12 December 2024
Ahead of the Curve
While the German Supply Chain Act (SCDDA) faces criticism for its potential economic impact, compliance offers companies significant advantages. It positions them ahead of the curve in aligning with the forthcoming EU Corporate Sustainability Due Diligence Directive (CSDDD). By integrating responsible business practices early, companies not only meet current human rights and environmental standards but also gain a competitive edge. Amending or repealing the SCDDA, however, risks diminishing these advantages for German businesses. Continue reading >>
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19 November 2024
The Brumadinho Disaster
In 2019, the rupture of a dam in Brumadinho unleashed a “torrent” of mining waste, destroying homes, contaminating the Paraopeba River, and killing 270 people. The dam was owned by the mining company Vale and its safety audited by the German TÜV Süd. More than five years later, no one has been held accountable. However, according to international human rights standards, the Brazilian state must hold companies accountable. Continue reading >>
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15 November 2024
Into Reverse Gear
The recent Hague Court of Appeal judgment, in the appeal brought by Shell against the first instance decision in favour of the NGO Milieudefensie, held that Shell is legally obliged to reduce its scope 3 emissions, but did not order Shell to reduce them by 45%, or indeed any percentage. The judgment is likely to have a significant impact on climate change litigation against corporations beyond just the Netherlands. That impact will be all the greater if the losing parties, Milieudefensie and others, do not appeal. Continue reading >>
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12 November 2024
Lessons of a Landmark Lost
On 12 November 2024, the Hague Court of Appeal in Shell v Milieudefensie set aside the preceding 2021 judgment which held Shell responsible for its contribution to climate change. The 2021 judgment was widely heralded (though also critiqued) as groundbreaking and a precedent that could be followed elsewhere. While the Appeal judgment is unlikely to receive similar praise from climate activists, it contains important lessons regarding the responsibility of multinational companies for their contributions to climate change. Continue reading >>14 June 2024
The Corporate Sustainability Due Diligence Directive beyond Europe
The CSDDD is a game changer that forces a large number of European States to level the legislative landscape with regard to corporate responsibility for human rights and environmental impacts, as well as in relation to liability and access to justice. And yet, its reach throughout global “chains of activities” will most likely bring important hurdles for implementation including in relation to the scope of human rights covered in practice; the need for effective capacity-building in transnational chains of activities; the need for a more proactive dialogue and cooperation between the EU and other States; and last but not least, in ensuring consistency between the national implementation of the CSDDD and international and regional human rights obligations. Continue reading >>
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10 June 2024
From Paper to Practice
The CSDDD requires companies to carry out due diligence on actual and potential human rights and environmental adverse impacts. This means companies have to identify harmful impacts in their value chains and take appropriate measures to prevent, mitigate, or bring them to an end. In this two-part blog post, we will look at which environmental impacts are covered by the CSDDD and how they are addressed. In this second part, we will discuss how the CSDDD negotiations influenced the design of its environmental provisions and identify missed opportunities. We will conclude by analysing what factors are important to ensure that transposition and implementation remain true to the CSDDD’s objectives. Continue reading >>
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10 June 2024
New Wine in Old Bottles
The CSDDD requires companies to carry out due diligence on actual and potential human rights and environmental adverse impacts. This means companies have to identify harmful impacts in their value chains and take appropriate measures to prevent, mitigate, or bring them to an end. In this two-part blog post, we will look at which environmental impacts are covered by the CSDDD and how they are addressed. Our intention is to provide a starting point for the debate by summarising the outcome of the legislative process, explaining how we got there, and offering some thoughts on where we might go next. Continue reading >>
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01 June 2024
Dividing the Indivisible
The absence of a number of important human rights instruments from the EU’s Corporate Sustainability Due Diligence Directive, notably for indigenous peoples’ and migrants’ rights, are serious omissions and must be rectified at the EU level during the first review of the directive. Given the status of the CSDDD as a directive, Member States also have the freedom to add these missing instruments during national transposition and should do so in order to further honour their commitments under the UNGPs. Continue reading >>
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10 May 2023
Effective Human Rights Due Diligence Ten Years After Rana Plaza?
Ten years after the deadly Rana Plaza disaster with 1135 dead and more than 2000 injured workers, a complaint has been made for the first time on the basis of the German Act on Corporate Due Diligence Obligations in Supply Chains (Lieferkettensorgfaltspflichtengesetz, LkSG) to the Federal Office for Economic Affairs and Export Control (Bundesamt für Wirtschaft und Ausfuhrkontrolle, BAFA). The complaint argues that IKEA and Amazon failed to exercise due diligence under the LkSG by refusing to sign the Accord on Fire and Building Safety in Bangladesh (Bangladesh Accord) and its successor, the International Accord for Health and Safety in the Textile and Garment Industry (International Accord). In this post, we explore the relationship between the Accord and human rights due diligence and argue that joining the Accord is essential for fulfilling the due diligence obligations under the LkSG. We argue that Amazon seems to have violated the LkSG prima facie while IKEA’s claim would have to be assessed in-depth by BAFA. Continue reading >>
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26 October 2022
A Defining Moment for the UN Business and Human Rights Treaty Process
The ongoing process to negotiate a UN treaty on business and human rights has its 8th annual session this week in Geneva. Though embraced by many NGOs, this initiative has so far failed to secure widespread support amongst states with wide divergences remaining regarding the proposed instrument’s objectives and design, as well as its relationship to the UN 2011 Guiding Principles on Business and Human Rights, an earlier soft law instrument championed by governments, businesses and international actors. Yet there may be light on the horizon. Continue reading >>
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