European Parliament approves groundbreaking law for human rights and environment in supply chains

02.05.2024

The European Parliament has given the green light on April 24 for a historic law that obliges large companies to protect human rights and the environment in their supply chains. The new directive on International Corporate Social Responsibility (iCSR) places living incomes, responsible procurement, and sustainable practices at the forefront for all major companies operating in Europe.

 

Support for living incomes

A key aspect of the directive is the recognition of living wages and incomes as a fundamental human right. Companies are urged to critically evaluate their procurement practices and to break ties with suppliers only as a last resort. Collaboration and engagement of all stakeholders are crucial in addressing issues and finding sustainable solutions.

Additional measures necessary for implementation

While the approval of the directive is a milestone, it is essential to take additional measures to ensure effective implementation. Suppliers, especially small farmers, cannot be expected to bear the full burden of the directive. Therefore, implementation guidelines and model contracts should be based on international standards, and financial support and information should be provided to suppliers and civil society organizations worldwide.

Challenging implementation of the law

The road to this legislation was not without challenges. The European Parliament has worked hard to address risks and ensure that the law holds companies accountable without placing unreasonable burdens on suppliers.

In response to this development, key voices from the field have expressed their support. Daniel Amponsah, a cocoa producer from Ghana, emphasizes the importance of living incomes and calls for concrete support for the implementation of the directive.

Meri Hyrske-Fischer from Fairtrade International and others emphasize the growing acceptance of similar initiatives worldwide and hope for broader compliance with responsible business practices.

The success of the iCSR directive depends on strong support and concrete measures. It is a crucial step towards more responsible business practices, but the road to sustainable change requires ongoing commitment and collaboration at all levels.