Getting Ready for Mandatory Human Rights Due Diligence Acts in Benelux

The list of the countries that adapt mandatory human rights due diligence legislations to manage risks in the supply chains is growing. The Dutch Senate (Eerste Kamer) has recently voted to adopt legislations that will put an end in child labor and other human rights violations that occur within companies supply chains. In other words, the State wants to ensure that the products or services enter in the Dutch market are not linked with any adverse in human rights.

Child Labor Duty of Care Act (Wet zorgplicht kinderarbeid) 

According to the MVO platform, the Dutch Child Labor Due Diligence law applies not only to companies registered in the Netherlands, but also to companies from anywhere in the world that deliver their products or services to the Dutch market twice or more a year. The new Dutch legislation obliges any established company in the Netherlands to conduct due diligence in order to screen whether their goods or services have been produced are utilizing child labor. It also requests from the companies to take additional measures such as monitoring the supply chain and remediation plan to prevent child labor in their supply chains if they find it.

Responsible and Sustainable International Business Conduct Act (Wet verantwoord en duurzaam internationaal ondernemen)

In November 2022, six political parties submitted to the Dutch Parliament the draft of the bill for the responsible human rights due diligence, following a review of the first draft by the constitutional advisory council. The Act is expected to enter into force with effect from 1 July 2024.

According to the draft of the bill the companies that are registered in the Netherlands must carry due diligence to investigate, capture, mitigate and report any human rights and environmental related risks in their supply chains.  The due diligence also includes company’s activities outside the Netherlands.

The core steps are:

1)     Policy development and implementation, in which the company commits to the obligations to exercise due diligence in the value chain.

2)     Investigation, analyze the potential and actual risks of adverse impacts on human rights, climate change and the environment in their own activities as well as those of their business relationships.

3)     Tackling adverse impacts, to ensure that the detected potential and actual risks of adverse impacts on human rights and the environment are adequately tackled and, to that end, draw up an action plan to prevent, mitigate or terminate these risks of adverse impacts of their activities and those of their business relationships

4)     Monitoring the due diligence process, through the collected information, the execution of the policy document and the execution of the action plan

5)     Reporting on the due diligence, Undertaking and publish annual report on the company’s policy, measures, and execution of due diligence

6)     Remediation mechanism that will be accessible by all the stakeholders. Develop concrete measures to prevent, mitigate or terminate the adverse impacts.

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