Supply chains

Action point 1

Develop a toolkit for companies and organizations on human rights

Elaborer une boîte à outils destinée aux entreprises et organisationsconcernant les droits del’Homme

This point presents the action of developing, in collaboration with experts and its main human rights stakeholders and organizations, a toolbox that will help companies prevent human rights violations and promote the respect for human rights through their activities. This “Toolbox” will be composed of different elements including the management of supply chains.

Action point 13

Strengthen and monitor the respect for human rights in public procurement

Renforcer et contrôler le respect des droits de l’Homme dans les marchés publics

This is the main action point on public procurement, but also engages with the issue of supply chain management. The federal government explains that “since certain sectors are more sensitive than others to possible human rights violations, especially when certain parts of the supply chain are in “at risk” countries, it is not enough to include clauses if they are not (or cannot) be controlled subsequently. Moreover, companies wishing to enter into public procurement contracts are not always familiar with supply chains and can rarely guarantee what is happening throughout their supply chains.” The Working Group on Sustainable Public Procurement analyzed various case studies on monitoring compliance with ILO clauses and human rights in supply chains in order to test, through pilot projects, whether such an initiative is feasible in Belgium. Implementation and follow-up of this initiative will be carried out in cooperation with the relevant federal, regional and local administrations.

• In 2016, the 2016-2020 Plan on Flemish Public Procurement was approved, a plan that emphasizes innovation, sustainability, reduction of human rights violations in supply chains, professionalization and access of SMEs

Action point 14

Evaluate the Belgian label to promote socially responsible production

Evaluer le label belge visant à promouvoir la production socialement responsible

This point includes issues of supply chain management. It presents “the Belgian label” that was a product label created in 2002 and promulgated by law to promote socially responsible production. Companies able to demonstrate that core labor standards were respected throughout their supply chain for their products and services can apply the “Belgian social label” to these products and services.

Action point 15

Incorporate the principle of “due diligence” into the management of the company, also in the terms of human rights

Intégrer le principe de « diligence raisonnable » au sein des organismes de gestion de l’entreprise, également en matière de droits de l’Homme

Supply chains are briefly mentions in relation to the publication of human rights reports: “companies are encouraged to make public their policy on corporate ethics, social affairs, human rights, including, where applicable, in their supply chains, the human rights risks identified, their action plans to prevent any negative impacts and to remedy if necessary, and the measured impact of these action plans.”

Action point 19

Promote best practice of SMEs that adopt responsible supply chain management, especially through the  « CSR Compass » tool

Promouvoir les bonnes pratiques des PME qui adoptent une gestion de la chaine d’approvisionnement responsable, notamment grâce à l’outil « CSR Compass »

The NAP presents “one of the most relevant instruments developed by the European Commission on supply chain management” being the responsible supply chain management portal, CSR Compass. Actions from the government of Wallonia will include the promoting vis-à-vis companies the ready-made instruments, also covering the CRS compass. Concretely, this will involve setting up workshops for exchanges between companies of the same sector and the creation of a practical guide for SMEs wishing to improve the ethics in their supply chain.

Action point 22

Encourage responsible supply chain management with a sector-wide approach

Encourager la gestion responsable des chaînes d’approvisionnement avec une approche sectorielle

The NAP explains that different initiatives have been taken in the past to contribute to the respect for human rights in supply chains. The “OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from ConflictAffected and High-Risk Areas” was the first example of a collaborative, multi-stakeholder initiative supported by the OECD for responsible management of mineral supply chains located in conflict areas. The NAP states that the NCP had organized a round table in 2014 with the objective of collecting reactions and questions to the “OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas”. One of the aimed actions will be for the NCP to continue its work of informing and spreading knowledge to Belgian companies on the sustainable management of the supply chains through a sectoral approach.

Read more about Belgium

Pillar 1: The State Duty to Protect Human Rights

Strand 6: Strengthening Coherence between Public Policies

6.3. The Ministry of Foreign Affairs will: …

• Disseminate the importance of respecting human rights in global value chains (GVCs), encouraging the introduction of this matter in discussions held and worked carried out by the GVC Intergovernmental Group, as well as in presentations to the business community and other agents.

Pillar 2: The Corporate Responsibility to Respect Human Rights

Strand 2: Promotion of corporate due diligence in the field of human rights

2.2. The Ministry of Economy, Development and Tourism will:

• Hold a working group at least once each semester with the Division of Social Economy and Associativity and the Division of Smaller Business Enterprises with the purpose of identifying the impact of human rights in the management of businesses such as cooperatives and SMEs, and of incorporating the vision of human rights and business enterprises within this type of economic associations. Based on the activities of thee working groups, sector guides will be developed to evaluate compliance with human rights issues, with special emphasis on the management of supply chains.
• … Agree, with business enterprises represented in the Social Responsibility Council for Sustainable Development, upon the development of memorandums of understanding, guides, handbooks and guidelines containing best practices, so that they can become an integral part of  business and human rights standards in the following subject matters: labour practices, impact on communities, corporate practices and supply chain management.

Contributions by Other Actors

5. Fundación ACCIÓN Empresa will:

• Prepare a study about main challenges existing in this field, starting by the corporate role, to comply with the Guiding Principles, with the purpose of contributing strategies to resolve issues through good corporate practices in this field.
• Create a Corporate Committee for Responsible Supply, aimed at identifying the best corporate practices in place to minimise the infringement of rights in their value chain. It includes 4-6 annual sessions.

V. Proposal of a Roadmap for an Upcoming Action Plan

9. Incorporation of matters related with the risks of human rights violations in supply chains and inclusion of LGBTI people.

Read more about Chile

VIII. FUNDAMENTAL PILLARS

(…)

ii. Fundamental Pillar 2: The duty of business to respect human rights

Strand 1[Eje nº 1]: Provide companies with the tools to fulfil their responsibility to respect human rights

(…)

• The ICBF [Instituto Colombiano de Bienestar Familiar]  will promote plans, programmes, strategies and projects coordinated with the State, to eradicate child labour in economic sectors identified as critical, in which children and adolescents participate in the production value chain.
• ProColombia (in charge of promoting Colombian exports, international tourism and foreign investment in Colombia) will take advantage of spaces or programmes that contribute to the promotion of exports to raise awareness of good sustainable development practices that include human rights commitments by companies as a factor of competitiveness in global value chains.

Strand 2[Eje nº 2]: Promoting corporate human rights due diligence

(…)

• The Presidential Advisory Office for Human Rights and International Affairs, together with business associations, will be responsible for promoting responsible supply chain management in the area of human rights, with an emphasis on small and medium-sized enterprises.

Read more about Colombia

National Action Plan – production and objectives [page 6-7]

“… this Action Plan’s commitments … make it easier for businesses to keep clear of such situations in their supply chains and among their business partners.”

Most serious infringements of working conditions [page 16]

“There may be numerous labour-law violations in supply chains, via temporary employment agencies, or at entities that act as recruiters but do not hold a permit to do so.”

Supply chains and conflict minerals [page 20-21]

“Current state of play:

• Numerous voluntary certification schemes run by states and international organisations on the one hand and the private sector on the other attempt to map out the origin of raw materials and supply chains. …
• Under the new European rules on non-financial reporting, companies will also publish information on their supply chains.
• The Czech Republic was involved in the consultation and approval of the OECD-FAO Guidance for Responsible Agricultural Supply Chains. The Ministry of Industry and Trade and the Ministry of Agriculture will arrange for this Guidance to be published and publicised at their seminars and workshops.
• The Czech Republic was involved in the consultation and approval of OECD recommendations on the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas and Due Diligence Guidance for Meaningful Stakeholder Engagement in the Extractive Sector. The Ministry of Industry and Trade IS now considering how they can best be implemented in the Czech Republic.

Tasks:

• Establish one or more competent bodies responsible for the application, in the Czech Republic, of Regulation (EU) 2017/821 of the European Parliament and of the Council laying down supply chain due diligence obligations for Union importers of tin, tantalum and tungsten, their ores, and gold originating from conflict-affected and high-risk areas, and notify that body (those bodies) to the European Commission.
  Coordinator: Ministry of Trade and Industry
  Deadline: 9 December 2017
• In the public sector’s procurement of high-risk products and raw materials, consider giving preference to suppliers participating in recognised certification schemes.
  Coordinators: All ministries
  Deadline: Running”

Public procurement [page 23]

“In their public procurement, contracting authorities should know how to reflect and evaluate environmental and social requirements and the protection of human rights correctly in relation both to the supplier and, as far as practicable, the supplier’s subcontractors.”

State enterprises and companies in which the state has a shareholding [page 26-27]

“… [State enterprises and companies in which the state has a shareholding] should ensure a high level of prevention in order to avoid becoming involved in violations of human rights indirectly (e.g. in supply chains). …

Tasks:

• Recommend that state enterprises and companies in which the state has a shareholding insert clauses in new contracts that allow for the contractual relationship to be terminated if the counterparty or supply chain is found to seriously violate human rights or universally recognised ethical and moral standards.
  Coordinators: All ministries concerned
  Deadline: Running”

Pillar II, Scope and content of the obligation to respect human rights [page 30-34]

“For businesses, there are three dimensions to respect for human rights: …

• Do not contribute to violations of human rights: A business does not commit violations itself, but acts in a way that facilitates or smooths the way for violations. This may encompass: …
  • Pressure on suppliers to circumvent safety and labour-law standards.
• Do not be associated with violations of human rights: This applies to other parties’ activities about which a business knows, on which it has a bearing, and/or which are closely related to its own business, and may encompass: …
  • The use of suppliers or subcontractors who exploit child labour or otherwise violate human rights in their activities …

Where does respect come into play? Unlike a state, which is duty-bound to protect human rights everywhere in its jurisdiction, a business’s liability depends on where it exercises genuine influence and what sort of control it wields over a situation:

• The supply chain and business partners: Businesses should have a vested interest in ensuring that the components, raw materials and external services they use are not associated with violations of human rights (e.g. “sullied” by child labour). Although this is beyond the direct control of businesses, they could negotiate the corresponding contractual clauses and, in extreme cases, switch suppliers. Their toolkit here includes the tender conditions employed, human rights clauses in contracts (the possibility of terminating a contract if wayward conduct is detected and the possibility of running checks), the requirement of internationally recognised certification, etc. …

What should a commitment encompass?

• Relations with partners: Although an internal document cannot dictate how business partners are to conduct themselves, it can influence them indirectly. In this respect, businesses should specify – as part of their commitment – what standard of care they expect from their partners and suppliers and, status permitting, they should implement that standard in the form of tender conditions of contractual clauses or by other means. …

A commitment is not merely an internal document. It is a statement by a business that it is aware of and serious about its human rights responsibility. Besides being posted on the corporate website, the commitment should also be incorporated into communications with suppliers, investors, business partners and other groupings. These communications should encompass the following information:

• How did the commitment come about?
• What target groups (right-holders) does it concern?
• How will it be disseminated among those it concerns?
  • Among those who are to implement it (employees, suppliers)?
  • Among the right-holders who are to protect it?”

