BELGIUM Trends and Developments Contributed by: Chris Engels and Julie Devos, Claeys & Engels
Belgium’s legal framework on business and human rights (BHR) is continuously evolv - ing in response to global trends, international obligations, and growing public and institu - tional demand for corporate accountability. The increasing emphasis on due diligence, transpar - ency, and judicial accountability signals a shift toward a more responsible and rights-respect - ing business environment. However, challenges remain in ensuring consistent implementation and enforcement, particularly in global supply chains. New National Legislation Following EU Directives Recent EU initiatives – especially the Corpo - rate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) – significantly expand human rights obligations for companies operating in Belgium. The CSRD requires companies to report on their activities’ environmental and societal impact and audit the reported information. Large companies, major groups, and publicly listed companies are required to include sus - tainability information in their annual reports, following European sustainability standards. This information should provide insight into the company’s impact on sustainability issues (ESG) and explain how these issues affect the com - pany’s development, performance, and overall situation. The assurance of this sustainability information can be conducted by the company’s statutory auditor, another auditor, or an inde- pendent assurance provider. The main aim of this directive and its transposi - tion is to improve the quality and comparability of sustainability information published by com -
panies. For companies, the impacts will be as follows: • extending the scope of the obligations relat - ing to the preparation and publication of the report; • improving the conditions of competition between companies by subjecting them to a similar obligation to publish information; and • compulsory assurance of information to guarantee the high quality of declarations and reduce the risk of greenwashing. In addition, the Belgian law transposing this directive stipulates that sustainability informa - tion, as well as information on how to obtain and verify it, shall be transmitted to and discussed within the works council or, in the absence of a works council, within the committee for preven - tion and protection at work or, in the absence of this body, shall be transmitted by the employer to the trade union delegation and discussed with it within three months of the end of the financial year. A Royal Decree may specify the practical details of this point in the future. Furthermore, the CSDDD – another recent EU directive – introduces the obligation for compa - nies to conduct appropriate human rights and environmental due diligence with respect to their operations, those of their subsidiaries, and those of their business partners in companies’ chains of activities. There is no draft law transposing this into Belgian law yet. The implementation of these directives in Bel - gium will be influenced by the European Com - mission’s recent Omnibus Package, which introduces changes to the EU’s sustainability framework. Although the implications for Bel - gian legislation are not yet fully understood, the Omnibus Package is expected to impact how
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