Nine organizations are calling on EU policymakers to ensure that efforts to simplify the framework for EU sustainability due diligence and reporting maintain alignment with international standards.
This coalition, which includes amfori, Cascale, the Ethical Trade Initiative (ETI), Ethical Trade Norway, ETI Sweden, the Fair Labor Association, the Fair Wear Foundation, the German Partnership for Sustainable Textiles, the Green Button, and the Social & Labor Convergence Program (SLCP), collectively represents over 8,000 member companies and affiliates. They made their appeal ahead of the upcoming EU discussions regarding the EU Omnibus proposal.
The organizations emphasize that diluting the EU Omnibus proposal should not lead to lowered standards, advocating instead for alignment with established frameworks such as the OECD Guidelines for Multinational Enterprises, the UN Guiding Principles on Business and Human Rights, and ILO Conventions.
“Risk-based due diligence makes business sense as it allows prioritizing action where it matters most,” the group’s statement asserts. “It enables companies to focus on risks and manage them effectively, thereby building resilient supply chains and contributing significantly to the EU’s climate and social objectives.”
Recommendations for EU Policymakers on the Omnibus Proposal
The organizations have put forth three main recommendations for EU policymakers:
- Embed a Risk-Based Approach
A risk-based approach should serve as the foundation of EU sustainability due diligence and reporting obligations. This method allows companies to focus on the most significant and probable risks to both people and the environment, rather than employing a one-size-fits-all strategy. - Strengthen Collaboration Across Supply Chains
Companies should be empowered to collaborate more closely with their suppliers throughout the supply chain. Moving away from rigid constraints will promote transparency, encourage responsible business practices, and foster genuine stakeholder engagement. - Ensure Legal Certainty and Policy Stability
It is crucial for regulations to be clear and stable to enable businesses to plan, invest, and engage confidently with global partners.
The organizations reaffirm their dedication to promoting responsible business practices within global supply chains. They believe that it is possible to simplify due diligence and reporting requirements while still honoring the essence of international standards, thereby enhancing the effectiveness of EU sustainability due diligence efforts.