Due diligence [page 36]

“Human rights auditing should extend beyond the actual business to some extent and touch on the activities of external entities, such as those in the supply chains. Businesses could have a hand in violations of human rights through their own negligence, including via their subsidiaries and suppliers. Such conduct, despite not being wilful or intentional, does not relieve a business of liability as it could be viewed – by the courts and the public – as a form of negligence or failure to engage in appropriate supervision.

Although it is impossible for a business to carry out due diligence at an external entity to the same extent as internal due diligence, those areas that are most at risk should be identified, someone should be singled out as liable for infringements of rights and, where possible and feasible, specific steps to eliminate these risks should be demanded. If external risks identified, businesses should exercise any influence they have to stave off those risks, for example by sharing good practices and their own experience. Businesses lacking such influence should leverage their links with other entities (customers, suppliers, business associations, trade unions and bodies of public administration). If they have no way of influencing such conduct, they should weigh up the option of terminating cooperation.”

Read more about Czechia

2. The state duty to protect human rights

2.3 Actions taken

Danish Government’s Expectations to Companies section [page 11]

“In addition, at Danish embassies in emerging markets, the Trade Council in co-operation with the Danish Business Authority holds workshops in responsible supply chain management, especially focusing on small and medium-sized companies and their local business partners (GP 3c). The courses are held on an annual basis. They include practical guidance on how to demonstrate due diligence in business operations in regard to adverse impacts on human rights.”

Providing effective guidance on how to respect human rights

Since 2005, the Danish Government has worked directly with promoting CSR among Danish companies. The efforts have focused on providing companies with tools and guidance to implement CSR policies in a manner which is both strategic and manageable (GP 3c).

Examples of relevant tools include:

• The CSR Compass – which is a free online tool that helps companies implement responsible supply chain management. http://www.csrcompass.com/“

3. The corporate responsibility to respect human rights

Introduction [page 17]

“While, the Danish Government has an important role in promoting the UNGPs by clarifying and communicating expectations towards companies, the Government acknowledges that in the short term it can be a significant challenge for companies to implement due diligence in their business operations – especially if the company has a complex supply chain or if the company is an SME.”

3.2 Recommendations from the Council for CSR on the corporate responsibility to respect [page 17]

“Since its creation in 2008, the Danish Council for CSR followed the work of the SR SG John Ruggie closely. In 2009, the Government asked the Council to produce a set of guidelines for responsible supply chain management to help companies meet international social and environmental requirements and expectations in their supply chain.

In June 2010, the Council published a set of guidelines for responsible supply chain management based on the Protect, Respect, Remedy Framework. The Council also made sure that the guidelines were aligned with recognised international principles like the UN Global Compact, ISO 26000 etc. The guidelines were meant as a supplement to the Protect, Respect, Remedy-Framework, intended to provide greater clarity about responsible supply chain management by offering a practical, easy-to-read guide and online tool.”

Appendix 1, GP 2

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 24]

“…In 2010, the Government asked the Council for CSR to develop guidelines for Responsible Supply Chain Management based on the UN Protect, Respect and Remedy framework”.

Appendix 1, GP 2 continued

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 25]

“The Danish Ethical Trading Initiative is an example of a soft law initiative. It is the first Danish multi-stakeholder initiative for Ethical Trading and Responsible Supply Chain Management. The initiative is co-financed by Danida.”

Appendix 1, GP 3c

Initiatives taken or planned as a dedicated measure to implement the UNGPs (after the UN ratification of the Guiding Principles) [page 27]

“The Trade Council in co-operation with the Danish Business Authority holds workshops in Responsible Supply Chain management, especially focusing on small and medium-sized enterprises and their local business partners (GP 3c). The courses are held on a n annual basis. They will include practical guidance on how to demonstrate due diligence in business operations in regard to adverse impacts on human rights. To further assist the Danish companies in emerging markets, the embassies are also conducting free CSR reviews of local business partners. The reviews include a due diligence component. (…) In 2013, a number of Danish organisations have been granted support by Danida for initiatives focusing on the promotion of ethical trading initiatives and supply chain management, CSR and Fair Trade …

In 2013, a number of Danish organisations have been granted support by Danida for initiatives focusing on the promotion of ethical trading initiatives and supply chain management, CSR and Fair Trade.”

Appendix 1, GP 8

Initiatives taken or planned as a dedicated measure to implement the UNGPs (after the UN ratification of the Guiding Principles) [page 31]

“The Government has updated the CSR Compass which is an online tool that helps companies exercise due diligence in the supply chain. The guide has been updated in accordance with the UNGPs and the OECD Guidelines for Multinational Enterprises. This online tool will also be promoted to governmental departments, agencies and other State-based institutions.”

Read more about Denmark

Introduction [page 11]

““Companies should also critically assess the activities of their contractual partners – for instance, in supply chains – and to react to the shortcomings detected.””

1 The state obligation to protect human rights

1.3 Activities in the EU [page 17]

RAW MATERIALS

“The Commission proposal has taken into consideration both the OECD Guidance for mineral purchasing in conflict zones as well as the OECD and UN guidelines more generally related to responsible supply chain management. The proposal is currently being discussed on the national level. Finland actively participates in the discussion of the proposal in the Council working group. …

As a follow-up measure, the working group proposes that

• Finland actively participate in the discussion of the proposal for a regulation on conflict minerals and in the discussion for the development of practices for responsible supply chains in the raw material sectors.
  Principal responsible party: Ministry for Foreign Affairs, continuous activities.”

3 Expectations towards companies and support services

3.1 Clarification of due diligence [page 25]

“In the Guidelines, business relationships cover relations with business partners, supply chain operators and other operators independent of the state and governmental operators that are directly related to the company’s business activities, products or services. If the company has a lot of suppliers, it should identify the areas where the risk of adverse impacts is highest and contribute to the prevention of these risks.”

Read more about Finland

I- The State’s Obligation to Protect Human Rights

The International Framework

3. The Organisation for Economic Co-Operation and Development (OECD) [page 14]

The French National Contact Point (NCP) for the OECD Guidelines is a mediation body that aims to resolve conflicts while promoting and applying these guidelines. …

…  Its actions to promote the OECD Guidelines include: …, contributing to work completed by the G7 on global supply chains in 2015, …

… Lastly, France finances actions supporting the implementation of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. …

Actions Underway [page 16]

• France seeks to ensure that the issues of … supply chains are addressed by the G20, particularly by working with Germany, whose presidency runs from 2016 to 2017. It also seeks to build on the G7’s commitments to the UN Guiding Principles in 2015, as well as commitments made during the International Labour Conference in June 2016, one of the three themes of which was “decent work in global supply chains”.

 

The European Framework

7. The European Union (EU) [page 18]

… Following the proposal for a European regulation on the traceability of minerals from conflict zones,6 France supported an ambitious draft regulation on responsible supply chains for minerals in conflict zones and high-risk areas. The regulation on due diligence for conflict minerals was approved at a plenary session of the European Parliament in March 2017, following the political understanding announced by the Council in June 2016. France will work to ensure that it is correctly implemented and quickly evaluated so it can be reinforced if necessary. …

 

The National Framework

13. The Role of Public Agencies [page 27]

…, the National CSR Platform, in its report on the implications of corporate responsibility on businesses’ supply chains (November 2014), recommended that the due diligence measures used by the AFD and COFACE be reinforced, and that these agencies be encouraged to set up mechanisms to deal with complaints from financial beneficiaries in the event of fundamental rights abuses.

15. Economic Sectors and Human Rights

The Agriculture and Food Sector [page 32]

The strategic importance of national food security and economic opportunities in the agricultural sector have led a number of countries and businesses to invest (and support investment) in agrifood production. Given this large-scale investment, which often involves large-scale land purchases, the international community has sought to implement guidelines and directives to regulate these projects. Two major initiatives have been launched:

• The Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and Forests in the Context of National Food Security (also known as the VGGT), adopted by the Committee on World Food Security (CFS) in May 2012;
• The Principles for Responsible Investment in Agriculture and Food Systems (also known as the RAI), adopted by the CFS in October 2014, which are partly based on the UN Guiding Principles on Business and Human Rights.

France supports and is politically, technically and financially committed to adopting and implementing these texts. Working with actors involved in French cooperation efforts, it developed the Guide to Ex-Ante Analysis of Agricultural Investment Projects that Affect Land and Property Rights to facilitate the enforcement of these principles. France also actively participated in the drafting of the OECD-FAO Guidance for Responsible Agricultural Supply Chains.

Actions Underway 

• Partner States are encouraged to apply the Voluntary Guidelines on the Responsible Governance of Tenure of Land (VGGT) and the Principles for Responsible Investment in Agriculture and Food Systems (RAI).
• Recommendations in the Guide to Ex-Ante Analysis of Agricultural Investment Projects that Affect Land and Property Rights are being integrated into the AFD’s due diligence procedures in the land, social and environmental fields.

Actions to be Implemented [page 33]

• Ensure the VGGT and RAI are respected by French economic actors abroad. Training on the implementation of these principles and directives will be offered to government employees (in embassies and economic services) and agencies.

The Textile and Garment Sector [page 33]

… The NCP report, produced following hearings with all parties involved, was submitted to the Minister and published online on 2 December 2013. It addresses all actors, and establishes a full range of measures which, once implemented, will enable businesses to oversee supply chains in this sector. The recommendations were shared widely, particularly with the OECD, ILO and EU, and were followed by similar reports published by the Italian and Belgian NCPs.

Following the publication of these recommendations, the OECD set up a working group to develop a guide for the enforcement of the guidelines in the textile sector, at France’s insistence. This working group brings together international organizations such as ILO, the private sector, civil society, NCPs and States. The guide will include reinforced due diligence measures to be implemented in this specific sector. The OECD has also planned to set up a platform for shared dialogue and good practices.

As for the EU, it has set up a multi-stakeholder platform for the textile sector.

The G7 included the issue of supply chains in the Leaders’ Declaration issued under the German Presidency following the Elmau Summit in June 2015. This was followed by a roadmap, which was adopted by the French Ministries of Social Affairs and Development in October 2015. While the scope of these initiatives extends beyond the textile sector, approved measures will initially apply to this industry. This is the case for the “Vision Zero Fund”, which will be created to reinforce workplace safety and reduce workplace accidents in producer countries.

Meanwhile, the NCP is continuing to implement and build on its recommendations, particularly in order to harmonize auditing baselines and mutualize supplier audits.

Actions Underway

• France is continuing to raise awareness of the NCP report issued on 2 December 2013, and monitor the implementation of its recommendations in the French textile, garment and distribution sectors.
• France is helping to finalize the OECD Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Sector.
• France is determining whether to support the “Vision Zero Fund” following the G7’s Leaders’ Declaration at Elmau.

