Corporate Accountability

The debate on downstream due diligence has never been more topical: The EU currently discusses the Corporate Sustainability Due Diligence Directive. However, both the Council and various parliamentary groups want to limit the scope of the value chain to which environmental and human rights due diligence obligations should apply. Among other things, the downstream value chain would then be (largely) exempted from corporate due diligence obligations. In this short policy brief, published along with Initiative Lieferkettengesetz, SOMO, SwedWatch, and the Heinrich-Böll-Stiftung we demonstrate why downstream due diligence is necessary and how it can be implemented. We also provide key recommendations for the Corporate Sustainability Due Diligence Directive.

European mining equipment manufacturers are cooperating with and supplying mining projects that are known for human rights abuses and environmental destruction. The lack of legislation requiring companies to address severe human rights and environmental risks in their downstream value chain makes this possible. This study highlights the need for downstream due diligence obligations in the mining equipment sector.

This case study of the Andina copper mine in Chile shows how European mining equipment manufacturers maintain close business relationships with the mine, despite the mining activities damaging the surrounding glaciers, massively increasing the water scarcity in the region and local protests against the expansion of the mine. We provide an example of how downstream due diligence obligations of European companies could have been exercised in this case. This is particularly relevant in this sector, where the business relationships between mining equipment manufacturers and their customers involve significant human rights and environmental risks.

In our new briefing, Germanwatch and the sustainable finance think tank Climate & Company analyse the expected reporting and due diligence obligations in the financial sector across a number of key EU regulatory measures on sustainability. In particular, the briefing focuses on potential obligations resulting from the respective regulatory measures that may help to identify and minimise the risk of deforestation.

In light of the severity and the short timeframe that remains to take action to limit global warming to 1.5 degrees, it is important that the EU Corporate Sustainability Due Diligence Directive (CSDDD) leaves no legal ambiguity concerning corporate obligations regarding climate change. The aim of this paper is to provide recommendations on Article 15 “Combating climate change” of the Commission’s proposal which lacks precision regarding the targets and content of the transition plans it refers to.

In September 2021, a three-day online workshop brought together more than fifty representatives of Colombian, Congolese and European civil society organisations to discuss the European Regulation on Responsible Sourcing implementation. This workshop was followed by a public online conference where civil societies addressed their concerns to EU representatives and presented their recommendations. This document aims to summarise the main recommendations.

Voluntary standards and other industry initiatives for the extraction of raw materials have established themselves increasingly in recent years as an instrument with which companies can implement their due diligence obligations. Yet, the existing standards are marked by a series of systematic, content-related and methodological shortcomings. This paper provides a first assessment of the methodological robustness of the various standards in the raw materials sector.

On 23 February 2022, the EU Commission published its long-awaited proposal for an EU supply chain law. The European Parliament and the EU Council – including a number of German government representatives – are now discussing the draft law. Together with more than 220 civil society organisations from Europe and the rest of the world, Germanwatch clarified which changes the Commission's proposal needs from the perspective of civil society.

The European Union’s proposed batteries regulation should require importers and manufacturers to source the bauxite, copper, and iron used in batteries responsibly, a coalition of 16 organizations said today. The coalition includes Amnesty International, Earthworks, Finnwatch, Germanwatch, Human Rights Watch, Inclusive Development International, INKOTA, PowerShift, RAID, SOMO, and Transport & Environment, as well as human rights and environmental activists from producer countries.

The EU Commission has recently presented a proposal for a Directive on Corporate Sustainability Due Diligence. The aim of this Directive is to integrate international standards into European law and prevent negative consequences of global business activities. Can the law contribute to ending deforestation in transnational supply chains?