Australian corporations are facing increased pressure to address human rights abuses and environmental damage in their international supply chains due to new laws introduced in the European Union. The EU Corporate Sustainability Due Diligence Directive requires large companies to identify and address various infringements, including working conditions, wages, discrimination, and pollution. Noncompliance can result in significant financial penalties. Australian companies that sell goods in the European market or provide raw materials in European supply chains may be subject to the directive. The Australian government is urged to amend the Modern Slavery Act to include mandatory action provisions. The directive could also impact Australia's mining, extractive, and agricultural sectors, as well as companies linked to manufacturing batteries, solar panels, timber, and textiles. Australian companies are concerned about the lack of clarity on how the directive will be implemented and are calling for domestic sustainability regulations to align with European standards. The EU due diligence obligations will be phased in over five years from 2027 and will apply to companies with a turnover of €450 million or more. The directive's impact may trickle down in supply chains, and overseas parent companies could share the cost of fines or penalties with Australian subsidiaries or suppliers. It is not yet clear how potential disruptions to supply chains in Asia could affect Australian exporters or companies with ties to the region. Australian corporations have made progress in eliminating ties to sweatshops and workplace abuses from their supply chains, but there is still room for improvement. Investors and human rights groups are pushing for stricter regulations and changes similar to [Extracted from the article]