L?ning - Human Rights and Responsible Business Monthly Briefing
L?ning – Human Rights & Responsible Business GmbH
We are an international management consultancy specialised in human rights.
I recently had the opportunity to attend the annual "HUGO BOSS Stakeholder Dialog", a forum the company has hosted since 2016 to discuss its sustainability efforts with key stakeholders. It focused on HUGO BOSS' sustainability strategy and its approach to more sustainable supply chain management. What stood out was the open exchange between representatives and experts from NGOs, academia, industry and partners along the supply chain. It was interesting to see the various positions “in action” and to experience how constructive dialogue can lead to improvements.?
Stakeholder engagement plays a key role in the context of human rights and environmental due diligence. It is enshrined in the UN Guiding Principles on Business and Human Rights, the first globally endorsed framework for corporate responsibility on human rights. Meaningful consultation with affected groups and other stakeholders is also reflected in the German Supply Chain Act (LkSG) and the EU’s CSDDD. These initiatives, alongside materiality assessments and multi-stakeholder engagements, makes stakeholder dialogue even more valuable.
Fundamentally, stakeholder engagement is about understanding the impact of a company’s activities by integrating the different perspectives of the stakeholders and the rights holders – at an individual and a systemic level. New approaches to meaningful stakeholder engagement are therefore needed.?
Despite the availability of effective approaches, integrating stakeholder interests is often a challenge for companies. Differing perspectives or a lack of understanding of the true impacts can be barriers to establishing meaningful stakeholder engagement and action. In the seven years that I have worked in the field of business and human rights, I have seen that progress can take time, and I have always advocated for the integration of stakeholder interests to be seen as a learning curve – one that aims to build understanding and trust so as to achieve real impact. To bring about this paradigm shift, it is important for companies to listen closely to affected rightsholders and incorporate their feedback into their business practices, and to work with all stakeholders in their supply chains to move from a top-down policing approach to a partnership approach – through fair contract terms, responsible sourcing practices or projects with strategic partners in the supply chain.
If your company is interested in learning more about this topic, please reach out to me at [email protected].?
News from Team L?ning
One month to go: UN Business and Human Rights Forum in Geneva! ????
In partnership with the UN Working Group on Business and Human Rights and Ulula - An EcoVadis Company , we’re co-hosting a snapshot session on grievance mechanisms at the 13th UN BHR Forum. Join us in Geneva to meet our team and engage with over 4,000 participants from governments, businesses, and civil society!?
?? Tuesday November 26, 2024 3:00pm - 3:25pm CET? ???Room XXIV
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?? Upcoming webinar on EUDR in partnership with orka
Join us on 12 November for a discussion on the EU Deforestation Regulation (EUDR) and its implications for companies. In partnership with orka , we’ll delve into the EUDR's requirements, explore implementation challenges, and examine how it integrates with existing legal frameworks and corporate risk management systems of companies.
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Süddeutsche Zeitung
German Chancellor Olaf Scholz (SPD) has reassured the business community by promising, “We will scrap this”, referring to the German Supply Chain Act (LkSG), in response to concerns about excessive bureaucracy in supply chain legislation. Speaking at the Berlin Employers’ Day, he pledged to cut red tape and bring the law into line with forthcoming EU regulations by the end of the year. Economy Minister Robert Habeck (Greens) had announced that he would?take a chainsaw to the law?as part of?his plan to boost the German economy. However, as an EU directive, the Corporate Sustainability Due Diligence Directive (CSDDD)?has to?be transposed into national law by Federal Government.
BAFA –?German Federal Office for Economic Affairs and Export Control
BAFA?will begin reviewing the submission and publication of LkSG reports on 1 January 2026. Even if a report was technically due before this date, BAFA will not impose penalties for late submission, if the report is submitted by 31 December 2025. This approach does not affect BAFA's monitoring and enforcement of other due diligence obligations under the LkSG, for which information from the report may also be relevant.?This measure reflects ongoing discussions around the Corporate Sustainability Reporting Directive (CSRD) and aims to avoid overlapping reporting requirements.?The LkSG is expected to be adapted to the new Corporate Sustainability Due Diligence Directive (CSDDD) before the end of this legislative period.