II- Businesses’ Responsibility to Respect Human Rights

Introduction [page 37]

… companies must continue efforts to develop tools and good practices in the human rights field, at all levels of the production chain. …

Actions to be Implemented 

• Monitor the implementation of legislation requiring some companies to disclose due diligence plans addressing subsidiary and subcontractor risks at each level of the supply chain, and, if necessary, take measures to enforce this legislation.
• Promote social dialogue and employee expression as tools to reinforce respect for human rights at all levels of the supply chain.

…

 

III- Access to Remedy

2. Non-Judicial Mechanisms – At the International Level

2.1 The OECD National Contact Point (NCP)

… Following the Rana Plaza tragedy, the NCP stepped up its activities, especially in the field of due diligence for supply chain risks, human rights and workers’ rights. …

Read more about France

There is no mention of supply chains in the Business and Human Rights Chapter of the Georgian Human Rights NAP.

Read more about Georgia

The German NAP includes many references to supply chains and value chains throughout the NAP, as well as containing a specific section on it.

I. Introduction [page 3]

“The “Made in Germany” label stands for high quality and reliability. At the same time, the increasing involvement of German enterprises in global supply and value chains presents both opportunities and challenges. New markets and production facilities are established, which creates employment and prosperity. At the same time, however, companies operating in global supply and value chains are exposed to risks arising from a lack of transparency and the frequently inadequate respect for human rights and for labour, social, and environmental standards. This applies especially to production in developing and newly industrialised countries but also within Germany.”

III. Federal Government expectations regarding corporate due diligence in respecting human rights [page 7-12]

“With regard to corporate respect for human rights, the Federal Government expects all enterprises to introduce the process of corporate due diligence described below in a manner commensurate with their size, the sector in which they operate, and their position in supply and value chains.”

Scope and practical structuring of due diligence in the field of human rights

“The responsibility to exercise due diligence applies in principle to all enterprises, regardless of their size, the sector in which they operate, or their operational context within a supply or value chain with an international dimension.”

Procedure for the identification of actual and potential adverse impacts on human rights

“Central to the exercise of due diligence is the establishment of a procedure that serves to identify, to prevent or to mitigate potentially adverse effects of corporate activity on human rights. It is not – or not only – a matter of considering risks to the company’s own business activity but is primarily about risks to the human rights of those who may be affected by corporate activity, such as employees of the enterprise itself or of other companies in the supply chain, local populations and customers. …

An initial risk analysis on the part of an enterprise should be conducted for each division or each product category and possibly for each location too. The starting point may be a simple overview of the company’s main activities and of the value chains and business relations these activities entail. …”

Measures and effectiveness tracking

“On the basis of the results of the analysis, measures should be identified and incorporated into business activity. Such measures may, for example, comprise specialised training of particular employees in-house or with suppliers, adaptation of particular management processes, changes in the supply chain and participation in sectoral initiatives”

Reporting

“…At the same time, such reporting obligations should not impose disproportionate administrative burdens on the reporting companies or on the SMEs in their supply chains.”

Measures

• “The Federal Government expects all enterprises to introduce the processes described above in a manner commensurate with their size, the sector in which they operate and their position in supply and value chains. Their compliance will be reviewed annually from 2018. In the absence of adequate compliance, the Federal Government will consider further action, which may culminate in legislative measures and in a widening of the circle of enterprises to be reviewed (see chapter VI below).
• The National Corporate Social Responsibility (CSR) Forum of the Federal Government, comprising representatives of the political and business communities, trade unions, civil society and academic professions will draw up an intersectoral “CSR consensus” paper on corporate responsibility in value and supply chains and present it to the Federal Government as a recommendation. …”

1.2 Public procurement [page 21]

“By placing greater emphasis on sustainability in their procurement transactions, public authorities not only perform their function as role models but can also wield significant leverage in increasing the supply of sustainable products.”

2. Challenges in corporate practice [page 27]

“Enterprises can impact beneficially as well as adversely on the exercise of human rights within their own production processes and in their supply and value chains, both through their own business activity and through their business relationships.”

2.1 Ensuring the protection of human rights in supply and value chains [page 28-30]

“Throughout the world, the expectations of consumers, civil society and trade unions in terms of product quality and transparency of production are rising. Their attention is increasingly focused on factors such as environmental protectionand social and employment standards along manufacturers’ supply chains. In many cases these supply chains are not transparent, and it is difficult to assess the situation with regard to individual enterprises within the chain. This increases the risk of adverse impacts on human rights and on social, labour and environmental standards in host countries. These countries often lack an adequate legislative basis or state supervision and enforcement of compliance with existing laws.

The Federal Government nevertheless expects enterprises to discharge their responsibility to exercise due diligence as regards human rights and therefore to create and apply appropriate management instruments that minimise the risk of involvement in the generation of any adverse impact (see chapter III above). The fact is that every enterprise, through its business activity, has an influence on the living and working conditions of its employees, on its customers and suppliers, on the environment and on the wider economic context. The OECD Guidelines for Multinational Enterprises, to which Germany is committed, call on enterprises, within the context of their own activities at home and abroad, including those of their subsidiaries, to respect human rights and to do everything they can to avoid causing or contributing to adverse human rights impacts. This also offers German enterprises the opportunity to positively shape the operating environment in host countries by joining efforts and so to improve the conditions for stable business activity and for the creation of new markets.”

The current situation

“In the framework of the German presidency of the G7 in 2015, the Federal Government was a driving force behind the successful proposal to include a chapter on responsible supply chains in the Leaders’ Declaration. In that chapter, the private sector is being urged to exercise due diligence with regard to human rights. Together with the Heads of State or Government of the other G7 nations, the Federal Chancellor declared the Government’s support for the promotion of sustainability standards in global supply chains, including decent working conditions. To this end, the G7 are to:

• support efforts to set up substantive national action plans for the implementation of the UN Guiding Principles,
• increase transparency within supply chains,
• promote instruments for the identification and prevention of risks,
• strengthen grievance mechanisms,
• encourage best practices
• and, in particular, assist small and medium-sized enterprises in developing a common understanding of due diligence and responsible supply-chain management.

Host countries are assisted by means of capacity-building measures in introducing and upholding environmental and social standards. The Federal Government has long been supporting multi-stakeholder initiatives that have been launched in various sectors for the purpose of devising strategies and monitoring procedures.

• These include, for example, the Sustainable Cocoa Forum, founded jointly by the Federal Ministry of Food and Agriculture, the Federal Ministry for Economic Cooperation and Development, the business community and civil society. In the Forum, the Federal Government, together with representatives of civil society, the confectionery industry and the food trade and in cooperation with partner countries, presses for improved production conditions and living standards in cocoa-growing areas and for sustainable cocoa farming.
• The Partnership for Sustainable Textiles, which was initiated by the Federal Ministry for Economic Cooperation and Development, has established an obligation to comply with sustainability standards and to guarantee corporate due diligence in the textile and clothing sector. All members of the Partnership are required to pursue its social and environmental objectives. They submit to a review process, which is conducted by an independent third party and is designed to bring about continuous improvement. Individual schedules of measures (road maps) are compiled annually by all members; the first of these is to be produced by the end of January 2017. A robust sanctions regime and regular reporting on the implementation of the road maps will ensure credibility and transparency. The Textile Partnership creates a reference framework and an independent review system of international scope.
• With support from the Federal Government-funded German Global Compact Network, the “Round Table on Human Rights in Tourism” was launched in 2012. Its aim is to specify the precise requirements of the UN Guiding Principles on Business and Human Rights for the tourism industry and to develop, in a multi-stakeholder format, solutions to human rights challenges that are specific to tourism.”

Measures

• “The Federal Government will support the systematic inclusion of sustainability chapters in free-trade agreements, which will prescribe, among other things, compliance with the ILO Core Labour Standards.
• The Federal Government will publish a study identifying high-risk sectors and regions of particular relevance to the supply and value chains of German business. On the basis of this study, with the Federal Government in a moderating role, sector-specific guides to the exercise of human rights due diligence and examples of best practice will be drawn up in cooperation with the relevant business associations and with the aid of dedicated multi-stakeholder forums.
• The Federal Government will continue to promote the Vision Zero Fund, which was initiated on the basis of a G7 decision. The Fund is to be administered by the International Labour Organization and will serve to prevent and reduce work-related deaths and serious work-related accidents in global supply chains.
• Through its development cooperation programme, Germany supports the application of sustainability standards in host countries, for example through the regional project entitled “Social and labour standards in the textile and garment sector in Asia”, which covers three countries – Bangladesh, Cambodia and Pakistan.
• By means of the Partnership for Sustainable Textiles, the Federal Government supports a multi-stakeholder initiative combining voluntary and compulsory elements. The Textile Partnership is designed to comply with the UN Guiding Principles. The aim is to have 75% of the German textile and clothing market signed up to the Textile Partnership by 2018. The Partnership should serve as a model for the definition of due diligence requirements in other industries.
• The “Round Table on Human Rights in Tourism”, a model initiative for the development of a specific sectoral understanding of due diligence with regard to human rights, will receive increased financial support from the Federal Government.”

2.2 Transparency and communication regarding corporate impacts on human rights [page 31]

The current situation

“Through their purchasing decisions, consumers influence the supply of sustainably produced and delivered goods and services. Instruments such as the information platform www.siegelklarheit.de (sustainability standards comparison tool), initiated by the Federal Government, create transparency and help consumers to adopt sustainable purchasing habits.”

Measures

• “The Federal Government is considering the introduction of a certification mark into German law. The relevant EU legislation already provides for the introduction of a European certification mark and gives Member States the option of introducing a national certification mark in addition. Such a mark could be used, for example, to certify compliance with certain human rights standards in supply and value chains. …”

2.3 Business activity in conflict zones [page 32]

“…In 2011, the OECD published a guide to corporate responsibility along supply chains in which minerals from conflict zones are traded and handled. The guide, entitled OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, has also been available in German since 2015. …

The European Commission has presented a proposal for a regulation setting up a Union system for supply chain due diligence self-certification of responsible importers of tin, tantalum and tungsten, their ores, and gold originating in conflict-affected and high-risk areas. Based on the aforementioned OECD guide, the Commission’s draft regulation would establish a voluntary undertaking to observe due diligence rules within supply chains when importing the minerals referred to above so as to ensure that proceeds from their sale are not used to fund armed struggles in conflict zones or other high-risk areas. The European Parliament, on the other hand, expressed itself in favour of a binding instrument for downstream operators, that is to say along the whole value chain. A basic compromise has now been reached between the European Parliament, the Council and the European Commission on a binding instrument focused on the upstream area, i.e. the supply chain. Further details will now have to be negotiated in the context of the trialogue conducted by the EU institutions.”

