Responsibility to comply with human rights and environmental standards of Vietnamese suppliers in the supply chain due diligence process
The primary objective of supply chain due diligence in relation to business partners/suppliers is to identify, assess, prevent, mitigate, address and/or remedy risks, violations, or adverse human rights and environmental impacts arising within the scope of the suppliers’ business activities in connection with companies subject to the regulations.
Therefore, from the supplier’s perspective, in order to facilitate the due diligence obligations of EU/German partners, Vietnamese enterprises need to ensure that relevant human rights and environmental standards are fully complied with throughout their production and business operations. At the same time, they should closely monitor related issues within their operations in order to promptly identify risks and take preventive actions as soon as potential violations are detected (rather than waiting until violations occur before taking compliance measures).
Moreover, it should be noted that EU/German partners may take into account human rights and environmental criteria when selecting direct suppliers (to proactively avoid risks of penalties due to supply chain due diligence violations stemming from supplier-related risks). Therefore, ensuring compliance with these standards within business operations should be implemented early as a competitive advantage to attract orders and contracts from EU/German partners )rather than waiting until becoming their supplier to take action).
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Human rights due diligence standards under the EU CSDDD The rights and prohibited conducts forming the basis for human rights due diligence standards, as set out in Part I of the Annex to the Directive, include: 1. The right to life, under Article 6(1) of the International Covenant on Civil and Political Rights (ICCPR) 2. Prohibition of torture, cruel, inhuman or degrading treatment, under Article 7 ICCPR 3. The right to liberty and security of person, under Article 9(1) ICCPR 4. Prohibition of arbitrary or unlawful interference with privacy, family, home or correspondence, under Article 17 ICCPR 5. Prohibition of interference with freedom of thought and religion, under Article 18 ICCPR 6. The right to just and favourable working conditions (including fair wages, living wages, safe working conditions and reasonable working hours), under Articles 7 and 11 of the International Covenant on Economic, Social and Cultural Rights (ICESCR) 7. Prohibition of restricting access to housing (where provided by the company), food, clothing, clean water and sanitation in the workplace, under Article 11 ICESCR 8. Children’s rights under the Convention on the Rights of the Child (CRC), including: - The right to the highest attainable standard of health (Article 24 CRC) - The right to education (Article 28 CRC) - The right to an adequate standard of living (Article 27 CRC) - Protection from economic exploitation and from work that is hazardous or interferes with education or development (Article 32 CRC) - Protection from all forms of sexual exploitation and abuse, as well as abduction, sale or trafficking (Articles 34 and 35 CRC) 9. Prohibition of child labour under the age of 15, under ILO Convention No. 138 (Minimum Age Convention, 1973) - All forms of slavery or practices similar to slavery, such as child trafficking, forced labour and use of children in armed conflict - Use of children in prostitution, pornography or pornographic performances - Use of children in illicit activities, particularly drug production and trafficking - Work likely to harm the health, safety or morals of children 11. Prohibition of forced or compulsory labour, under Article 2(1) of ILO Convention No. 29 12. Prohibition of all forms of slavery and slave trade, under Article 8 ICCPR 13. Freedom of association, assembly, and the right to organise and bargain collectively, under Articles 21–22 ICCPR, Article 8 ICESCR, and ILO Conventions No. 87 and 98, including: - The right of workers to form or join trade unions - Protection against discrimination or retaliation for union participation - Freedom of trade unions from state interference - The right to strike and collective bargaining 14. Prohibition of unequal treatment in employment, under ILO Conventions No. 100 and 111 and Article 7 ICESCR, including: - Unequal pay for work of equal value - Discrimination based on origin, race, colour, gender, religion, or political opinion 15. Prohibition of measurable environmental degradation, including soil, water and air pollution, excessive exploitation of natural resources, or deforestation, where such activities lead to the following consequences under Article 6(1) ICCPR and Articles 11 and 12 ICESCR: - Harm to an individual’s access to food, clean water, sanitation, or to their safety and health - Degradation of ecosystems or interference with individuals’ rights to use land 16. The rights of individuals and communities to land and natural resources, including the prohibition of unlawful appropriation of land, forests and water in the acquisition, development or use of such resources in any form (where these resources are essential to an individual’s livelihood). This is interpreted in accordance with Articles 1 and 27 ICCPR and Articles 1, 2 and 11 ICESCR. Source: Compiled by the TTWTO-VCCI Research Group from Section 1, Part I of the Annex to the CSDDD Directive |
