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Logos of the signatory organisations

Open letter to the European Commission: An EU supply chain law must be gender-responsive

In the run-up to International Women's Day, more than 140 organisations, including FEMNET, are addressing the EU Commission, members of parliament and the EU Council in an open letter. They call for gender equality to be taken into account in the Directives on Corporate Sustainability Due Diligence (CSDDD) published by the EU Commission. In view of the upcoming trilogue negotiations between the EU Commission, Parliament and Council on an EU supply chain law, it is crucial to make the directives effective and gender-responsive.

The draft EU Supply Chain Act, published by the EU Commission on 23 February 2022, goes beyond the German Supply Chain Act in key points and is an important step towards a sustainable and decent economy. For example, corporate due diligence obligations should in principle be taken into account along the entire supply and value chains. In terms of environmental protection, the draft also goes beyond the German law and contains provisions on climate protection. Despite this groundbreaking potential, the directives hardly contain a gender perspective and need to be improved.

intersectionality

Pollution, land grabbing, labour exploitation and violence have different and disproportionate impacts on women and non-binary individuals. Many women are also subject to multiple discrimination due to overlapping characteristics such as age, class, ethnicity, caste, migration status, gender identity, belief, sexual orientation and other factors.

Gender due diligence and the possibility of legal action against infringements are urgently needed to address these deep-rooted inequalities. Any legislative initiative that regulates the activity of companies must address these gender impacts, especially considering that in many sectors, such as textiles and agriculture, women make up the majority of the workforce.

Last year, more than 80 organisations expressed their great disappointment at the lack of a gender perspective in the EU Commission's directives. However, the Council's general approach does not address the gender issue either. On the contrary: It further restricts women's rights and has even removed the Convention on the Elimination of All Forms of Discrimination against Women (CEDAW) from the scope of the directives. As one of the largest trading powers, the EU has the opportunity and responsibility to demonstrate its commitment to human rights and to positively influence the lives of many people, especially women, with these directives. The EU has committed to this in its Gender Equality Strategy, Gender Action Plan III and LGBTIQ Strategy.

German translation (source https://www.globalpolicy.org)

Brussels, 6 March 2023

Subject: Towards a gender-responsive EU directive on sustainable corporate due diligence

Dear President of the European Commission Ursula von der Leyen,
Dear Vice-President Vera Jourová,
Dear Commissioner Thierry Breton,
Dear Commissioner Helena Dalli,
Dear Commissioner Didier Reynders,
Dear Members of Parliament,
Dear representatives of the Council of the European Union,

In the run-up to International Women's Day, we would like to remind you that corporate accountability is a women's rights issue. EU legislation, including the Sustainable Business Due Diligence Directive (CSDDD), must reflect this.

On International Women's Day, we pay tribute to all women, girls and gender non-conforming people who are committed to human rights and the environment. We honor all those who fight against discrimination, inequality and gender-based violence in the workplace and protect environmental rights, land rights and the rights of indigenous peoples in the economic context.

Women and groups exposed to marginalisation are affected in different ways and to a particular extent by the effects of pollution, land grabbing, labour exploitation and violence against human rights defenders. Any legislative initiative to regulate companies must take into account such gender-specific and overlapping impacts.[1] This should be done in particular in view of the fact that in many sectors, such as textiles and agriculture, the majority of the workforce is women.[2] Many women are also discriminated against on the basis of other possible and overlapping identities such as age, class, ethnicity, caste, migration status, gender identity, belief, sexual orientation and/or other possible characteristics. Gender due diligence and the removal of gender barriers to access to justice are urgently needed to address these deep-rooted inequalities.

The EU's Sustainable Corporate Due Diligence Directive provides an opportunity to advance women's rights and gender equality in global business value chains. This would: the EU also fulfils its obligations under the EU Gender Equality Strategy, the Third Gender Action Plan (GAP III) and the LGBTIQ Strategy.

Despite this great potential, the proposal for a Sustainable Corporate Due Diligence Directive presented by the European Commission in February 2022 ignores a gender perspective. There is a danger of leaving women behind. About 80 organisations have already expressed their great disappointment at the lack of gender mainstreaming in the Commission proposal.[3] However, the EU Council did not adopt a gender perspective in its positioning either. On the contrary, the Council Decision further restricts women's rights and has even removed the United Nations Convention on the Elimination of All Forms of Discrimination against Women (CEDAW) from the substantive scope of the Directive. As one of the largest trading blocs, the EU has the opportunity and responsibility with this directive to demonstrate its commitment to human rights and to positively influence the lives of many people, especially women.

During the votes in the European Parliament and the upcoming trilogue negotiations, all three EU institutions should promote an effective and gender-responsive EU directive.

WE REQUEST THAT THE EU DIRECTIVE ON SUSTAINABLE BUSINESS OBLIGATIONS

1. expressly acknowledges that the adverse effects of corporate activities are not gender neutral

According to the UN Guiding Principles on Business and Human Rights (UNGPs) and the OECD Guidelines, companies should be given special attention when it comes to the actual and potential negative effects of their actions on groups that pose increased risks of vulnerability or marginalisation. This also applies to the different risks to which women and people of different gender identities may be exposed;[4]

2. covers the entire value chain

Rather than limiting the scope of due diligence along the value chain of companies with terms such as "established business relationship" and "chain of activities", the EU Directive should include all types of business relationships in the value chain, both for upstream and downstream activities. Adverse effects are more likely at the beginning of the value chain, where women are often overrepresented. Women are also more dependent on semi-formal or informal employment, unofficial subcontracting and homework;

