The French law on corporate duty of vigilance, passed in 2017, was meant to hold parent companies accountable for the actions of their subsidiaries—but for years, its practical application remained unclear. Now, two landmark rulings from the Paris judicial court are reshaping how businesses interpret the law, with far-reaching consequences for human rights, labor standards, and climate obligations.
Nearly a decade after the law’s adoption, the 34th chamber of the Paris judicial court has issued two decisions that clarify its scope: one against Yves Rocher for failing to protect workers at a Turkish subsidiary, and another ordering TotalEnergies to expand its climate vigilance plan to include client emissions. These rulings mark the first concrete interpretations of a law that had long been seen as more symbolic than enforceable.
Since 2017, French law has required large companies, those with over 5,000 employees (or 10,000 including subsidiaries), to implement a vigilance plan covering risks to human rights, health, safety, and the environment across their entire supply chain. Yet until recently, businesses struggled to define what that meant in practice.
Landmark Rulings Set Precedent
That changed in March 2026, when Yves Rocher was condemned for excluding its Turkish subsidiary from its vigilance mapping. The case began in 2018, when workers at a 51%-owned Turkish factory joined the Petrol-Is union, triggering 132 dismissals and anti-union intimidation. An internal audit and a Turkish labor inspection later confirmed the abuses. The court ruled that Yves Rocher had failed to identify risks in its subsidiary and neglected to prevent labor rights violations, a direct breach of the duty of vigilance.
The judgment ordered Yves Rocher to compensate Petrol-Is and six former employees.
The second ruling, issued on June 25, 2026, took the law further by extending vigilance obligations to climate impacts. In response to a lawsuit by Sherpa and Notre Affaire à Tous, the court found TotalEnergies’ vigilance plan incomplete and gave the company six months to align with stricter standards. Unlike Yves Rocher’s case, which involved labor rights, this ruling focused on Scope 3 emissions, those generated by customers using TotalEnergies’ products.
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This was the first time a French court explicitly linked climate obligations to the duty of vigilance, interpreting the law’s environmental protections to include indirect emissions tied to human rights risks. The court granted TotalEnergies six months to revise its plan, with a follow-up hearing scheduled for early 2027 to verify compliance.
Dual Enforcement Mechanism
The two cases reflect the law’s dual enforcement mechanism: injunctions (preventive orders to fix flaws) and compensation claims (for proven damages). Yves Rocher fell under the latter; TotalEnergies, the former. Together, they force companies to map risks more rigorously, whether in supply chains, labor practices, or climate footprints.
Solène Delafond, a partner at Hoche, which specializes in high-stakes corporate disputes, said that the rulings provide real guidance on what vigilance plans must include, and what happens if they don’t. Before these rulings, companies were guessing at the law’s boundaries.
However, the TotalEnergies decision has sparked debate. Sylvie Le Damany, a compliance lawyer at Adaltys Avocats, noted that the appeal will test whether judges can balance vigilance with business strategy. She questioned whether TotalEnergies is responsible for how its clients burn fuel.
European Law Takes Shape
For now, the legal uncertainty persists. While France’s law is clearer, Europe’s upcoming Corporate Sustainability Due Diligence Directive (CS3D), modeled after the French version, may introduce new complexities. The CS3D, adopted in June 2024, will require EU-wide compliance by 2028, but its transposition into national laws remains unresolved. Some provisions are stricter than France’s; others, more flexible. How courts interpret these differences could reshape vigilance standards across the continent.
