Session co-organized by the Working Group on Business and Human Rights, in collaboration with the Ministry of Foreign Affairs of the Kingdom of the Netherlands, Southern Voices for Global Development and ShiftBrief description of the session:The shift from voluntary implementation of international due diligence standards to a smart mix of measures that includes binding legislation requiring Human Rights and Environmental Due Diligence (HREDD) by companies should have significant positive impacts for people and planet. It should help ensure better livelihoods for farmers, workers, small and medium-sized enterprises that form the foundation of many global value chains. It should also help drive more sustainable business models and create a level playing field for companies that are already investing in aligning their operations with the international standards.
However, implementing HREDD legislation will be complex. International cooperation and accompanying measures are important for a soft landing of HREDD legislation. Implementing HREDD legislation should be done in an inclusive way, taking into account the needs and contexts of different stakeholders in global value chains. This is essential for reducing burdens and costs for businesses in production countries, preventing the unintentional exclusion of value chain actors and promoting responsible engagement, rather than disengagement. The latter would have clear negative effects on the very stakeholders whose rights are most at risk from the current ways in which global value chains operate and whose perspectives are central to meaningful human rights due diligence.
The EU Corporate Sustainability Due Diligence Directive (CSDDD) is a landmark opportunity to advance responsible business conduct and sustainability, requiring large companies in the European Union (EU) to conduct HREDD. Significantly, the Directive expects the EU and its Member States to adopt accompanying measures to support implementation in diverse contexts.
For the Directive to be truly effective, it must be implemented in a way that takes into account the perspectives and local knowledge of stakeholders in value chains within due diligence and that fosters cooperation between buyers and suppliers in consumption and production countries. Implementation should involve meaningful support for affected stakeholders, local producers and companies in production countries that recognizes the distinct challenges they face and helps enable the business partners of EU buying companies to meet higher sustainability standards. If implementation is responsive to the diverse aspirations, needs and development contexts of stakeholders throughout the value chain, it can provide for a soft landing of the CSDDD/HREDD legislation, support businesses and partner countries, as well as deliver on its positive outcomes.
Key objectives of the session:- Modeling open dialogue between government, business and civil society stakeholders on what is needed to ensure the impactful implementation of HREDD legislation (specifically EU CSDDD), directly informed by perspectives from the Global South.
- Demonstrating why strengthened partnerships between value chain actors in consumption and production countries will be essential to the success of HREDD legislation in practice.
- Encouraging governments to support HREDD legislation by sharing the advantages for business and for affected stakeholders if it is implemented in an inclusive way involving dialogue, engagement of producer countries and supportive accompanying measures.
- Sharing good examples of multistakeholder approaches, partnerships and inclusive implementation of HREDD.
