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UK firms must have global 'duty of care' to stop environmental damage, say Lib Dems

Businesses must take greater responsibility for damage caused overseas, says Jo Swinson

Ben Chapman
Wednesday 23 October 2019 12:31 BST
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The issue of corporate accountability has become more high-profile in the wake of wildfires that have razed swathes of the Amazon this summer
The issue of corporate accountability has become more high-profile in the wake of wildfires that have razed swathes of the Amazon this summer

UK companies should have a new “duty of care” to ensure they take legal responsibility for deforestation and other environmental damage linked to their operations overseas, the Liberal Democrats have proposed.

The law would make it more difficult for UK-based firms to shirk responsibility for damage caused by their suppliers – by applying a minimum set of standards to all of their operations globally.

That would mean companies could be held liable in the UK for problems caused elsewhere, even where local laws have been complied with.

The issue of corporate accountability has become more high-profile in the wake of wildfires that have razed swathes of the Amazon this summer. Farmers supplying the US, Europe and other markets have been accused of starting many of the fires.

In a speech on Wednesday, Liberal Democrats’ leader Jo Swinson decried the Conservatives’ “appalling” record on climate change.

“The Liberal Democrats want to see businesses take greater responsibility for the impact they have on the environment.

“That is why we want a general duty of care for the environment, to ensure that companies are avoiding behaviour in their operation and supply chains that is damaging to the environment.

“The Liberal Democrats have ambitious plans to tackle the climate emergency so that we can look after the planet we have, because there is no Planet B.”

Currently, companies owe a duty of care in some circumstances where it can be shown that their actions caused environmental damage or impinged on human rights.

But firms can often hide behind complex supply chains to say there was no direct line of causation between their own acts and the damage caused.

The Liberal Democrats’ proposals aim to make companies more accountable by listing detailed criteria that must be met on activities such as child labour, modern slavery and deforestation that companies should avoid in their operations and supply chains.

Ms Swinson said her party would also regulate financial services to encourage green investments and require all UK-listed companies to disclose the risks that climate change poses to their business.

Campaigners welcomed the proposal as a “significant step” towards protecting forests but said banks also must face stricter rules on financing environmentally damaging activity.

Barclays, HSBC and Santander are among high street names behind companies implicated in rainforest destruction, said Jo Blackman, head of forests advocacy at Global Witness.

“In fact, the UK was the biggest source of financing, after Brazil, for six companies causing epic destruction of forests in the Amazon, Congo Basin and Papua New Guinea – providing a staggering £5bn from 2013 to 2019.

“Mandatory due diligence on our financial system is crucial for ensuring that the environment is no longer seen as a way to make a quick buck.”

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