Friedrich-Ebert-Stiftung: The Changing World – Due Diligence laws as the opportunity

The need to create sustainable supply chains is becoming an ever-more-frequent topic of political and social discourse. Global value creation needs to be more resilient to external disruptions and socially and ecologically sustainable. The ongoing Covid-19 pandemic and Russia’s illegal war against Ukraine are weighing heavily on the global economy. Disrupted supply chains, supply bottlenecks, raw material shortages, and increased commodity prices are just some of the consequences that pose major challenges for companies and employees.

Due diligence laws for multinational companies – which some countries already have – have the potential to make global value creation more resilient. Starting in 2023, the German »Supply Chain Due Diligence Act« (LkSG) will oblige companies to preventively counteract human rights and environmental law violations along their supply chains.

A proposal of an EU Directive on Corporate Sustainability Due Diligence (CSDD) has been hotly debated since it was presented by the EU Commission in early 2022. The draft law is broader than the German LkSG in many respects but falls short of expectations with regard to the UN Guiding Principles on Human Rights and Business. From a trade union’s perspective, adjustments are a prerequisite for the bill’s final approval. Given its status as a leading economic power in the EU, Germany has been assigned a decisive role in shaping European law and the associated negotiations that will play out in the coming months.

The hybrid international conference hosted by hosted by Friedrich-Ebert-Stiftung together with the Foundation for Labour and Environment (IGBCE) will address the following questions:

• What requirements arise from the LkSG and the EU Commission proposal? What are the strengths and weaknesses of statutory regulation? Where is there room for improvement from a trade union perspective? How can these changes be introduced into the political process?
• Are there examples of best practices for strengthening sustainable supply chains – at the national and international levels? What kind of obstacles are there, and how can they be overcome?
• What role does geopolitics play? What approaches, strategies, and measures should policymakers, businesses, trade unions, and other stakeholders take to strengthen sustainability in global value chains?

For more information visit: www.fes.de/supply-chain-conference-2022