Civilsocietystatementontheproposed EUCORPORATESUSTAINABILITYDUEDILIGENCE DIRECTIVE
We,theundersignedcivilsocietyorganisationsandtradeunions, welcometheEuropeanCommission’slegislativeproposalfora directiveonCorporateSustainabilityDueDiligence.Webelieve thatthisisanessentialandlong-awaitedsteptowardcorporate accountability,responsiblebusinessconductandaccessto justice.
However,itisnowurgenttoaddresssignificantflawsthatrisk preventingthedirectivefromachievingthepositiveimpactthat people,planetandclimateurgentlyneed,andthatEUcitizens, workersandcommunitiesaffectedbycorporateabuses worldwidehavevocallyandpubliclydemanded.
Therefore,wecallupontheEuropeanParliamentandEU MemberStatestoimprovetheproposalwhereitislacking,ina gender-responsivemanner,whilstbuildingonitskeypositive elements.Thisisnecessaryinordertoensurethatthelawwill effectivelypreventcorporateharmtohumanrights,the environmentandclimate;aswellasensurethatvictimsof corporateabusehaveaccesstoeffectiveremedies.Wehave outlinedbelowourcollectiveviewsonhowtoachievethese improvements:
Weurgetheco-legislatorstointroduceaneffectiveandrobust obligationtopreventandendadversehumanrightsand environmentalimpactsacrosstheentirevaluechain,ina risk-basedandproportionatemanner.Regrettably,the proposedDirectivelimitstheduediligenceobligationto “establishedbusinessrelationships”,whichfallsbehind internationalstandardsandrisksgeneratingperverseincentives forcompaniestorestructuretheirvaluechainsinordertoavoid theirduediligenceobligation.
Furthermore,thedefinitionsofadversehumanrightsand environmentalimpactsmustbebroadenedtocoverall humanrightsandenvironmentalimpacts.Inanyevent,the correspondingannexwouldneedtobemoreinclusiveinorderto integratealltherelevantinternationalinstrumentsandshouldbe updatedonaregularbasisinordertoallowfortheirfurther development.
Theco-legislatorsmustalsostrengthenprovisionsoncivil liabilityandaccesstojustice.Incourt,theburdenofproof mustbeonthecompany,toprovewhetheritactedappropriately ornot.Thisburdenmustnotbeontheclaimantwhohaslimited resourcesandlittleaccesstoevidence.Companiesmustalso remainliableevenwhentheyhavesoughttoverifycompliance throughindustryschemesandthird-partyaudits.Otherwellknownbarrierstojusticetypicaloftransnationalcasesmustalso belifted,includingthelackofclaimants’accesstokey information,unreasonabletimelimitations,andobstaclesto collectiveredress.Independentnon-profitorganisationswitha legitimateinterestinrepresentingvictimsmustalsobegranted therighttoactontheirbehalf.
Anotherburningissueisthecompleteabsenceofclimate duediligence.Co-legislatorsmustmeettheclimateemergency withanimmediatedutyforcompaniestoaddressclimate changerisksandimpactsintheirvaluechains.Companiesmust alsohaveconcreteobligationstodevelopandimplementan effectivetransitionplaninlinewiththeParisAgreement, includingabsoluteemissionreductiontargetsfortheshort, mediumandlong-term.Theseobligationsmustbeenforceable throughactionfrompublicauthorities,aswellascivilliability.
Whereasinternationalstandardsapplytoallcompanies,the Commission’sproposaldirectlyexcludesapproximately99%of EUcompanies.TheEuropeanParliamentandEUMemberstates mustbringSMEswithinthescopeoftheproposedDirective. Wealsoconsideritunwarrantedandunjustifiableforthe financialsectortohavereducedduediligenceobligationsand forcompaniesinhigh-risksectorstolimittheiridentification processonlytothemostsevereharms.Inlinewiththeriskbasedapproach,wecallforallcompaniestobefully coveredbythislaw
Furthermore,theproposeddirectiveshouldgrantthe perspectiveofstakeholderstheroleandweightitdeservesand shouldmandatemeaningfulconsultationwithstakeholders informingallstagesofduediligence.Theduediligence obligationmustbestrengthenedtoincludemeaningfuland ongoingengagement,includingmandatoryandproactive consultationwithworkers,tradeunions,localcommunity membersandotherrelevantoraffectedstakeholders.This engagementmusttakeintoconsiderationthebarriersthat specificvulnerablegroupsface.Inlightofthat,theomissionofa genderandintersectionalityperspectivethroughoutthe proposalisanotherkeyconcernwhichweshare.