European Commission
The European Commission has agreed to extend the implementation deadline for the EU Deforestation Regulation (EUDR) by 12 months – to December 2025 for large companies and June 2026 for SMEs. On 16 October, the Council also agreed to the Commission’s proposal and now awaits the decision of the EU Parliament, which has decided to use an?accelerated procedure?for its vote scheduled for the next plenary session on 13 November. The impact of this delay on the regulation’s sustainability goals is still being debated. However, companies are being encouraged to use this additional time to prepare and strengthen their due diligence processes as the potential benefits for all stakeholders could be significant. The Commission has also published?a guidance document?explaining the due diligence requirements, product scope and traceability obligations of the EUDR.?
ESG Today
The Canadian government has outlined a plan to develop a new Sustainable Investment Taxonomy, a set of guidelines to help categorise sustainable economic activities in line with the goals of achieving net-zero emissions by 2050 and limiting the rise in global temperature to 1.5°C. The aim is to facilitate the financial flows and investments needed to achieve these goals. Alongside the new taxonomy, the government has?also announced plans?to introduce mandatory climate-related reporting for large companies. This taxonomy forms part of a global trend, whereby more than 50 jurisdictions worldwide have already implemented sustainability related taxonomies – creating multiple frameworks that could foster regulatory confusion.?Azerbaijan?also plans to use its stage as host of the upcoming COP29 to present its own taxonomy.??
Table Briefings
The German Federal Ministry of Economics and Labour (BMWK) has submitted a draft for public procurement reform aimed at simplifying, speeding up, and digitising contract awards while promoting innovative, sustainable companies. Key changes include raising the direct contract limit from €1,000 to €15,000—and up to €100,000 for innovative services by public interest companies or start-ups. Sustainable procurement will also be prioritised, embedding environmental and social criteria to make public procurement more socially responsible and eco-friendly.
The New York Times
Beijing’s investigation of the parent company of Calvin Klein and Tommy Hilfiger for alleged “discriminatory measures” against Xinjiang products has raised concerns among foreign companies about their reliance on Chinese supply chains. The probe highlights China's opposition to companies avoiding Xinjiang, creating?a legal dilemma for multinationals as the US and EU increasingly restrict imports from the region over forced labour concerns, while complicating efforts by companies seeking responsible disengagement from areas with serious human rights risks.?
Reuters
Brazil has signed a 170 billion reais ($29.85 billion) compensation deal with mining companies BHP, Vale, and Samarco over the 2015 Mariana dam disaster, which killed 19, displaced hundreds, and polluted the Doce River. President Luiz Inácio Lula da Silva attended the agreement ceremony, which mandates a 5 billion reais initial payment within 30 days. Over the next 20 years, 100 billion reais will be paid to public authorities, with 32 billion reais allocated for individual compensation and environmental restoration. This agreement could resolve over 100 lawsuits and may limit further legal action abroad against the mining companies.?
The Wall Street Journal
The article discusses the smuggling of coltan, a key mineral for electronics, from Congo’s war-torn east into global supply chains, often falsely labelled as conflict-free. Controlled by the M23 militia, Congo’s coltan mines fuel violence and human rights abuses, including forced labour and the recruitment of child soldiers. M23 earns around $300,000 a month by taxing miners and smuggling coltan through Rwanda, which rebrands it as Rwandan. Despite efforts by the U.S. and initiatives such as ITSCI to certify minerals as conflict-free, significant amounts of tainted coltan reach smelters around the world, particularly in China. Growing demand for tantalum, which is extracted from coltan, complicates regulation as it remains essential for tech products, from smartphones to electric vehicles. In another attempt to minimise supply chain risks from critical raw materials, the US is working to reduce its reliance on China’s “grip” on cobalt mining by purchasing large cobalt mines in the Congo.
World Economic Forum
The 2024 Nobel Prizes highlight essential connections between human rights, technology and economic equity. In economics, Simon Johnson, James Robinson and Daron Acemoglu were recognised for research showing that strong institutions foster prosperity, reinforcing the importance of fair and transparent systems for responsible business practices. The Nobel Peace Prize was awarded to atomic bomb survivors in Japan, while laureates in AI and machine learning were honoured for breakthroughs that underline the need for ethical and human-focused use of AI in business.??
B Lab Global
Tech companies like OpenAI are showing interest in the benefit corporation model, signalling a shift towards integrating social and environmental goals in fast-paced, growth-driven sectors. Benefit corporations are for-profit companies that are legally required to balance profit with purpose, taking into account their impact on stakeholders such as employees, communities and the environment. While this model aims to increase accountability for societal benefits, its success depends largely on the commitment of senior management to transparency and accountability.
Bloomberg News
领英推荐
For nearly a century, Boeing represented American engineering and corporate excellence, with millions confidently boarding its planes daily. However, after fatal crashes in 2018 and 2019, whistleblowers and investigations revealed significant compromises in safety and quality, all in pursuit of higher profits. This shattered Boeing’s hard-earned trust, which may be irreparable. Boeing's case is part of a larger trend, as Americans’ confidence in big business has steadily declined, with only 16% expressing trust in major companies today, down from 30% in 1999. This growing distrust in institutions once synonymous with innovation and economic strength highlights a need for businesses to restore genuine accountability, prioritising public trust as much as profits to ensure their role in a sustainable economic future.
SustainableViews
Some politicians in Europe argue that standardised sustainability disclosures are needless bureaucracy, yet they overlook the importance of the EU Corporate Sustainability Reporting Directive (CSRD), set to start in 2025. The CSRD aims to improve ESG data quality, essential for banks and investors. Misinterpretations have led some companies to over-comply, especially in value chain reporting, though the directive only mandates limited metrics like estimated Scope 3 emissions. Many companies, however, recognise the strategic benefits of CSRD, and even firms not required to comply plan to adopt its standards. A unified framework like CSRD can streamline reporting, boost transparency, and position Europe as a leader in the global sustainability transition.?
NOVA BHRE
The CSDDD requires large firms to manage risks across their “chain of activities”, from sourcing to production. However, challenges persist: while audits and certifications verify compliance, they may miss real-time issues, as illustrated by the 2013 Rana Plaza disaster where an SA8000-certified factory collapsed, causing worker deaths. To avoid over-reliance on certifications, the CSDDD recommends—but does not mandate—audits. The directive encourages firms to use audits as diagnostic tools and integrate compliance into internal processes, fostering sustainability as a core business strategy for accountability and resilience against human rights and environmental risks.
University of Leeds
The UK’s House of Lords has reviewed the?Modern Slavery Act 2015, which was originally hailed as world-leading but is now seen as?lagging behind global standards,?according to the University of Leeds. The committee’s report highlights that the UK’s response to modern slavery is outdated, particularly in relation to the intersection of immigration and exploitation. Professor Louise Waite gave evidence on how immigration policies have created vulnerabilities for migrants, making it harder for victims to access support. Former Trades Union Congress (TUC) General Secretary Frances O’Grady underlined the damaging effects of reducing support for vulnerable people in favour of tougher immigration policies.
Table Briefings
A recent study by the University of G?ttingen calls into question the EU’s proposed Green Claims Directive, revealing that “climate-neutral” labels on food often mislead consumers into thinking products are more environmentally friendly than they are, encouraging greenwashing. Even with additional information, these labels fail to correct misperceptions. By contrast, traffic light labels, which clearly indicate a product’s climate impact, help consumers make more accurate assessments. The study suggests that the introduction of interpretive labels could improve transparency and reduce greenwashing in climate-related food labelling.?
Taz
A scandal over forged biodiesel certificates and misleading climate claims from China has destabilised Germany’s biofuel market, hitting Lower Saxony’s biogas plants hard and causing prices to plummet. Allegedly, biodiesel relabelled in China as climate-friendly has undercut local producers, raising concerns about widespread greenwashing. The Stop Climate Fraud Initiative is now calling for stricter accountability, demanding that companies don’t profit from fake certificates. Investigations and political pressure are mounting as officials consider reforms to ensure market integrity and stabilise the renewable energy sector.