3. Available means of practical implementation support

Measures [page 36]

“III. Opportunities for training and dialogue

• In cooperation with business networks, ‘practice days’ for SMEs are offered nationwide. These sessions provide support, information and exchanges with other enterprises on responsible supply chain management and high-quality sustainability reporting. …

1. Creating a global level playing field

• In multilateral forums such as the G20, the EU and ASEM and in close cooperation with international organisations such as the ILO, the OECD and the UN, the Federal Government will press for the creation of a global level playing field with regard to terms of competition. To this end, the G7 leaders decision on sustainable supply chains will be further fleshed out with a view to arriving at a common global understanding of due diligence and of sustainable supply chain management.”

4.1 Access to justice and the courts for injured parties

Support for remedy mechanisms in third countries [page 37]

“With regard to potential human rights violations within supply chains, great importance attaches to reinforcement of the rule of law and democracy in the relevant third countries, because that will create conditions for the introduction of effective redress mechanisms in those countries.”

V. Ensuring policy coherence [page 40]

“Implementing the UN Guiding Principles on Business and Human Rights will mean pooling the efforts of all stakeholders, creating incentives to improve the human rights situation throughout supply chains and in target countries for investments and preventing serious violations of human rights in the context of business operations. …”

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Foreword [page 5]

“The impact of business activity on the enjoyment of human rights is increasingly recognised. For employees and customers this can be direct and immediate, but other persons may be affected indirectly, for example by supply chain decisions.”

Section 2: Current legislative and Regulatory Framework

Supply Chain [page 15]

“The Government supports the proposal by the European Commission for an EU Council Regulation which provides for the establishment of an EU-wide system for supply chain due diligence of responsible importers of tin, tantalum and tungsten, their ores, and gold originating in conflict-affected and high-risk areas. The main objective of this proposal is to help reduce the financing of armed groups and security forces through mineral proceeds in conflict-affected and high-risk areas by supporting and further promoting responsible sourcing practices of EU companies. Of course, supply chain diligence is not limited to the extractive industries and areas of conflict.

Irish expertise has also been commissioned by multi-national corporations and technical cooperation programmes to undertake third party audits in the context of supply chain due diligence on factory standards. The design and implementation of a long-term building inspection and enforcement regime for all buildings in Bangladesh has, for example, been greatly assisted by Irish engineering expertise. Where possible, including through our Overseas Development Assistance, the Government will look to support such initiatives.”

Section 3: Actions

II. Initial priorities for the Business and Human Rights Implementation Group [page 18]

“xi. Encourage and facilitate the sharing of best practice on human rights due diligence, including effective supply chain audits.”

Annex 1 – List of additional and ongoing actions to be carried out across Government

EU and Multilateral Efforts [page 20]

“6. Support the implementation of the Regulation establishing an EU-wide system for supply chain due diligence of responsible importers of tin, tantalum and tungsten, their ores, and gold originating in conflict-affected and high-risk areas.”

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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)

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Chapter 1. Towards the Formulation of the National Action Plan (NAP) (Background and Working Process)

1. Introduction: Increasing International Attention to Business and Human Rights and the Need for NAPs

(4) In response to the growing awareness of business and human rights principles, there has been an increasing trend, primarily in the United States and Europe, to introduce legislation requesting business enterprises to respect human rights, including in supply chains.

(…)

(6) In response to the global trend, business enterprises are expected to demonstrate respect for human rights in business activities. Particularly, for business enterprises operating overseas, an international trend shows that business activities are evaluated in light of international standards, in addition to compliance with the laws and regulations of the countries where they operate. Consequently, business enterprises themselves are faced with a need to identify and address human rights-related risks in their business operations, including in supply chains.

(…)

(7) (…) In response to the COVID-19 pandemic, OECD and ILO indicated that COVID-19 exposed vulnerabilities in company operations and supply chains regarding working conditions. Considering these global trends, the Government believes that it is more important than ever to steadily implement the UNGPs and the NAP to ensure responsible business activities with a view to promoting further efforts to realize the SDGs based on the principle of human security.

 

 

Chapter 2. Action Plan

1. Fundamental Principles of the NAP

(…)

(4) With the globalization and diversification of business activities, business enterprises need to note that the international community demands business enterprises to not only implement good practices in business and human rights within their own organization, but also to respect human rights in their domestic and global supply chains. Accordingly, the Government will strive to develop concrete mechanisms to promote human rights within business, utilizing tools provided by international organizations, existing information disclosure frameworks, and initiatives for providing information to business enterprises.

 

2. Areas of the NAP

(2) Measures of the Government Promoting Corporate Responsibility to Respect Human Rights

A. Measures Related to Domestic and Global Supply Chains and Promotion of Human Rights Due Diligence Based on the UNGPs

(Existing framework/Measures taken）

With increased interest in responsible business conduct, the OECD Guidelines for Multinational Enterprises, which Japan adheres to, added a new chapter on business responsibility on respect for human rights in its 2011 edition. In addition, OECD has launched due diligence guidance specific to sectors such as minerals, agriculture, garments, and footwear. In 2018, the OECD Due Diligence Guidance for Responsible Business Conduct was published as a practical tool that businesses can use regardless of the sector. The Government has been engaged in promoting the above Guidelines and Guidance to businesses.

The ILO promotes dialogue and cooperation between business enterprises and stakeholders based on the ILO MNE Declaration, which is a guideline for achieving decent work through supply chains, and this is considered as an initiative that mutually supplements human rights due diligence. In this connection, the Government raises awareness of the ILO MNE Declaration.

… the Guidance for Collaborative Value Creation was published as a guideline for dialogue and disclosure on voluntary and proactive initiatives of companies on non-financial information, including ESG factors.

(…)

With respect to the environment, corporate initiatives are being promoted with the establishment of the Environmental Reporting Guidelines. In August 2020, the “Introductory Guide on Environmental Due Diligence along the Value Chains: Referencing the OECD Guidance” was issued as a manual, including points to note in conducting environmental due diligence in relation to risk management and value chain management stated in the Environmental Reporting Guidelines. The Guidelines state that human rights are integral to address some measures regarding environmental issues, and explains that environmental due diligence is required as part of responsible business conduct and integrated with human rights.

(…)

 

(Future measures planned)

(a）Publicize the NAP and raise awareness of human rights due diligence among Japanese business enterprises in cooperation with industry groups and other relevant bodies

• Promote responsible business conduct by publicizing the NAP among corporations and raising awareness of human rights due diligence, including in supply chains, among industry groups and other relevant bodies. [All Ministries]

(b) Publicize the NAP and raise awareness of human rights due diligence to Japanese business enterprises operating overseas via Japanese embassies, consulates, and overseas offices of government-related entities

• Publicize the NAP and raise awareness of human rights due diligence with possible cooperation with local agencies and organizations by Japanese embassies and consulates. In so doing, sufficient attention is to be paid to the issue of protection of human rights of workers in supply chains, including the socially vulnerable such as women and children. [Ministry of Foreign Affairs, Ministry of Finance, Ministry of Economy, Trade and Industry]

(e)Raise awareness on the Guidance for Collaborative Value Creation

• Continue to boost efforts to raise awareness of the Guidance for Collaborative Value Creation, which is useful for holding dialogue and disclosure relating to non-financial information, including ESG factors for investors and corporate managers and directors. The Guidance can be used as a guide for voluntary and proactive initiatives of companies. [Ministry of Economy, Trade and Industry]

(…)

(h)Support initiatives by international organizations overseas

• Continue to provide support for efforts, including voluntary contributions to the ILO, such as promoting decent work of workers at the lower tiers of global supply chains and disseminating good practices discovered through those activities. [Ministry of Health, Labour and Welfare, line Ministries]

 

(4) Measures regarding Access to Remedy

Judicial and Non-Judicial Remedy

(Future measures planned)

(…)

(c) Publicize activities and improve operation of the Japanese NCP under the OECD Guidelines for Multinational Enterprises

• Enhance and facilitate cooperation among the three ministries in charge in accordance with the OECD Guidelines for Multinational Enterprises and perform appropriate functions as the Japanese NCP. In particular, make procedures more transparent, while securing fairness and impartiality, and continue public relations activities. In so doing, pay attention to the perspectives of gender and respect for human rights in supply chains. Cooperate with the Japanese NCP Committee comprising the Government, labour, and management, and seek advice from experts where necessary. [Ministry of Foreign Affairs, Ministry of Health, Labour and Welfare, Ministry of Economy, Trade and Industry]

 

Chapter 3. Government’s Expectations towards Business Enterprises

(…)

(2)The Government expects Japanese enterprises, regardless of their size and sector of industry, to respect internationally recognized human rights and the principles concerning the fundamental rights set out in the ILO Declaration; introduce the process of human rights due diligence based on the UNGPs and other related international standards; and engage in dialogue with stakeholders, including those that are part of supply chains. Furthermore, the Government expects Japanese business enterprises resolve issues through effective grievance mechanisms.

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The Kenya NAP makes no reference to Supply Chains

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The Lithuanian NAP makes no reference to supply chains.

Read more about Lithuania

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.

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CHAPTER II. Actions to improve the duty of the state in protecting human rights

4. Create the legal framework for business enterprises of all forms of ownership to carry out human rights due diligence in its operations.

Actions and measures to be implemented:

Develop guidelines and methodologies for human rights due diligence, promote them and build capacity for their practical implementation Conduct pilot projects in state and locally owned enterprises and other companies and present human rights due diligence reports to the public

• Time frame: 2023-2025
• Criteria: The guidelines and methodology for human rights due diligence will be developed. Actions will be taken to promote the guidelines and methodology and to build capacity for conducting human rights due diligence. State and locally owned enterprises, as well as other companies, will be selected to conduct a human rights due diligence pilot project and the results will be presented.
• Implementing organisations: MoJHA, PCSP, Secretariat of National Committee on Gender Equality (NCGE), NHRCM [National Human Rights Committee of Mongolia], Secretariat of the NCHR.
• Jointly implementing organisations: MFA [Ministry of Foreign Affairs], Small and Medium Enterprise Agency (SMEA), CMTU, State and locally-owned enterprises, Non-governmental organisations (NGOs), International Organisations (Ios).

Conduct a study and develop conclusions and recommendations to establish the legal framework for companies to conduct human rights due diligence in their operations and supply chain based on certain criteria (e.g. through amendments and changes to the laws regulating the operation of companies, the Law on Company, the Law on Securities Market and other applicable laws, etc.).

• Time frame: 2025 – 2027
• Criteria: A study will be conducted and conclusions and proposals will be made. Actions to be implemented will be determined.
• Implementing organisations: MoJHA, MLSP
• Jointly implementing organisations: MNCCI [Mongolian National Chamber of Commerce and Industry], Professional associations, state and locally-owned enterprises, NGOs.

Implement a project to support human rights due diligence for business enterprises that provide basic social services (health, education, public transport, landscape management) and legislate the obligations of these companies to prevent, identify and address negative human rights impacts.

• Time frame: 2025 – 2027
• Criteria: A draft law will be developed and submitted for approval. A project to support human rights due diligence will be carried out.
• Implementing organisations: Ministry of Construction and Urban Development (MCUD), Ministry of Education and Science (MES), Ministry of Health (MoH), Ministry of Road and Transport Development (MRTD), Secretariat of the NCHR, Secretariat of the Governor of the capital city, PCSP
• Jointly implementing organisations: Relevant ministries and organisations, Government monitoring implementing Agency (GMIA), Ios, NGOs.

