Corporate Climate Due Diligence in the European Union – A Legal Analysis of its Implications for the Climate Action of Energy-Intensive Industries

Sammanfattning: In this thesis, issues surrounding climate actions are analysed through the notion of corporate due diligence in the European Union (EU) context. The study explores how mandatory climate change due diligence schemes, potentially in the form of a legally binding instrument, may affect the critical sector of energy-intensive industries (EIIs) in the Union and further contribute to the broader EU climate actions. The focus of this research is placed on the EU proposal for a Corporate Sustainability Due Diligence (CSDD) Directive and its implications for corporate climate action. Specifically, the thesis examines the particular role of the energy-intensive sector in the EU’s ambition to tackle climate change by analysing how the EU CSDD proposal – in its current version – might strengthen or undermine this role. A legal analysis of current mandatory due diligence schemes in EU Member States and their enforcement in national courts will be salutary to determine the current strengths and gaps of the EU CSDD Directive proposal and its ability to actually reinforce corporate climate action, and notably that of the EIIs. Moreover, the discussion serves as a basis for viewing EIIs – who are major greenhouse gas emitters – as crucial pillars in the Union’s climate policy and legal framework. In general, the purpose is to investigate whether the proposed Directive can effectively address the current regulatory shortcomings regarding corporate responsibility towards climate change. It is also worth noting that as no such mandatory due diligence exists yet, both at the EU and international levels, the thesis examines the concept of corporate due diligence as provided for in international soft laws. Accordingly, such standards serve as a basis in order to understand the newly emerging concept of ‘corporate climate change due diligence’ and evaluate whether the due diligence framework proposed by the EU can enhance corporate climate action.