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Environmental due diligence standards under the EU CSDDD The rights and prohibited acts forming the basis for environmental due diligence standards, as set out in Part II of the Annex to the Directive, include: 1. Obligation to avoid or minimize adverse impacts on biodiversity, under Article 10(b) of the 1992 Convention on Biological Diversity and applicable law in the relevant jurisdiction. 2. Prohibition of import, export or re-export of marine specimens listed in Appendices I to III of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) without a permit, under Articles III, IV and V of the Convention. 3. Prohibition of the manufacture, import and export of mercury-added products listed in Part I of Annex A to the Minamata Convention on Mercury, under Article 4(1) of the Convention. 4. Prohibition of the use of mercury or mercury compounds in manufacturing processes listed in Part I of Annex B to the Minamata Convention, under Article 5(2) of the Convention. 5. Prohibition of illegal treatment of mercury waste, under Article 11(3) of the Minamata Convention and Article 13 of Regulation (EU) 2017/852. 6. Prohibition of the production and use of chemicals listed in Annex A to the Stockholm Convention on Persistent Organic Pollutants (POPs), under Article 3(1)(a)(i) of the Convention and Regulation (EU) 2019/1021. 7. Prohibition of illegal handling, collection, storage and disposal of waste, as interpreted under Article 6(1)(d)(i) and (ii) of the POPs Convention and Article 7 of Regulation (EU) 2019/1021. 8. Prohibition of import or export of chemicals listed in Annex III to the Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade, under Articles 10(1), 11(1)(b) and 11(2) of the Convention and the requirements of the importing or exporting Party in accordance with the Prior Informed Consent procedure. 9. Prohibition of the production, consumption, import and export of controlled substances listed in Annexes A, B, C and E to the Montreal Protocol on Substances that Deplete the Ozone Layer under the Vienna Convention, in accordance with Article 4B of the Protocol and licensing requirements under applicable law in the relevant jurisdiction. 10. Prohibition of the export of hazardous waste and other waste, as interpreted under Article 1(1) and (2) of the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal and Regulation (EC) No 1013/2006. 11. Prohibition of the export of hazardous waste from countries listed in Annex VII of the Basel Convention to countries not listed in Annex VII for operations listed in Annex IV, under Article 4A of the Basel Convention and Articles 34 and 36 of Regulation (EC) No 1013/2006. 12. Prohibition of the import of hazardous waste and other waste from a non-Party to the Basel Convention, under Article 4(5) of the Convention. 13. Obligation to avoid or minimize adverse impacts on areas designated as natural heritage under Article 2 of the Convention concerning the Protection of the World Cultural and Natural Heritage, under Article 5(d) of the Convention and applicable law in the relevant jurisdiction. 14. Obligation to avoid or minimize adverse impacts on wetlands as defined in Article 1 of the Convention on Wetlands of International Importance (Ramsar Convention), particularly as habitats for waterfowl, under Article 4(1) of the Convention and applicable law in the relevant jurisdiction. 15. Obligation to prevent pollution from ships, under the International Convention for the Prevention of Pollution from Ships, as modified by the 1978 Protocol (MARPOL 73/78) 16. Obligation to prevent, reduce and control marine pollution from dumping, under Article 210 of the United Nations Convention on the Law of the Sea (UNCLOS) and applicable law in the relevant jurisdiction. Source: Compiled by the TTWTO-VCCI Research Group from Part II of the Annex to the CSDDD Directive |
Source: Compiled by the TTWTO-VCCI Research Group
- Scope of Vietnamese suppliers potentially affected from the supply chain due diligence requirements of European markets
- Responsibility to implement certain measures of Vietnamese suppliers in the supply chain due diligence process
- Supply chain due diligence and textile and footwear supply chains in EU
- Actors in textile, garment and footwear supply chains potentially affected by due diligence requirements
