Standard
OEKO-TEX® RESPONSIBLE BUSINESS
Edition 2024
OEKO-TEX®
International Association for Research and Testing in
the Field of Textile and Leather Ecology
Internationale Gemeinschaft für Forschung und Prüfung
auf dem Gebiet der Textil- und Lederökologie

OEKO-TEX Service GmbH
Genferstrasse 23, CH-8002 Zurich+41 44 501 26 00
www.oeko-tex.com

Terms and definitions
1. Purpose
2. Applicability
3. OEKO-TEX® RESPONSIBLE BUSINESS Trademark

4
6
7
13

3.1 Trademark Protection

13

3.2 Trademark Licensing

13

3.3 Trademark use

13

4.	Corporate Due Diligence: Responsible Business Principles
4.1	Responsible Business Policy

14
16

4.1.1 Principles of the Responsible Business Policy

16

4.1.2 Implementation of the Responsible Business Policy

18

4.1.3 Responsible Person

20

4.1.4 	Pass-On Clause

21

4.2 Risk Assessment

23

4.2.1 Risk Assessment Principles

23

4.2.2 Risk Assessment Implementation

24

4.2.3 Assessing the Location Linked to Identified Risks/Understanding Actions Needed

27

4.2.4 Transport and Logistics

30

4.3 Integration of Appropriate Actions

31

4.3.1 Principles and Implementation

31

4.3.2 Cause, Contribute, Linked to34

4.4 Continuous Monitoring

36

4.4.1 Progress and Effectiveness of Measures - Business Enterprise’s Own Operations

36

4.4.2 Progress and Effectiveness of Measures - Business Enterprise’s Supply Chain

37

4.4.3 General37

4.5 Transparent Communication

38

4.5.1 Content and Implementation

38

4.6 Access to Remedy

40

4.6.1 Grievance Mechanism Principles

41

4.6.2 Types of Grievance Mechanisms

42

4.6.3 Core Criteria of the Grievance Mechanism

43

4.6.4 Provide Remedy

44

4.7 Climate-related Strategies45

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48

5.1 OEKO-TEX® RESPONSIBLE BUSINESS Certification

48

5.2 Application48

5.3 Self Assessment

49

5.4 Audit and Verification

49

5.5 Final Report and Certificate

50

5.5.1 Verified Report and Certificate

50

5.5.2 Unverified Self Assessment Report50

6 Legal Relationship between Customer and OEKO-TEX®

51

6.1 OEKO-TEX® RESPONSIBLE BUSINESS Document and ToU

51

6.2 Application

51

6.3 Code of Conduct and Declaration of Conformity

51

6.4 Quality Assurance

51

6.5 Misuse and Withdrawal of Licence51

6.6 Third Parties

51

6.7 Disclaimer

51

Annex 1: OEKO-TEX® Institutes

52

Annex 2: Labelling54

Annex 3: Exclusion Critieria

55

Annex 4: Regulations and Conventions

73

Annex 5: Risks and their references

77

Annex I: Declaration of Conformity

82

Annex II: Terms of Use and Code of Conduct82

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3 | 80Terms and definitions•

 dverse impact:
A
A negative incident that harms people (e.g., violation against human rights, bribery, employment relations)or the environment.

•

Business enterprise:
A legal entity that is applying for OEKO-TEX® RESPONSIBLE BUSINESS, this covers Brands, Brand Groups,
Retailers and Traders or textile or leather manufacturers along the supply chain until raw material extraction.

•

Comission Business:
A company (commission business) serves as a contracted service provider for another business (customer),with the primary objective of delivering a specific task or product. In this arrangement, the commission business
commits to executing the required work, while the customer commits to compensating for the services rendered.

• Converter	A company that purchases raw/greige materials or semi-finished products and arranges a production step
toward the finished/modified product. The converter uses either the buyers specification or its own.
•

Consulting:
In consulting, information is passed on from one instance to another.
	The aim of consulting is to influence the addressee to take certain action or omissions or to support him/her inclarifying issues or making decisions.
• End Customer:	
A customer who purchases a product either for personal use (consumer) or a distributor (dealer, retailer) who
resells the product. In either case, however, there is a direct link between the end customer and the company.
•Exclusion criteria:
Basic principles that are most important in determining the suitability for OEKO-TEX® RESPONSIBLE BUSINESS
Certification. All exclusion criteria must be fulfilled to be eligible for Responsible Business Certification(see annex 3).

•

Grievance mechanism:
Any routine process through which a complaint can be raised. It can be government or non-government based;
judicial or non-judicial; national, regional, or international; operational or project level. It is a synonym forcomplaint mechanism.

• ational contact points (NCPs):N
Set up by governments to further the effectiveness of the OECD Guidelines, NCPs undertake promotional
activities, handle enquiries and help resolve issues that may arise from alleged non-observance of the guidelines.
NCPs assist enterprises and their stakeholders in observing of the Guidelines. They provide a mediation andconciliation platform for resolving practical issues that may arise while implementing of the Guidelines.

•Non-conformity:
An irregularity against the OEKO-TEX® RESPONSIBLE BUSINESS Standard identified or detected during an
OEKO-TEX® RESPONSIBLE BUSINESS Audit. This could be any problem related to a critical process and/or
procedure (not only exclusion criteria).

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4 | 80•Principles:
Scale that guides the action or implementation.

•

Responsible Business:
Responsible Business is an approach to obligate business enterprises to use their leverage on their supply chainsin order to reduce human rights and environmental risks. This approach was first defined in the United Nations
Guiding Principles on Business and Human Rights and further developed by the OECD.
More and more lawmakers adopt this approach into legislation.

•

Shall:The use of “shall” in the standard document indicates an obligation and identifies all criteria that must be fulfilled
in order to achieve certification.

•

Should:
The use of “should” in this standard indicates requirements that reflect a recommendation for continuous
improvement.

•

Stakeholder:
A person or organization that can - affect, be affected by or perceive itself to be affected by - a businessenterprises’ decision or activity - directly or indirectly - at present or in the future.

•

Supplier:• Direct supplier:
An individual or organization with whom the business enterprise has a direct contractual relationship for thepurchase of goods.
••

Supply Chain:
A multi-stage, upstream and downstream connection between different companies involved in value creation.
A network from the extraction of raw materials, through the refinement stages, to the end consumer.
••Indirect supplier:
An individual or organization within the supply chain who contributes to the final purchased good but withwhom the business enterprise has no direct contractual agreement.

 ownstream supply chain:
D
The movement of finished goods from a business enterprise to its customers. Processes include
distribution, order fulfillment and delivery.

ToU:
OEKO-TEX® Terms of Use

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5 | 80Chapter 1:
Purpose

1. Purpose
The OEKO-TEX® RESPONSIBLE BUSINESS standard is one of the testing, certification and licensing products
offered by the International Association for Research and Testing in the Field of Textile and Leather Ecology,
represented by OEKO-TEX Service GmbH (OEKO-TEX®). Further information on the product portfolio and a listof the institutes approved by OEKO-TEX® (according to Annex 1) can be found on the OEKO-TEX® website
www.oeko-tex.com.
The OEKO-TEX® RESPONSIBLE BUSINESS standard is a normative document that defines the technical conditions
for obtaining the OEKO-TEX® RESPONSIBLE BUSINESS certification and for the licensing of the OEKO-TEX®
RESPONSIBLE BUSINESS trademark. The Terms of Use (ToU) for all OEKO-TEX® products (standards) defined in
Annex II also apply.
The objective of the OEKO-TEX® RESPONSIBLE BUSINESS is to provide companies a tool to achieve responsible
business conduct. All textile and leather supply chains are subjected to due diligence on social and environmental
aspects. Knowing supply chains and individual suppliers, especially those with high risk, enables businesses to
identify, understand, mitigate and prevent risks. The results are documented and proof of compliance is provided.
The OEKO-TEX® RESPONSIBLE BUSINESS certification also enables companies to communicate credible
information and responsible action to consumers and other stakeholders.
OEKO-TEX® RESPONSIBLE BUSINESS offers two different options:• EKO-TEX® RESPONSIBLE BUSINESS Certification provides full, third-party certification and enables businessO
enterprises to publicly communicate their certification (see 5.5.1). It includes a self assessment, verification andaudit.

•

 elf-Assessment with unverified report enables business enterprises to understand their status quo on supplyS
chain on social and environmental performance. Results are permitted for internal company use only (see 5.5.2).

Self-Assessmentwith unverified report

Certification•

 uestionnaire and requiredQ
documentation submission.

• uestionnaire and requiredQ
documentation submission.

• valuation of business’ status quoEon due diligence.

••

Provision of an unverified report.

I ndipendent audit – conducted by
the customer’s chosen OEKO-TEX®
institute.

• o external communicationNpossible.

• rovision of a verified report andPcertificate.

• ommunication of independentlyC
verified due diligence measures
implemented into business processes
and supply chains.

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6 | 80Chapter 2:
Applicability

2. Applicability
1. A ny business enterprise in the textile and leather industry, from retailer to raw material production, can apply for
OEKO-TEX® RESPONSIBLE BUSINESS certification, including business enterprises acting as commission businessas well as business enterprises acting as converter.

Tier 0Tier 1

Tier 2Tier 3Tier 4

Office, retail,distribution centers, etc.

Finished product assembly

Matrial production

Raw material processing

Raw material
extraction

2. OEKO-TEX® RESPONSIBLE BUSINESS applies to all business processes of business enterprises that are within
the scope of the textile and leather sector (considering pt.1).
3. If a business enterprise manufactures or distributes products within other economic sectors, OEKO-TEX®
RESPONSIBLE BUSINESS shall not apply to those products.
4. OEKO-TEX® RESPONSIBLE BUSINESS refers exclusively to the due diligence measures that the businessenterprise implements in its management processes and that apply for their textile and leather supply chains.
Application at corporate groups:
5. If a brand group produces or distributes products within the textile and leather sector by means of a specificbrand, OEKO-TEX® RESPONSIBLE BUSINESS shall apply to that specific brand only and not to the entire brandgroup (see pic.3). The scope of the certification is shown on the respective certification.
6. Since OEKO-TEX® RESPONSIBLE BUSINESS focuses also on the management structure, the certification is only possible
if the applying business enterprise is organisationally independent from the group and a separate legal entity.
7. If a brand group applies for certification, any textile and leather supply chain within the relevant businessenterprise(s) shall be considered (see pic.2).

Brand
A

Brand
B

Brand
C

Brand
D

Brand
A

Pic. 2 – Conditions for group structure certification

Brand
B

Brand
C

Brand
D

Pic. 3 – Conditions for brand certification only.

In the case of a group structure, OEKO-TEX® RESPONSIBLE BUSINESS
can only apply to the group if every independent business unit has beencertified by OEKO-TEX® RESPONSIBLE BUSINESS.

If a brand group distributes products in the textile and leather sector under
one brand and seeks OEKO-TEX® RESPONSIBLE BUSINESS certification forthis brand, the certification applies exclusively to this specific brand, not tothe entire group.

8. If a commission business shall be certified according to this standard, the business enterprise shall ensure thatdue diligence obligations are implemented along the supply chain. This shall be made certain through e.g.
signature of the business policy and further obligations as described in this standard.

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Chapter 2:
Applicability

1. Submitts a request

Comission
Business

Client2. Provides the business policy• e.g. brand• etc.

3. Returns the signed business policy• e.g. Making-up• Dyeing• Washing• etc.

4. Places the order

Responsible
Business
PolicyPic. 4 –General procedure, comission business

The supply chain of a commission business can differ depending on if the commission business is responsible forsupplying the materials itself or if the customer of the commission business supplies the materials.
In any case, all materials shall be accounted for in the supply chain. Therefore, there are different ways how acommission business might interact with its customer:• ustomer acting as a direct supplier towards the comission business (who applies for OEKO-TEX® RESPONSIBLE
C
BUSINESS certification):If the customer supplies the materials to the commission business or if the customer makes specific demands
regarding the sourcing of the materials, the customer shall act as a direct supplier towards the commission
business. This means, that the commission business shall treat the customer as a direct supplier in the sense ofthis standard document.

••

Client• e.g. brand• etc.

Information about order specification
Order placement

DeliveryComission
Business• e.g. Making-up• Dyeing• Washing• etc.

DeliveryResponsible
Business
Policy••15.12.2023

Supplier of Materials• e.g. Fabrics• Trims• etc.

Material order placement
On own account comission business

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8 | 80Chapter 2:
Applicability••

ClientInformation about order specification
Order placement

Comission
Business

Delivery• e.g. Making-up• Dyeing• Washing• etc.

• e.g. brand• etc.

DeliverySupplier of Materials• e.g. Fabrics• Trims• etc.

Responsible
Business
PolicyMaterial delivery

Material delivery•••

Material order placement
On own account comission business ustomer not acting as a direct supplier towards the commission business (who applies for OEKO-TEX®
CRESPONSIBLE BUSINESS certification):	
If the customer does not supply the materials to the commission business and if materials are also sourced by thecommission business itself without instructions of the customer, the customer shall not act as a direct supplier.
This means, that the commission business shall not treat the customer as a direct supplier (and also not as anindirect supplier) in the sense of this standard document.
••

Order of a finished or semi-finished product asprovided by the direct supplier who acts as comission
business or textile manufacturer
No specific requirements on materials defined.

Business Enterprise

Client• e.g. brand• etc.

DeliveryComission
Business

Delivery• e.g. Making-up• Dyeing• Washing• etc.

Responsible
Business
PolicySupplier of Materials• e.g. Fabrics• Trims• etc.