Harvard Business Review
Unlike financial or environmental data, social impacts on communities and consumers are difficult to quantify. Bayer Crop Science has used feedback metrics to track its positive impact on farmers’ incomes and quality of life. This approach of gathering insights directly from those affected enables companies to report more accurately on social outcomes by including the voices of the beneficiaries, thereby improving the transparency and effectiveness of ESG practices.?
Handelsblatt
A new ranking by Scope assesses DAX 40 companies on their ESG performance as they increasingly align with the EU CSRD reporting standards. This shift marks a new era of transparency, as companies are now assessed on their environmental and social impacts, sustainability risks and forward-looking strategies. Key areas of focus in this ranking include measurable environmental and social impacts, robust risk management to address sustainability challenges, and clearly defined targets for long-term ESG improvements.?
The New York Times
Brazil is proposing the Tropical Forests Forever Facility, a $125 billion fund that would pay developing countries to conserve tropical forests that are critical to fighting climate change. Unveiled at last year’s climate summit in Dubai, the fund aims to reverse the economics of deforestation by paying countries for ecosystem services such as carbon storage and rain regulation, with a potential annual payout of $4 billion. To reach these goals, the fund relies on substantial investment from the private sector.
OECD
This handbook guides companies in using the OECD Due Diligence Framework to achieve living wages in global supply chains. Focusing on the agriculture, apparel and footwear sectors, it helps companies turn commitments into action as part of their human rights due diligence. The handbook builds on the OECD standards and is aligned with the ILO’s living wage approach.?
NYU Stern Center for Business and Human Rights
As business and human rights regulations proliferate, companies and regulators are challenged to make effective use of legal frameworks. This report provides a roadmap with recommendations for governments and businesses. It highlights the importance of improved performance metrics to assess corporate compliance and advocates for stakeholder engagement, capacity building and risk prioritisation. By addressing these areas, both companies and governments can foster more robust human rights practices and accountability.?
Global Works
This report sheds light on the challenging conditions for warehouse and office staff at companies like Shein and Temu in China, who are often left out of labour rights conversations. Warehouse employees face intense time pressures and performance rankings, while office staff work up to 380 hours a month under constant performance demands, fostering a toxic, high-turnover environment. Algorithmic controls obscure wage and hour records, making fair treatment difficult to ensure, while influencers paint a misleadingly positive picture of these roles. The findings call for urgent scrutiny of labour practices within such companies.?
UNICEF
The?annual report of the Special Representative on Violence against Children?reveals that 160 million children are engaged in child labour. The ESRS require companies to recognise “persons in vulnerable situations,” including children, as a key stakeholder group, ensuring their impacts are carefully considered in reporting. UNICEF has developed guidance briefs to help companies identify child-rights disclosures within the ESRS and incorporate children’s rights into their reporting.?
Walk Free & First Sentier MUFG Sustainable Investment Institute
This guide outlines key remediation steps for investors addressing modern slavery within their investments. It highlights investor responsibilities under international and emerging national laws, offering concrete actions and examples across each stage of the remediation process. With modern slavery affecting around 50 million people globally, the guide underlines the growing risks—legal, reputational, and financial—that investors face if they overlook this issue.?
Amnesty International
Amnesty International’s new human rights ranking reveals the poor performance of the world’s leading electric vehicle (EV) manufacturers, including BYD, Mitsubishi and Hyundai, in addressing human rights risks in their mineral supply chains, which are essential for EV batteries. The Amnesty study highlights the industry’s failure to prevent exploitation and environmental damage in mining communities, particularly affecting indigenous peoples. While some progress has been made, no company scored higher than 51/90, with Mercedes-Benz leading the way but still lacking full transparency.?
GIZ, Initiative for Global Solidarity
The report analyses the effectiveness of non-state, non-judicial grievance mechanisms (NSBNJ-GMs) in providing remedies for people affected by mining in regions like Peru, Colombia, Indonesia, and South Africa. Findings reveal both strengths and limitations: NSBNJ GMs enable rights holders to address grievances but often fall short due to accessibility challenges, limited transparency, and weak enforcement of fair remedies. Operational-level grievance mechanisms (OLGMs) often provide compensation for minor issues but struggle with complex human rights violations, particularly when cultural or gender-specific needs are overlooked.?