3. Include companies of all sizes

All companies must be obliged to respect human rights and the environment. As the existing international standards confirm, negative effects of entrepreneurial action can occur regardless of the size of the company. Women are over-represented in sectors.[5] mainly composed of small and medium-sized enterprises, such as the textile industry. Therefore, women face an even greater risk if the scope of the Directive is not extended to all companies;

Ensuring the protection of women's rights

In line with UNGPs, corporate due diligence should take into account all human rights. Huge progress has been made in recognising women's rights and gender equality in the existing international human rights system. This should be reflected in the EU Directive through the inclusion of all internationally recognised women’s rights;[6]

5. Ensuring access to justice

The EU directive must include a strong liability system that ensures access to justice for those affected by business-related human rights violations. Women and people in vulnerable situations face additional barriers to access to justice. These hurdles need to be removed. This requires the following specific rules: reversal of the burden of proof, extension of limitation periods, collective redress and representative actions, taking into account gender barriers, such as language and literacy barriers, lack of access to financial resources, restrictions on freedom of movement, lack of time due to unpaid care work and other factors;

We also call on all three EU institutions to ensure that gender equality is taken into account in all steps of corporate due diligence.

WE CALL FOR THE EU DIRECTIVE ON SUSTAINABLE BUSINESS OBLIGATIONS

6. Undertakings committed to gender mainstreaming in stakeholder engagement

Companies need to be required to engage with stakeholders in a safe and effective manner and apply a gender-responsive approach to stakeholder engagement. Companies must include in all due diligence steps individuals and groups that have increased risks of vulnerability and marginalization. Women, especially those belonging to marginalised groups (e.g. indigenous women, rural women, etc.), are often excluded from consultations and their voices are not heard.[7] In addition, the protection of whistleblowers (Article 23) should be extended to the protection of all human rights defenders;

7. Obligation for companies to perform gender-specific risk analysis

Companies need to be required to identify gender trends and patterns in the actual or potential adverse impacts of their business activities. Gender-specific effects only come to light if they are explicitly investigated. Violations such as sexual violence are often difficult to detect, as they are usually considered sensitive and it is sometimes dangerous for women to report them;

Requires the collection and use of gender-disaggregated data

In order to understand whether their business activities have different impacts on groups at increased risk of vulnerability or marginalisation and on women, men and gender non-compliant people, companies should collect and use data disaggregated according to the following criteria when identifying, assessing, tracking and verifying the adverse impacts and effectiveness of the measures taken: biological and social sex, age, ethnicity, class, migration status, disability and other possible grounds of discrimination;

9. obliges companies to take gender-specific remedial measures

The EU Directive should explicitly oblige companies to remedy damages. It should also include rules allowing victims access to effective out-of-court and judicial remedies. The available remedies must go beyond financial compensation[8] and include gender-specific forms of redress, taking into account the needs and interests of the data subject or groups;

10. Ensure gender-responsive procurement practices

The EU Directive should establish that purchasing practices and business models are essential elements of a company's due diligence. Unfair purchasing practices in terms of prices and deadlines have a direct and disproportionate impact on women (low wages and income, insecure working conditions, abusive subcontracting). Companies must ensure a living wage for workers through their purchasing practices.

It is high time for the EU to seize the unique opportunity to tackle gender inequalities and discrimination in global value chains. Women and girls must not be left behind in order to make the EU directive effective and positively change the lives of people around the world. We call on you to make changes to the text of the EU Directive to ensure that it fulfils its promise and potential.

Yours sincerely,

146 organizations have signed up.
(List of names in Original PDF document)

 

[1] ActionAid, Ensuring a gender-responsive and effective Corporate Sustainability Due Diligence Legislation in Ten Steps, 2022, https://actionaid.org/publications/2022/ensuring-gender-responsive-and-effective-corporate-due-diligence-legislation-10.

[2] ActionAid ‘We mean business’, 2020 https://actionaid.nl/wp-content/uploads/2020/02/We-Mean-Business-Protecting-Womens-Rights-in-Global…; Oxfam, Not in this together, 2021, https://oxfamilibrary.openrepository.com/bitstream/handle/10546/621194/bp-not-in-this-together-220621-en.pdf?sequence=22 ; Clean Clothes Campaign, Fashioning justice, 2021, https://cleanclothes.org/news/2021/fashioning-justice.

[3] https://actionaid.nl/wp-content/uploads/2022/03/CSDDD-Gender-responsiveness-open-letter-to-EC-MEPs-and-Council.pdf

[4] For this reason, the United Nations and the OECD have developed specific guidelines for integrating the gender perspective into due diligence processes.

[5] About 80 % of the textile and clothing industry employees are women; In agriculture, 37% of the workforce is employed. In this sector, women are disproportionately affected by human rights violations such as land grabbing due to limited property rights and control over land and natural resources.

[6] It should cover at least all international human rights treaties (including the Convention on the Elimination of All Forms of Discrimination against Women) as well as other international instruments relevant to women’s rights (such as the ILO Convention 190 on Violence and Harassment in the World of Work and the Convention for the Protection of the Rights of All Migrant Workers and Members of Their Families).

[7] https://media.business-humanrights.org/media/documents/files/documents/FEMINISTS_CONTRIBUTIONS_TREATY.pdf; The OECD has developed specific guidance on women in stakeholder engagement.

[8] The remedies may include apologies, refunds, rehabilitation, financial or non-financial compensation and criminal sanctions (criminal or administrative measures such as fines) as well as the prevention of damage, for example through injunctions or guarantees of non-repetition.