Textile Manufacturer• e.g. Making-up••

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Material order placement
On own account comission
textile manufacturer

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Chapter 2:
Applicability

The OEKO-TEX® RESPONSIBLE BUSINESS Certification refers exclusively to the due diligence measures that thebusiness enterprise implements for textile and leather supply chains.
The OEKO-TEX® RESPONSIBLE BUSINESS Certification reflects the permeation of implemented due diligenceobligations (100%, 80%, 50%) and a performance rating.
The OEKO-TEX® RESPONSIBLE BUSINESS framework is founded on the concept of ongoing enhancement in the
integration of human rights and environmental due diligence within a business enterprise’s operations and across its
supply chains. To attain re-certification in alignment with this standard, noticeable advancements in the execution ofdue diligence obligations are required. This progress is realized by attaining a higher level in at least one facet of due
diligence.
Performance Ratings:
Level 1: Minimum implementation of due diligence within the supply chain.
Level 2: Good implementation of due diligence within the supply chain with further optimisation potential.
Level 3: Best Practice implementation of due diligence within the supply chain.
Permeation of due diligence:
Implemented due diligence obligations that go beyond the minimum requirements (Level1) are recognised according
to their intensity of implementation and will be shown by a colour code on the final certificate.
The achievement of levels 2 and 3 are linked to an implementation of due diligence obligations at suppliers withwhich the business enterprise generates at least 80% of its order/trade volume in units.
For the following tiers, the following minimum requirements have to be achieved to receive the respective level:
Tier 0, Brands/Brand Groups/Retailer/Trader
Level 1, Minimum Requirement:• Due Diligence obligations implemented within own business enterprise,• And 100% direct suppliers (Tier 1, finished product assembly),• Including transport/logistics downstream until end customer and upstream until direct suppliers.
Optional:
Level 2: Permeation of due diligence obligations until and inclusive Tier 2, raw material production.
Level 3: Permeation of due diligence obligations until and inclusive Tier 4, raw material extraction.

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Chapter 2:
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Tier 1, Finished Product Assembly
Level 1, Minimum Requirement:• Due Diligence obligations implemented within own business enterprise,• And 100% direct suppliers (Tier 2, material production),• Including transport/logistics downstream until end customer and upstream until direct suppliers.
Optional:
Level 2: Permeation of due diligence obligations until and inclusive Tier 3, raw material processing.
Level 3: Permeation of due diligence obligations until and inclusive Tier 4, raw material extraction.
Tier 2, Material Production
Level 1, Minimum Requirement:••• ue Diligence obligations implemented within own business enterprise,D
And 100% direct suppliers (Tier 3, raw material processing).
Including transport/logistics downstream until end customer and upstream until direct suppliers.

Optional:
Level 3: Permeation of due diligence obligations until and inclusive Tier 4, raw material extraction.
Tier 3, Raw Material Processing
Level 3, Minimum Requirement:•••

Due Diligence obligations implemented within own business enterprise,and 100% direct suppliers (Tier 4, raw material extraction).
Including transport/logistics downstream until end customer and upstream until direct suppliers.

Optional:
No further due diligence implementation possible.
Tier 4, Raw Material Extraction
Level 3, Minimum Requirement:• Due Diligence obligations implemented within own business enterprise,• Including transport/logistics downstream until end customer.
No further due diligence implementation possible.

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Chapter 2:
Applicability

The following graphic shows an exemplary illustration of achieved levels and implemented due diligence obligations
on the certificate as an example:
Tier 0Tier 1

Tier 2Tier 3Tier 4
Rating
Not required

Responsible Business Policy

Level 2

Risk Assessment

Level 1

Integration of appropriate actions

Level 3

Continuous Monitoring

Level 2

Transparent Communication

Level 1

Access to remedy

Level 1

Climate related strategies (optional)

Level 1OEKO-TEX® RESPONSIBLE BUSINESS
certified business enterprise

Due diligence implemented at 100% direkt
suppliers

Due diligence implemented at all indirect
suppliers with which the business enterprise
generate at least 80% of the ordered/
traded volume in pcs.
Due diligence implemented at all indirect
suppliers with which the business enterprise
generate at least 50% of the ordered/
traded volume in pcs.

Pic. 5 –Exemplary Illustration, Certification for Brands/Brand Groups/Retailer/Trader

Tier 0Tier 1

Tier 2Tier 3Tier 4
Rating
Not required

Responsible Business Policy

Level 1

Risk Assessment

Level 2Integration of appropriate actions

Level 2

Continuous Monitoring

Level 3

Transparent Communication

Level 1

Access to remedy

Level 1

Climate related strategies (optional)

Level 1OEKO-TEX® RESPONSIBLE BUSINESS
certified business enterprise

Due diligence implemented at 100%
direkt suppliers

Due diligence implemented at all indirect
suppliers with which the business enterprise
generate at least 80% of the ordered/
traded volume in pcs./mtr./yard/kg.
Due diligence implemented at all indirect
suppliers with which the business enterprise
generate at least 50% of the ordered/
traded volume in pcs./mtr./yard/kg.

Pic. 6 – Exemplary Illustration, Certification supply chain

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Chapter 3:
OEKO-TEX® RESPONSIBLE BUSINESS
Trademark3. OEKO-TEX® RESPONSIBLE BUSINESS Trademark
3.1 Trademark Protection
Registration of OEKO-TEX® RESPONSIBLE BUSINESS as a trademark on a worldwide basis is pending.
To strengthen its legal protection, the word and figurative mark are being registered, in addition to separate
protection of the word marks OEKO-TEX®, OEKOTEX and ÖKO-TEX and various design elements such as thelogo and globe.

3.2 Trademark Licensing
The OEKO-TEX® RESPONSIBLE BUSINESS Trademark may be used only by those authorised in compliance with
the OEKO-TEX® Terms of Use (ToU). Issuing of a certificate is a prerequisite for licencing. The licence andcertificate are issued to the customer by the OEKO-TEX® institute.
The conditions for issuing a certificate are based on the OEKO-TEX® RESPONSIBLE BUSINESS standard, the
OEKO-TEX® ToU (see Annex II) and the Declaration of Conformity (see Annex I).
With an unverified self assessment report, no certificate is issued. Therefore, no licence to use the OEKO-TEX®
RESPONSIBLE BUSINESS Trademark or any other OEKO-TEX® trademarks is granted.

3.3 Trademark use
To use the OEKO-TEX® RESPONSIBLE BUSINESS Trademark, the regulations contained in the ToU and theLabelling Guide must be complied with. The use of the trademark in any other type or form is explicitly prohibited.
Since OEKO-TEX® RESPONSIBLE BUSINESS certifies business enterprises and not products, using the
OEKO-TEX® RESPONSIBLE BUSINESS Trademark on products is forbidden.
The OEKO-TEX® RESPONSIBLE BUSINESS Trademark can be used on marketing materials and websites to signalthat the business enterprise has been certified by OEKO-TEX® RESPONSIBLE BUSINESS.
It is essential to comply with the principles for advertising defined in paragraph 11 of the ToU. Furthermore,
ToU paragraph 12 requires the customer to contractually bind their business partners to the ToU and to inform them
about the OEKO-TEX® labelling rules. OEKO-TEX® only permits the use of OEKO-TEX® trademarks by third parties
in compliance with the ToU and the OEKO-TEX® labelling guide.
The omission of individual elements of the respective OEKO-TEX® label is strictly foridden. In particular, the details
regarding the certificate number and the Institute are mandatory and must match the corresponding certificate.
These obligations are essential. Violations may result in the withdrawal of the certificate and of the licence to use
the trademark.

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Chapter 4: Corporate Due Diligence:
Responsible Business Principles

4.	Corporate Due Diligence:
Responsible Business Principles
In general, the human rights and environmental due diligence approach is a preventative, risk based approach
about identifying risks in one’s own business enterprise as well as in the supply chains, minimising these risks andremedying violations that have occurred.
The responsibility to fulfil due diligence obligations is in the responsibility of the business enterprise itself and cannot
be passed on to business partners.
However, the extent to which a business enterprise has caused possible risks that have occurred, has contributed tothe occurrence of a violation or is linked to a violation through its business activities, influences the measures thatthe business enterprise must take to mitigate or remedy the risk. Stakeholder engagement plays an important role
when implementing appropriate measures to end violations and mitigate risks. In particular, at the unique positionof women and how they might be affected shall be put an enhanced focus on.
The due diligence approach is not static. On one hand, by implementing due diligence as an integral part of decision
making in the management processes, a constant examination of the information obtained takes place and allows
for a continuous improvement of the business enterprise in these areas. On the other hand, the due diligenceapproach calls for a steady and successive extension of due diligence into the deeper supply chain. Through awidespread penetration of the implemented due diligence obligations by many actors, a continuous improvementof compliance with human rights and environmental obligations in the global supply chains is ensured.
The mapping of supply chain partners and the subsequent risk analysis are vital elements, as they enable potentialand existing risks to be addressed at the first place.
In addition, transparency and communication play an important role in fulfilling due diligence. Only through themthe exchange of relevant information with other important stakeholders is made possible.
Details on the individual due diligence requirements are described in the respective chapters of the standard
document as well as in the implementation manual.
The Responsible Business Process is structured in 6 sections. 6 sections cover the due diligence approach based on
the UN Guiding Principles and the OECD Guidelines. Optional section 7 is in relation to Climate:
1. Responsible Business Policy
2. Risk assessment
3. Integration of appropriate actions
4. Continuous monitoring
5. Transparent communication
6. Access to remedy
7. Climate related strategies

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Chapter 4: Corporate Due Diligence:
Responsible Business Principles

Element 7
Climate related strategies

Element 1
Responsible business policy

Element 2
Risk assessment

Element 6
Access to remedy

Element 5
Transparent
communication

Element 3
Integration of
appropriate actions
Element 4
Continuous monitoring

Pic.7 - OEKO-TEX® RESPONSIBLE BUSINESS Modules

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Chapter 4: Corporate Due Diligence:
Responsible Business Principles

4.1	Responsible Business Policy
The responsible business conduct describes the commitment to the principles of human rights and environmental
due diligence, both in relation to the business enterprises own business activities and to its supply chains and shallbe reflected in a responsible business policy.
In order to fulfil corporate due diligence, responsible business conduct shall be embedded in the business enterprises
corporate policy and management system, and shall be an integral part of decision-making.
This should enable effective and efficient due diligence at all levels of the business and the feeding back of lessons
learned into strategic and day-to-day decision-making.
In addition, the business policy shall include the description of the management system that defines how the coreelements of due diligence will be embedded in the company.

4.1.1 Principles of the Responsible Business Policy he goal of the responsible business policy is a public commitment by the business enterprise to takeT
responsibility for direct and indirect impacts of the business enterprise on human rights, the environment andother risks in the supply chains that arise through direct or de facto control of the business enterprise.
The responsible business policy shall be developed and informed by relevant internal and external expertise.
The following commitments and content shall be included into the Responsible Business Policy:•

Commitment to conduct due diligence on the business enterprise’s most significant risks•

Commitment to conduct due diligence in the enterprise’s own operations and it its supply chain.
•

In its own business enterprise, including own distribution centers and own retail•

In transport through the end customer• ommitment to consider human rights and environmental risks as defined in Article 2 of theC
German Supply Chain Act (see Annex 5) and as reflected in chapter 4.2 of this standard.

•Commitment to respect applicable laws and international agreements according to risks (chapter 4.2):•

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International Bill of Human Rights:•

Universal Declaration of Human Rights•

International Covenant on Civil and Political Rights•

International Covenant on Economic, Social and Cultural Rights•

ILO’s eight fundamental conventions•

Minamata Convention on Mercury•

Stockholm Convention on Persistent Organic Pollutants•

POPs Convention•

 asel Convention on the Control of Transboundary Movements of Hazardous Wastes
B
and their Disposal

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Chapter 4: Corporate Due Diligence:
Responsible Business Principles•

 ommitment to respect the OECD garment and footwear sector risksC(chapter4.2.2.1 Risk Assessment Scope).

• description of the responsible business management system, describing how the due diligence coreAelements shall be anchored in the business enterprise.

•

Description of the buying practices that are subject to regular updates (according to regular risk analysis)•

Commitment to responsible sourcing practices (purchasing practices that prevent harmful impacts)•

 ommitment to meaningful stakeholder engagement, to focus on the unique position of women and howCwomen may be disproportionately affected by negative impacts, etc.

•

Commitment to hear and address all complaints received against the business enterprise own operations.

• ommitment to hear and address all substantiated complaints that the enterprise has caused orCcontributed to harms in its supply chain and that have been raised through a legitimate process.

•(Optional: The commitment to the goals as set in the Paris Agreement for Climate Change).

•

Commitment to respect the five freedoms of animal welfare (if relevant for the business enterprise):•

Freedom from hunger, malnutrition and thirst,•

Freedom from fear and distress,•

Freedom from heat stress or physical discomfort,•

Freedom from pain, injury and disease,•

Freedom to express normal patterns of behaviour.

•

Expectation on suppliers to conduct due diligence.

• tatement about whether subcontracting is allowed or not allowed. If subcontracting is allowed the businessS
enterprise shall define the conditions for allowed subcontracting.

• xpectations on human rights and environmental due diligence obligations shall also be implemented andE
ensured within subcontracting agreements.

•

 xpectations regarding the outsourcing at homeworkers and the use of handwork (if relevant for theEbusiness enterprise).

•List of all identified risks which shall be subject to regular updates, according to regular risk analysis.

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Chapter 4: Corporate Due Diligence:
Responsible Business Principles

4.1.2 Implementation of the Responsible Business Policy
To implement processes that anchor responsible business in the business enterprise, aspects as described in thefollowing shall be considered.
4.1.2.1 Embedding the Responsible Business Policy into the Business:• he Responsible Business Policy may consist of a single policy, several stand-alone policies or be integratedT
into other governance documents of the business enterprise (e.g., the code of conduct).

• he Responsible Business Policy shall be adopted and must be recognized and approved by the highestT
corporate level.

