Article 6: Due diligence support at a group level

Ben Vanpeperstraete

Chapter 6 in Sustainable Business in Europe, 2026, pp 79-88 from Edward Elgar Publishing

Abstract: The EU Corporate Sustainability Directive sets obligations for companies regarding human rights and environmental standards, specifically covering large companies and financial undertakings. The approach to attach the obligation to legal personality, as opposed to the economic activity, poses a risk of duplication if several entities in a corporate group fall under the Directive's scope. Article 6 aims to clarify how to deal with this situation. The Directive's approach to group-wide human rights due diligence recognises, on the one hand, the potential of economies of scale if parents support subsidiaries, but allows flexibility. Article 6 outlines the conditions under which parent companies can fulfil due diligence obligations for their subsidiaries, emphasising information sharing and cooperation while at the same time maintaining each entity's accountability and liability.

Keywords: CSDDD; Group-Level Due Diligence; Parent Companies; Subsidiaries; Human Rights Due Diligence; Corporate Groups (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035326891
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