Edited by Torino Social Impact

Policy & Practice

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22 October 2024

Consultation Version of the European Model Clauses (EMCs) is Launched

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The European Model Clauses (EMCs), aimed at ensuring the correct application of the CS3D, have been published and are open for consultation until December 2. This initiative comes from a group of professionals and experts from various European countries (FR, GER, IT, ES, PL, PT, NL).

What are the EMCs and why are they important?

They are a set of contractual clauses that help build legal frameworks for managing negative impacts on the environment and human rights, providing adequate protection for directors, companies, and stakeholders.They are designed to be in alignment with the requirements of the new EU Corporate Sustainability Due Diligence Directive (CSDDD), which entered into force in July 2024.

A first version of the EMCs was published in October 2023 for electronic consultation. Following that initial consultation, the European Working Group has now released the Zero Draft of the EMCs.By participating in the consultation process, stakeholders can ensure that their perspective is considered in the final EMCs.

Various stakeholder groups, including in-scope companies and smaller companies in the Global North and Global South, civil society organizations, academics, think tanks, consultancies, and national and international governmental organizations, are encouraged to participate.The EMCs are inspired by the model clauses (“MCCs 2.0”) developed by a working group of the American Bar Association International Law Section and have been adapted to the EU sustainability legal framework. The EMCs are based on the provisions of the CS3D with the goal of becoming a reference standard for the correct application of the regulation and the effective implementation of ESG Due Diligence throughout the entire value chain.

Here is the full set of clauses.

To improve the EMCs as much as possible, you can contribute your ideas! Set up a moment for discussion and sharing by filling out the questionnaire at this link.