• he Responsible Business Policy shall be publicly available (e.g. business enterprise’s website) and easilyT
accessible to ensure full transparency.

•

 he Responsible Business Policy shall be communicated to all employees, suppliers and other relevant thirdT
parties to ensure awareness.

•

 o ensure that the Responsible Business Policy, informations about the grievance mechanism and supplier codeTof conduct are communicated to the supply chain, the company shall include a pass-on clause (chapter 4.1.4)
in its contractual documents that regulates the transfer of documents to the deeper supply chain.

• he Responsible Business Policy shall be reviewed annually and updated on an iterative process based on theTincreasing knowledge about risks and harms in the business enterprise own operations and supply chain.

4.1.2.2 Embedding the Responsible Business Management System into the Business:
The company shall implement responsible business as an integral part into regular business processes and into all
relevant decision-making processes (e.g., product development, purchasing, etc). Therefore, following criteria shallbe ensured:• he provision of adequate resources (e.g., financial resources, adequate staff, time, etc.) and support to allow
Tthe implementation of human rights and environmental due diligence and to maintain the necessary
infrastructure.

• he appointment of a responsible business person who is responsible for carrying out the corporate due diligenceT(employees, team, external parties, etc.). This person must have adequate and sufficient knowledge of this area.

• he exchange of feedbacks, learnings, and information on due diligence across teams and business units inTorder to allow alignment.

•

That adequate and appropriate information related to due diligence is provided to relevant decision makers.

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 he establishment of an information system which allows collection and storage of accurate information,Tsuch as:• isting of all products the business enterprise buys and sells and the associated risks of harm related toLproduction and sale of those products.

•

 apping of all countries from which the business enterprise is sourcing from, and the associated risks ofMharm linked to.

• apping of suppliers and other business partners the business enterprise is sourcing from, and theMassociated risks of harm linked to.

•

Listing of all stages in supply chains which have a higher likelihood of employing homeworkers.

•

Listing of all stages in supply chains which have a higher likelihood of subcontracting.

•

The results of the risk assessment.

•

The results of individual supplier assessments.

•

 isting of the commitments of all suppliers with whom a Corrective Action Plan has been developed andLagreed.

• ist of suppliers and subcontractors who are identified as prequalified (those who are already conductingLhuman rights and environmental due diligence or those who are willing to collaborate and engage withthe business enterprise on prevention of harm).

•

 ptional: Choke points or strategic points of influence in the upstream supply chain for products linked toOsevere harm (e.g. processing stages and suppliers that have a greater impact on their upstream supply
chains because they may be one of just a few processors/suppliers carrying out a particular process).

•

That the collected information is stored for at least 7 consecutive years.

•

For retailers:•

List of brands that the business enterprise sells and the associated products.

•

Information on whether the listed brands are conducting due diligence.

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4.1.3 Responsible Person
A responsible person shall be nominated, who:
•

•
•

•
•

Has a comprehensive understanding of the international treaties on:• Human rights• Environment and climate
Coordinates all responsible business activities, especially if delegation of tasks is established anages the operational implementation of responsible business processes and ensures thatM
responsible business is implemented in all areas of the business enterprises activities. This includes thedevelopment and implementation of appropriate purchasing strategies and practices.
Has authority while decision making to decrease certain risks within own business enterprise andits supply chains.
Ensures that employees receive appropriate training and incentives to comply with the business enterprise
Responsible Business Policy.

•I s responsible for ensuring that supply chains can be mapped (e.g. must ensure that systems or methods
are put in place that allow the supply chain to be mapped transparently, etc.).

•I s in contact with suppliers and other business partners to ensure the business enterprise’s responsible
business expectations and policies are met. The Responsible Business Policy shall be communicated to the
suppliers and other relevant business partners and included in written agreements. Trainings and incentives
shall be provided to ensure that the responsible business policy is understood and installed.

• as a regular reporting obligation (e.g. biannually) to the executive board and meets regularly with theHheads of any departments with supply chain responsibility (e.g. purchasing depts, product management,
quality management, etc.).

•

Ensures that the risk analysis is properly carried out (chapter 4.2).

•

 akes recommendations for appropriate actions (chapter 4.3) by creating a report on which sourcing
M
decisions are based. The report shall include defined goals, timetables, milestones and the risk assessment
results. Management settles any conflicts, considering all relevant information. If management decides
against the recommendation of the responsible person, the reason for the decision shall be documented.

•

 oordinates the establishment of a supplier code of conduct and inclusion of responsible business inCcontractual agreements (chapter 4.3).

•

Oversees the continuous monitoring process (chapter 4.4).

•

Ensures transparent communication of the responsible business-related actions to all stakeholders (chapter 4.5).

•

Establishes and/or oversees the complaint process (chapter 4.6).

Responsible business does not have to be the only task of this person, but adequate time to work on supply chain
due diligence shall be secured.
Depending on the size of the business enterprise, additional responsible persons might be appointed at thevarious management levels and across teams and business units.

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4.1.4 Pass-On ClauseEmbedding the Responsible Business Policy into the Upstream + Downstream Supply Chain through the
Pass-On-Clause:
4.1.4.1 Direct Supplier
The Pass-On clause is a contractual obligation in which the following is agreed upon between the business enterpriseand the direct supplier:•Compliance with the Responsible Business Policy statement•

Compliance with the supplier code of conduct•

 he supplier code of conduct shall contain the human rights and environmental risks in article 2 of theTGerman Supply Chain Act, the commitment made in the business policy and the requirements defined for
subcontracting:
•
•

•

•

 ny purchasing, outsourcing or subcontracting of goods, materials or services shall beAcontrolled to ensure that all purchased goods/services meet the Responsible Business Policy
regarding human rights and environmental risks.

• he supplier who is subcontracting shall, therefore, contractually bind their subcontractors
Tto this supplier code of conduct and obligate their subcontractors to comply with this
supplier code of conduct.

• he supplier who is subcontracting shall communicate their subcontracting partners to theTordering business enterprise.

Contractual training measures••I f subcontracting is not authorized by the Responsible Business Policy of the business enterprise it
shall be prohibited throughout the whole supply chain.
If subcontracting is authorized by the Responsible Business Policy of the business enterprise thefollowing shall be adhered to by the direct supplier: he business enterprise shall conduct initial and future trainings with the direct supplier to ensureTcompliance with the contract.

Grievance mechanism information & implementation•

The following information shall be publicly available:• Contact information for the grievance mechanism,• Contact information for the person responsible for the grievance mechanism at the certified
business enterprise,• Description of the complaint process,• Obligation of each supplier to take note of the information and access points of the grievancemechanism (as outlined in the pass-on clause) and to make the grievance mechanism known to therelevant stakeholders of the business partner.

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4.1.4.2 Contractual Obligation to Pass-On & Acknowledgement
•

•
•
•

 he Pass-On Clause includes the obligation that the business policy, supplier code of conduct and grievanceTmechanism shall be contractually passed on to the suppliers of the direct supplier (indirect suppliers to thebusiness enterprise).
This obligation is only fulfilled when the direct supplier submits the indirect supplier‘s acknowledgement tothe business enterprise.
The indirect supplier’s written acknowledgment declares compliance with the obligations(see also acknowledgement template).
The Pass-On Clause includes this obligation to be passed through all tiers of the whole supply chain, in acascading manner.

4.1.4.3 Indirect Supplier• he Pass-On Clause contains the obligation and requires every direct supplier to pass-on the original businessT
policy statement, the supplier code of conduct and all informations of the grievance mechanism to theirsubsequent suppliers (e.g. tier 1 to tier 2 to tier 3, and so forth).

•I ndirect suppliers shall be obliged to make the grievance mechanism accessible to their relevant stakeholders,
especially workers. The grievance mechanism shall be made accessible in locations at the stakeholders discretion(e.g. restrooms).

Downstream

Supplier
Code of conduct

Responsible
business policy

Upstream

Information
about grievancemechanism

External transport

End-customer

Contract

Direct suppliers

Indirect suppliers

External warehouse/
distribution centers

External
retailBrand(incl. Distribution center, own
retail, own transport)

End ofresponsibility
Pic. 8 – Illustration of Pass-on Clause

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4.2 Risk Assessment
Based on a formalised process, the business enterprise shall identify the risks and negative impacts of its businessactivities on its own operations and on the full supply chains and shall prioritise them according to their significancefor further prevention and mitigation.
The risk assessment is the cornerstone of all due diligence activities.
The risk analysis shall cover the following areas:•

Own business operations•

Own retail and distribution centers•

Own and external transport and logistics until end customer•

Full supply chain

4.2.1 Risk Assessment Principles
 he business enterprise shall conduct a risk assessment to identify and understand human rights and environmentalTrisks in the own business enterprise as well as in the supply chains to prevent adverse impacts by not causing orcontributing to them and to understand where the business enterprise might be linked to risk of harm.
Following aspects shall be taken into consideration when conducting the risk assessment:•

The business enterprise shall consider specific sector risks as well further risks as mentioned in chapter 4.2.2.1.

•

 he business enterprise shall analyse whether those risks are present or potentially might occur in its own
Tbusiness enterprise and in it’s supply chains.

• he business enterprise shall also take into consideration actual harm it might identify through its own provided
T
grievance mechanism.

•

The identified risks shall be evaluated according to their severity, likelihood and ability for remediation.

•

The identified risks shall then be prioritized.

•

The risk assessment shall be conducted periodically, at least once a year.

•

The risk assessment shall be thoroughly researched and documented.

•

Additional risk assessments shall be conducted if a risk situation is significantly changed or expanded.

•

Any changes of purchasing practices, country risks, product changes, etc. shall be considered.

• he results of the risk assessment shall be communicated in a timely manner to the relevant decision-making
Temployees and management.

Information on identified risks of harm related to specific production processes, countries, sourcing models, etc.
should be shared by business enterprises publicly or at the industry level. This is particularly important in order toprovide, communicate and address emerging risk of harm at industry level.

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4.2.2 Risk Assessment Implementation
4.2.2.1 Risk Assessment Scope
The scope of the risk assessment shall include• the business enterprise’s own operations,•

their supply chains•

external transport and logistics until end customer.

(see also chapter 2).
The following sector and potential further risks shall be taken into consideration when conducting the risk
assessment:•

Human Rights/Social• Child labour and worst forms of child labour• Sexual harassment and sexual and gender-based violence in the workplace• Forced labour• Slavery• Torture• Working time
• Occupational health and safety• Trade unions and collective bargaining• Unequal treatment in employment• Wages• Bribery and corruption• Responsible sourcing from homeworkers• Land grabbing•

Environmental Risks• Hazardous chemicals• Water• Greenhouse gas emissions• Soil degradation• Air pollution• Harmful noise emissions• Deforestation• Animal welfare• Mercury• Persistent Organic Pollutants• Hazardous and other waste• Further risks

The above listed risks relate to the references as specified in Annex 5 of this standard document.

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4.2.2.2 Complexity
The complexity of the risk assessment is determined by the complexity of the business enterprise (size, operational
context, product complexity, supply chain and structure).
The risk assessment is made more complex with higher levels of human rights and environmental impacts.
The more complex a business enterprise is and the more serious identified human rights and environmental risks are,the more extensive and detailed the documentation must be (chapter 4.2.2.3).
4.2.2.3 Documentation
A structured approach and documentation supports a systematic implementation of the risk assessment.
It might be helpful to follow the ISO 31000 approach for the risk assessment documentation.
In any case, the business enterprise shall ensure that the data and information on which the risk analysis is based
are comprehensible and accessible. The risk analysis and the data used for it should be kept for a period ofat least 7 consecutive years.
The following describes a step-by-step procedure towards the risk assessment. As a first step countries and regions
from where the business enterprise is sourcing from, the actual and potential suppliers, the business model as wellas the purchasing practices shall be taken into consideration as these contexts influence the existence of risks andultimately their rating and prioritisation in the risk assessment.
For this assessment,• third party documentation from international organisations, multi-stakeholder initiatives and NGO’s(e.g. Partnership for Sustainable Textiles, annual reports on the OECD Guidelines for Multinational Enterprises,
UNICEF, IUTC Global Rights Index, etc.),•

the business enterprise advisory board,•as well as potentially affected and most vulnerable stakeholders, shall be consulted.

In case the business enterprises notices lack of information to identify and evaluate risks, the business enterpriseshall engage with experts to gain missing information.
Different external resources are available per individual risks and those are often mapped in different evaluation
metrics, depending on the source. Together with the internal information available to the business enterprise, thebusiness enterprise must create an individual assessment matrix for the classification and comparability of the risks.
This requires a certain degree of judgement on the part of the business enterprise in order to adequately evaluate
and rate the risks.
Countries and Regions
The risk assessment documentation shall reflect all countries and regions from where actual and potential sourcing
partners are considered. Accordingly, those risks that arise from these countries and regions shall be assessed
according to the applicable laws and regulations that are applicable there.
If labour laws in these countries and regions diverge from the Fundamental ILO Conventions, UN Human Rights
Convention, specific focus shall be put on suppliers from these countries and regions. This is achieved, among
other instruments, through contracts that contain clauses that address certain issues. In addition, audits conductedby the business enterprise can further strengthen due diligence.

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Suppliers•

All direct suppliers shall be mapped.

•

 ll indirect suppliers, through raw material production, shall be listed based on available information.
A
The business enterprise can use external mapping tools or create its own. The key is transparent
documentation.

•

The documentation shall include current suppliers as well as suppliers considered in the future•

 he business enterprise shall structure direct supplier relationships in a proper manner. It shall be forbiddenT
to circumvent due diligence obligations regarding direct suppliers. For a comprehensive overview of the
supply chain levels and the requirements on implemented due diligence obligations, see chapter 2.

Products/Raw Materials•

All articles containing textiles and leather are to be considered in the risk assessment.

