According to Reuters, the draft of the law, called Corporate Sustainability Due Diligence, will also make companies that operate in the European Union check that their activity limits the rise of global warming by 1.5 degrees Celsius, according to the Paris climate treaty.

The effort presented by the European Commission aims to reduce environmental waste and pollution, generated by greenhouse gas emissions and also to ensure that workers aren't exposed to health threats at the workplace or exploited in any way.

Before the proposal will become an actual law in the entirety of the European Union, the Commission will have to negotiate with the European Parliament and the EU governments.

About 13.000 firms in the EU will be affected by the law with the criterion being that the company should have at least 500 employees and the income generated by sales should be at least 150 million euros.

Friends of the Earth Europe, a non-governmental organization said that "The law could be a true game-changer for corporations' impact on the planet, or it could be a damp squib if big business lobbies get their wishes".

The limit would be smaller for companies in the high-impact sectors, like shoes, clothes, animals, food and beverages -250 employees and 40 million in revenue.

If adopted, the law will also apply for some 4.000 companies outside the EU, but that operate in it. If the net turnover is 150 million euro or 40 million for companies in the high-impact sectors, they will also fall under the same regulation.

Also, each government from the 27 countries in the bloc will make sure that the companies follow the rules and fine them if they don't.

Aurelie Skrobik, Corporate Accountability Campaigner at Global Wellness stated that "based on what we know this is a massive step in the right direction in the fight against corporate abuse."