Luxembourg – due diligence

Part III – NAP

1. Declaration of Engagement (pg. 26)

… In addition, the Government expects companies to fully respect human rights in general, and in particular to:

  • Provide the necessary governance tools for this purpose, including the introduction of a due diligence system. Due diligence refers to the process that, as an integral part of their decision-making and risk management systems, enables companies to identify, prevent, and mitigate the actual or potential negative impacts of their activities, as well as to report on how they approach this issue. The nature and extent of a due diligence that is appropriate to a particular situation depends on factors such as the size of the business, the context in which it operates, the specific recommendations of the UN Guiding Principles and the severity of the adverse impacts. When companies have a large number of suppliers, they are asked to identify the general areas in which the risk of negative impact is most significant and, based on this risk assessment, to exercise due diligence as a matter of priority with respect to certain suppliers;…


Part III – NAP
3. Government’s Response

3.2. A joint work program

…Other measures: (pg. 31)

  1. Implementation of due diligence pilot projects in enterprises in which the state is the principal shareholder;…