10 Mai 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 Oktober 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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14 Juni 2022
Moving Beyond Token Participation
The concept of human rights due diligence was developed over the past decade as a way for companies to grapple with adverse human rights violations and impacts connected to their business practice, including within their value chains. In February of this year, the European Commission published a proposal for European Union-wide mandatory human rights due diligence for companies that fall under its scope. For such legislation to succeed in advancing the rights of the most affected and to lead to better human rights outcomes for rights-holders, it is crucial to anchor such laws and regulations with not only the perspective of rights-holders but their ongoing involvement. To do otherwise would miss an invaluable opportunity to improve the landscape of business and human rights to center rights-holders in the years to come. Continue reading >>
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16 März 2022
Enforcing Due Diligence Obligations
The Corporate Sustainability Due Diligence Directive creates an innovative mix of enforcement mechanisms. It relies on both administrative oversight and judicial enforcement through civil liability. Additionally, accountability of businesses for affecting stakeholder interests is strengthened by a specific environmental, social, and corporate governance duty of care for directors and obligations to link directors’ pay to climate obligations, thus ensuring that directors need to steer businesses in light of stakeholder interests. This system has the potential to effectively oblige companies to respect stakeholder interests, although some weaknesses, especially in access to justice, remain. Continue reading >>
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15 März 2022
Due Diligence Around the World
On 23 February 2022, the EU Commission released its draft Directive on Corporate Sustainability Due Diligence (CSDDD). It follows – and seemingly takes inspiration from – several national mandatory human rights and environmental due diligence (HREDD) laws, notably in France, (“LdV”) Germany (“GSCDDA”) and Norway (“Transparency Act”). It provides a strong legal basis and innovations to enhance corporate accountability, to strengthen stakeholder value and to create a European and possibly global standard for responsible and sustainable business conduct. Continue reading >>
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21 April 2021
Recognising Nuances
This week, the German Parliament is beginning its debate on the cabinet draft for a national Due Diligence Act (Sorgfaltspflichtengesetz). Critics of Germany’s initiative often claim that it would run counter to the development interests of the Global South. This, however, not only ignores strong development policy arguments in favour of human rights due diligence (HRDD) regulation but also the fact that several countries in the Global South are calling for similar obligations or have already created them. In particular, Germany may learn valuable lessons from the Colombian Constitutional Court’s recent case law which has created meaningful HRDD obligations for companies as well as from a draft for a Mexican Due Diligence Act. Continue reading >>18 Juli 2018