19.07.2022
Panel discussion on corporate sustainability due diligence
A parliamentary event held in Brussels on 13 July 2022 focused on the new EU Directive on Corporate Sustainability Due Diligence.
Dr Christiane Hellar discussed the draft together with the two MEPs Anna Cavazzini (Chair of the Committee on the Internal Market and Consumer Protection) and Axel Voss (Member of the Committee on Legal Affairs), as well as industry representative Stefan Seidel (Senior Head of Corporate Sustainability at Puma).
Christiane Hellar emphasised that the aim of a Europe-wide regulation was, in particular, to improve the human rights situation, especially in producer countries. There was consensus amongst the panellists that, in order to achieve the greatest possible impact, a level playing field should be created, at least within Europe. However, the scope of the law was the subject of heated debate. Referring to the foundation’s own Ethical Risk Assessments, Christiane Hellar emphasised that limiting the scope to the first tier of the supply chain (Tier 1) could not be justified. On the contrary, human rights violations and precarious working conditions frequently occur further up the supply chain. Furthermore, exempting small and medium-sized enterprises from the EU directive fails to reflect reality. In many cases, these businesses are already under an obligation – due to their supply relationships with large companies – to provide evidence of their human rights due diligence obligations.
At the Representative Office of the Free State of Bavaria, it once again became clear just how significant and pressing the challenges are – in times of global crises such as the coronavirus pandemic, climate change and war – in shaping supply chains free from the exploitation of people and the environment. The EU Representation of Bavaria had organised the evening jointly with the Responsible Business Alliance and in partnership with BMW.