Justice is everybody's business.
Hello together!?August. A month in the school holiday and holiday season. Also during this time we keep an eye on the progress and challenges in the area of supply chain due diligence. This month we report on forced labour in the textile industry, the current debate on the EU LkSG and upcoming events.
We had the privilege of participating in the insightful workshop titled "Spotlight on the German Supply Chain Due Diligence Act" co-organized with the German Business Association (GBA) and in partnership with AHK Vietnam. This event provided us a platform to delve into the crucial fundamentals of the German Supply Chain Due Diligence Act. Our discussions during the workshop covered significant themes, including grievance mechanisms, corrective actions, digital tools, and challenges related to supply chain due diligence. We emphasized the vital role of collaboration between affected companies and suppliers to enhance the Act's implementation and ensure compliance.
We were joined by esteemed speakers who shared their valuable insights:
Highlighting our collaboration with AHK Vietnam, our approach is designed to ensure meaningful HRDD compliance while reducing the workload for companies. A big thank you to AHK Vietnam and GBA Vietnam.
Research with workers: Digital Grievance Mechanisms in Portugal
As already announced in the last newsletter, we conducted a research study in a Portuguese garment factory, uncovering insights into the efficacy of our complaints chatbot, workers' feedback, and other grievance possibilities. Our primary aim was to gain an in-depth understanding of how workers engage with our grievance channel. In the event, we want to shed some light on our findings and their implications.
?? When? On 6 September 2023, 6:00 to 7:00 pm (CEST)
?? More information and registration here.
A lot is going on in September!
Access to remedy: integrating worker voices into grievance mechanisms
The third webinar of the webinar series by Social Economic Council of the Netherlands (SER) and the Initiative for Global Solidarity (IGS), project implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) is aimed at ESG and sustainability managers, corporate executives and interested parties who want to learn more about integrating workers' voices into grievance mechanisms. It covers the importance of engaging local stakeholders, shows examples of successful collaboration and provides key elements for effective remediation.
?? When? On 12 September 2023, 3:00 to 4:00 pm (CEST)
?? More information and registration here.?
Stakeholder Engagement and Involvement of Rightsholders in HREDD
Companies worldwide are facing increasing legislative mandates for Human Rights and Environmental Due Diligence (HREDD). Initiatives like the German Supply Chain Due Diligence Act and the EU's Corporate Sustainability Due Diligence Directive necessitate stakeholder engagement and involving rightsholders for successful implementation and compliance. This webinar by Helpdesk Wirtschaft & Menschenrechte, amfori and the German Bündnis für nachhaltige Textilien (Partnership for Sustainable Textiles) offers insights into practical tools to meet due diligence obligations under the German Supply Chain Act.
?? When? On 18 September 2023, 10:00 - 11:30 am CET, online?
?? You can register here.
Does Fair Trade change society? (in german)
Fairtrade Germany presents the study "Developments in Fair Trade and Fair Procurement in Germany 2015-2022". This study investigates the development of fair trade and procurement in Germany. Clients present the largest study in the German-speaking world on the role of fair trade organisations, companies, politics and municipalities.
?? When? On 21 September 2023, 10:00 - 11:30 am CET, online
?? You can register here.
Current Debate on EU Corporate Sustainability Due Diligence Directive (EU LkSG)
The One Side: Concerns Over Burdensome Regulations
German Handwerks President J?rg Dittrich and Employers' Association President Rainer Dulger have expressed deep concerns about the potential implications of the proposed EU Corporate Sustainability Due Diligence Directive (CSDDD) in a letter to Chancellor Olaf Scholz. They emphasize that businesses fear excessive burdens from these regulations, which could create insurmountable obstacles, particularly during challenging economic times. The letter urges Chancellor Scholz to advocate for significant changes to the existing EU draft directives. Under the current German Supply Chain Due Diligence Act (LkSG), smaller businesses are already affected by supply chain regulations. Larger companies passing down requirements to their smaller suppliers leads to bureaucratic complexity. The association presidents assert that additional burdens cannot be imposed on businesses. They caution that such regulations could lead German companies to withdraw from certain regions or sectors.
More information (in german): Brandbrief an Scholz: EU-Lieferketten-Richtlinie belastet Betriebe
The Other Side: Strengthening Complaint Mechanisms
On the contrary, a joint position paper by European Center for Constitutional and Human Rights (ECCHR), Germanwatch, INKOTA-netzwerk, and WEED – Weltwirtschaft, ?kologie & Entwicklung, focuses on effective complaint mechanisms within the CSDDD. This paper emphasizes the importance of addressing human rights violations and environmental damage in global supply chains through access to remedy. It highlights non-state-operated complaint mechanisms as crucial tools to complement official procedures and legal actions, playing a pivotal role in risk analysis, prevention, corrective actions and trust-building. The paper evaluates the CSDDD proposals by the European Commission, Parliament, and Council, considering their alignment with the UN Guiding Principles on Business and Human Rights. The Parliament's proposal aligns more closely with these principles, incorporating early warning systems, provisions for reporting, and protection against retaliation.