CHAPTER THREE. Actions to improve the responsibilities of business enterprises to respect human rights

4. Develop a system to promote and support business enterprises that embed a corporate culture and approach to respecting human rights in their operations.

Actions and measures to be implemented:

Select companies that respect human rights in their operations and supply chains and promote this culture, support their best practises at home and abroad, and encourage their cooperation.

• Time frame: 2023-2027
• Criteria: Criteria and procedures for business enterprises will be developed and distributed. An event will be organised to select and promote companies that respect human rights in their operations.
• Implementing organisations: MED PCSP Secretariat of NCGE MNCCI
• Jointly implementing organisations: MONEF CMTU State and locallyowned enterprises Professional associations NGOs IOs

Read more about Mongolia

Pillar I

Central government procurement and private-sector instruments

“…The government’s central procurement strategy includes the International Social Conditions (ISCs). These have applied to all EU contract award procedures since 2017 and aim to establish more sustainable international supply chains by preventing or responding to risks related to working conditions, human rights and the environment. The ISCs are one of the contractual conditions obliging contractors to apply due diligence.” p.31.

Pillar I

Private-sector instruments

“… Any business using the government’s international financing instruments or requesting any other support focussed on international entrepreneurship, will have to show that it adheres to the OECD Guidelines and implements due diligence on its international supply chain.….’’ p. 35.

Pillar I

Development cooperation

Sustainable trade with and investment in developing countries

“Development cooperation policy on business and human rights focuses on improving the sustainability of production and international value chains in and with developing countries in a way that helps reduce poverty and inequality. To this end it is important that a) the interests and specific situation of the developing countries in question are considered when designing measures aimed at making trade and investments more sustainable, and b) developing countries are supported in the transition required to meet these commitments to inclusive, green economic development.

The interests and specific circumstances of developing countries must be considered when drafting national, European and international agreements aimed at improving the sustainability of trade and investments. Examples include developing standards on deforestation and the climate, the circular economy, land use rights, labour, foreign trade and investments and RBC. The cornerstone of this is to determine the development impact of efforts to make trade and investment more sustainable, especially the impact on vulnerable groups such as indigenous peoples, small-scale producers, workers and agricultural labourers, with a particular focus on women and young people. This should reinforce the efforts’ positive effects and, as far as possible, prevent and mitigate any negative side effects. Developing countries receive several forms of support. First, bilateral and EU- and World Bank-led discussions take place with governments in developing countries about the transition towards greater sustainability, and ways of reducing poverty and inequality in the course of this transition. Second, Dutch civil society organisations such as trade unions and employers’ organisations receive funding to, on the one hand, strengthen sister organisations in developing countries (for example through dialogue with other local stakeholders) and, on the other, to advocate at international level the interests of, in particular, small-scale producers and workers. Third, a range of Dutch and international implementing organisations make efforts to improve the business climate and supplementary government policy in developing countries, focusing particularly on SME producers as the ones playing the most significant role in poverty alleviation. Examples include providing access to financial services, improving infrastructure and building capacity for entrepreneurs and their trade associations. Fourth, efforts are made to increase the sustainability of international value chains by working jointly with businesses, civil society organisations and other levels of government on improved procurement practices and new revenue models with a focus on work, a living wage and income, land rights and land use and the elimination of child labour.” p. 46

“Further strengthening cooperation between ministries and between Dutch government and other stakeholders can help ensure that the establishment of national, European and international sustainability frameworks and standards and their impact on and support of developing countries mutually reinforce each other even more (learning capacity for coherence). This is particularly important in specific risk sectors and value chains such as cacao, textiles and palm oil which have a significant Dutch footprint. In addition to a separate, permanent interministerial dialogue to be established, the focus will be on lastingly improving learning capacity regarding these activities, so that risks are addressed and mitigated.” p.48.

ACTION POINTS PILLAR 1	Aim	Responsible party	Timeline
Sustainable trade with and investment in developing countries
Strengthen collaboration between ministries by establishing an interministerial working group to conduct a permanent dialogue on sustainable trade and investments, focusing on specific high-risk value chains with a strong Dutch footprint.	Enhance learning capacity regarding policy coherence on sustainable trade and investments and on business and human rights	All ministries involved, with BZ taking the initiative.	From 2022
Research, monitor and evaluate the impact on developing/producing countries of national, European and international sets of rules and standards aimed at improving the sustainability of trade and investments, where possible under the auspices of the EU and supported by local stakeholder consultations	Enhance learning capacity regarding policy coherence on sustainable trade and investments and on business and human rights.	BZ	On introduction of new proposals and during implementation

p. 49

Pillar II

Corporate Sustainability Reporting Directive (CSRD)

“… In line with the UNGPs, accountability should be given of the due diligence process, including a description of any negative impacts in the company’s value chain resulting from its own activities or from its business relations and supply chain….” p. 56.

Sector-wide Cooperation

“…The government aims to continue to encourage sector-wide initiatives aimed at implementing due diligence and at raising its impact on specific themes or value chains, in line with the OECD Guidelines and the UNGPs. By collaborating with civil society organisations, businesses can impact the value chain by making linkages and jointly increasing their influence. …” p. 58.

Pillar III

Improving the provision of information to affected parties

“… The government will produce an accessible digital guide describing the judicial and non-judicial remedies available to parties abroad who have been affected by Dutch companies (through their international supply chains). …” p. 63.

Improving the provision of information to businesses

 “The Dutch Banking Sector Agreement, for example, has investigated the role of financial institutions in offering remedy, and the Sustainable Clothing and Textile Agreement has set up an independent joint complaints mechanism. At the same time many companies are still struggling with the question of how exactly to offer remedy for possible human rights violations deeper in their value chains. It is not always clear how to deal with this, especially, for example, if the business in the Netherlands is just one of the buyers of a product or raw material.” p. 64.

Improving access to judicial mechanisms

Applicable law: Rome II

“… The government would support a broad review of Rome II, which should include discussions on the applicable law in cases of human rights violations in international value chains.” p. 74.

Grounds for jurisdiction of Dutch courts

“The NBA also notes that in cross-border civil proceedings that have thus far been pursued in the Netherlands, the defendants included Dutch partners as well as subsidiaries based in other countries. As far as is known no legal proceedings have as yet been conducted in the Netherlands involving damage caused by partners in the value chain of Dutch companies other than foreign subsidiaries, that is, non-group company liability.” p.74.

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The Norwegian NAP makes no explicit reference to supply chains.

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CHAPTER 3: National Action Plan Priority Areas and Proposed Actions

3.2. NAP Priority Areas

3.2.2 | Anti-Discrimination, Equal Opportunity, and Inclusion

Proposed Actions

• Federal and provincial (page 22)

‘21. Provide capacity-building support in the value chain for women and vulnerable or marginalised groups, and build awareness about their rights under the law as well as available remedial mechanisms in case of violations of their human rights in business activity or the workplace.

Performance indicator(s): (i) Number of capacity-building and awareness-raising activities

UN Guiding Principle(s): 1, 2, 3, 8, 11, 12, 25, 26, 27, 28, 29

Relevant SDG(s): Goal 1 – No Poverty; Goal 5 – Gender Equality; Goal 8 – Decent Work and Economic Growth; Goal 9 – Industry, Innovation, and Infrastructure; Goal 10 – Reduced Inequalities’

This information is also covered under Annex 1: Implementation Plan, Proposed Action 21 designating the Non-Formal Education and Human Rights Department, the Vocational Training Authorities, the Ministry of Social Welfare and Small Industries, the Women Development Department as Leading Entities, and designating the Provincial Technical and Vocational Training Authorities, the Provincial Social Welfare Departments, the Provincial Educational Departments, the Provincial Population Welfare Department, NGOs, CSOs and the Business Community as Additional Entities (page 51).

3.2.3. Human Rights Due Diligence (page 25)

‘Human rights due diligence is an increasingly prominent area of discussion around the globe, not as a tick-box compliance exercise, but as a vital means to obtaining better human rights outcomes. It is anticipated that export markets will be negatively affected in countries which fall behind in addressing human rights violations across their supply chains. A pragmatic mix of human rights due diligence mechanisms, including the adoption of voluntary and common standards by businesses, as well as the development of a legislative and regulatory framework, will support the strengthening of a sustainable and resilient Pakistani economy.’

Proposed Actions

• Federal (page 26)

34. Conduct a study on the potential impact of the future enactment of mandatory human rights due diligence legislation by major trading partners, such as the European Union, on Pakistan’s competitiveness in export markets, inflows of foreign direct investment, Pakistan’s role in global supply chains, and schemes such as GSP+.

Performance indicator(s): (i) Assessment report

UN Guiding Principle(s): 1, 2, 3, 8, 9

Relevant SDG(s): Goal 8 – Decent Work and Economic Growth; Goal 12 – Responsible Consumption and Production; Goal 17 – Partnerships for the Goals’

This information is also covered under Annex 1: Implementation Plan, Proposed Action 34 designating the Ministry of Commerce as Leading Entity (page 56).

 

CHAPTER 4: State Expectations of Business Enterprises (page 38)

‘To facilitate and guide business enterprises in ensuring compliance with and supporting the effective implementation of the NAP priority areas and the UNGPs, the State of Pakistan expects business enterprises to:

1.Evaluate their compliance with all applicable domestic laws relevant to the respect for human rights in business activity, and provision of corrective or remedial action in response to potential, ongoing, or past human rights violations resulting directly from their activity or through their business relationships across their value chains.

2. Ensure the elimination of child labour, forced or bonded labour, and all forms of modern slavery from their business operations and supply chains. This may be expedited through the utilisation of effective and thorough human rights due diligence.

[…]

6. Establish adequate human rights due diligence mechanisms to identify, prevent, and remedy human rights impacts. Human rights due diligence should consider both internal risks that stem directly from business operations as well as external risks, which relate to all other entities that the business work with across their operations or are linked with through their value chains. […]

[…]

11. Make available remediation for human rights abuses in the supply and value chains of a business even when a business is not directly involved in a human rights violation but has the potential to adversely affect human rights.

[…]

13. In addition to the UNGPs, be cognisant of and guided by international guidelines and principles such as […] the OECD-FAO Guidance for Responsible Agricultural Supply Chains, OECD Due Diligence Guidelines for Responsible Supply Chains in the Garment and Footwear Sector, OECD Due Diligence Guidance for Meaningful Stakeholder Engagement in the Extractive Sector, OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, Actions for Companies to Identify and Address the Worst Forms of Child Labour in Mineral Supply Chains, IFC Performance Standards, and other guidelines and standards applicable to their respective sectors.’