• roducts and their raw materials shall be assessed according to their human rights and environmental risks.
P
For example, overtime, high water consumption and energy requirements for a wide variety of production
processes are typical risks in the textile and leather supply chain, to name a few.

Purchasing Practices•

 he purchasing practices have a significant impact on the risk of harm in the enterprise’s supply chain. E.g., theTexistence of many suppliers may increase potential risks, indirect sourcing may decrease effective influence andcontrol possibilities, frequently changing suppliers may hinder the business enterprise’s ability to identify, preventor mitigate harm in its supply chain.

•

Accordingly, the business enterprise shall consider its purchasing practices when conducting the risk assessment.

Business Model
The business model that the business enterprise pursues also has an influence on existing and potential risks.
The following aspects shall be considered in the risk assessment:•

Number of product lines and how often those are changed (e.g., season per year).

•

Whether high diversity of product lines (e.g., as complexity of materials, processes, etc. increases) is present.

•

Numerous product cycles or seasons (e.g., might lead to short leadtimes, overtime, etc.).

•

 he extend of a business enterprise’s foreign operations (e.g., reduced control of conditions in production,Tpurchasing practices, etc.).

Based on the analysed risks, their likelihood, severance and ability for remediation shall be evaluated. Based on thisallocation of risks, a prioritisation shall be conducted. The prioritisation aims to handle first the most relevant risks ofharm prior to handling less severe risks of harm.
Accordingly appropriate measures for the elimination and reduction of risks are to be assessed and defined by thebusiness enterprise (see chapter 4.3).

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4.2.2.4 Frequency and Evolving Nature of Risk
The business enterprise shall implement the general risk assessment as an ongoing and continuous process thatreflects the evolving nature of risk in the industry. Changing circumstances (e.g., new suppliers, emerging risks ina particular country, etc.) shall be immediately assessed in the responsible business process.
4.2.2.5 Business Enterprise’s Relationship to Impacts
After having conducted above mentioned processes related to the comprehensive risk assessment, the businessenterprise shall identify whether it has caused, contributed to or is linked to the identified impacts. This is importantin order to take the appropriate and necessary measures. Further information to the concept of caused, contributedand linked to can be found in chapter 4.3.

4.2.3 Assessing the Location Linked to Identified Risks/Understanding Actions Needed
After the risk assessment, risk identification and prioritisation, the business enterprise will understand where certain
risks are located. This might be in•

the own business enterprise operations•

as well as at multiple stages within the supply chain.

Accordingly, the business enterprise shall conduct assessments of the site associated with the identified risk. The
assessment aims to understand what strategies, systems and measures, etc. are already in place or may be lacking
to prevent or mitigate the occurrence of the identified risks. The identification of lacks will determine what further
measures (prevention and mitigation measures) the business enterprise shall introduce to mitigate the identified
risks.
4.2.3.1 Assessment – Own Operations
If the business enterprise has identified risks of harm in the own business enterprise operations, the enterprise shallengage with potentially affected stakeholders. This might include employees, workers, trade unions, etc. to better
understand lack of prevention and mitigation measures and to adjust the same.
Beside stakeholder engagement the business enterprise shall review its policies and systems to understand whether
those already support prevention or mitigation of the detected risks.
For the self-assessment, the business enterprise shall consult credible guidance for employers which has been
published e.g. by the ILO and shall seek for external support in case the detected impact may cause severe harm
if not properly prevented or if the prevention of measures require technical expertise that is not available in house(e.g. technical support might be needed for occupational health and safety measures, etc.).

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4.2.3.2 Assessment – Suppliers
Depending on where in the supply chain risk of harm has been detected and its defined priority, the related suppliersor processing steps shall be selected by the business enterprise for assessment.
Following criteria shall be taken into consideration for the supplier assessment:•

Measures that the supplier has implemented to prevent harm (e.g. policies, trainings, etc.)•

Whether there are actual risks of harm (e.g., no wastewater treatment, air pollution, etc.)•I f and to what extent workers have and understanding about their rights in relation to human rights and labour
rights.

•I n case the supplier provides an operational-level grievance mechanism, it shall be checked to which extent itmeets the recommendations of the OECD on criteria for operational-level grievance mechanisms.

I t might be difficult for business enterprises to identify and assess individual suppliers in the upstream supply chain.
Particularly further down the supply chain, it might become difficult to obtain detailed informations.
In those cases, business enterprises shall understand where choke points, or strategic points of influence, within their
supply chains are located and using their leverage to further implement required due diligence objectives down the
supply chain.
•

“Choke points” are key points of transformation in the supply chains,•are stages within the supply chain that include generally few actors only who process the majority of commodity.

•“Choke points” have greater visibility and leverage over circumstances of upstream supply chain partners.

If a business enterprise can be reasonably certain that companies operating at bottlenecks in its supply chain are
conducting due diligence on their upstream suppliers, then the business enterprise can be equally reasonably certainthat risks are being prevented and mitigated for their own linked supply chain.
4.2.3.3 Assessment Approach and Methodology
The approach and nature to the assessment and its methodology shall always been selected considering theindividual context. Different risks do require different forms of assessments. E.g. the risk of workplace safety
requires different assessment methods compared to assess the risk of sexual harassment in the workplace.
Further, the local operating context at the supplier shall influence the way how the assessment is conducted as
power dynamics and cultural norms shall be considered in the design and implementation of the assessments.
The evaluation of risks of harm in the supply chain requires a certain level of subjective determination. Therefore,
it shall be ensured that multiple data points are being considered to assess a certain risk and allow credible anddefensible results.
Likewise, the business enterprise shall adjust its assessment methodology when actual findings do not correspond to
the expected findings.

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4.2.3.4 Assessment Team
Generally, those who are conducting the assessments shall be qualified and shall have expertise and knowledge ofthe relevant risks and shall have an understanding about what methodology for identifying actual and potential
harms related to the risk within the local context. The persons involved in the assessment should have the following
competencies:•

Extensive knowledge about the relevant risks.

•

Unterstanding of the best methodology for identifying potential harms and risks.

•

Knowledge of international and national standards related to the risks.

•

Capacity to carry out the assessment in the local context.

 s probably the person who will conduct the assessments will not combine all required competencies, aAcollaboration within a team which have together all of the required competencies shall be made possible.
4.2.3.5 Frequency of the Assessments
It shall be carefully decided whether or not an assessment shall take place in order not to add to the problem ofaudit fatigue. Following criteria shall be taken into consideration:•

 ew suppliers shall be assessed prior to order placement to understand whether the supplier has the necessaryNprerequisites that allow responsible engagement with the supplier.

• he supplier assessment can be conducted by the business enterprise or by relying on already existing credibleT
assessments. If the business enterprise relies on existing assessments, care shall be taken to ensure that theassessment has taken place within a reasonable period of time so that the reflected data and information still
represents reliable input.

•

 upplier assessments shall not substitute or replace an ongoing monitoring of the suppliers (ongoing monitoringS
includes an ingoing tracking of the situation on the ground related to specific risks and provides a more detailed
picture vs. individual assessments).

•

I n case an unsuccessful assessment is foreseeable (e.g. circumstances are too difficult to obtain reliable data),
the business enterprise can instead work directly with the supplier to directly stop or mitigate the identified risk.

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4.2.4 Transport and Logistics
As mentioned above, human rights and environmental due diligence should also be applied to transport/logistics
that is part of the business enterprises supply chains.
The logistics sector (transport and warehousing) is not only often linked to precarious and un-protected working
conditions along the upstream supply chains, but also near to the supply chain level of brands, retailers and traders,
there are often violations of social standards in the transport sector.
Workers on ships, at ports and truck drivers are often poorly qualified and have little or no knowledge of their rights.
Therefore, logistics must also be included in the risk analysis, especially in the case of direct suppliers upstream, butalso in the case of existing substantiated knowledge of risks along the supply chain up to delivery to the end
customer.
Common risks in these areas can be:
•
•
•
•
•
•
•
•
•
•

Corruption
Forced labour (e.g. on ships)
Health risks (due to hard work, high temperatures, accident risks, etc., e.g. when loading and unloading goods)
Irregular income
Too low incomes
Fraud
Withholding of social benefits
Insufficient supply of food and fresh water to workers on ships
Sexual harassment
Etc.

It should be investigated exactly which risks are to be located where so that they can be addressed accordingly.
Information on risks in the transport sector can be found at itf.org, the International Transport Workers’ Federation,
which works to improve working conditions in the transport sector. The study on logistics published by the Südwind
Institute, Human Rights Risks in the Transport and Logistics Sector, can also serve as a guide.
Measures to avoid the occurrence of risks in the logistics sector can be:•

Improve transparency in transport supply chains - which carriers do suppliers work with?

• ontracting authorities should obtain written assurances from their logistics partners that they will comply withCsocial standards in accordance with the transport sectors in question (ship, truck, rail).

• he complaints mechanism provided by the company must also be made available to the logistics partners in theTsupply chain.

In order to promote the implementation of due diligence in the logistics sector, the expectations of companies must
be clearly communicated when contracting logistics companies, and companies should check whether thecontracted logistics companies themselves are already committed to implementing human rights and social
standards.
In particular, the alliance of several business enterprises and cross-sectoral cooperation can facilitate to improvesocial standards at different logistic sectors (e.g. port authorities).

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4.3 Integration of Appropriate Actions
In general, a distinction is made between prevention and mitigation measures.
Prevention measures are those measures that are taken to avoid a violation of the due diligence obligations at thefirst place. They are therefore an important integral part of the management system and shall be applied within thebusiness enterprise as well as in the supply chain.
Mitigation measures are taken to prevent or to stop violations that have occurred already or to reduce their impact.
If the business enterprise has identified a violation of human rights and environmental obligations, it shall provide
remediation if the business enterprise has contributed to the violation (see chapter 4.6). However, the expectation
on how the business enterprise shall respond to the violation depends on whether the business enterprise has
caused, contributed or is linked to the respective violation.
Both types of measures shall be applied in the own business enterprise as well as in the supply chain according to thegiven context.

4.3.1 Principles and Implementation
The results of the risk assessment of potential risks as well as the information obtained from the grievancemechanism (chapter 4.6) on violations that have occurred, shall be provided to the relevant business units and therelated processes - they shall implement measures to prevent, mitigate and end negative impacts related to theirown business enterprise and the full supply chain. These measures shall be:•

Specific,•

Measurable,•

Accountable,•

Realistic,•

Timebound,(SMART) to enable a committed implementation and to measure its effectiveness.

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4.3.1.1 Prevention and Mitigation Measures at the Business Enterprise and Direct Suppliers•

 he business enterprise shall take immediate action to stop any past, current or imminent risk detected within its
Town operations and/or at direct suppliers.

•I f the risk violation cannot be fixed in foreseeable future, the business enterprise shall draw up and implement a
corrective action plan (CAP) for ending or minimising the violation, without delay.

•

Corrective actions within the own business enterprise shall consider according to applicability:
•
•
•
•

•

Revision and/or update of the own business policy and relevant commitments.
Revision and/or update of the supplier code of conduct.
Alignment of purchasing practices, considering risk assessment findings and identified impacts.
Training of employees and workers shall cover information on the risk, the rights of the workers, their roleon preventing or mitigating harms, etc. – any information and content that is relevant to prevent andmitigate future harm.
• Upgrading of the business enterprise/facility such as the further implementation of occupational health &safety measures, investments in state-of-the-art technology to minimize environmental risks, etc.
• Strengthening management systems to improve tracking of risk related information to flag those prior totheir occurrence or to establish systematic measures to mitigate risks of harm in the beginning.
• Allowing workers the right to form or join a trade union, and to bargain collectively, etc. Generally, granting
the provision of the enabling rights.
Stakeholders such as workers, trade unions and worker representative organisations shall be engaged during thedevelopment of the corrective action plan and its implementation.

•

As more complex the risk, as stronger the business enterprise shall consult expert advice in drawing up a response.

•

Any measures pursued to prevent and mitigate harm shall be proportionate to the severity of harm.

•With regard to the non-compliant supplier, the development of a CAP shall take into account the following criteria:
•
•
•
•
•
•

Incentives for suppliers to comply with the due diligence requirements as set by the business enterprise.
Training of employees and workers regarding due diligence obligations and expectations. Any informationand content that is relevant to prevent and mitigate future harm shall be covered by the training.
Stakeholders such as workers, trade unions and worker representative organisations should be engaged
during the development of the corrective action plan and its implementation.
Influence and pressure on the supplier should be leveraged by joining forces with other business enterprises
and/or using industry initiatives and standards.
As more complex the risk, as stronger the business enterprise shall consult expert advice in drawing up a
response.
The business relationship might be suspended until risk reduction efforts are implemented.

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4.3.1.2 Prevention and Mitigation measures at Indirect Suppliers:
The business enterprise shall ensure that the human rights and environmental expectations it has defined are also
communicated in a binding manner to the upstream supply chain. This is to be done through a Pass-On Clause withdirect supply chain partners that ensures that the policy statement, the supplier code of conduct and information on
the grievance mechanism are communicated to all upstream supply chain partners and its receipt andunderstanding is available to the business enterprise by means of a written confirmation.
In addition, the business enterprise can use choke points in the supply chain to check and manage compliance with
their human rights and environmental expectations for the upstream supply chain. Choke points are key suppliers
within the supply chain that, due to their role and position, can exert greater influence on the upstream supply chain(e.g. raw material processors, etc.) and thus better ensure human rights and environmental expectations in theseareas.
I n addition, the business enterprise shall define an internal plan to seek to prevent and mitigate harm in its supply
chain such as following:•

Setting internal measures to manage risks in its supply chain by means of e.g.:
•
•
•

•
•

Supplier assessments (definition of prequalification of suppliers),
Supplier consolidation,
Adapting purchasing practices in product development (e.g. raw materials, etc.), buying and planning(e.g. order placement deadlines, capacity planning, etc.)• etc.
Develop and establish pricing models to account for the cost of wages, benefits and investments that arereflected in buying prices (e.g. fob).
Establish incentives for suppliers such as
•
•
•

•
•

Developing and maintaining long term relationship with suppliers
Integrating suppliers expectations into business enterprise supplier contracts
Increase of orders to the benefit of well performing suppliers in relation to quality and due diligence
expectations.
Understanding the local contexts suppliers are operating in and as such the related risks.
 urthermore, the business enterprise shall use its influence on suppliers to implement measures and support theFsupplier in preventing and mitigating risks.

