The Covid-19 pandemic demonstrates the challenges that global supply chains face, and the vulnerabilities that this creates for workers, communities and businesses around the world. We recognise the need for new binding standards, which benefit all and promote sustainable business actions.

More companies need to take commitments and work to assess, act and report on their potential and actual impacts on human rights and the environment. Legislation introducing a requirement to conduct due diligence and covering all business actors is critical to bring all companies to the same standard.

Mandatory legislation can:

• increase legal certainty about the standards expected from companies to respect human rights and the environment
• promote engagement and impactful actions between supply chain partners
• clarify legal consequences for when responsibilities are not met
• contribute to a competitive level-playing field
• trigger and incentivise impactful and effective actions on the ground

We welcome the European Union and its member states’ efforts to introduce new mandatory human rights and environmental due diligence legislation and we are committed to contributing to the current conversation to ensure the best outcome for all.