{"id":22720,"date":"2023-07-10T11:52:39","date_gmt":"2023-07-10T11:52:39","guid":{"rendered":"https:\/\/crigroup.com\/?p=22720"},"modified":"2024-01-15T07:31:21","modified_gmt":"2024-01-15T07:31:21","slug":"supply-chain-and-human-rights-due-diligence","status":"publish","type":"post","link":"https:\/\/crigroup.com\/ar\/supply-chain-and-human-rights-due-diligence\/","title":{"rendered":"EU Shocks Global Supply Chains with Mandatory Human Rights Due Diligence Directive"},"content":{"rendered":"

The European Union has released a groundbreaking directive that will transform global supply chains forever. This directive will require large EU companies and non-European companies conducting significant business in Europe to assess and address their human rights and environmental impacts. The numbers are staggering – <\/span>13,000 EU companies and 4,000 non-EU <\/span><\/a>companies will be affected by this monumental regulation.<\/span><\/p>\n

But why is this directive causing such a seismic shift? The answer lies in the importance of Human Rights Due Diligence (HRDD) for companies. The European Union, as the headquarters of some of the world’s largest corporations, understands the critical role it plays in shaping global business practices. Shockingly, the 2020 Corporate Human Rights Benchmark revealed that 85% of alleged human rights impacts occur in developing countries, despite 78% of the implicated companies being based in OECD countries.<\/span><\/p>\n

This directive builds upon previous transparency initiatives such as the EU Non-Financial Reporting Directive and the Conflict Minerals Directive. Its aim is to hold companies accountable for their human rights and environmental impacts, ensuring they take proactive measures to prevent, mitigate, and remedy any harm caused.<\/span><\/p>\n

Non-compliance with this groundbreaking directive will have severe consequences. Companies failing to conduct effective due diligence or implement necessary measures will face administrative penalties and civil liability.<\/span><\/p>\n

The implications are immense. The EU’s influence on global business practices is unparalleled, with \u20ac223.3 billion worth of goods imported into its territory. This directive is set to reshape supply chains, foster responsible business conduct, and protect vulnerable workers and communities worldwide.<\/span><\/p>\n

\"HUMAN<\/p>\n<\/p>\n

What is Human Rights Due Diligence?<\/b><\/h2>\n

Human Rights Due Diligence entails taking deliberate actions to ensure that their operations and choices do not contribute to or benefit from human rights abuses. It is a responsibility that extends to businesses of all sizes and sectors. HRDD requires companies to be conscious of the products they procure, the services they utilize, and whether the rights of the people involved in their production have been safeguarded.<\/span><\/p>\n<\/p>\n

Supply Chain and Human Rights Due Diligence<\/b><\/h2>\n

Did you know that major global players like the United States, the European Union, and Germany are taking decisive steps to ensure that supply chains uphold human rights and environmental standards? It’s a crucial development that companies cannot afford to ignore.<\/span><\/p>\n

The <\/span>movement<\/span><\/a> to hold companies accountable for their supply chains is gaining momentum worldwide, emphasizing tracing activities down to raw materials. The rules vary, with some being specific to individual companies based on their registration location, while others extend to goods crossing borders, irrespective of the manufacturer’s origin. Non-compliance human right risks range from minimal enforcement to penalties, civil actions, and even goods detainment.<\/span><\/p>\n

Let’s delve into some of the notable regulations and proposals.<\/span><\/p>\n