Due Diligence

WEED is committed to a global economic system in which human rights and environmental standards take precedence over greed for profit and capitalist growth logic.

So far, however, companies are far too rarely legally obliged to respect human rights and comprehensive environmental standards along their global value chains. In fact, most standards relating to human rights and environmental due diligence are voluntary. However, companies need to be held much more accountable and this can only be achieved with a legally binding framework to which all companies must adhere.

The German Supply Chain Due Diligence Act (Lieferkettengesetz LkSG), which was passed by German parliament on 11 June 2021, is a first step in the right direction. Large German companies are now obliged to take human rights due diligence measures in their supply chains for the first time. Unfortunately, the law has some glaring weaknesses: By no means all companies are covered, and those affected by human rights violations and environmental degradation will still have little opportunity to sue for compensation in German courts if German companies have disregarded their rights.

WEED is therefore in favour of tightening up the German LkSG. We are also in favour of strong European regulation on human rights due diligence (CSDDD) and a binding UN treaty on business and human rights (UN Treaty). WEED is a member of the German alliance Supply Chain Act Initiative (Initiative Lieferkettengesetz).