Article 25 of the Proposal for a Directive on Corporate Sustainability Due Diligence: Enlightened Shareholder Value or Pluralist Approach?

On 23 February 2022, the European Commission published the long-awaited Proposal for a Directive on Corporate Sustainability Due Diligence. Article 25 of the Proposal also includes an attempt to harmonize ‘Directors’ Duty of care’. This Article contextualizes the approach adopted by the European Commission and it compares it to the UK ‘enlightened shareholder value’ approach enshrined under section 172 of the Companies Act 2006. The comparison allows to draw preliminary conclusions on the potential harmonizing effects of Article 25 on the formulation and enforcement of directors’ duties across the legal frameworks of the EU jurisdictions.