Dear <<First name>>,
To achieve the Sustainable Development Goals, the private sector has a key role to play, and it must play it responsibly. That is the focus of this week’s Compass. More specifically, we look at the way companies decide themselves – or are compelled – to act responsibly.
For example, is legislation necessary for social and environmental due diligence on the whole supply chain? There has recently been a debate in Germany about introducing it, while it’s already in place in the UK and France, albeit with varying levels of requirements. Alternatively, should we let key actors choose voluntarily to collaborate and identify together the tools that can help companies assume their wider responsibilities? And does it have to be one or the other, or would it be more effective to have a combination of the two?
The benefits of this mixed approach are highlighted in the paper by Poorva Karkare and Jeske van Seters. They analyse the pros and cons of due diligence legislation in the UK and France versus initiatives established by all relevant stakeholders.
An example where legislation and voluntary efforts coexist is the EU’s Conflict Minerals Regulation and the European Partnership for Responsible Minerals. We have a brief on the early experiences and the drivers that have helped create this partnership between governments, companies and civil society, which is aimed at making sure the precious minerals that are imported into the European Union are sourced in a socially and environmentally responsible way.
If you want to know more about what we do on the private sector, do have a look at our dedicated dossier.
All the best,
Virginia
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