领英推荐
More information (in german): Germanwatch: Effectively Addressing Human Rights Violations
Discussion: The Imperative for Strong EU Legislation
The debate underscores the necessity of the EU Corporate Sustainability Due Diligence Directive (#CSDDD) for fair competition on the European market. Blocking the law now could compromise Germany's position and disregard a global trend towards accountability in the area of #HRDD. Mislabeling human rights as "European-style social and ecological standards" misrepresents issues arising from European companies' supply chain practices hindering fair wages, labor rights, and environmental protection in the Global South. Blocking the EU law favors exploitation by Northern companies. Abandoning the EU law harms German economy, which needs EU market strength for transformation. Past transformations like GDPR underscore the stability of economies despite initial concerns. By strengthening complaint mechanisms and enforcing accountability, a level-playing field for companies and more just supply chains can be achieved. Because “Justice is Everybody’s Business”, businesses need to be held accountable. #holdbizaccountable
Forced Labour in the Textile Sector?
The UN Special Rapporteur on Modern Slavery, Tomoya Obokata, presented a report on the impact of technology on contemporary slavery. The report highlights how digital tools can both escalate and combat modern slavery. Social media is used for recruitment and exploitation, with women and children most vulnerable. Legitimate platforms and AI also contribute to the risk. However, technology like blockchain and satellites can enhance transparency and aid in fighting slavery. Examples for Forced Labour in the textile industry from current media: examples provided:
BAFA questionnaire now available as PDF (in german)
Available now is the questionnaire for the Supply Chain Sourcing Obligations Act (LkSG) as a PDF, provided by the "Bundesamt für Wirtschaft und Ausfuhrkontrolle" (BAFA). The answers are used to automatically generate the annual report. This offers a practical solution especially for companies without access to the BAFA online portal.
?? Link to the questionnaire here.
The steel manufacturer Butzkies initially underestimated the supply chain law. However, it was then asked by premium customers such as Audi and other premium brands to comply with the law in order to maintain business relationships. The company suddenly had to show ISO certifications and commit to complying with the legal standards. The story shows how medium-sized companies can be unexpectedly affected by such legislation when customers demand compliance in global supply chains.
On 26 July, it became clear that the fashion sector is estimated to be responsible for up to 8% of global emissions. The Sustainable Apparel Coalition plans to reduce emissions by 45% by 2030, and brands in the Fashion Pact have pledged to use 100% renewable energy in their own operations by 2030. But 96% of emissions occur in supply chains and through consumer use, and these are going in the opposite direction. Sourcing practices that aim for the lowest prices hinder suppliers' ability to meet climate targets.
H&M is phasing out supplier sourcing from Myanmar following reports of labour abuses. Similar action has already been taken by brands such as Zara owner Inditex, Primark and Marks & Spencer. H&M is ending its operations in Myanmar due to rising reports of wage theft and forced overtime following the military coup in February 2021. The junta takeover has plunged Myanmar into a political and humanitarian crisis. The garment sector employs mostly women, who produce clothes and shoes for major brands in more than 500 factories. Experts fear that the withdrawal of multinational companies could disadvantage workers in Myanmar. H&M plans to use a "responsible exit framework" from the IndustriALL union.
Status: It's complicated (in german)
The article discusses global supply chain challenges. Companies are considering local production and shorter supply routes for stability. EU laws such as the Critical Raw Materials Act and Chips Act aim to promote recycling and local production.While reshoring and nearshoring play a role in some sectors such as fashion and electronics, sustainable supply chains and circular economy are key issues. Companies need to design products for reuse and recycling. The transition to sustainable supply chains and circular economy is complex but necessary.
Walmart reviews supplies from Cambodia (in german)
US companies Walmart and Centric Brands are reviewing supply chains from Cambodia following allegations that prisoners at the largest women's prison are making clothes for export under dubious conditions. Walmart and Centric Brands are responding with concern to the allegations and taking action. The prison labour trade is illegal in the US and Cambodia.
Guide for conducting risk assessments in palm oil producing countries
The FONAP guide focuses on human rights aspects in the palm oil sector. It emphasizes sustainability in the face of environmental problems, social grievances and rising oil demand. Based on UN principles and the LkSG, it addresses five core elements, including risk assessment. The FONAP study provides practical guidance on how to identify and mitigate risks in the sector. It particularly supports small enterprises in due diligence. The steps for risk analysis range from understanding requirements to verification with local actors. However, the study emphasizes that it is not a substitute for corporate responsibility, but supports companies in meeting it. The entire guide here (in german).