenced discreetly by letters sent by law firms, perverting laws meant to protect the reputations of the innocent from attacks by the powerful.
SLAPPs are a far less barbaric means of silencing someone than a car bomb or a bullet to the head, but their silencing effect is often just as destructive.
Signatories
Hans Thoolen on Human Rights Defenders and their awards 