When companies intentionally or negligently fail to comply with their duty to prevent, mitigate, bring to an end, minimise adverse impacts, and this failure causes or contributes to damage, they can be held liable for the damage suffered. They will not be liable if only the business partner(s) in their chain of activities caused the damage.

In case the company is liable, it will have to provide full compensation to the victim for the damage suffered. However, this shall not lead to overcompensation, for instance through punitive damages.

Injured parties may authorise a trade union, a non-governmental human rights or environmental organisation or other non-governmental organisation based in a Member State to bring actions on their behalf, under the conditions set out in national law.