Relatedtothis,thelackofspecificreferencestohuman rightsandenvironmentaldefendersisofgraveconcern.The proposalfailstoofferprotectiontoallhumanrightsand environmentaldefendersacrosstheworld,andonlyproposesto protectEU-basedworkersfromtheriskofretaliation.Protection forpeopleandcommunitiesfromretaliationandadverse consequencesshouldbestrengthened. Therightsof IndigenousPeoplestoself-determinationandforFree,Priorand InformedConsentmustalsobeexpresslyincludedand
recognisedinthedirective.
Inallinstanceswhereitisnecessarytoceaseabusiness relationshiporbusinessactivities,thedirectivemustmandate responsibledisengagementbyclarifyingthatcompanies remainresponsibleforun-remediatedimpactsaswellas addressingnewandadditionalimpactsarisingfromthe disengagement.
Essentialvaluechaintransparencyanddisclosurerequirements arealsomissingintheproposal.Webelievethatthedirective mustrequirecompaniestomaptheirvaluechainand businessrelationshipsandpublishtherelevantinformation
Worryingly,theproposeddirectivegivesconsiderableweightto codesofconduct,contractualclauses,thirdpartyauditsand industryinitiatives,whichhaveproventobeinsufficientmeansto identifyandaddresshumanrightsviolationsandenvironmental damage.Suchmeanscannotbeconsideredasproofthat companiesengageineffectiveandmeaningfuldue diligence.Itisalsoclearthatcompanies’ownpurchasing practicesgenerateseriousadversehumanrightsand environmentalrisksandimpacts,thereforecompaniesmustbe explicitlyrequiredtoaddresstherisksandadverseimpacts oftheirownpurchasingpractices
Finally,theproposalshouldfurtherclarifythedirectors’duty ofcareandtheresponsibilitytoprovideoversightofthe duediligenceprocess,includingtransitionplansand sustainabilitytargets.Companyboardsshouldhaveaclear obligationtointegratesustainabilityrisksandimpactsintothe company’sstrategy,whilstvariableremunerationofdirectors needstobestrengthenedanddirectlylinkedtothesustainability performanceofcompanies,particularlyonclimate.
Weareputtingforwardtheabovechangesinordertoensurethat theEuropeanUniondoesnotlegallymandateameretick-box exerciseandconsolidateabrokensystemthatallowsongoing systematiccorporateharmtopeople,theplanetandclimate.Itis nowcrucialthatco-legislatorsimprovethedirectiveinlinewith theserecommendations.
Co-legislatorsmustimplementthesechangesurgently.We cannotaffordtowaituntiltheendofthedecadeuntilthese provisionsbecomereality,ashumanrights,environmentaland climateharmcontinuestounfoldacrosstheglobe.
Listofsignatoryorganisations
Anti-SlaveryInternational AsiaFloorWageAlliance(AFWA) Business&HumanRightsResourceCentre(BHRRC)
CAREInternational CIDSE
CleanClothesCampaign ClientEarth
EconomyfortheCommonGood ProjetAccompagnementQuébec-Guatemala(PAQG)
FairFinanceInternational FairtradeInternational
FairTradeAdvocacyOffice FrontLineDefenders GlobalWitness HumanRightsWatch
InternationalCorporateAccountabilityRoundtable(ICAR) InternationalDalitSolidarityNetwork InternationalFederationforHumanRights(FIDH)
INSP!R(InternationalNetworkonSocialProtectionRights) InternationalServiceforHumanRights
OMCT–WorldOrganisationAgainstTorture OpenSocietyFoundations
OurFood.OurFuture Oxfam
PeaceBrigadesInternational(PBI)
PICUM–PlatformforInternationalCooperationonUndocumentedMigrants ProtectionInternational PublishWhatYouPay RainforestAlliance Solidaridad
SOMO(CentreforResearchonMultinationalEnterprises) Transport&Environment UnitedEvangelicalMission WeEffect
WeWorld Women’sInternationalLeagueforPeaceandFreedom WWF
