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Sector Dialogue Automotive Industry

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The automotive sector plays a leading role for Germany as an industrial nation. By integrating sustainability criteria into the procurement process, the sector can directly impact national and international supply chains. This makes it a crucial part of wider efforts to create a sustainable global economy. In collaboration with the Federal Ministry of Labour and Social Affairs, stakeholders representing business enterprises, associations, trade unions, civil society organisations and other initiatives have resolved to develop solutions that improve the human rights situation across the German automotive industry’s global supply and value chains.

At production sites around the world, enterprises are working with a network of suppliers to promote decent employment, training, development and economic prosperity. Reflecting the complexity of their international operations, German automotive firms deal with serious human rights risks in their supply and value chains, for example inhumane working conditions, child and forced labour, and the environmental damage that may be caused when extracting raw materials. New challenges are constantly emerging as a result of the transformation of the automotive industry, vehicle digitalisation, the rapid expansion of e-mobility solutions and the resulting growth in demand for specific input materials. These are complex and multi-dimensional challenges. As the underlying factors are often structural, it follows that a combined approach based on industry-wide cooperation can have a far-reaching impact.

Information on the topic

Today’s launch of the cross-company grievance mechanism (Spanish: Mecanismo de Reclamación de Derechos Humanos – MRDH) is marking an important step towards a just automotive supply chain ensuring access to remedy for workers and affected individuals in Mexico.

Within the Sector Dialogue Automotive Industry, representatives from companies, non-governmental organizations and politics have developed new frameworks on meaningful use of voluntary sustainability standards.

As of 1 January 2024, companies with at least 1,000 employees are subject to the regulations outlined in the German Supply Chain Act - among them, of course, several automotive suppliers. In their quest for guidance and good practice they - as well as companies from other industries - can benefit from the insights generated by the Sector Dialogue Automotive Industry.