{"id":891,"date":"2021-12-21T07:48:50","date_gmt":"2021-12-21T07:48:50","guid":{"rendered":"https:\/\/bhrtr.org\/?p=891"},"modified":"2025-01-17T13:46:26","modified_gmt":"2025-01-17T13:46:26","slug":"french-corporate-duty-of-vigilance-law","status":"publish","type":"post","link":"https:\/\/bhrtr.org\/en\/2021\/12\/21\/french-corporate-duty-of-vigilance-law\/","title":{"rendered":"French Corporate Duty of Vigilance Law"},"content":{"rendered":"[vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; column_margin=&#8221;default&#8221; column_direction=&#8221;default&#8221; column_direction_tablet=&#8221;default&#8221; column_direction_phone=&#8221;default&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; row_border_radius=&#8221;none&#8221; row_border_radius_applies=&#8221;bg&#8221; overflow=&#8221;visible&#8221; overlay_strength=&#8221;0.3&#8243; gradient_direction=&#8221;left_to_right&#8221; shape_divider_position=&#8221;bottom&#8221; 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column_border_style=&#8221;solid&#8221;][vc_column_text]<span style=\"font-weight: 400;\">French Corporate Duty of Vigilance Law, in force as of 27 March 2017, requires parent companies which meet the relevant criteria to establish, publish and implement a &#8220;vigilance plan&#8221; to prevent, mitigate and remedy human rights violations and environmental risks arising from their own business activities and those arising throughout their global value chains.<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; column_margin=&#8221;default&#8221; column_direction=&#8221;default&#8221; column_direction_tablet=&#8221;default&#8221; column_direction_phone=&#8221;default&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; row_border_radius=&#8221;none&#8221; row_border_radius_applies=&#8221;bg&#8221; overflow=&#8221;visible&#8221; overlay_strength=&#8221;0.3&#8243; gradient_direction=&#8221;left_to_right&#8221; shape_divider_position=&#8221;bottom&#8221; bg_image_animation=&#8221;none&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_tablet=&#8221;inherit&#8221; column_padding_phone=&#8221;inherit&#8221; column_padding_position=&#8221;all&#8221; column_element_direction_desktop=&#8221;default&#8221; column_element_spacing=&#8221;default&#8221; desktop_text_alignment=&#8221;default&#8221; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_backdrop_filter=&#8221;none&#8221; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; column_link_target=&#8221;_self&#8221; column_position=&#8221;default&#8221; gradient_direction=&#8221;left_to_right&#8221; overlay_strength=&#8221;0.3&#8243; width=&#8221;1\/2&#8243; tablet_width_inherit=&#8221;default&#8221; animation_type=&#8221;default&#8221; bg_image_animation=&#8221;none&#8221; border_type=&#8221;simple&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_raw_html]JTVCZGZsaXAlMjBpZCUzRCUyMjQ5MTIlMjIlNUQlNUIlMkZkZmxpcCU1RA==[\/vc_raw_html][\/vc_column][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_tablet=&#8221;inherit&#8221; column_padding_phone=&#8221;inherit&#8221; column_padding_position=&#8221;all&#8221; column_element_direction_desktop=&#8221;default&#8221; column_element_spacing=&#8221;default&#8221; desktop_text_alignment=&#8221;default&#8221; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_backdrop_filter=&#8221;none&#8221; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; column_link_target=&#8221;_self&#8221; column_position=&#8221;default&#8221; gradient_direction=&#8221;left_to_right&#8221; overlay_strength=&#8221;0.3&#8243; width=&#8221;1\/2&#8243; tablet_width_inherit=&#8221;default&#8221; animation_type=&#8221;default&#8221; bg_image_animation=&#8221;none&#8221; border_type=&#8221;simple&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_column_text]<b>The Law Applies to Companies:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Based in France<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">and<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Employing at least 5,000 employees in France,<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">including through their direct and indirect<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">subsidiaries<\/span><\/li>\n<\/ul>\n<p>or<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Employing at least 10,000 employees worldwide,<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">including through their direct and indirect<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">subsidiaries.<\/span><\/li>\n<\/ul>\n<p><b>Risks to be Identified by Companies:<\/b><\/p>\n<ul>\n<li aria-level=\"1\">Human Rights Violations<\/li>\n<li aria-level=\"1\">Violation of Fundamental Freedoms<\/li>\n<li aria-level=\"1\">Serious Bodily Injuries<\/li>\n<li aria-level=\"1\">Environmental Damages<\/li>\n<li aria-level=\"1\">Health Risks<\/li>\n<\/ul>\n<p>In the scope of the Law, these risks may arise directly or indirectly from the operations of:<\/p>\n<ul>\n<li aria-level=\"1\">the relevant companies,<\/li>\n<li aria-level=\"1\">their subsidiaries (including transnational ones) and\/or<\/li>\n<li aria-level=\"1\">their subcontractors or suppliers with whom the companies have an \u201cestablished commercial relationship\u201d<\/li>\n<\/ul>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; column_margin=&#8221;default&#8221; column_direction=&#8221;default&#8221; column_direction_tablet=&#8221;default&#8221; column_direction_phone=&#8221;default&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; row_border_radius=&#8221;none&#8221; row_border_radius_applies=&#8221;bg&#8221; overflow=&#8221;visible&#8221; overlay_strength=&#8221;0.3&#8243; gradient_direction=&#8221;left_to_right&#8221; shape_divider_position=&#8221;bottom&#8221; bg_image_animation=&#8221;none&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_tablet=&#8221;inherit&#8221; column_padding_phone=&#8221;inherit&#8221; column_padding_position=&#8221;all&#8221; column_element_direction_desktop=&#8221;default&#8221; column_element_spacing=&#8221;default&#8221; desktop_text_alignment=&#8221;default&#8221; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_backdrop_filter=&#8221;none&#8221; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; column_link_target=&#8221;_self&#8221; column_position=&#8221;default&#8221; gradient_direction=&#8221;left_to_right&#8221; overlay_strength=&#8221;0.3&#8243; width=&#8221;1\/1&#8243; tablet_width_inherit=&#8221;default&#8221; animation_type=&#8221;default&#8221; bg_image_animation=&#8221;none&#8221; border_type=&#8221;simple&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_column_text]<b>Human Rights Due Diligence Obligations in the Law<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The Law mainly focuses on the creation and implementation of a UNGP based vigilance plan to identify and prevent aforementioned risks. According to the Law, the vigilance plan must include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">An assessment and prioritisation of risks concerning third party harms that may arise from business activities<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A risk mapping and regular risk assessment concerning the business activities of subsidiaries, subcontractors or suppliers with whom the company maintains an established commercial relationship<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Appropriate actions to prevent, mitigate or remedy potential or actual risks and violations<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">An alert and complaints mechanism developed in collaboration with other stakeholders.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A monitoring mechanism to follow up on the measures implemented and to assess their efficiency<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">According to the Law, the vigilance plan and its effective implementation report shall be publicly disclosed and included in the company&#8217;s annual management report.<\/span><\/p>\n<p><b>Consequences of Failure to Comply<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Any concerned party may file a complaint about the company before the court, and<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">the company will be given formal notice to comply with its vigilance obligations within a three-month period.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If non-compliance persists, the court may oblige the company to publish a plan and impose periodic penalty payments.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Specific reference is made to Articles 1240 and 1241 of French Civil Code on extra-contractual liability for damages resulting from failure to comply with legal obligations.<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=&#8221;in_container&#8221; 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