Regionalnetworks
AdvocatesforCommunityAlternatives
AfricanResourcesWatch(AFREWATCH) AvocatsSansFrontières(ASF)
ClimateActionNetwork(CAN)Europe
CoordinadoraLatinoamericanaydelCaribedePequeños/asProductores/asy Trabajadores/asdeComercioJusto(CLAC)
EnvironmentalJusticeFoundation(EJF)
EU-LATNetwork
EuropeanCenterforConstitutionalHumanRights(ECCHR) EuropeanCoalitionforCorporateJustice(ECCJ)
EuropeanEnvironmentalBureau
EuropeanFederationofPublicservicesUnions(EPSU)
EuropeanTradeUnionConfederation FriendsoftheEarthEurope InternationalNetworkforHumanEconomyAsia
INSP!RAsia
RedeuropeadeComitésOscarRomero ShareAction WorldFairTradeOrganization-Europe
Nationalnetworksandorganisations 11.11.11-Belgium
AcciónEcológica-Ecuador
ActionAidFrance-France
ACV-CSC-Belgium
AlboanFundazioa-Spain
AlHaq–Palestine
ALSEAN–Burma
AKEUROPA-Austria
AkotaGarmentWorkersFederation–Bangladesh
AmisdelaTerreFrance(FriendsoftheEarthFrance)France
AmnestyInternationalPolska–Poland
Arisa-Netherlands
AsociațiaMaibine-Romania
AsociaciónporlaPazylosDerechosHumanosTaulaper Mèxic-Spain
AsociaciónProDerechosHumanosdeEspaña(APDHE) -Spain
AssociationforHumanRightsandCivicParticipation PaRiter-Croatia
AssociationforSustainableDevelopmentINKINGI-Uganda Associationmarocainedesdroitshumains(AMDH)Morocco
AssociationofRuralEducationandDevelopmentService (AREDS)-India
BangladeshCenterforWorkersSolidarity–Bangladesh BangladeshGarmentandIndustrialWorkersFederation (BGIWF)-Bangladesh
BangladeshIndependentGarmentWorkersUnion–Bangladesh
BangladeshRevolutionaryGarmentWorkersFederation–Bangladesh BelgianAllianceforaSmoke-FreeSociety–Belgium BroederlijkDelen–Belgium
BrotfürdieWelt-Germany
CambodianAllianceofTradeUnions(CATU)-Cambodia CampagnaAbitiPuliti-Italy
CanadianNetworkonCorporateAccountability(CNCA)Canada
CatholicAgencyforOverseasDevelopment(CAFOD)-UK CCFD-TerreSolidaire-France
CenterforAllianceofLaborandHumanRights(Central) -Cambodia
CenterforEducation,CounsellingandResearch(CESI)Croatia
CentreforLabourRights–Albania CenterforthePoliticsofEmancipation–Serbia
Centred’AideJuridico-Judiciaire CAJJ-Democratic RepublicoftheCongo
CentreforPeaceStudies(CMS)-Croatia
CentreforResearchonMultinationalCorporations(SOMO) -Netherlands
CentreNationaldeCoopérationaudéveloppement(CNCD11.11.11)-Belgium
CentrodePolíticasPúblicasyDerechosHumanos-Peru EQUIDAD–Peru
ChinaLabourBulletin(CLB)-China
ChristlicheInitiativeRomeroe.V.(CIR)-Germany
CivilRightsDefenders–Sweden
CoalitionofCambodianApparelWorkers’DemocraticUnion
–Cambodia
CollectifEthiquesurl’étiquette-France
ConectasDireitosHumanos–Brazil
CoordinadoraEstataldeComercioJusto(FairTradeSpanish Platform)- Spain
CorANetzwerkfürUnternehmensverantwortung-Germany
CorporateJusticeCoalition–UK
CovenantsWatch–Taiwan
CambodianLabourConfederation(CLC)-Cambodia DeTransformisten-Belgium
EntraideetFraternité-Belgium
Entrepueblos,Entrepobles,Entrepobos,Herriarte–Spain
EstonianGreenMovement–FriendsoftheEarthEstonia–Estonia
EquoGarantito-AssembleaGeneraleItalianadel CommercioEquoeSolidale -Italy
FacingFinance–Germany
Fair–Italy
FairAction-Sweden
FairtradeSweden-Sweden
Fastenaktion/SwissCatholicLentenFund–Switzerland
FEDINA–India
FEMNET-Germany
FinnishLeagueforHumanRights-Finland
FinnishDevelopmentNGOsFINGO-Finland Finnwatch–Finland
FOCSIV-Italy
FocusAssociationforSustainableDevelopment–Slovenia ForestsoftheWorld-Denmark FOS–Belgium
FrankBold–CzechRepublic FundaciónLibera-Chile
FundacjaDajemyDzieciomSiłę-Poland
FundacjaFrankBold-Poland
