Snapshot co-organized by the Working Group on Business and Pels Rijcken & Droogleever Fortuijn NVThe Zero Draft of European Model Clauses has gone into worldwide consultation in July 2024. These model clauses are aligned with the EU Corporate Sustainability Due Diligence Directive (CSDDD), OECD Guidelines and UNGPs and aim to introduce responsible contracting practices in supply chains. This development is also relevant as Article 18 CSDDD prompts the European Commission to develop guidance on model clauses. Whereas contracts are an important means to implement human rights compliance in a legally binding fashion in supply chains, they are an indispensable part of due diligence. However, the current contractual practices in many cases exacerbate human rights impact instead of improving the situation. Therefore, responsible contracting practices should be implemented. In this session the European Model Clauses and their objective to implement responsible contracting practices are introduced as well as the context of the CSDDD in which contracts play an important role.
Background information
The Zero Draft, an introduction and a commentary to the clauses (with general commentary explaining specific Articles, practical guidance on implementation and member state specific observations regarding the Articles) may be accessed at
https://www.responsiblecontracting.org/emcs. This site may be referred to for background information.