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4.3.1.3 Generally•I n addition, the measures applied shall be regularly checked for their effectiveness. The review interval andmeasures to improve the effectiveness of the defined measures will depend on the severity of any violations thathave occurred or may occur (chapter 4.4).

•

A termination of the business relationship with any violating supplier shall only be considered if:• The violation is defined as very serious.
• The measures do not remedy the situation according to the defined timetable.
• The business enterprise has already fully leveraged all other less severe means to end the adverse impact.
• The influence pressure has no prospect of success.

•Possible disengagement shall be done responsibly. In that case the business enterprise shall:• comply with national laws, international labour standards and the terms of collective bargaining
agreements.
• Provide detailed information explaining the business decision to the suppliers management and of
applicable also the related workers union.
• Flag the decision of ending the business relationship with sufficient notice to the supplier.

4.3.2 Cause, Contribute, Linked toOnce the business enterprise has identified a violation within its supply chain as part of the due diligence process,it must assess whether it has caused, contributed to or is linked to the violation. The outcome will determine theexpectations for the business enterprise on how to respond to the violation.
Cause
If the business enterprise has caused a violation, its business activities, products or its services have directly caused
the violation. In other words, a direct correlation can be established between the business enterprise, its activities oromissions.
•

Any action that is causing the harm shall be stopped.

•

Possible remaining harm shall be mitigated.

•

The harm must be remedied.

•

Future harm must be prevented or mitigated.

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Contribute
A business enterprise contributes to a violation if, through its activities or omissions, it causes or encourages anotherenterprise to commit a violation or facilitates the violation by the other enterprise.
•

Any action that is causing the harm shall be stopped.

•

Possible remaining harm shall be mitigated.

•

The harm must be remedied.

•

Future harm must be prevented or mitigated.

•

Leverage of the business enterprise shall be used to prevent or mitigate the harm.

Linked to
The link is defined through the relationship between the harm and a business enterprises products, services or its
operations. If a business enterprise is linked to the harm, the harm is caused through another entity/business
relationship.
•

Prevent or mitigate harm through different measures (e.g. adapting purchasing practices, etc.)•

Use of leverage to influence the supply chain partners.

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4.4 Continuous Monitoring
The business enterprise shall check, review and communicate on the effectiveness of the implemented measures(chapter 4.3).
During the review process, the actions verification, monitoring and validation are playing an important role and are
relevant to determine the effectiveness of the defined measures.
•

 erification: the business enterprise obtain confirmation that all requirements/measures as set have beenVfulfilled.

• onitoring: the ongoing tracking of the situation on the ground - measuring qualitative and quantitativeM
indicators of success. Monitoring provides a comprehensive picture of the situation (rather than one-timeassessments).

•

 alidation: Verification and monitoring data are feeding into validation. Validation determines whether theVactions taken to prevent impacts are effective in preventing.

4.4.1 Progress and Effectiveness of Measures - Business Enterprise’s Own Operations
As a first step, the business enterprise shall ensure that the defined measures have actually been implemented within
the defined timeframe.
Furthermore, qualitative and quantitative indicators shall be checked that provide information on how well or how
effective the respective measure has contributed to the desired goal and result. The indicators to be checked canalready be determined when defining the measures (according to SMART criteria, Chapter 4.3 ) and are comparedwith the situation on the ground at the time of measurement.
For this purpose, all known and available information shall be used for validation. For example, this includes
information from the grievance mechanism or data from regularly conducted evaluations.
If the business enterprise is not in a position to verify the prevention of injuries by its measures taken through internal
data and resources and if the risk of serious damage is very high, should the risk occur, the business enterprise shallconsult external expertise.
If harm occurs despite verification of the measures, the reasons for harm shall be examined. It is possible that themeasures in themselves were not the reason for the breach, but it might be as an example that insufficient time wasallocated for the implementation of measures, or insufficient resources were allocated for a corrective action plan.

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4.4.2 Progress and Effectiveness of Measures - Business Enterprise’s Supply Chain
In addition to measuring the effectiveness of implemented measures for their own business enterprise operations,the business enterprise must also validate the effectiveness of implemented measures for their supply chain as
described above.
In particular, for implemented measures in the supply chain, the more severe the impact of violations, the more thebusiness enterprise shall review the effectiveness of the implemented measures, adjust them if necessary andconsult external expertise if the severity of violations is expected to be particularly high.
However, in order not to overload suppliers with audits and at the same time to verify measures and theircompliance, it is recommended to maintain a balance between on-site audits and continuous, supportive remotemonitoring of the implementation of measures.

4.4.3 General• he timetable for reviewing, monitoring or confirming the effectiveness of remedial actions shall beTcommensurate with the severity and nature of the harm.

• usiness enterprises should take into account the time needed to implement the measures and provide
Bappropriate resources.

• here international or national standards on harm prevention or mitigation exist, confirmation of complianceW
towards these standards can be understood as an indicator of harm prevention.

•

 henever possible, direct (e.g. how much water was consumed, etc.) and indirect indicators (e.g. do workers
W
understand what is a violence?, etc.) shall be monitored to confirm that negative effects have been or are being
avoided.

•Information and reports from workers or their representative organisations shall be part of ongoing monitoring.

•I f no improvement is identified through the implemented measures, it shall be verified whether the measure was
implemented at all.

•I f the business enterprises rely on the implementation of due diligence at choke points in the supply chain, thebusiness enterprise shall conduct audits at these points.

•

The business enterprise shall document the evaluation of the measures taken in a comprehensible manner.

• he results of the review of the effectiveness of the defined measures shall be included in the communication onT
the due diligence measures implemented, which the business enterprise publishes regularly.

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4.5 Transparent Communication
The business enterprise shall communicate publicy and transparent about its implemented due diligence obligations
on an annual basis and its human rights impact.
Therefore, and in order track and trace the progress of the due diligence process, the business enterprise shallcontinuously document their implemented due diligence obligations internally and use it for public communication.

4.5.1 Content and Implementation
 he subject of communication and its implementation is described in the following chapter. However, a businessT
enterprise shall always take into consideration what their employees, workers and/or their representatives deem
to be material information to report regarding the business enterprises own operations and incorporate the same
into business enterprise communication.
Elements of a transparent communication shall be:••••

The business policy itself or comparable value statements.
A description about the business enterprises due diligence management system, incl. how due diligence isincorporated into decision-making processes.
Explanation of the business enterprise’s grievance mechanism and remediation process for this businessenterprise own operations and its supply chain,An annual report regarding implemented due diligence obligations, as described above and below, to reflect
performance and progress in this regard.

The report shall:•

 eflect the performance and progress of the business enterprise related to human rights and environmentalRdue diligence of the past fiscal year.

•

Whether or not the business enterprise engages in multi-stakeholder initiatives.

•

Be publicly available latest 4 month after the past fiscal year at the website of the business enterprise.

•

Shall be accessible to anyone interested.

•

Be available for 7 consecutive years and accessible without any cost.

•

Shall be precise, comprehensible and reader-friendly through sufficient information (e.g., actual examples).

• eflect if any human rights and environmentally related risks or violations the business enterprise has beenR
identified.

•Reflect the risk assessment process.

• eflect the risk prioritisation process and why some risks have been prioritised over others. Accordingly theRextend of the business enterprises communication shall be proportionate to the risk of harm.

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Reflect what measures it has set
•
•
•
•
•
•
•

related to the risk management,
the risk analysis,
regarding prevention measures andmitigation measures, both for the own business enterprise operations as well as for their supply chain(downstream and upstream, see chapter 2)
possible adjustments on the grievance mechanism.
possible adjustments on the business policy
in order to manage the identified risks and/or violations for their own business enterprise operations and its
supply chain.

• eflect what the business enterprise has done to remedy violations reported through the grievance mechanism
Ror other channels of information and lessons-learned (impact on adapting measures).

•

Reflect how the business enterprise determine the effectiveness of its set measures.

•

Reflect what conclusion it draws from the assessment of measures for future measures.

•

How the business enterprise addresses human rights impacts.

•

 rovide sufficient information, so that the reader is able to evaluate the adequacy of an enterprise’s response toP
human rights.

•

Plausibly reflect if no human rights and/or environmental risks or violations have been identified.

• ow the business enterprise engages meaningfully with affected stakeholders (It can contain specific examples
Hand cases handled by the business enterprise, however, affected stakeholders must not be exposed andanonymity shall be ensured.)•Take into consideration the protection of business and trade secrets.

•

 urther the business enterprise shall ensure that cannels of communication are appropriate for potentiallyF
affected stakeholders.

• he report can be a standalone communication or published as an integral part of other business enterpriseTchannels (e.g., sustainability report).

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4.6 Access to Remedy
If the business enterprise has caused or contributed to a violation against human rights, labour rights and/or theenvironment, the business enterprise shall provide for or cooperate in appropriate remedy that aims to restore theharmed individuals or groups. Therefore, the business enterprise shall have processes in place to enable remediationin the first place.
Part of the process is an accessible and functional grievance and reporting mechanism that allows potentiallyaffected stakeholders to raise and submit a complaint regarding violations of due diligence along the supply chain,including violations within the own business operations.
Therefore, the business enterprise shall establish its own grievance and reporting mechanisms (operational-levelgrievance mechanism) or shall cooperate with an external grievance mechanism that covers the effectivenesscriteria for non-state based, non-judicial grievance mechanisms of the UNGPs (e.g., mechanisms of industry
associations).

Downstream

Upstream

Passing on informations about the grievance mechanisms
through contractual agreement and the Pass-on-clause

Passing on informations about the grievance mechanisms
through contractual agreement and the Pass-on-clauseBusiness enterprise
Responsible
Business
PolicyExternal transport

Direct suppliers
e.g. NCP

External retail

External warehouse/
Distribution centere.g. through nominatedtrusted third party,
nominated personof trust

Indirect suppliers

Pass-on-clause

Consumer

Pass-on-clause

Not included

e.g. anonymous online
submission

Incidents information flow

Incidents information flow

Pic. 9 – Grievance Mechanism

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4.6.1 Grievance Mechanism Principles
1. T
 he business enterprise shall establish rules of reporting procedure and how complaints are handled within thebusiness enterprise in text form that are available publicly. These rules of procedure shall provide stakeholders
full transparency to the grievance mechanism process and procedures.
2. The business enterprise shall nominate a person or persons who will be entrusted to the process. These persons
shall offer a guarantee of impartiality; in particular, they shall be independent and not bound by instructions andbound to secrecy.
3. The business enterprise shall publish clear and comprehensible information on accessibility and responsibility
regarding the complaints procedure in an appropriate manner. This includes as well to adapt the accessibility of
the grievance mechanism to the different stakeholders and their access barriers.
4. The complaints procedure must• be accessible to potential parties involved,• maintain confidentiality of identity,• ensure effective protection of the complainant against disadvantage or punishment as a result of thecomplaint.
5. The business enterprise shall establish its own complaint mechanism or can cooperate in an external grievancemechanism, e.g.:• engaging in multi-stakeholder initiatives that provide supply chain grievance mechanisms,• enter into agreements to mediation with possible MSI’s,• agreements with trade unions,• agreeing to enter into mediation with the OECD National Contact Points.
• The business enterprise might also combine both in order to cover possible gaps. Anyway, the businessenterprise is required to consult existing guidance on establishing the grievance mechanism.
6. The business enterprise shall ensure that the provided grievance mechanisms does not preclude access to judicial
recourse for victims of human rights violations. The business enterprise should further not interfere with civil or
criminal investigations or human rights examinations.
7. The effectiveness of the grievance mechanism must be reviewed at least once a year. If the enterprise expects asignificant expanded risk situation in its own business area or at its supply chain, the effectiveness of thegrievance mechanism shall be reviewed on an ad hoc basis.

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4.6.2 Types of Grievance Mechanisms
Operational-Level Grievance Mechanisms
Operation-level grievance mechanisms are a formalised tool through which individuals or groups can raise concerns
about negative impacts of the business enterprise, including issues regarding human and labour rights and theenvironment, and seek for remedy.
Those grievance mechanisms are often the first point of contact for a worker or a community member to raise acomplaint. Therefore, those operational-level grievance mechanisms act as well as an early-warning system andcan help to prevent the escalation of issues.
External Grievance Mechanisms
External grievance mechanisms might be provided through e.g. Multi-Stakeholder-Initiatives (MSI).
Those grievance mechanisms might provide only restricted access to stakeholders only (e.g. due to obligatory
membership) and it shall be reviewed to what degree the external grievance mechanism is useful and appropriate
when the business enterprise decides what type of grievance mechanism it will provide. In any case, however, theprovision of an external grievance mechanism can fill gaps in the accessibility of the business enterprise own
grievance mechanism and thus represents a useful tool for use in the wider supply chain.
Both types of grievance mechanisms shall fulfil the core-criteria of grievance mechanisms as described through theOECD Due Diligence Guideline for the garment and footwear sector (see chapter 4.6.3) and allow legitimate
processes of the complaint procedure:• hese processes shall allow for the affected stakeholders or its representatives to raise a complaint against aTbusiness enterprise.

•

The process shall not undermine or interfere with the role of local grievance mechanisms.

•

The process shall be managed by trusted parties.

