LS&HC Horizons 2022 - Flipbook - Page 64
Hogan Lovells | 2022 Life Sciences and Health Care Horizons
64
Europe
ESG on the horizon - What do supply chain
regulations and litigation trends mean for the sector?
Environmental, social, and governance (ESG) and supply chain due
diligence are becoming increasingly important for companies in the
life sciences and health care sector. While countries like Germany and
France have already enacted respective local legislation, the European
Commission has just issued a proposed EU Supply Chain Directive
(Directive), which provides for mandatory due diligence obligations.
Nicole Böck
The proposed Directive would apply to all companies established
under the laws of a Member State having more than 500 employees
and a worldwide annual net turnover of more than EUR 150 million.
Companies established under the laws of non-EU member states
generating an annual net turnover of more than EUR 150 million in
the European Union would also be subject to the Directive.
Associate, Munich
Once the Directive is enacted and implemented into local laws,
companies within the scope will have to actively assess and manage
their supply chains. This includes integrating supply chain due
diligence into company policies, identifying actual or potential
adverse impacts on human rights or the environment, preventing and
mitigating potential adverse impacts, and bringing actual adverse
impacts to an end.
Furthermore, all Member States will also have to retrofit a civil
liability basis in the medium term, so that we expect more civil
lawsuits from eventually affected parties in the future.
Under current legislation we already see an increasing need for ESG
advice on disputes and preventive assistance, for example, in the
context of transactions, contracting, or working with suppliers and
subcontractors throughout life sciences supply chains.
Counsel, Munich
Benjamin Goehl
