Luxembourg – Supply chains

Part II: Specific objectives of the National Action Plan 2020-2022

1. The state duty to protect human rights

(…)

1.7. Follow up on the commitment to introduce a duty of care at a European level

 

Context

Following the Government’s commitment in the coalition agreement that “Luxembourg will support European initiatives to strengthen the social and environmental responsibility of transnational companies in the management of their supply chains and will commit itself at European level to binding and effective legislation”, the conclusions of the baseline study, the positions expressed by different actors within the working group on the need to introduce a binding duty of care for companies, recent legislative developments in other EU Member States and initiatives at the level of the European Parliament, a follow-up of the initiatives taken by Luxembourg in favour of European legislation on duty of care will be carried out in the framework of the National Action Plan.

To this end, regular reports will be made by the Ministry to the working group on the initiatives taken in favour of a duty of care at European level and on the progress of the work.

 

Objectively verifiable indicators	×        Benchmark: Coalition agreement
Verification sources	×        Report from the MAEE (Ministry of Foreign and European Affairs) ×        Follow-up in the Working Group on Business and Human Rights [GT « Entreprises et droits de l’Homme »]
Expected results	Regular information of the working group members, sharing of published official documents and proposal of the working group to the Ministry
Implementation timeline	Duration of NAP 2
Means of implementation	×      MAEE (Ministry of Foreign and European Affairs)

 

2. The corporate responsibility to respect human rights

2.1. Awareness raising and training of companies on “Business and Human Rights”

 

Context

In order to be able to implement the UN Guiding Principles in their organisations and throughout their value chains, and to recognise the benefits of respecting human rights, companies need to be aware of what is expected of them and the means and opportunities available.

 

Objectively verifiable indicators	×        Benchmark: NAP 1, National Baseline Assessment (NBA) [Etude de base] ×        Economy Barometer [Baromètre de l’economie] ×        Training courses provided by House of Training, IMS – Fairtrade and ASTM, Finance & Human Rights asbl ×        A number of companies subscribing to the National Business and Human Rights Pact
Verification sources	×        UEL [Union des Entreprises Luxembourgeoises] / INDR [Institut National pour le Développement durat et la Responsabilité sociale des entreprises] ×        House of Training ×        Training courses IMS – Fairtrade and ASTM ×        Employers’ chamber [Chambre des salariés] ×        Human Rights Working Group [GT « Entreprises et droits de l’Homme »]
Expected results	×        Better understanding of the Guiding Principles and human rights issues in business
Implementation timeline	Duration of NAP 2
Means of implementation	×        UEL [Union des Entreprises Luxembourgeoises] / INDR [Institut National pour le Développement durat et la Responsabilité sociale des entreprises] ×        House of Training, IMS – Fairtrade and ASTM, Finance & Human Rights asbl ×        Employers’ chamber [Chambre des salariés] ×        Specialised NGOs (notably UNICEF and Droits des enfants et principes commerciaux) ×        Consultants

 

2.2. Finalisation and implementation of the National Business and Human Rights Pact

 

Context

The National Business and Human Rights Pact is one of the concrete flagship actions of NAP 1. A sub-working group has put a lot of effort into the implementation of the National Pact.

Further effort is needed to finalise the process of assessing the annual reports that participating companies are required to submit on the implementation of the Guidelines in their organisations and throughout their economic value chains.

 

Objectively verifiable indicators	×        Benchmark: NAP 1, National Baseline Assessment (NBA) [Etude de base] ×        Text of the National Pact on Business and Human Rights ×        Review of the effectiveness of the instrument in 2022
Verification sources	×        MAEE (Ministry of Foreign and European Affairs) ×        UEL [Union des Entreprises Luxembourgeoises] / INDR [Institut National pour le Développement durat et la Responsabilité sociale des entreprises] ×        Initiative for the duty of care [Initiative pour un devoir de vigilance]
Expected results	×        Critical mass of companies subscribing to the National Pact ×        Annual reports on the implementation of the Guidelines submitted to the Business and Human Rights Working Group ×        Evaluation of annual reports ×        Recommendations to companies
Implementation timeline	–       1st phase: ▪ Operational website ▪ Communication campaign ▪ Prospecting ▪ Launch –       2nd phase: (as soon as possible) signing of the National Pact –       3rd phase: 2020, training and implementation of due diligence processes in companies –       4th phase: (March 2021) submission of first annual reports –       5th phase: (between March and July 2021) evaluation of the first annual reports
Means of implementation	–       MAEE (Ministry of Foreign and European Affairs) –       Ministry of Economy –       UEL [Union des Entreprises Luxembourgeoises] / INDR [Institut National pour le Développement durat et la Responsabilité sociale des entreprises] –       Companies –       IMS –       Business and Human Rights Working Group –       External Consultant

 

The 2020-22 NAP states the second edition of the National Action Plan complements the first NAP. Additional information about the first NAP can be found here.