National Contact Points (NCPs)
Countries that have signed the OECD Guidelines for Multi National Enterprises have committed to establishing
National Contact Points. These contact points support affected stakeholders and business enterprises in hearing
complaints, their further processing, and facilitate exchanges with business enterprises.

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4.6.3 Core Criteria of the Grievance Mechanism
The grievance mechanism shall fulfil the core criteria of the OECD Due Diligence Guidance for Textile and Footwear.
The grievance mechanism shall be:• egitimate: The processes shall be fair, transparent, accessible and anonymous. The grievance mechanism shallL
be developed and updated under consultation of all relevant stakeholders• ccessible: The grievance mechanism shall be accessible to all those affected by the enterprise’s sphere ofA
influence. Adequate assistance shall be provided for those who may face barriers to access (e.g. illiteracy,
language barriers, etc.)•

 redictable: The business enterprise shall define the internal process for the grievance mechanism and shallP
make it transparent (e.g. organisational requirements, contact person, processing, timetable)•

 quitable: The business enterprise shall be mindful of any power imbalances and ensure equal access to theEgrievance mechanism.

•

 ransparent: The business enterprise shall publicize the existence of the mechanism and a publicly available,T
formalised procedure for dealing with complaints. The mechanisms and processes shall be communicated to
employees and all potentially affected stakeholders (e.g., suppliers, sub-suppliers, etc.).

•

 ights-compatible: The business enterprise shall ensure that outcomes and remedies accord with internationallyR
recognized human rights.

•

 source of continuous learning: The business enterprise shall define key indicators for use of new knowledge inAcontinuously improving the grievance mechanism.

• ialogue-based: Solutions should be developed in mutual agreement instead of top-down. If the businessD
enterprise participates in an external grievance mechanism, they shall define the interface process(e.g., responsible person, communication flow, etc.)

The business enterprise shall implement appropriate measures for the internal and external grievance mechanism
to remediate justified complaints (chapter 4.3) and continuously monitor its efficiency (chapter 4.4). Justifiedcomplaints shall be material and substantiated and must demonstrate that the business enterprise in fact hascaused the harm or is the beneficiary of the violation.

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4.6.4 Provide Remedy
As mentioned, business enterprises shall provide for or co-operate in the remediation of adverse impacts they havecaused or contributed to.
Once a complaint has been received, is verified and substantiated, the business enterprise should determine theappropriate form of remedy. There are different forms of remediation, such as:•

An apology,•

Rehabilitation,•

Restitution,•

Provision to ensure the harm cannot recur,•

Compensation (e.g. financial),•

Punitive sanctions,•Cessation of particular activities or relationships,•

Any further remediation that might be agreed upon within the involved parties.

Principles of remediation are:•Reparation should always be proportionate to the severity and extent of the negative effect.

•

Where possible, the persons affected should be restored to the situation they were in before the harm occurred.

• emediation should, as far as possible, comply with national laws and international guiding principles.
R
Otherwise, the business enterprise should be guided by remediation of similar cases.

• he stakeholders should be involved in determining the remedy and the business enterprise should seek aTmutually agreeable and amicable settlement.

• fter remediation of the harm, the company should investigate the extent to which complainants are satisfiedAwith the process offered and its results.

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4.7 Climate-related Strategies
Module 4.7 allows business enterprises to map their progress toward CO2 emission targets – strategy development,
implementation and goal achievement.
Where “supply chain levels” in chapters 4.1 to 4.6 refers to the depth of implementation into the supply chain, module
4.7 tracks the degree of development and implementation of a climate strategy for the overall business enterprise.
OEKO-TEX® RESPONSIBLE BUSINESS certificate is not dependent upon achievement of a certain level within
module 4.7. Module 4.7 is an internal benchmark representing progress toward implementation.
This independent module will help business enterprises with the voluntary development and implementation ofclimate strategy in relation to the Paris Climate Agreement.
To achieve the goals of the Paris Climate Agreement and limit global temperature rise to well below 2°C, businessenterprises should reduce their greenhouse gas emissions by 45% by 2030 (based on the UN) and to net zero by
2050.
Signing the United Nations Fashion Industry Charter for Climate Action enables business enterprises to collaborate
with other Charter signatories in working groups, benefit from exchanges with stakeholders and experts and makegreater progress towards the targets.
This chapter and the related assessment questions are based on the:•Paris Agreement•

United Nations Fashion Charter for Climate Change•

Climate Action Playbook of the UN Fashion Industry Charter for Climate Action•

Climate Protection Road Map of the Alliance for Sustainable Textiles•

Corporate Standard of the GHG Protocol•

Science Based Target Guideline for Apparel and Footwear•

Carbon Disclosure Project (CDP)

The listed documents should be referenced for definitions of emission reduction targets and the development andimplementation of a climate strategy.

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Chapter 4: Corporate Due Diligence:
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•

•

•

 HG Emission Scope 1,2,3
G
In the development of a climate strategy and the definition of measurement points, different scopes of GHG
emissions are considered and defined. The “Climate-related Strategies” module refers to the definition of the
GHG emission scopes of the Greenhouse Gas Protocol - Corporate Standard:•

Scope 1 emissions (direct GHG emissions)•

 irect GHG emissions from sources owned or controlled by the business enterprise (e.g. from vehicles,Dprocess equipment, boilers, etc.)•

Scope 2 emissions: (indirect emissions from consumption of electricity)•

All emissions caused by the generation of electricity purchased and consumed by the business enterprise•

Scope 3 emissions: (indirect emissions)• riginate from all sources not owned or controlled by the business enterprise, related to the upstream andOdownstream value chain. Scope 3 reflects the emissions caused in scope 1&2 emmissions of the producers inthe supply chain

 etting the baseline:
S
First, define a reporting framework to view and measure emissions. To ensure comparability over time, thechosen approach should not be changed.
•

Equity-share approach:• missions are considered and measured in relation to the share that a company operates or owns in aE
facility. For example, if a company owns 50% of a facility, only 50% of the total emissions are counted•

Control approach:• ll emissions from operations for which the company is responsible or over which the business enterpriseA
has control are always consideredResponsibility:
Assign and empower a responsible person. To avoid errors, one person should determine all operational data.
If necessary, define other necessary responsibilities in the business enterprise.

	Measuring:
The Corporate Accounting and Reporting Standard of the GHG Protocol provides guidance on how to determine
GHG emissions inventories for all three scopes
•

•

•
•

Choose which scope(s) on which to focus. The main focus differs by company type, for example:• Brands and retailers - Scope 3 (supply chain)• Making-up (cut and sew) facilities - Scope 1 and 2
Ensure supply chain transparency and cooperation – vital to determining emissions in total and on the
product and scope levels. Realistic emissions data can be mapped and used as a reference point for
reducing GHG emissions
 easure GHG emissions monthly (at least quarterly).
MUse the data, measured over a 12-month period, as a basis for comparison with subsequent
12-month periods

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Scopes 1 & 2: Define, Identify, Measure:• Appoint the responsible person•

Determine all sites for which emissions need to be measured•

Identify operational data for all sites•••

What is consumed?
Natural gas, oil, electricity, coolant, etc. -> see also purchase receipts, account for loss quantity(e.g. for coolants)• Which CO2 factor must be considered per energy source?
• Size/Square meters of the site, office, warehouse, etc.
Determine period of data collection•

Set up management systems and tools for data collection

Scope 3 identify and measure
In addition to all upstream and downstream activities, scope 3 includes, for example, the transport of finishedproducts to the end customer, the product’s use phase and end-of-life treatment. The data to be included for thisscope are extensive and relevant data is determined differently than for Scope 1 and 2.
The business enterprise can choose from four ways to calculate the emissions for purchased goods and services:• upplier-specific:
S
Collect product-level data across all process steps involved; from raw material extraction to the finished product•Hybrid:
Use a combination of different data collection methods and sources: Collect the known data (for example, perprocess step), then add missing data from Life Cycle Assessment databases to complete•Averaged:
Use average data. For example, evaluate emissions by the mass (or other relevant unit) of the purchased goods
or services by using external sources (such as Quantis WALDB)•Spend-based:
Use data on emission factors from external data sources (e.g. Quantis WALDB). However, the basis for this is the
economic value of the purchased goods and services, which is multiplied by the emission factor of the respective
material/process used

Reporting
Depending on whether a company has signed the UN Fashion Charter for Climate Action, there are different
reporting options.
•

 harter signatories commit to reporting on their baselines and progress, aligned with the Carbon Disclosure
C
Project (CDP)•I f a business enterprise is not a Charter signatory, it should still report publicly on its targets and progress throughits sustainability report and/or corporate website. The CDP or the Global Reporting Initiative (GRI) can be used to
guide reporting

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Chapter 5:
Verification and certification process

5 Verification and Certification Process
The OEKO-TEX® RESPONSIBLE BUSINESS process depends on the goal: full certification or conducting a self
assessment for an un-verified report only.

5.1 OEKO-TEX® RESPONSIBLE BUSINESS Certification
During the certification process, the auditor will check which supply chain level the business enterprise has credibly
reached with their documented and integrated due diligence obligations, as described in the standard document
chapter 4.1 - 4.6.
An evaluation and consideration of chapter 4.7 is optional and not mandatory for achieving a certification.
However, the performance of a business enterprise according to chapter 4.7 can be reflected on the certificate
according to the customers request. Accordingly, the certification will reflect the obtained certification level.

5.2 Application

1
ApplicationRESPONSIBLE
BUSINESS
certification

OR

Fill out the application
form on the OEKO-TEX®
website.

2

3

4

Self-Assessmentwith unverified report

Evaluation & audit

Certificate &verified report• Electronic online
questionnaire forself-evaluation• Audit/On-site visit• Verification of data
through auditor/institute• Issuing a report &certificate• Submission of the
Self-Assesment to thechosen institute•P rovision of an
unverified report

Decision:
Self-Assessment with
unverified report• Certification process or
Self-Assessment with
unverified report

Pic. 10 – Application process

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Chapter 5:
Verification and certification process•

 EKO-TEX® RESPONSIBLE BUSINESS applications and self assessments are made through the application formOavailable on the OEKO-TEX® website•

 ith the submission of the application form and signed ToU, the applicant accepts the fees for assessment toolWusage and, if applying for certification, the evaluation and audit costs•

When the application is received, the chosen OEKO-TEX® institute will send the offer•

 nce offer is accepted by the customer, the OEKO-TEX® institute will supply the login for self assessment onOthe platform.

5.3 Self Assessment•

 he information provided in the assessment by the business enterprise is the basis of the verified or unverifiedT
assessment and potential certification•

Assessment question types:•••

Basic: mandatory questions to be answered by the Business enterpriseExclusion criteria: Minimum requirements to be eligible for OEKO-TEX® RESPONSIBLE BUSINESS certification.
If the exclusion criteria are not met, the report will highlight that certain exclusion criteria are not met

 fter self assessment is completed and documents received, the institute will provide an unverified report.
A
Based on the unverified report, the business enterprise may decide to implement further due diligenceobligations or proceed with the certification process (including audit and data verification)

5.4 Audit and Verification•

 he audit and data verification will only be conducted if the business enterprise applies for OEKO-TEX®
TRESPONSIBLE BUSINESS certification•

The audit and certification process includes:••

Verification of data provided by the customer
Further obligations and recommendations identified by the auditor and communicated within the report•

The conditions for the rights of the auditors and the audit procedure are based on the Terms of Use• s the certification shall be validated annually, the chosen institute carries out a compliance audit everyA
12 months. For the compliance audits, the business enterprise must update any existing assessment data on
the dedicated data platform and remove any invalid documents and add new documents, if necessary.

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5.5 Final Report and Certificate
Depending on whether the customer chose the Responsible Business Certification or the self assessment only, thebusiness enterprise will receive a verified report and certificate or an unverified report only.

5.5.1 Verified Report and Certificate•

After successful completion of the audit, OEKO-TEX® creates a verified report and certificate•

The conditions for the validity period, renewal and possibly withdrawal of the certificate are based on the Terms of Use• hen a Responsible Business Certificate is issued, the certificate holder receives a license to use theWcorresponding OEKO-TEX® label. With the license, the business enterprise is granted the right to use the
OEKO-TEX® RESPONSIBLE BUSINESS label for communication (chapter 3.3)•

The certificate will reflect the obtained level per due diligence obligation•

The certificate will reflect if and what climate strategy level (module 4.7) has been achieved

Tier 0Tier 1

Tier 2Tier 3Tier 4
RatingResponsible Business Policy

Level 2

Risk Assessment

Level 1

Integration of appropriate actions

Level 3

Continuous Monitoring

Level 2

Transparent Communication

Level 1

Access to remedy

Level 1

Climate related strategies (optional)

Level 1

Pic. 11 – Example Certificate

5.5.2 Unverified Self Assessment Report•

A business enterprise choosing to perform only the self assessment will receive an unverified report• he unverified self assessment report can be used for self evaluation only. It will clearly state that the reportT
was not verified by OEKO-TEX® and OEKO-TEX® therefore does not ensure correctness of data•

The business enterprise must not perform any communication with this report (chapter 3.3)

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Chapter 6:
Legal Relationship between
Customer and OEKO-TEX®

6 Legal Relationship between Customer and OEKO-TEX®
6.1 OEKO-TEX® RESPONSIBLE BUSINESS Document and ToU
The OEKO-TEX® Terms of Use (ToU) apply for all OEKO-TEX® products (Annex II). The ToU can be found at www.oeko-tex.com/ToU.
The customer shall sign the ToU.

6.2 Application
The basis for the legal relationship between the business enterprise and OEKO-TEX® is an application request (ToU section 4).
The business enterprise submits their application to an OEKO-TEX® institute of their choice (Annex 1) – a request to certify theirbusiness enterprise in accordance with the OEKO-TEX® RESPONSIBLE BUSINESS standard.

