Corporate Sustainability Due Diligence: Is there a Legal Basis for the Proposed Article 15?

Abstract

On 23 February, the Commission published a proposal for a directive on Corporate Sustainability Due Diligence. The Commission’s draft for the Directive raises several issues. Here, we will provide some initial comments regarding some of the material problems raised by Article 15 of the draft, which is titled ‘Combating Climate Change’. The question is whether the provisions contained in Article 15 interfere with the property rights of the shareholders, and whether there is a legal basis in the Treaties for the proposed Article 15 of the draft for the Directive presented by the Commission in its current form?

Keywords: Corporate Sustainability Due Diligence, Climate Change, Property Rights, Shareholder

JEL Classification: Q58, K32, K22