The increasing number of national sustainability and due diligence regulation focussing requiring action in the supply chain is a paradigm shift in international legislation. Companies are required to implement a sustainability assessment and risk management system for sustainability, especially for local human rights compliance and environmental impacts.
Various countries have already enacted legislation. In the United Kingdom, the UK Modern Slavery At has been in place since 2015, France passed as the Loi relative au devoir de Vigilance in 2017, and in the Netherlands the Child Labor Due Diligence Law will apply from 2022. In Germany, the “Lieferkettengesetz” will apply from 2023.
At the European level, the CSR reporting directive will apply for 2023 reporting and a human rights due diligence law is also under discussion. Reporting regulation and standards put increasing scrutiny on the supply chain.
All due diligence procedures are based on the United Nations Guiding Principles for Business and Human Rights (UNGPs). Complying with them requires the implemenation of a risk management system: