What France Loi n° 2017-399 du 27 mars 2017 relative au devoir de vigilance des societes meres et des entreprises donneuses d'ordre (Duty of Vigilance Law) requires
Loi n° 2017-399 du 27 mars 2017 (Duty of Vigilance Law) inserts Articles L. 225-102-4 and L. 225-102-5 into the French Code de commerce, creating the first parent-company duty of vigilance in the world. The Law applies to French societes that employ, at the close of two consecutive financial years, at least 5,000 salaries directly or through filiales whose registered office is in France, or at least 10,000 salaries worldwide including filiales whose registered office is in France or abroad. Article L. 225-102-4 requires the in-scope company to establish, publish and implement a plan de vigilance covering five mandatory components: (1) une cartographie des risques destinee a leur identification, analyse et hierarchisation; (2) des procedures d'evaluation reguliere de la situation des filiales, des sous-traitants ou fournisseurs avec lesquels est entretenue une relation commerciale etablie; (3) des actions adaptees d'attenuation des risques ou de prevention des atteintes graves; (4) un mecanisme d'alerte et de recueil des signalements relatifs a l'existence ou a la realisation des risques, etabli en concertation avec les organisations syndicales representatives; (5) un dispositif de suivi des mesures mises en oeuvre et d'evaluation de leur efficacite. The vigilance plan must cover risks of atteintes graves to human rights and fundamental freedoms, health and safety of persons, and the environment, resulting from the activities of the company, of the companies it controls within the meaning of II of Article L. 233-16, and of the activities of the sous-traitants or fournisseurs with whom the company has an established commercial relationship, when those activities are linked to that relationship. Article L. 225-102-5 establishes civil liability under Articles 1240 and 1241 of the Code civil for damages resulting from a breach of the vigilance obligations. Article 3 of the original Loi creating an administrative fine of up to 10 million EUR (raised to 30 million EUR with intentional fault) was struck down by Conseil constitutionnel Decision 2017-750 DC of 23 March 2017 as insufficiently precise. The Tribunal Judiciaire de Paris has exclusive jurisdiction since Loi 2021-1729 du 22 decembre 2021. The Loi is the precursor to EU CSDDD Directive 2024/1760.
Pillar: Sustainability & ESG · Authority: Direction de l'information legale et administrative (DILA) via Legifrance, Government of France · Version: 1.0.0 · Last updated:
Primary source: https://www.legifrance.gouv.fr/jorf/id/JORFTEXT000034290626
SHA-256 integrity: 9851bce0b9c36e3fb3a0f8f10588e24f45f7de16bdd265d09456849b4ae1e2a3
Primary Citations — 10 traced to source
- Loi 2017-399 du 27 mars 2017 Art. 1 - Insertion of L. 225-102-4 in the Code de commerce
- Code de commerce, Art. L. 225-102-4 - Plan de vigilance (scope, content, five mandatory measures)
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