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Exploring the Role of Voluntary Sustainability Standards, Audits and Certifications in Human Rights Due Diligence

Building on the work of the Sector Dialogues, the Federal Ministry of Labour and Social Affairs (BMAS) hosted a conference on "Voluntary Sustainability Standards – Understanding Strengths and Weaknesses for Human Rights Due Diligence" in Berlin on 29 November 2024. The event brought together key stakeholders from various sectors to discuss the growing role of standards systems in corporate due diligence.

Dr Carsten Stender, Head of Directorate-General VI “European and International Employment and Social Policy” at BMAS acknowledged that standards and certifications are essential for managing complex supply chains. Companies, however, remain responsible to monitor the effectiveness of the tools they use to address human rights risks. In the light of increasing due diligence regulations, it is important to deepen the understanding of benefits and limitations of standards.

Moderator of the day, Julie Schindall, pointed out the need for companies to consider their choice of standard carefully:

Voluntary sustainability standards have the potential to clarify expectations for responsible business conduct. They can be particularly useful where they provide a level of detail tailored to a specific type of business activity. But the current proliferation runs the risk that businesses select a standard that does not fully meet global norms and has a limited likelihood of improving outcomes for people and the environment.
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Networking session at the conference in Berlin.

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Opening remarks by Dr Carsten Stender, Head of Directorate-General VI “European and International Employment and Social Policy”, Federal Ministry of Labour and Social Affairs (BMAS).

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Participants at the conference in Berlin.

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Panel “Voluntary sustainability standards in human rights due diligence”.

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Panel “Plethora of standards. Keeping an overview and working towards alignment”.

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Deep dive “Beyond auditing – Reflection on approaches and pathways”.

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Deep dive “Using leverage – Engaging with standard systems”.

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Deep dive “When harm occurs – Dealing with negative effects despite certification”.

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Report back from the deep dive sessions.

Throughout the day, participants engaged in panels and deep dive sessions, exploring topics such as engaging with standard systems, dealing with negative effects despite certification, and using approaches beyond auditing. Experts from civil society like Dr Gisela Burckhardt highlighted the necessity of complementary measures alongside standards to fulfill corporate due diligence obligations effectively.

Standard assessments are typically based on audit methodologies, which fail to capture hidden issues such as freedom of association or gender-based violence. Yet, even visible factors are often missed, as evidenced by the tragedies of Rana Plaza in Bangladesh, Ali Enterprises in Pakistan, and Brumadinho in Brazil. Additionally, standards fall short of including the voices and lived experiences of rightsholders, especially marginalised groups. They also overlook the role of buyers' purchasing practices, which significantly impact working conditions. For this reason, legally binding agreements between all stakeholders— including brands, factories, trade unions, and NGOs — are essential, as demonstrated by the Bangladesh ACCORD.

Both experts from civil society and business called for standards to engage with rightsholders in order to become more effective. Matthias Fertig from Schaeffler emphasized:

For my company, it is important that standards are rightsholder inclusive. In that case, standards are important resources for the practical implementation of due diligence. Especially for the deeper supply chain of various critical raw materials, standards are an important building block for increasing the leverage of individual companies.

The Federal Ministry of Labour and Social Affairs appreciates the valuable contributions of all participants. Their involvement further enriches the insights on integrating standards developed by the Sector Dialogues Automotive Industry.