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CHAPTER II: THE BUSINESS AND HUMAN RIGHTS SITUATION IN PERU A 2019 study prepared by Confiep (2019) with support from the ILO identified the good practices of the business sector in terms of human rights in Peru, based on information reported by 252 companies between 2016 and 2017. Regarding corporate commitments to human rights and other related policies, the sample evidenced the following: 5% stated their alignment with the Guiding Principles, 7% adopted human rights policies, 31% declared having human rights declarations, and 57% did not report specific information on human rights (Confiep, 2019, pp. 13-15). Regarding their corporate policies, those identified are related to labor rights (86%), supply chains or suppliers (75%), the environment (71%), and communities and local development (63%) (Confiep, 2019, pp. 18-19). Of the companies analyzed in the study, 63% reported having integrated management systems and 79% with risk management tools (Confiep, 2019, pp. 15-17), which contribute to due diligence. – page 32 Given the relevance in Peru of MSMEs to guarantee human rights, according to international standards, specialized technical assistance for this sector of the economy is vital, “simplifying requirements […] and offering capacity-building opportunities” and to ensure, in alliance with companies, transnational associations, trade unions, civil society organizations, academia, and other stakeholders, for the respect of human rights in all phases of business supply chains (UN. Working Group on the issue of human rights and transnational corporations and other business enterprises, 2017, §§ 73-77). – page 35 In terms of transparency and integrity, it is necessary to have specific trade union instruments on the implementation of integrity and anti-corruption policies in the value chains. In this regard, the initia- tive to adopt codes of ethics and the explicit anti-corruption commitment adopted by associations such as Confiep should be highlighted. – page 37 CHAPTER III DIAGNOSIS AND BASELINE: ACTION AREAS 3.2. Conclusions of the specific issues Due diligence mechanisms The findings of the diagnostics show across the board that an important aspect that needs to be incorporated in companies is the adoption of due diligence measures. The OECD (2021) survey22 reports that 43% of respondents require all first-tier suppliers and business partners to meet RBC ex- pectations as part of a contract or agreement. 42% claim to always adopt an enhanced due diligence process when risks are identified in the supply chain and 25% conduct risk assessments beyond Tier 1 in the supply chain or on their products, raw materials, or services. In this sense, the survey identifies significant progress in the installation of a culture of business and human rights, RBC, and due diligence actions within companies, but at the same time, just over 50% do not apply due diligence processes to risks in the supply chain. This shows the need for a strategic articulation between the State, civil society, and the business sector so that an increasing number of companies incorporate these measures into their activities, as well as strengthen their practical application. – page 42 Table 8: NAP strategic guidelines and objectives, and alignment with the axes of the Peru Vision 2050 Strategic guideline No. 2: Design of public protection policies to prevent human rights violations in the business environment. Objective No. 1: Promote regulatory actions to prevent human rights violations in the corporate sphere 23. Action: Evaluate, based on the status assessment report, the incorporation of appropriate measures to contribute to formalization through the public procurement system; as well as to prevent the State from contracting with companies that commit serious human rights violations, specifically those related to forced labor and the worst forms of child labor, directly or through their supply chain; and promote and guarantee respect for human rights by companies in their supply chains. Background: Informality, a widespread phenomenon in the country, is a wide area of human rights violations. The GP-RBC are an important opportunity to contribute to its reduction, as well as to promote the formalization of small, medium, and micro enterprises, including those that are part of the supply chains. Peru should also continue to make progress in ensuring that public procurement excludes companies that directly or through their supply chains engage in forced labor, the worst forms of child labor, and other serious human rights violations. Likewise, the State should promote measures so that through public procurement, companies and their supply chains are encouraged to respect human rights. Indicator: Report that, based on the assessment of the situation, identifies appropriate measures to contribute to formalization, prevent the State from contracting with companies that incur serious human rights violations, directly or through their supply chain; and promote that companies and their supply chains respect human rights. – page 71 82. Action: Provide information and raise awareness on the importance of not contracting with the State in the case of companies sanctioned for forced labor and the worst forms of child labor, making visible the harmfulness of this practice. Background: Despite the international instruments on business and human rights, our country has not yet issued any specific regulation that includes mechanisms to require companies to ensure that their supply chains do not contract with companies that have been sanctioned for forced labor and/or worse forms of child labor. These mechanisms should also consider micro and small companies. Indicator: Information booklet on the importance of not contracting with the State in the case of companies sanctioned for forced labor and the worst forms of child labor, making visible the harmfulness of this practice.  – page 116 84. Action: Provide information and raise awareness on collective labor rights due diligence throughout the supply chain. Background: There is a need to provide information and raise awareness on the adoption of due diligence measures for the respect of collective labor rights throughout the supply chain. This information should include small and medium-sized enterprises, as well as the context of the Covid-19 pandemic. Indicator: Information booklet on due diligence measures for respecting collective labor rights throughout the supply chain.  – page 117

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2. Ministry of Development Funds and Regional Policy

Directive 2019/882 of 17 April 2019 on the accessibility requirements for products and services

[page 9]

“In 2019, Directive 2019/882 of 17 April 2019 on the accessibility requirements for products and services (European Accessibility Act, EAA) entered into force.”

(…)

“The addressees of the Directive are as follows:

1. Economic operators: all economic operators falling within the scope of the EAA and intervening in the supply and distribution chain: manufacturers, authorised representatives, importers, distributors, and service providers. Accessibility obligations shall rest equally with economic operators in the public sector and those in the private sector.”

5. Ministry of Finance

Implementation of the Good Practice Catalogue on due diligence for European Union importers of tin, tantalum and tungsten, their ores, and gold originating from conflict-affected and high-risk areas

[page 24]

“On 1 January 2021, new obligations took effect as regards supply chain due diligence for EU importers of tin, tantalum and tungsten, their ores, and gold originating from conflict-affected and high-risk areas. These obligations were established by Regulation (EU) 2017/821 of the European Parliament and of the Council of 17 May 2017.”

(…)

“Therefore, efforts have been taken to encourage responsible sourcing of minerals, which should in principle help prevent criminal groups from gaining income relating to said minerals and hinder the pursuit of their activities, as well as help to secure world peace. EU ‘3TG’ importers will be required to ensure that all the minerals and metals they import (as defined in Annex I to the above-mentioned Regulation) are sourced responsibly and from non-conflict areas.

To this end, good practices are being introduced. They comprise in particular:

• Maintaining a dedicated tab on the website of the Ministry of Finance providing information on responsible sourcing of ‘3TG’ minerals: https://www.gov.pl/web/kas/konfliktowe-mineraly”

(…)

“The practices identified above allow businesses to learn what benefits they gain by introducing due diligence into their supply chains, help companies introduce due diligence into their metals and minerals supply chains, as well as understand, assess and mitigate risks pertaining to responsible sourcing”

8. Ministry of Agriculture and Rural Development

Implementation of the Act on Counteracting the Unfair Use of Contractual Advantage in the Trade in Agricultural and Food Products

[page 27]

“Since July 2017, the provisions of the Act on Counteracting the Unfair Use of Contractual Advantage in the Trade in Agricultural and Food Products (Journal of Laws of 2020, item 1213) have been in force in Poland. The provisions of the Act are aimed at eliminating the use of unfair trade practices in the supply chain of agricultural raw materials and food. A situation of considerable imbalance in the economic potential of enterprises may lead to unfair trade practices whereby larger and stronger trading partners try to impose practices or contractual arrangements favourable to them on the weaker party. (…) The implementation of the provisions of said Directive significantly changes the scope of the previously applied Act of 15 December 2016 on Counteracting the Unfair Use of Contractual Advantage in the Trade in Agricultural and Food Products. In view of the foregoing, the Ministry of Agriculture and Rural Development has drafted a new Act on Counteracting the Unfair Use of Contractual Advantage in the Trade in Agricultural and Food Products. (…) The new Act on 28 Counteracting the Unfair Use of Contractual Advantage in the Trade in Agricultural and Food Products will be more effective in limiting practices which may negatively affect the efficient functioning of the agricultural and food product supply chain and will also ensure effective mutual cooperation of relevant authorities of the Member States, and their cooperation with the European Commission”

14. Office of Competition and Consumer Protection

Tasks related to counteracting the unfair use of contractual advantage

[page 40]

“The President of the Office of Competition and Consumer Protection will continue to perform tasks related to counteracting the unfair use of contractual advantage in trade in agricultural and food products. Their main objective will still be to improve the situation of the weaker participants of the agri-food market through ongoing monitoring of the situation in its individual segments, as well as carrying out explanatory and relevant proceedings in a consistent manner. The activity of the President of the Office of Competition and Consumer Protection should lead to an increase in the level of awareness of agri-food market participants, and thus result in a decrease in the number of violations. The implementation of Directive (EU) 2019/633 of the European Parliament and of the Council of 17 April 2019 on unfair trading practices in business-to-business relationships in the agricultural and food supply chain, which will entail the adoption of a new Act on Counteracting the Unfair Use of Contractual Advantage in the Trade in Agricultural and Food Products, will have a significant impact on the tasks performed by the President of the Office of Competition and Consumer Protection as regards the matters in question.”

Appendix 2 (information of the Ministry of Foreign Affairs)

Recommendations

[page 47]

“In their activities supporting Polish entrepreneurs, public procurement and development aid projects implementation, Polish foreign missions are guided by the following principles requiring them to: – cooperate with reliable partners whose reliability, including in the area of respect for human rights, has been checked using available instruments such as verification by specialised economic bodies. Particular attention should be paid to respect for human rights in the context of forced and bonded labour and child labour in the supply chain.”

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Introduction

The Republic of Slovenia adopted this Action Plan to enhance activities aimed at ensuring respect for human rights in business operations along the entire value chain. (pg. 4)

Annex I: Human Rights Due Diligence in Practice

An enterprise should identify the relevant facts through the entire value chain – not only within its business process but also on the outside, i.e. in relation to its contractual partners. A priority list of the potentially most critical human rights should be made, and a practical connection between them and business operations along the entire value chain should be established. (pg. 46)

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D. Tasks for the Third NAP

Institutionalization of Human Rights Management

1. Secure corporate responsibility on human rights [page 4]

…

(2) To the extent possible, corporations should pay attention to prevent human rights violations happening at supply chain such as business partners or supplying companies.

…

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II. Antecedents and Context

… In addition, there has been much debate about the role of the company in the field of EU development cooperation. Among other things, we should mention the Council Conclusions on sustainable clothing value chains, approved in May 2017. …

Guiding Principle 2

Measure 7

“The Government will establish networks among Spanish companies or that the ones that operate in Spain for the promotion of: measures, procedures or internal systems that can effectively contribute to the prevention and/or mitigation of the negative consequences of business activities on human rights; as well as for the dissemination of good practices aimed to avoid these consequences, or to influence their avoidance, reduction or remedy. The establishment of procedures for internal assessment and determination of action will be promoted in a manner that avoids other negative consequences on human rights.”