FundacjaKupujOdpowiedzialnie–Poland FundacjaLaStrada-Poland
GenderAllianceforDevelopmentCentre–Albania Germanwatch–Germany
GLOBAL2000–FriendsoftheEarthAustria-Austria GonoshasthayaKendra(GK)-Bangladesh GreenLiberty-Latvia HEKS–Switzerland
HomeBasedWomenWorkersFederation–Pakistan HRM“BirDuino-Kyrgyzstan”-Kyrgyzstan
HumanRightsInternationalCorner-Italy HumanRightsinChina(HRIC)-China
IUCNNationalCommitteeoftheNetherlands-Netherlands Impresa2030.Diamociunaregolata-Italy
IndependentTradeUnionofworkersofCroatia(Nezavisni sindikatradnikaHrvatske,NSRH)-Croatia
InitiativeLieferkettengesetz–Germany
Initiativepourundevoirdevigilance-Luxembourg
INKOTA-netzwerk–Germany
InstituteforMission,EcumenismandGlobalResponsibility (MÖWe)ProtestantChurchofWestphalia-Germany InternationaleLigafürMenschenrechte–Germany
IrishCoalitionforBusinessandHumanRights–Ireland
JustiçaGlobal–Brazil JusticeetPaix–Belgium
KalikasanPeople’sNetworkfortheEnvironment(Kalikasan PNE)-Philippines
KarnatakaGarmentWorkersUnion(KOOGU)-India
LabourBehindtheLabel-UK
LabourAction–Denmark
LesAmisdelaTerre–Belgium
LigueBurundaisedesdroitsdel’hommeIteka–Burundi
Liguedesdroitsdel’Homme(LDH)-France
MADPET–MalaysiansAgainstDeathPenaltyandTorture -Malaysia
MagyarTermészetvédőkSzövetsége-FriendsoftheEarth Hungary-Hungary
ManiTese–Italy
ManosUnidas-Spain
ManushyaFoundation–Thailand MaquilaSolidarityNetwork–Canada
NationalGarmentWorkersFederation–Bangladesh
MISEREOR–Germany
MVOPlatform-Netherlands
NationalGarmentWorkersFederation(NGWF)-Bangladesh
NationalTradeUnionFederation–Pakistan
Naturefriends-Greece
NaZemi–Czechia
NeSoVe–Austria
NOAHFriendsoftheEarthDenmark-Denmark
NotreAffaireàTous–Belgium
Novisindikat(NewTradeUnion)-Croatia ObservatorioCiudadano– Chile OKUP–Bangladesh
OrganisationMarocaineDesDroitsHumains(OMDH)MoroccoPeopleinNeed–CzechRepublic
PlataformaporEmpresasResponsables(PER)-Spain
PolskieStowarzyszenieSprawiedliwegoHandlu-Poland
PolskiInstytutPrawCzłowiekaiBiznesu-Poland
PowerShifte.V.-Germany
ProEthicalTrade-Finland PublicEye-Switzerland
QuêMe:VietnamCommitteeonHumanRights–Vietnam
RegionalIndustrialTradeUnion(Regionalniindustrijski sindikat,RIS)-Croatia
ReddeEntidadesparaelDesarrolloSolidario(REDES)Spain
RegionalWatchforHumanRights(RWHR)-Liberia
RegroupementpourlaResponsabilitéSocialedes Entreprises-Canada
ResourceMatters-Belgium
RightsandAccountabilityinDevelopment(RAID)-UK SchoneKlerenCampagne–Netherlands Setem-Spain Sherpa–France
SocietyofWomeninActionforTotalEmpowerment(SWATE) -India
SolidairmetGuatemala-Belgium Solsoc–Belgium
Südwind–Austria SwedishSocietyforNatureConservation(SSNC)-Sweden Swedwatch–Sweden SwissCoalitionforCorporateJustice(SCCJ)-Switzerland SWISSAID–Switzerland
SyrianCenterforMediaandFreedomofexpression(SCM) -Syria
TemizGiysiKampanyası-Turkey TerredesHommesSchweiz–Switzerland TudatosVásárlókEgyesülete-Hungary Turkmen.News-Turkmenistan
TheAllIndonesiaTradeUnionConfederation(AITU-KSBSI) -Indonesia
TheKIOSFoundation-Finland Trócaire-Ireland
Umanotera,TheSlovenianFoundationforSustainable Development–Slovenia
UniónSindicaldeTrabajadoresdeGuatemala–UNSITRAGUA–Guatemala vzbv–VerbraucherzentraleBundesverband-Germany ver.di,vereinteDienstleistungsgewerkschaft-Germany VivaSalud–Belgium Vredesactie-Belgium WH4C–WorkersHubForChange-Malaysia WeSocialMovements(WSM)–Belgium WorkersRightsWatch–Kenya WorldEconomy,EcologyandDevelopment(WEED)Germany YokohamaActionResearch-Japan ZentrumfürMissionundÖkumene-Nordkircheweltweit–Germany