Scope 3 Event Series: Beyond Borders – Protecting human rights in global supply chains

With more than 450 million people working in supply chain-related jobs, it is crucial that we address the environmental and social impacts associated with complex global supply chains. The current globalized economy requires businesses to source goods and services from suppliers that often span multiple countries with radically different legal, regulatory, and environmental practices. While these complex supply chains provide economic and social development opportunities, they also pose significant environmental and social risks that many companies have been unable to effectively mitigate (United Nations Global Compact Progress Report 2019).

The UN Guiding Principles on Business and Human Rights and other international norms for companies are not legally binding, and many companies have inadequate or no human rights due diligence measures in place. However, there have been significant developments in this regard. The EU Parliament recently approved the highly anticipated Corporate Sustainability Due Diligence Directive (CSDDD). This directive is expected to be transposed across the EU in the next couple of years, and will require companies to conduct due diligence on human rights and environmental-related issues in their operations and supply chains, across various areas. Non-compliance with this directive can lead to substantial financial and criminal consequences, as well as civil liabilities for damages caused by human rights or environmental issues.

The event will address key questions such as:

• What does the CSDDD mean for businesses?
• What are the challenges faced by companies in implementing human rights due diligence?
• How can these challenges be overcome?
• How are asset managers navigating these potential risks?
• How can companies, international organizations, governments, and civil society organizations work together to promote responsible supply chain practices?

Scope 3 is not only about emission reduction but also about addressing the broader environmental and social impacts associated with global supply chains.