The European Parliament has voted to approve legislation that requires large companies in the European Union to address sustainability and human rights impacts across their supply chains. 

Parliament gave the so-called "due diligence" directive the green light on April 24. It makes it so that all EU companies with over 1,000 employees and a global turnover higher than €400 million ($427 million) must eventually mitigate against business practices like forced labor, pollution, and various other human rights abuses. It also allows the European Commission to investigate potential abuses in companies' supply chains in countries outside of the EU, and creates legal liability for any violations.

"Today’s vote is a milestone for responsible business conduct and a considerable step towards ending the exploitation of people and the planet by cowboy companies," said European Parliament lead member Lara Wolters. "This law is a hard-fought compromise and the result of many years of tough negotiations."

The legislation next needs final approval from the Council of the European Union before it's signed into the EU Official Journal. It will officially take effect 20 days after that. Then, EU member states will have two years to integrate the directive into their national laws.