6.3 Code of Conduct and Declaration of Conformity
By submitting the application, the business enterprise agrees to comply with the OEKO-TEX® Code of Conduct (ToU section 6.2).
The business enterprise shall sign the OEKO-TEX® Code of Conduct.
The OEKO-TEX® RESPONSIBLE BUSINESS applicant shall sign a declaration of conformity (ToU Section 6). This form is provided
by OEKO-TEX® and submitted to the responsible testing institute.

6.4 Quality Assurance
OEKO-TEX® quality assurance measures shall apply (ToU section 13). The quality of each OEKO-TEX® RESPONSIBLE BUSINESS
label is assured by an internal validation process.

6.5 Misuse and Withdrawal of Licence
Withdrawal and misuse of certificates (ToU section 7.5), licenses and regulations for the use of the OEKO-TEX® trademarks(ToU section 11) shall apply. Access to the OEKO-TEX® RESPONSIBLE BUSINESS dashboard can be revoked if a customer
fails to meet the OEKO-TEX® RESPONSIBLE BUSINESS requirements in an orderly manner.

6.6 Third Parties
The certificate holder shall contractually bind its partners to the labelling rules and other regulations (ToU section 12.2) related
to the use of the OEKO-TEX® brands as well as to the OEKO-TEX® ToU. In case contract partners violate the labelling rules,
the certificate holder shall require the partner to comply with the labelling rules.

6.7 Disclaimer
According to the OEKO-TEX® RESPONSIBLE BUSINESS STANDARD, it is checked whether companies recognize the UN Guiding
Principles on Business and Human Rights (“UN Guiding Principles”) as well as the OECD Guidelines for Responsible Corporate
Conduct (OECD Guidelines) as a benchmark in the production, transport and financing of their products, also with reference to their
supply chains. Certification does not guarantee that a certified company actually complies with these guidelines. The audit is carriedout on the basis of the information provided by the certified company and only concerns the functionality of the company’s
processes in place to ensure compliance with these guidelines. Therefore, OEKO-TEX® does not warrant that the certified company
has in fact complied with the UN Guiding Principles, the OECD Guidelines and/or any national or international due diligence
regulations, and/or that specific products of the certified company have in fact been manufactured in compliance with theseguidelines or regulations. OEKO-TEX® accepts no liability in this respect. In addition, the General Terms and Conditions of Use of
OEKO-TEX® apply, in particular Section 17 (Liability).

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Annex 1: OEKO-TEX® Institutes
Annex 2: Labelling

Annex 1: OEKO-TEX® Institutes
The International OEKO-TEX® Association consists of independent institutes in Europe and Japan, with offices
around the globe.
The testing and research institutes offering certification and licensing according to SMADE IN GREEN, STANDARD
100, ORGANIC COTTON, LEATHER STANDARD, STeP, ECO PASSPORT and / or RESPONSIBLE BUSINESS can befound on the OEKO-TEX® homepage (OEKO-TEX® locations worldwide).

Annex 2: LabellingWith the issue of an OEKO-TEX® RESPONSIBLE BUSINESS certificate, the certificate holder receives a licence to use
the corresponding OEKO-TEX® label.
The OEKO-TEX® Labelling Guide includes rules and guidelines that govern the use of the OEKO-TEX® trademark
and the OEKO-TEX® labels. It defines the guidelines for a uniform appearance of the OEKO-TEX® labels. It helps
companies, brands, retailers, distributors and all OEKO-TEX® partners to use the label correctly and to develop
marketing materials to communicate the company’s efforts.
OEKO-TEX® Labelling Guide
https://www.oeko-tex.com/fileadmin/user_upload/Marketing_Materialien/Labelling_Guide/OT_Labelling_Guide_
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11_x
18_c_x

4.1

The responsible business conduct describes the commitment to the principles of human rights andenvironmental due diligence, both in relation to the business enterprises own business activities
and to its supply chains and shall be reflected in a responsible business policy.

13_x
13_0_xTIn order to fulfil corporate due diligence, responsible business conduct shall be embedded in thebusiness enterprises corporate policy and management system, and shall be an integral part ofdecision-making.

13_a_xThis shall enable effective and efficient due diligence at all levels of the business and the feedingback of lessons learned into strategic and day-to-day decision-making.

13_b_xIn addition, the business policy shall include the description of the management system thatdefines how the core elements of due diligence will be embedded in the company.

12

The responsible business policy shall be developed and informed by relevant internal and external
expertise.

n.a.

The following commitments and content shall be included into the Responsible Business Policy:

18_c_x• Commitment to conduct due diligence on the business enterprise’s most significant risks

19_x• Commitment to consider human rights and environmental risks as defined in Article 2 of theCommitment to conduct due diligence in the enterprise’s own operations and it its supply chain.
• In its own business enterprise, including own distribution centers and own retail• In transport through the end customer

German Supply Chain Act (see Annex 5) and as reflected in chapter 4.2 of this standard.

• Commitment to respect applicable laws and international agreements according to risks(chapter 4.2):• International Bill of Human Rights:• Universal Declaration of Human Rights• International Covenant on Civil and Political Rights• International Covenant on Economic, Social and Cultural Rights• ILO‘s eight fundamental conventions• Minamata Convention on Mercury• Stockholm Convention on Persistent Organic Pollutants• POPs Convention• B asel Convention on the Control of Transboundary Movements of Hazardous Wastes andtheir Disposal• Commitment to respect the OECD garment and footwear sector risks (chapter4.2.2.1 Risk
Assessment Scope).
13_b_x15.12.2023• A description of the responsible business management system, describing how the due diligencecore elements shall be anchored in the business enterprise.

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Chapter

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18_b_xrisk analysis).

• Commitment to responsible sourcing practices (purchasing practices that prevent harmful

20_a_ximpacts).

• Commitment to meaningful stakeholder engagement, to focus on the unique position of womenand how women may be disproportionately affected by negative impacts, etc.

• Commitment to hear and address all complaints received against the business enterprise own
operations.

• Commitment to hear and address all substantiated complaints that the enterprise has caused
or contributed to harms in its supply chain and that have been raised through a legitimate
process• Commitment to respect the five freedoms of animal welfare (if relevant for the business

19_x

enterprise):• Freedom from hunger, malnutrition and thirst,• Freedom from fear and distress,• Freedom from heat stress or physical discomfort,• Freedom from pain, injury and disease,• Freedom to express normal patterns of behaviour.
33_x• Expectation on suppliers to conduct due diligence.

20_c_x
42_x
43_x• Statement about whether subcontracting is allowed or not allowed. If subcontracting is allowed

19_x• Expectations regarding the outsourcing at homeworkers and the use of handwork

the business enterprise shall define the conditions for allowed subcontracting.

(if relevant for the business enterprise).

• List of all identified risks which shall be subject to regular updates, according to regular risk
analysis.
n.a.

4.1.2 Implementation of
the Responsible Business
Policy o implement processes that anchor responsible business in the business enterprise, aspects asTdescribed in the following shall be considered.

13_x

4.1.2.1 Embedding the
Responsible Business
Policy into the Business• The Responsible Business Policy shall be adopted and must be recognized and approved by the

14_a_xhighest corporate level.

• The Responsible Business Policy shall be publicly available (e.g. business enterprise’s website)and easily accessible to ensure full transparency.

14_x• The Responsible Business Policy shall be communicated to all employees, suppliers and otherrelevant third parties to ensure awareness34_x• To ensure that the Responsible Business Policy, informations about the grievance mechanismand supplier code of conduct are communicated to the supply chain, the company shall include
a pass-on clause (chapter 4.1.4) in its contractual documents that regulates the transfer of
documents to the deeper supply chain.

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4.1.2.2 Embedding the
Responsible Business
Management System
into the Business: he Responsible Business Policy shall be reviewed and updated on an iterative process basedTon the increasing knowledge about risks and harms in the business enterprise own operations
and supply chain.

 he company shall implement responsible business as an integral part into regular businessTprocesses and into all relevant decision-making processes (e.g., product development,purchasing, etc). Therefore, following criteria shall be ensured:• The provision of adequate resources (e.g., financial resources, adequate staff, time, etc.) andsupport to allow the implementation of human rights and environmental due diligence and tomaintain the necessary infrastructure.

21_x• The appointment of a responsible business person who is responsible for carrying out thecorporate due diligence (employees, team, external parties, etc.). This person must haveadequate and sufficient knowledge of this area.

32_a_x• The exchange of feedbacks, learnings, and information on due diligence across teams andbusiness units in order to allow alignment.

22_x
32_a_x• That adequate and appropriate information related to due diligence is provided to relevant

32_b_x100_a_x• The establishment of an information system which allows collection and storage of accurate

decision makers.

information, such as:• L
 isting of all products the business enterprise buys and sells and the associated risks of harm
related to production and sale of those products.
• M apping of all countries from which the business enterprise is sourcing from, and theassociated risks of harm linked to.
• M apping of suppliers and other business partners the business enterprise is sourcing from,and the associated risks of harm linked to.
• L isting of all stages in supply chains which have a higher likelihood of employing
homeworkers.
• Listing of all stages in supply chains which have a higher likelihood of subcontracting.
• The results of the risk assessment.
• The results of individual supplier assessments.
• L isting of the commitments of all suppliers with whom a Corrective Action Plan has beendeveloped and agreed.
• L ist of suppliers and subcontractors who are identified as prequalified (those who are
already conducting human rights and environmental due diligence or those who are willingto collaborate and engage with the business enterprise on prevention of harm).
• O ptional: Choke points or strategic points of influence in the upstream supply chain for
products linked to severe harm (e.g. processing stages and suppliers that have a greater
impact on their upstream supply chains because they may be one of just a few processors/
suppliers carrying out a particular process).

32_c_x15.12.2023• That the collected information is stored for at least 7 consecutive years.

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5_x• List of brands that the enterprise sells and the associated products.
• Information on whether the listed brands are conducting due diligence.
26_x

4.1.3 Responsible Person• Has a comprehensive understanding of the international treaties on:• Human rights• Environment and climate

21_x
28_x

• Coordinates all responsible business activities, especially if delegation of tasks is established.

21_x
32_x

• Manages the operational implementation of responsible business processes and ensures that

30_x

• Has authority while decision making to decrease certain risks within own business enterprise

responsible business is implemented in all areas of the business enterprises activities. This
includes the development and implementation of appropriate purchasing strategies andpractices.

and its supply chain.
17_x• Ensures that employees receive appropriate training and incentives to comply with the businessenterprise responsible business policy.

28_a_x• Is responsible for ensuring that supply chains can be mapped (e.g., must ensure that systems or
methods are put in place that allow the supply chain to be mapped transparently, etc.).

32_x• Is in contact with suppliers and other business partners to ensure the business enterprise’s
responsible business expectations and policies are met.

14_x
15_x

• The responsible business policy shall be communicated to the suppliers and other relevant

17_x• Trainings and incentives shall be provided to ensure that the responsible business policy isbusiness partners and included in written agreements.

understood and installed.
22_x• Has a regular reporting obligation (e.g., biannually) to the executive board and meets regularly
with the heads of any departments with supply chain responsibility (e.g., purchasing depts,
product management, quality management, etc.).

21_x
28_a_x• Ensures that the risk analysis is properly carried out (chapter 4.2).

21_x
30_x
32_a_x• Makes recommendations for appropriate actions (chapter 4.3) by creating a report on which

21_x
33_x

• Coordinates the establishment of a supplier code of conduct and inclusion of responsible

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sourcing decisions are based. The report shall include defined goals, timetables, milestones andthe risk assessment results. Management settles any conflicts, considering all relevant
information. If management decides against the recommendation of the responsible person,
the reason for the decision shall be documented.

business in contractual agreements (chapter 4.3).

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21_x• Oversees the continuous monitoring process (chapter 4.4).

21_x• Ensures transparent communication of the responsible business-related actions to all
stakeholders (chapter 4.5).

• Establishes and/or oversees the complaint process (chapter 4.6)

21_x
34_x
35_x
36_x
36_a_x33_x

4.1.4 Pass-On Clause

The Pass-On clause is a contractual obligation in which the following is agreed upon between thebusiness enterprise and the direct supplier:• Compliance with the Responsible Business Policy statement• Compliance with the supplier code of conduct• The supplier code of conduct shall contain the human rights and environmental risks in article 2of the German Supply Chain Act, the commitment made in the business policy and therequirements defined for subcontracting:

42_x
43_x

• If subcontracting is not authorized by the Responsible Business Policy of the business enterprise
it shall be prohibited throughout the whole supply chain.

• If sub-contracting is authorized by the Responsible Business Policy of the business enterprisethe following shall be adhered to by the direct supplier:• A ny purchasing, outsourcing or subcontracting of goods, materials or services shall becontrolled to ensure that all purchased goods/services meet the Responsible Business Policy
regarding human rights and environmental risks.
• T he supplier who is subcontracting shall, therefore, contractually bind their subcontractors
to this supplier code of conduct and obligate their subcontractors to comply with this
supplier code of conduct.
• T he supplier who is subcontracting shall communicate their subcontracting partners to theordering business enterprise.
17_x

Contractual training measures• The business enterprise shall conduct initial and future trainings with the direct supplier toensure compliance with the contract

34_x
35_x

Grievance mechanism information & implementation
The following information shall be publicly available:• Contact information for the grievance mechanism• Contact information for the person responsible for the grievance mechanism at the certified
business enterprise• Description of the complaint process• Obligation of each supplier to take note of the information and access points of the grievancemechanism (as outlined in the pass-on clause) and to make the grievance mechanism known to
the relevant stakeholders of the business partner

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35_x
36_x
36_a_x4.1.4.2 Contractual
Obligation to Pass-On &Acknowledgement• The Pass-On Clause includes the obligation that the business policy, supplier code of conduct
and grievance mechanism shall be contractually passed on to the suppliers of the direct supplier(indirect suppliers to the business enterprise).