Guiding Principle 3

Measure 4

“The Regulations will be implemented and the Directives will be transposed, and the adaptation of the Spanish legal system to the Recommendations and the Opinions made by the EU regarding the Guiding Principles will be studied. This, will be done taking into account the reports published by the European Commission on the legal framework for human rights and the environment applicable to European companies operating outside the EU (2010), and on responsible management of the supply chain (2011) and other relevant reports.”

Measure 10

“In order to increase transparency, and the confidence of consumers and investors on Spanish companies, the Government will compile the reports that companies write voluntarily, in accordance with the Spanish Strategy for Corporate Social Responsibility, and the Article 39 of the Sustainable Economy Law. It will be encouraged that these take into account the impact of their activities on human rights, including the value chain, introducing a specific chapter for that purpose. Likewise, and in relation to the reports and reports mentioned in the article 35 2 a) of the Sustainable Economy Law, which binds state business corporations, and public business entities attached to the General State Administration, it will be promoted the inclusion of a section on human rights. In addition, the transposition of Directive 2014/95 / EU on disclosure of non-financial information and information about diversity by certain large companies and certain groups will be carried out.”

Guiding Principle 7

Measure 4

“The Government will promote the application of the OECD Due Diligence Guide for Supply Chains Responsible for Minerals in Conflict or High Risk Areas.”

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2 The corporate responsibility to respect human rights [page 13]

“The conditions for companies’ efforts to respect human rights vary depending on their size …

In keeping with the UN Guiding Principles, businesses’ human rights efforts are expected to include the following main points: …

Procedure:

Identify and monitor the risks throughout the value chain (employees, business partners, suppliers, distribution and customer channels) and assess where responsibility for risks lies and how the company can have a positive impact”

Annex: Measures taken [page 22]

The State as actor

• “The conduct of companies in relation to armed conflicts is highly relevant to respect for human rights. Sweden has proposed sharper formulations in the draft regulation on responsible trade in minerals from conflict areas that is currently being discussed in the EU. In other words, we consider it should be mandatory for importers from particularly problematic countries to obtain certification. Sweden is carrying out awareness-raising activities on this issue and supports the OECD’s work on how companies are to identify risks in the supply chain and avoid trade in conflict minerals (OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas).”

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2 National Action Plan on Business and Human Rights 2020-23

2.1 Pillar 1: state duty to protect

 

Guiding Principles 1 to 3

2.1.2 Operational principles: legislative and information policy measures

Measure 7: Reduction in human rights risks associated with gold extraction and trading

Switzerland will continue to support the implementation of OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas and other relevant guidelines. As recommended in the above report, it will explore the possibility of granting the Central Office for Precious Metals Control wider responsibilities, including with respect to transparency on the provenance of gold imported to Switzerland.

 

Measure 8: Human rights in tourism

The tourism sector is a major driver of the Swiss economy. However, tourism can have adverse impacts on human rights. For example, local communities may be forced to vacate an area to make way for new hotels, workers may suffer human rights abuses, and children may be exploited and fall victim to sex tourism (cf. Measure 27 below).

The federal government supports the Roundtable on Human Rights in Tourism assessment of human rights impacts along the tourism value chain. This project, which will initially focus on Thailand, adopts a multi-stakeholder approach and seeks to develop practical guidelines for the tourism industry as a whole.

 

2.1.3 The State-business nexus

Guiding Principle 6

The federal government is committed to ensuring that the value chains of goods purchased by the public sector are free of human rights abuses. It promotes respect for human rights by business enterprises with which they conduct commercial transactions.

 

Measure 12: Criteria under the core ILO conventions in public procurement at federal level

The Federal Council attaches great importance to sustainable public procurement practices. Public procurement practices in Switzerland are governed by the Federal Act on Public Procurement (PPA) and the Ordinance on Public Procurement (PPO). The PPA stipulates that the federal government must, as a minimum, monitor compliance with the core ILO conventions where goods and services are to be supplied abroad. The contracting authority may require bidders to comply with other core international labour standards, provide proof of compliance, and agree to audits.

The Public Procurement Act is currently being revised in line with changes to the WTO Agreement on Government Procurement (GPA) 2012. The PPA (as amended) will include all three pillars of sustainability – economic, environmental and social. Accordingly, the principle of sustainable public procurement will govern the interpretation and implementation of the PPA and the PPO. In its recommendations on sustainable procurement, the Federal Procurement Conference specifically calls for social, environmental and economic factors to be taken into account, including the human rights criteria covered by the core ILO conventions. It also recommends that sustainability criteria be reflected in award procedures.

The federal government will also explore the option of creating a national platform to promote sustainable public procurement practices and facilitate information-sharing between the different levels of government.

Objective	Indicator	Responsibility
Promote sustainable public procurement practices and information-sharing between the different levels of government.	The possibility of creating a national platform for sustainable public procurement was explored.	FDF [Federal Department of Finance], DETEC [Federal Department of the Environment, Transport, Energy and Communications], EAER [Federal Department of Economic Affairs, Education and Research].

 

2.1.5 Policy coherence

Measure 22: Commitments by Switzerland to the UN Guiding Principles at multilateral level

Within the ILO, Switzerland supports the follow-up to the 2016 ILO Resolution on the UN Guiding Principles and global supply chains

 

2.2 Pillar 2: the corporate responsibility to respect human rights

 

2.2.2 Operational principles: human rights due diligence 

Measure 29: Public-private partnerships to promote respect for human rights in the value chain

To promote the implementation of labour rights and human rights by business enterprises, the federal government, together with the ILO, supports the Better Work programme for the textile industry and the Sustaining Competitive and Responsible Enterprises (SCORE) programme to support SMEs in creating decent working conditions. These projects are jointly run by the ILO, governments, the private sector and unions, and are focused on compliance with fundamental labour standards, including measures to combat child and forced labour. The tools developed by these programmes are shared with the private sector.

The federal government supports a project to promote human rights due diligence with a view to preventing the exploitation of Syrian refugees and migrant workers in neighbouring countries (Turkey, Lebanon, Jordan). The aim is to strengthen the contribution that business enterprises make to providing decent work opportunities and combatting exploitation in the textile, agricultural and construction sectors in these countries.

As part of its foreign policy efforts, Switzerland establishes public-private partnerships to promote measures aimed at combatting human trafficking.

Objective	Indicator	Responsibility
Establish partnerships with the private sector to create decent work opportunities in value chains.	Swiss and private sector contributions to the Better Work and SCORE programmes and to projects aimed at protecting migrant workers from exploitation.	Establish partnerships with the private sector to create decent work opportunities in value chains.

Measure 30: Guides and tools to implement the UN Guiding Principles

Most business enterprises use certification and private labels (e.g. UTZ, Fairtrade, and amfori/BSCI) as a means of ensuring compliance with social and environmental standards along the entire value chain. The federal government intends to help businesses identify which certifications meet the human rights due diligence standards under the UN Guiding Principles.

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Appendix 2: Concrete actions taken by Taiwan to ensure respect by businesses for human rights

• In order to strengthen enterprises’ CSR implementation and enhance human rights awareness, the Taiwanese government and civil society have implemented a number of support measures, including the following: (page 34)

‘Taiwan’s Asustek Computer, Acer Corporation, Hon Hai Technology, HTC, and TSMC are all members of the Responsible Business Alliance and follow the “Responsible Business Alliance Code of Conduct” to strengthen the management of supply chains.’

This information is also covered under Appendix 4: Overview of the implementation of the state duty to protect and the access to remedy, The state duty to protect, UNGP7, Actions taken (page 46).

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3. The core content of the National Action Plan on Business and Human Rights

3.1 Action plan on labour

3.1.3 Action Plan (2019–2022)

Pillar 1: State duties in protecting (Protect)

No.	Issues	Activities	Responsible agencies	Time-frame (2019–2022)	Indicators (wide frame)	Compliance with National Strategy/ SDGs/UNGPs
13.	Protection of labour in the supply chain system	Study and issue measures for the business sector that has a supply chain to have a management system that meets the Thai Labour Standard (TLS 8001)	– Ministry of Labour	2019–2022	Number of studies	–   National Strategy for Public Sector Rebalancing and Development –   SDG 8 –   UNGPs Articles 1, 3, 4, 5 and 7

 

3.2 Action plan for community, land, natural resources and the environment

3.2.3 Action Plan (2019–2022)

Pillar 2: Responsibilities of the business sector in respecting of human rights

2.1 Compliance with laws, standards and principles of human rights relating to the environment, natural resources, community and land

• State enterprises and the business sector must promote and monitor their subsidiaries, including their supply chain in respect to relevant laws, standards and human rights principles related to the environment, natural resources, community and land.

 

3.4 Action Plan on Cross Border Investment and Multinational Enterprises

3.4.3 Action Plan (2019–2022)

Pillar 1: State duties in protecting (Protect)

No.	Issues	Activities	Responsible agencies	Time-frame (2019–2022)	Indicators (wide frame)	Compliance with National Strategy/ SDGs/UNGPs
2.	Creating investor awareness	Encourage the business sector to focus on the relationship between large companies and the company’s supply chain, including outsourced services and subcontracting that may have adverse effects on human rights	–   The Office of the Securities and Exchange Commission –   The Stock Exchange of Thailand	2019–2022	Training for the business sector to focus on the relationship between large companies and the company’s supply chain, including outsourced services and subcontracting that may have adverse effects on human rights	–   National Strategy for National Competitiveness Enhancement –   National Strategy for Human Capital Development and Strengthening –   SDG 8 and 16 –   UNGPs Articles 1, 3, 4, 5, 7, 8

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CHAPTER FOUR: STRATEGIES AND INTERVENTIONS STRATEGIES

(…)

OBJECTIVE 4: To promote social inclusion and rights of the vulnerable and marginalized individuals and groups in business operations. 

(…)

4.4.2 Engagement of business operators on human rights

Require human rights due diligence by businesses through comprehensive human rights impact assessments involving meaningful consultation with potentially affected groups, including consideration of gendered impacts of operations and covering value and supply chains.

1. Promote responsible sourcing practices and certification.

 

The strategic implementation framework in the 1.0 Appendices includes: 

• To promote human rights compliance and accountability by business actors (Output Indicators under Objective 2.0)
  • Number of businesses complying with human rights and accountability standards.
  • Number of businesses that incorporated human rights and accountability procedures in their management processes.
  • Number of businesses that incorporated human rights and accountability procedures in their procurement processes.
• To promote meaningful and effective participation and respect for consent by relevant stakeholders in business operations (Objectives 3.0)
  • Number of businesses complying with human rights and accountability standards.
  • Number of businesses that incorporated human rights and accountability procedures in their management processes.
  • Number of businesses that incorporated human rights and accountability procedures in their procurement processes.

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The UK 2016 NAP addresses supply chain already in the Introduction [page 3]: “The G7 Leaders’ Declaration (7-8 June 2015) contained the following commitments: (…) To enhance supply chain transparency and accountability, we encourage enterprises active or headquartered in our countries to implement due diligence procedures regarding their supply chains”.

