Corporate Governance and Sustainability Directive Overview

Flashcards covering key concepts from the lecture on corporate governance, sustainability directives, and compliance obligations.

What is the primary focus of the Directive (EU) 2024/1760 introduced in the lecture?

To enhance the accountability of companies regarding human rights and environmental impacts through due diligence.

What role do corporate governance committees play in companies?

They oversee reporting duties, manage risks, and ensure the company adheres to sustainability objectives.

What does 'due diligence' refer to in the context of the Directive?

Due diligence is an obligation of means, requiring companies to take appropriate measures to address adverse impacts.

What are Member States allowed to do under the Directive concerning national law?

Member States can introduce more stringent provisions than those laid down by the Directive.

What are the key components of a Corrective Action Plan as discussed in the lecture?

It aims to bring an adverse impact to an end and includes a transition plan for climate change mitigation.

What types of impacts should companies be proactive about addressing according to the Directive?

Adverse human rights and environmental impacts.

What is one of the main obligations for companies in relation to their subsidiaries under the Directive?

To adopt a proactive approach concerning the due diligence requirement.

What is emphasized as a critical sector target for implementing sustainability objectives?

Large companies, due to their reliance on global value chains.

What do the UN Sustainable Development Goals contribute to, according to the notes?

They provide a framework for sustainable development considerations in business practices.

What does 'chain of activities' refer to in corporate governance?

The sequence of actions involving upstream and downstream activities connected to the production and distribution of goods.

What should companies do to prevent risks according to the action plans discussed?

They should take appropriate measures to prevent potential adverse impacts and adequately mitigate them.

What power do supervisory authorities have under the Directive?

They have wide powers to investigate compliance and impose sanctions for non-compliance.

What is the minimum standard for implementation of the Directive?

General rule for implementation is starting from 26 July 2027, with full obligations by 26 July 2029.