Friday, June 14, 2024


EU Flag

Corporate sustainability due diligence: Council gives its final approval

TPRM Insights: The EU Council has formally adopted the Corporate Sustainability Due Diligence Directive, establishing new obligations for large companies to address human rights and environmental impacts. The directive mandates that companies with over 1,000 employees and a turnover exceeding €450 million must implement measures to prevent and mitigate adverse effects throughout their operations and supply chains. Companies will also need to adopt climate transition plans aligned with the Paris Agreement. The directive, which includes provisions for civil liability and compensation, will be enforced progressively based on company size over the next five years. Member states have two years to integrate these regulations into national law.

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EU Sanctions

Global Human Rights Sanctions Regime: Council adds four persons and one entity to EU sanctions list

TPRM Insights: The EU Council has approved additional sanctions against four individuals and one entity under the Global Human Rights Sanctions Regime, citing ongoing human rights violations in Russia. The targeted persons, including figures in the Russian judicial system and the Safe Internet League, are accused of serious abuses, such as arbitrary arrests and censorship enforcement. Sanctions involve asset freezes, travel bans, and prohibitions on providing funds. The EU condemns Russia's expanding restrictive legislation, systematic repression, and crackdown on civil society, urging the immediate release of those imprisoned on politically motivated charges.

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SAP to Pay Over $220M to Resolve Foreign Bribery Investigations

TPRM Insights: SAP SE, a German software company, will pay over $220 million to settle U.S. investigations into Foreign Corrupt Practices Act (FCPA) violations. The charges relate to bribery schemes in South Africa and Indonesia, where SAP paid bribes to government officials for business advantages. As part of the settlement, SAP entered into a three-year deferred prosecution agreement, agreeing to pay a $118.8 million criminal penalty and administrative forfeiture of $103,396,765. The case underscores international collaboration in combating corruption and highlights SAP's cooperation and remedial actions, resulting in a reduced penalty.

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The US Treasury Building

U.S. Beneficial Ownership Information Registry Now Accepting Reports

TPRM Insights: The U.S. Treasury's FinCEN has initiated the acceptance of beneficial ownership reports as per the Corporate Transparency Act. This mandates U.S. companies to disclose details about their ultimate owners, aiming to combat illicit finance. Reporting companies, both existing and new, have specific filing deadlines. The streamlined process enhances transparency in financial activities.

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European Commission

Commission welcomes political agreement on rules enforcing human rights and environmental sustainability in global supply chains

TPRM Insights: The European Commission welcomes a political agreement on the Corporate Sustainability Due Diligence Directive, promoting responsible corporate behavior globally. The directive mandates large companies to identify, prevent, and mitigate adverse human rights and environmental impacts. It applies to substantial EU companies and those in high-impact sectors, covering operations, subsidiaries, and value chains. Compliance involves due diligence integration, adopting measures, and ensuring transparency. Non-compliance results in sanctions, with victims having legal redress. The directive also mandates transition plans for limiting global warming. Formal approval is pending, with Member States given two years for implementation. It addresses the slow integration of sustainability practices into corporate governance.

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