Global supply chains: sharing responsibility and putting due diligence into practice
Title: Initiative for Global Solidarity
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Global, Bangladesh, Cambodia, Viet Nam
Overall term: 2021 to 2024
Today’s business relations and value chains know no boundaries. Global supply chains offer great potential for the economic development and diversity of producing countries. However, human rights, and social and environmental standards are regularly undermined within these complex supply networks.
Globally, the response to this situation is a greater focus on sustainability and corporate due diligence. Fair production and sustainable consumption are becoming guiding principles for companies and consumers and are increasingly also being embedded in legislation. The Act on Corporate Due Diligence Obligations in Supply Chains (Supply chain Act for short) was passed in Germany in 2021. Companies are required to analyse risks relating to human rights, the climate and the environment in their supply chains, take appropriate measures to prevent violations and verify the effectiveness of these measures.
Purchasing and producing companies collaborate as partners, share responsibility for compliance with human rights, social and environmental due diligence.
All activities of the Initiative for Global Solidarity (IGS) focus on supporting purchasing and producing companies to put their due diligence obligations into practice and comply with legal requirements. In this way, the project strives to achieve tangible improvements for people and the environment in the producing countries.
IGS provides support and advisory services for producing and purchasing companies, sets up networks and promotes industry-wide dialogues. Partnership-based cooperation, shared responsibility, improved standards and greater data transparency are of central importance. Further priority areas include developing local structures for advisory services concerning sustainability and corporate due diligence, and promoting complaints mechanisms within and outside of companies. IGS focuses on two sectors: textile and garment as well as electronics.
Last update: December 2021