Italy

II. Premises

a) Introduction

“In more recent times, BHR issues have experienced new criticalities, especially with respect to the accessibility and use of remedial mechanisms. These criticalities are related to companies’ and stations’ responsibilities along the global supply chain and the space without physical boundaries proper of digital technologies.

(…)

A particular attention to BHR issues has been introduced in the Action Plan on Human Rights and Democracy 2020-2024, in the perspective of a wider process for the elaboration of a comprehensive EU framework dedicated to the implementation of the UNGPs. In the aforementioned document, the institutions commit themselves to conducting a dialogue with businesses in order to increase the level of protection and promotion of human rights, with the aim of combating corruption and introducing good practices in the area of corporate social responsibility, Due Diligence, accountability and access to remedy, and to fostering contacts and exchanges between businesses and civil society also in the area of women’s empowerment, sustainable development and decent work. This is in addition to strengthening their commitment at the multilateral level and in the development of new tools and materials to advance understanding on these issues. In this approach, the role of the institutions is crucial in terms of comparison and horizontal collaboration both internally (at the central level and in the European Delegations) and externally (with development banks and international financial institutions) and in the dialogue with Member States. The institutions consider a targeted business action to ensure the protection of human rights in the labour market, along the supply chain, and in the context of relevant challenges posed by digital technologies.” (p. 9)

c) National Priorities

“2. The promotion of fundamental rights through business activities both offline and online along the supply chain, at local, national, regional and global level.” (p. 11)

IV. Italian ongoing activities and future commitments

a) Foundational principles

“Italy renews its commitment for an open and constructive dialogue with businesses of all sizes who operate at different levels and in multiple sectoral areas. So far they could ensure respect for human rights in their structures, in planning and implementation of their development and economic growth strategies along the whole supply chain, as enshrined in the main binding and non-binding international legal instruments.

Irregular work and the agricultural sector

“In relation to the agricultural sector along a wider perspective, the Ministry of Agriculture, Food and Forestry Policies , through the provision of incentives in the agro-food sector, promotes interventions for a better distribution of value along the supply chain with the aim̀ of guaranteeing producers adequate remuneration. The Ministry intends to support and develop potential̀ of rural areas throughout Italy, also through the implementation of the National Rural Development Programme, co-financed by the European Agricultural Fund for Rural Development (EAFRD). This programme is implemented at the regional level through Rural Development Plans (RDP).” (p. 20)

Gender dimension

“Italy has domestically transposed Directive (EU) 2014/95 on non-financial reporting through Legislative Decree No. 254/2016 and, in this context, an important inspection and verification activity by CONSOB of non-financial reporting is being conducted. Its ultimate aim is to verify adequate and transparent information along the supply chain, and also on processes of Due Diligence and management of the risk of violation of human and labour rights along the supply chain.” (p. 34)

Environment

“In the context of the European Action Plan for the Circular Economy, the Government, through dialogue with local authorities and constant consultation of public and private operators and trade associations – intends to develop technical and administrative tools to ensure the support and development of coherent supply chains according to an approach of economic circularity.” (p. 35)

“The implementation of Green Public Procurement has also the purpose to develop circular supply chains, through the adoption of Minimum Environmental Criteria (CAM) for an increasing number of production sectors. CAM are currently in place for 18 categories of supplies and procurements.” (p. 38)

Children’s and adolescents’ rights

“The Italian Government supports public and private sector initiatives to promote attention, inclusion and protection of children’s and adolescents’ rights in business practices with the aim of integrating them into all aspects of the value chain” (p. 40)

Responsible Conduct and Due Diligence in the framework of the United Nations, OECD and European Union

“At the European level, the adoption of Regulation (EU) 2017/821 of the European Parliament and of the Council of 17 May 2017 establishing supply chain Due Diligence obligations for Union importers of tin, tantalum and tungsten, minerals and gold, originating in conflict or high-risk areas, has recently led EU Member States to take action to adapt their legal and regulatory systems to introduce this new obligation for Union importers.

More recently, the debate on Due Diligence has been deepened with a view to its broader mandatory scope: the EU Commission, in its 2018 Action Plan on Sustainable Financial Growth, drew the attention of all stakeholders to the need to develop strategic tools that incorporate Due Diligence along the supply chain. Following the European Parliament Resolution of 29 May 2018, dedicated to sustainable finance for the progressive definition of a mandatory Due Diligence framework, in January 2020 the EU Commission published a specific study on regulatory production process and aimed at compiling a comprehensive measure on mandatory Due Diligence. Finally, in its Resolution of 10 March 2021, the European Parliament addressed to the Commission recommendations concerning Due Diligence and Corporate Responsibility for a future directive, which would contribute to preventing and mitigating potential or actual negative impacts of business action on human rights, the environment and good governance.” (p. 43)

The nexus State – Business

“To this end Italy renews its commitment to ensure that companies controlled or participated in by the State, companies that are supported or have access to governmental benefits, companies that contract or conclude trade transactions with the State, carry out their production activities in compliance with international and European standards, both binding and non-binding, and of related national legislative measures to implement these standards for a full and concrete protection of human rights along the whole supply chain.” (p. 48)

Internationalization of companies

“Italy has performed best practices through awareness campaigns and training activities in line with the OECD Guidelines on Due Diligence, as well as the relevant EU regulations. In addition, again with reference to responsible trade in minerals, Regulation (EU) 2017/821 of the European Parliament and of the Council was adopted in 2017. This established supply chain Due Diligence obligations for Union importers of tin, tantalum and tungsten their ores, and gold, originating in conflict or high-risk zones. It has been transposed into Italian law through Legislative Decree No. 13 of 2 February 2021, which establishes Due Diligence obligations in the supply chain for Union importers of tin, tantalum and tungsten, their ores, and gold, originating in conflict or high-risk areas.” (p. 52)

ANNEX 1 – Accountability Grid and Assessment Tools for the Implementation of the NAP

“32. Participate in relevant OECD, European Union and other international initiatives on sustainable supply chains, human rights and Due Diligence.” (p. 66)

“35. continuing the promotion and protection of human rights, with a proactive role of the Inter-ministerial Committee for Human Rights, in correlation with the priority lines introduced in the framework of the PNRR and the SNSVS, including – among others – issues such as anticorruption, non-financial information disclosure , supply chain, environmental issues, decent work and non-discrimination in favour of competing companies in public calls for tender and within contracts stipulated with companies for the purchase of goods and services, with particular regard to (i) Italian companies operating abroad; (ii) Italian companies using foreign suppliers; (iii) foreign companies” (p. 66)

“36. promote the use of distributed ledger technologies, such as blockchain, to facilitate the traceability of products and services along global supply chains, including at sectoral level and in coordination with International Organizations.” (p. 67)

“38. Further promote awareness of the OECD Guides on Due Diligence for Companies Operating in Weak Governance Zones (the “Risk Awareness Tool for Multinational Companies in Weak Governance Zones” and the “Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas”).” (p. 67)

“50. Contribute, through exchange with governments and social partners, to good practices and common strategies to support the application of Due Diligence mechanisms in the debate on “Decent Work in the Global Supply Chain” promoted by ILO” (p, 68)