OECD issues due diligence guidelines for responsible fashion supply chain

Desk Report October 19, 2024Last Updated: October 19, 2024

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The OECD has released the Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Sector, offering a roadmap to ensure ethical and sustainable practices in global supply chains. This guidance aligns with international standards such as the UN Guiding Principles on Business and Human Rights and ILO conventions.

Key Areas of Focus

Embedding Ethical Practices: Companies are encouraged to integrate responsible business conduct (RBC) into policies, with top management oversight.
Risk Identification and Mitigation: Enterprises should map their supply chains, assess risks, and work with suppliers to prevent harm such as labor violations or environmental damage.
Tracking and Monitoring: Regular assessments of supply chains and operations are recommended to maintain compliance.
Transparency: Public communication about due diligence efforts is critical to building trust.
Remediation: The guide emphasizes providing remedies for any harm caused through grievance mechanisms.

Sector-Specific Modules

The guidance includes 12 modules targeting issues like child labor, forced labor, gender-based violence, and environmental sustainability, providing specific recommendations for addressing these risks.

Child Labor: Strategies to identify and eliminate child labor.
Forced Labor: Preventing forced labor, especially in high-risk regions.
Gender-Based Violence: Tackling workplace harassment and discrimination.
Occupational Health & Safety: Ensuring safe working conditions.
Wages and Working Hours: Promoting fair pay and reasonable hours.
Environmental Impact: Managing hazardous chemicals, reducing water use, and cutting greenhouse gas emissions.
Trade Unions and Collective Bargaining: Protecting workers’ rights to unionize.
Bribery and Corruption: Addressing unethical practices within supply chains.

A Response to Industry Crises

The guidance was developed in response to incidents like the Rana Plaza collapse, emphasizing the need for stronger ethical oversight. It also benefits businesses by improving reputation, ensuring regulatory compliance, and reducing supply chain disruptions.