In person icon European Policies for Sustainable Supply Chains: Assessing the Effectiveness of Human Rights and Environmental Due Diligence Laws

Abstract

The rise of supply chain regulations, such as the EU Corporate Sustainability Due Diligence Directive, the EU Regulation on Deforestation-free Products, the German Supply Chain Act, and the French Duty of Vigilance Law, signals a pivotal shift towards mandatory human rights and environmental due diligence in global supply chains connected to European markets. These frameworks have the potential to drive significant on-the-ground improvements by holding companies accountable for human rights violations and environmental harm in their supply chains. Moreover, such laws are an important component of the EU Green Deal and can help tackle pressing environmental problems such as climate change, biodiversity loss, and pollution, while also protecting numerous human rights. Despite the progressive intent of these frameworks, their effective implementation faces numerous challenges, including the complexity of global supply chains, insufficient enforcement mechanisms, a lack of capacity and resources in both consumer and producer countries, political contestation, which risk diluting their impact. This panel critically examines the effectiveness of these regulations in achieving meaningful on-the-ground change. To date, researchers has primarily focused on contested policymaking and implementation processes in importing countries, and there are some case studies focused on specific regulations or producing country contexts. Drawing on theoretical and empirical contributions this panel advances the research frontier on new supply chain regulations by asking the following questions: (1) How do producer country governments and private actors adapt their policies and practices in response to these laws? (2) How do these regulations influence the dynamics of public-private interactions, particularly in improving private governance instruments? (4) What are the political dynamics surrounding implementation processes at both sides of the supply chain? By addressing these questions that are all critical for the success of new supply chain regulations, the panel aims to provide a nuanced understanding of whether and how these regulations reduce harm and promote sustainable practices in global supply chains.

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