The UK 2016 NAP, in Actions Taken section [page 8], states that:

“To give effect to the UN Guiding Principles, the Government has:

i) introduced the Modern Slavery Act which consolidates and simplifies existing legislation, toughened penalties to allow a maximum sentence of life imprisonment, and provides safeguards for victims. Companies covered by the Act are required to produce a “slavery and human trafficking” statement for each financial year setting out what steps they have taken to ensure that slavery and human trafficking is not taking place in its business and supply chain The Act, which entered into force on 31 July 2015, also created an Independent Anti-Slavery Commissioner; …

iii) taken account of business activity in conflict and fragile states, or countries with high levels of criminal violence, within the Building Stability Overseas Strategy. Companies operating in these difficult environments have an important role to play in contributing to stability, growth, development, prosperity and the protection of human rights. We support the implementation of the OECD Risk Awareness Tool for Multinational Enterprises in Weak Governance Zones. We will continue to promote implementation of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict Affected and High-Risk Areas. The Government will also work with EU partners and other like-minded countries to deliver increased effectiveness of the Kimberley Process Certification Scheme and higher standards of responsible sourcing in the global diamond supply chain. (…)”

The UK 2016 NAP mentions supply chains in the context of the Rana Plaza case [page 12] as well as in Government Expectations of Business [page 14]:

“The UNGPs guide the approach UK companies should take to respect human rights wherever they operate. The key principles of this approach are to: (…) – emphasise the importance of behaviour in line with the UNGPs to their supply chains in the UK and overseas. Appropriate measures could include contractual arrangements, training, monitoring and capacity-building.”

The UK 2016 NAP further provides that [page 15]:

“The Government encourages companies to review their existing grievance procedures to ensure they are fair, transparent, understandable, well-publicised and accessible by all, and provide for grievances to be resolved effectively without fear of victimisation. It is also important for businesses to require similar good practice of their supply chains, especially in areas where abuses of rights have been identified.”

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Introduction

Responsible Business Conduct [page 4-5]

“Globally, the U.S. government is dedicated to engaging on RBC at the most senior levels. The June 2015 G-7 Summit Leaders’ Declaration recognized “the joint responsibility of governments and business to foster sustainable supply chains and encourage best practices. The October 2015 G-7 Labor and Employment Ministerial Declaration sets out how G-7 countries will strive to lead by example in their own practices to collaborating with stakeholders to facilitating RBC by companies. The “responsible supply chains” issue is expected to be an important part of the agenda for the G-20 under the German Presidency in 2017.

The U.S. government also actively engages on these issues through the Organization for Economic Co-operation and Development (OECD) Working Party on RBC, with the Office of the United Nations (UN) High Commissioner for Human Rights and the UN Working Group on the issue of human rights and transnational corporations and other business enterprises, and with the International Labor Organization (ILO) through its work to advance Decent Work in Global Supply Chains.”

Outcome 1.1: Promoting RBC Globally

Ongoing Commitments and Initiatives [page 8-9]

“Bilateral and Multilateral RBC Statements: The United States uses bilateral and multilateral diplomacy to promote RBC and business environments conducive to RBC. Examples include the 2015 G-7 Leaders’ Declaration on sustainable supply chains and the 2015 U.S.-China statement at the U.S.-China Strategic and Economic Dialogue recognizing the importance of RBC by both countries’ firms operating abroad. State and other agencies will continue to seek to expand the number of countries adopting policies and practices conducive to RBC.” – Implementing Department or Agency: State, DOL

“International Labor Organization: The U.S. government will continue to engage with representatives of employers and workers, and with other governments, to address key issues including but not limited to: employment, protection of worker rights, and social protection. To that end, the U.S. government played an active role in the June 2016 International Labor Conference discussion on the opportunities and challenges in advancing decent work in global supply chains.” – Implementing Department or Agency: DOL, State

Outcome 1.3: Leverage U.S. Government Purchasing Power to Promote High Standards

New Actions [page 10-11]

“Research and Tools on Preventing Trafficking in Global Supply Chains: The State Department funded research on “Strengthening Protections Against Trafficking in Persons in Federal and Corporate Supply Chains” to develop a set of online tools and resources to help federal contractors and corporations analyze, prevent, and address human trafficking risks in their global supply chains. In 2016, State and nongovernmental organizations launched ResponsibleSourcingTool.org. This online platform focuses on the sectors and commodities at greatest risk for trafficking and provides guidance on developing effective management systems. State anticipates funding the development of additional sector-specific tools and the maintenance of the site over the next five years. In addition, DOL is funding research on forced labor in specific industries’ global supply chains and an ILO-led Global Business Network on Forced Labor.” – Implementing Department or Agency: State, DOL

“Compliance with Procurement Regulations: Pursuant to E.O. 13673, DOL and OMB will work with other agencies to designate agency Labor Compliance Advisors who will build greater awareness and understanding of RBC by contractors with whom those agencies do business. For example, a labor compliance advisor could support agency review efforts in the event a contractor, in accordance with requirements of the End Trafficking in Government Contracting Act (22 U.S.C. 7104c), reports a trafficking violation in its supply chain to the government.” – Implementing Department or Agency: DOL, OMB

Ongoing Commitments and Initiatives [page 11-12]

““Strengthening Protections against Trafficking in Persons in Federal Contracts,” (E.O. 13627), signed on September 25, 2012, and its associated regulatory changes, created new prohibitions on trafficking and trafficking-related activities in federal supply chains that are designed to help identify and prevent human trafficking in global supply chains. On December 8, 2016, the U.S. government published draft guidance on anti-trafficking risk management best practices and mitigation considerations for public comment. This guidance is designed to help an agency determine if a contractor is taking adequate steps to meet its anti-trafficking responsibilities under the Federal Acquisition Regulation (FAR) and the FAR Council’s regulations implementing E.O. 13627 and the National Defense Authorization Act for Fiscal Year 2013. This guidance, coordinated by OMB in partnership with DOL and State, and other agencies, will assist agencies in developing appropriate internal procedures and controls for awarding and administering Federal contracts to improve monitoring of and compliance with actions to prevent human trafficking. In addition, the Council intends to amend the regulations to provide a definition for “recruitment fees,” which is a critical component to help prevent trafficking in federal supply chains.” – Implementing Department or Agency: OMB, State, DOL

Outcome 2.1: Enhance the Value of Multi-Stakeholder Initiatives on RBC

New Actions [page 14]

“Promoting Worker Voice throughout Global Supply Chains: DOL, State, and USAID will promote worker voice and empowerment throughout global supply chains and will commit to: (1) building innovative tools to empower workers to directly report to relevant Departments concerns in federal supply chains; and (2) leverage public-private partnerships, stakeholder engagement, and labor diplomacy to promote worker empowerment throughout global supply chains. This effort will enhance the visibility of workers’ perspectives and of their representative organizations, and promote the ability of workers to organize. Various U.S. government agencies have funded and/or participated in initiatives to support stronger worker voice, such as through the Partnership for Freedom and the Supply Unchained initiatives.” – Implementing Department or Agency: DOL, State, USAID

“Promoting Best Practices for Key Performance Indicators (KPIs): The U.S. government will convene stakeholders to discuss the development and promotion of effective metrics, including KPIs, for measuring and managing labor rights impacts in supply chains. This will be done in collaboration with industry groups, auditing organizations, worker organizations, and other civil society actors.” – Implementing Department or Agency: DOL

Ongoing Commitment [page 15]

“DOL Technical Cooperation: DOL funds a range of projects involving collaboration with private sector actors on RBC issues, including:

• A $12 million project, From Protocol to Practice: Building a Bridge to Global Action on Forced Labor, supports global and national efforts pursuant to the 2014 ILO Protocol and Recommendation on Forced Labor. Among other things, this project will organize a global supply-chain forum focused on the role of business in addressing forced labor. …” – Implementing Department or Agency: DOL

“Partnership for Freedom: The U.S. government has provided funding and technical assistance for the Partnership for Freedom, a public-private partnership among NGO Humanity United and DOJ, State, DOL, and the Departments of Health and Human Services (HHS), and Housing and Urban Development (HUD). Under the second of three challenge competitions, federal agency participants committed to providing outreach and disseminating information to potential applicants for financial support from Humanity United, and to contributing technical expertise to “challenge competition” awardees that have developed technological solutions to identify and address labor trafficking in global supply chains.” – Implementing Department or Agency: DOJ, State, DOL, HHS, HUD

Outcome 3.1: U.S. Government Reports

Ongoing Commitments and Initiatives [page 18]

“Reducing Child Labor and Forced Labor: A Toolkit for Responsible Businesses: This DOL online resource, launched in December 2012, will continue to provide step-by-step guidance to businesses that seek to develop and improve social compliance systems to address child labor and forced labor in supply chains. The Toolkit is available to the public in English, Spanish, French, and Portuguese and will be regularly updated based on feedback from users.” – Implementing Department or Agency: DOL

Outcome 3.2: Build U.S. Government Officials’ Capacity to Support RBC

Ongoing Commitments and Initiatives [page 19]

“USAID New Training Module on Supply Chains and Trafficking: USAID routinely offers training to all USAID staff on Counter-Trafficking in Persons (CTIP). In 2016, a new module was developed and incorporated into the CTIP training, and replicated in USAID training for economic growth officers on effective approaches to counter labor trafficking and other labor abuse in specific sectors and supply chains.” – Implementing Department or Agency: USAID

Outcome 3.3: Capacity Building and Technical Support to Promote Enabling Environments

Ongoing Commitments and Initiatives [page 20-21]

“Eliminating Child and Forced Labor in Agricultural Supply Chains: In 2011, USDA, DOL, and State released the Guidelines for Eliminating Child and Forced Labor in Agricultural Supply Chains, developed as part of a multi-stakeholder process that included high-level officials of these agencies, representatives of business, civil society, and academics. The Guidelines’ specific elements should be integrated into any agricultural company program to reduce child or forced labor, and include adhering to ILO standards on child labor and forced labor; mapping supply chains and conducting risk assessments; providing communication and monitoring mechanisms; and developing plans and programs for remediating violations. DOL is now funding a four-year pilot project in Turkey to test implementation of the above Guidelines by a leading company.” – Implementing Department or Agency: USDA, DOL, State

Annex II: Key Domestic Executive Orders and Regulatory Efforts [page 26]

“The Executive Orders and regulations listed below are examples of U.S. government actions designed to lead by example and help promote the responsible conduct of businesses operating in the United States and abroad.

Executive Orders:

“Strengthening Protections against Trafficking in Persons in Federal Contracts” (E.O. 13627), signed on September 25, 2012, and its associated regulatory changes, created new prohibitions on trafficking and trafficking-related activities in federal supply chains to identify and prevent human trafficking in global supply chains. E.O. 13627 also mandated compliance plans for federal contracts performed overseas and exceeding $500,000 in value. …”

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The Vietnam NAP makes no reference to Supply chains.

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