• This obligation is only fulfilled when the direct supplier submits the indirect supplier‘s
acknowledgement to the business enterprise.

• The indirect supplier’s written acknowledgment declares compliance with the obligations(see also acknowledgement template).

• The Pass-On Clause includes this obligation to be passed through all tiers of the whole supply
chain, in a cascading manner.
4.1.4.3 Indirect
Supplier• The Pass-On Clause contains the obligation and requires every direct supplier to passon theoriginal business policy statement, the supplier code of conduct and all informations of thegrievance mechanism to their subsequent suppliers (e.g. tier 1 to tier 2 to tier 3, and so forth).

• Indirect suppliers shall be obliged to make the grievance mechanism accessible to their relevant
stakeholders, especially workers. The grievance mechanism shall be made accessible inlocations at the stakeholders discretion (e.g. restrooms).
50_x
51_a_x4.2 Risk Analysis

Based on a formalised process, the business enterprise shall identify the risks and negative
impacts of its business activities on its own operations and on the full supply chains and shallprioritise them according to their significance for further prevention and mitigation.
The risk analysis is the cornerstone of all due diligence activities. The risk analysis shall cover thefollowing areas:• Own business operations• Own retail and distribution centers• Own and external transport and logistics until end customer• Full supply chain
55_x

4.2.1 Risk Assessment Principles

Following aspects shall be taken into consideration when conducting the risk assessment:• The business enterprise shall consider specific sector risks as well further risks as mentioned inchapter 4.2.2.1.

• The business enterprise shall analyse whether those risks are present or potentially might occur
in its own business enterprise and in its supply chains.
51_a• The business enterprise shall also take into consideration actual harm it might identify throughits own provided grievance mechanism.

59_x• The identified risks shall be evaluated according to their severity, likelihood and ability for
remediation.

• The identified risks shall then be prioritized.
52_x• The risk analysis shall be conducted periodically, at least once a year.

61_a• The risk analysis shall be thoroughly researched and documented.

52_x• Additional risk analyses shall be conducted if a risk situation is significantly changed or
expanded.

52_x• Any changes of purchasing practices, country risks, product changes, etc. shall be considered.

77_a_x• The results of the risk analysis shall be communicated in a timely manner to the relevant
decision-making employees and management.

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77_b

55_x

61_b

Exclusion Criteria
Information on identified risks of harm related to specific production processes, countries,
sourcing models, etc. should be shared by business enterprises publicly or at the industry level.
This is particularly important in order to provide, communicate and address emerging risk ofharm at industry level.

4.2.2 Risk Assessment Implementation

Following sector and further risks shall be taken into consideration when conducting the risk
assessment:

4.2.2.1 Scope• Child labour and worst forms of child labour• Sexual harassment and sexual and gender-based violence in the workplace• Forced labour• Slavery• Torture• Working time
• Occupational health and safety• Trade unions and collective bargaining• Unequal treatment in employment• Wages• Bribery and corruption• Responsible sourcing from homeworkers• Land grabbing• Hazardous chemicals• Water• Greenhouse gas emissions• Soil degradation• Air pollution• Harmful noise emissions• Deforestation• Animal welfare• Mercury• Persistent Organic Pollutants• Hazardous and other waste• Further risks

4.2.2.3 Documentation

In any case, the business enterprise shall ensure that the data and information on which the risk
assessment is based are comprehensible and accessible.

32_c_xThe risk assessment and the data used for it should be kept for a period of at least 7 consecutive
years.

50_x
50_a_xAs a first step countries and regions from where the business enterprise is sourcing from, theactual and potential suppliers, the business model as well as the purchasing practices shall betaken into consideration as these contexts influence the existence of risks and ultimately theirrating and prioritisation in the risk assessment.

62_x
64_x

For this assessment,• third party documentation from international organisations, multi-stakeholder initiatives andNGO’s (e.g. Partnership for Sustainable Textiles, annual reports on the OECD Guidelines forMultinational Enterprises, UNICEF, IUTC Global Rights Index, etc.),• the business enterprise advisory board,• as well as potentially affected and most vulnerable stakeholders, shall be consulted.
66_a15.12.2023

In case the business enterprises notices lack of information to identify and evaluate risks,
the business enterprise shall engage with experts to gain missing information.

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67_xCountries and Regions

The risk assessment documentation shall reflect all countries and regions from where actualand current sourcing partners are considered. Accordingly, those risks that arise from thesecountries and regions shall be assessed according to the applicable laws and regulations
that are applicable there.

74_x

47_x
48_x
49_x
49_a_xIf labour laws in these countries and regions diverge from the Fundamental ILO Conventions,
UN Human Rights Convention, specific focus shall be put on suppliers from these countries andregions. This is achieved, among other instruments, through contracts that contain clausesthat address certain issues. In addition, audits conducted by the business enterprise can further
strengthen due diligence.
Suppliers• All direct suppliers shall be mapped.
• All indirect suppliers, through raw material production, shall be listed based on available
information. The business enterprise can use external mapping tools or create its own.
The key is a transparent documentation.

• The documentation shall include current suppliers as well as suppliers considered in the future.
The business enterprise shall structure direct supplier relationships in a proper manner.
It shall be forbidden to circumvent due diligence obligations regarding direct suppliers.
For a comprehensive overview of the supply chain levels and the requirements on implemented
due diligence obligations, see chapter 2.
50_x
50_a_x

Products/Raw Materials• All articles containing textiles and leather shall be considered in the risk analysis.
• Products and their raw materials shall be assessed according to their human rights andenvironmental risks.

Purchasing Practices• Accordingly, the business enterprise shall consider its purchasing practices when conducting therisk assessment.

Business Model• The business model that the business enterprise pursues also has an influence on existing andpotential risks. The following aspects shall be considered in the risk analysis:• Number of product lines and how often those are changed (e.g., season per year).
• W hether high diversity of product lines (e.g., as complexity of materials, processes, etc.
increases) is present.
• T he extend of a business enterprise’s foreign operations (e.g., reduced control of conditionsin production, purchasing practices, etc.).

59_x

Based on the analysed risks, their likelihood, severance and ability for remediation shall be
evaluated. Based on this allocation of risks, a prioritisation shall be conducted. The prioritisation
aims to handle first the most relevant risks of harm prior to handling less severe risks of harm.

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4.2.2.4 Frequency and
Evolving Nature of Risk

The business enterprise shall implement the general risk assessment as an ongoing and continuous
process that reflects the evolving nature of risk in the industry. Changing circumstances (e.g., newsuppliers, emerging risks in a particular country, etc.) shall be immediately assessed in the
responsible business process.

44_x
44_a

4.2.2.5 BusinessEnterprise’s Relationshipto Impacts

After having conducted above mentioned processes related to the comprehensive risk
assessment, the business enterprise shall identify whether it has caused, contributed to or islinked to the identified impacts. This is important in order to take the appropriate and necessary
measures. Further information to the concept of caused, contributed and linked to can be found inchapter 4.3.

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55_b4.2.3 Assessing the
Location Linked to
Identified Risks/
Understand Actions
NeededAfter the assessment, risk identification and prioritisation, the business enterprise will understandwhere certain risks are located. This might be in• the own business enterprise operations

4.2.3.1 Assessment –Own Operations

If the business enterprise has identified risks of harm in the own business enterprise operations,the enterprise shall engage with potentially affected stakeholders. This might include employees,
workers, trade unions, etc. to better understand lack of prevention and mitigation measures andto adjust the same.

55_c• as well as at multiple stages within the supply chain.
Accordingly, the business enterprise shall conduct assessments of the site associated with theidentified risk. The assessment aims to understand what strategies, systems and measures, etc.
are already in place or may be lacking to prevent or mitigate the occurrence of the identified risks.
The identification of lacks will determine what further measures (prevention and mitigation
measures) the business enterprise shall introduce to mitigate the identified risks.

Beside stakeholder engagement the business enterprise shall review its policies and systems tounderstand whether those already support prevention or mitigation of the detected risks.
For the self-assessment, the business enterprise shall consult credible guidance for employers
which has been published e.g. by the ILO and shall seek for external support in case the detected
impact may cause severe harm if not properly prevented or if the prevention of measures require
technical expertise that is not available in house (e.g. technical support might be needed for
occupational health and safety measures, etc.).
55_d

4.2.3.2 Assessment –Suppliers

Depending on where in the supply chain risk of harm has been detected and its defined priority,
the related suppliers or processing steps shall be selected by the business enterprise forassessment.
Following criteria shall be taken into consideration for the supplier assessment:• Measures that the supplier has implemented to prevent harm (e.g. policies, trainings, etc.)• Whether there are actual risks of harm (e.g., no wastewater treatment, air pollution, etc.)• If and to what extent workers have and understanding about their rights in relation to humanrights and labour rights.

• In case the supplier provides an operational-level grievance mechanism, it shall be checked towhich extent it meets the recommendations of the OECD on criteria for operational-levelgrievance mechanisms.
98_a

It might be difficult for business enterprises to identify and assess individual suppliers in the
upstream supply chain. Particularly further down the supply chain, it might become difficult toobtain detailed informations.
In those cases, business enterprises shall understand where choke points, or strategic points ofinfluence, within their supply chains are located and using their leverage to further implement
required due diligence objectives down the supply chain.
• “Choke points” are key points of transformation in the supply chains,• are stages within the supply chain that include generally few actors only who process the
majority of commodity.

• “Choke points” have greater visibility and leverage over circumstances of upstream supply
chain partners.

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55_b4.2.3.3 Assessment
Approach andMethodology

The approach and nature to the assessment and its methodology shall always been selectedconsidering the individual context. Different risks do require different forms of assessments.
E.g. the risk of workplace safety requires different assessment methods compared to assess
the risk of sexual harassment in the workplace.
Further, the local operating context at the supplier shall influence the way how the assessment isconducted as power dynamics and cultural norms shall be considered in the design andimplementation of the assessments.
The evaluation of risks of harm in the supply chain requires a certain level of subjective
determination. Therefore, it shall be ensured that multiple data points are being considered
to assess a certain risk and allow credible and defensible results.
Likewise, the business enterprise shall adjust its assessment methodology when actual findings do
not correspond to the expected findings.

55_f

4.2.3.4 Assessment
Team

Generally, those who are conducting the assessments shall be qualified and shall have expertiseand knowledge of the relevant risks and shall have an understanding about what methodology
for identifying actual and potential harms related to the risk within the local context.
The persons involved in the assessment should have the following competencies:• Extensive knowledge about the relevant risks.

• Unterstanding of the best methodology for identifying potential harms and risks.
• Knowledge of international and national standards related to the risks.
• Capacity to carry out the assessment in the local context.
As probably the person who will conduct the assessments will not combine all requiredcompetencies, a collaboration within a team which have together all of the requiredcompetencies shall be made possible.
55_e

4.2.3.5 Frequency of
the Assessments

It shall be carefully decided whether or not an assessment shall take place in order not to add tothe problem of audit fatigue. Following criteria shall be taken into consideration:• New suppliers shall be assessed prior to order placement to understand whether the supplierhas the necessary prerequisites that allow responsible engagement with the supplier.

• The supplier assessment can be conducted by the business enterprise or by relying on alreadyexisting credible assessments. If the business enterprise relies on existing assessments, careshall be taken to ensure that the assessment has taken place within a reasonable period of timeso that the reflected data and information still represents reliable input.

• Supplier assessments shall not substitute or replace an ongoing monitoring of the suppliers(ongoing monitoring includes an ingoing tracking of the situation on the ground related to
specific risks and provides a more detailed picture vs. individual assessments).

• In case an unsuccessful assessment is foreseeable (e.g. circumstances are too difficult to obtainreliable data), the business enterprise can instead work directly with the supplier to directly stopor mitigate the identified risk.

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18_c_x50_x
50_a_x4.2.4 Transport andLogistics

As mentioned above, human rights and environmental due diligence should also be applied totransport/logistics that is part of the business enterprises supply chains.
The logistics sector (transport and warehousing) is not only often linked to precarious andunprotected working conditions along the upstream supply chains, but also near to the supply
chain level of brands, retailers and traders, there are often violations of social standards in thetransport sector.
Workers on ships, at ports and truck drivers are often poorly qualified and have little or noknowledge of their rights.
Therefore, logistics must also be included in the risk analysis, especially in the case of direct
suppliers upstream, but also in the case of existing substantiated knowledge of risks along the
supply chain up to delivery to the end customer.
Common risks in these areas can be:• Corruption• Forced labour (e.g. on ships)• Health risks (due to hard work, high temperatures, accident risks, etc., e.g. when loading andunloading goods)• Irregular income• Too low incomes• Fraud• Withholding of social benefits• Insufficient supply of food and fresh water to workers on ships• Sexual harassment• Etc.
It should be investigated exactly which risks are to be located where so that they can be addressed
accordingly.
Measures to avoid the occurrence of risks in the logistics sector can be:• Improve transparency in transport supply chains - which carriers do suppliers work with?

• Contracting authorities should obtain written assurances from their logistics partners that they
will comply with social standards in accordance with the transport sectors in question (ship,truck, rail).

• The complaints mechanism provided by the company must also be made available to thelogistics partners in the supply chain.
15_x
15_a
15_b
55_x

77_a_xIn order to promote the implementation of due diligence in the logistics sector, the expectations ofcompanies must be clearly communicated when contracting logistics companies, and companies
should check whether the contracted logistics companies themselves are already committed to
implementing human rights and social standards.
In particular, the alliance of several business enterprises and cross-sectoral cooperation canfacilitate to improve social standards at different logistic sectors (e.g. port authorities).
4.3 Integration ofAppropriate Actions
4.3.1 Principles and
Implementation

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The results of the risk assessment of potential risks as well as the information obtained from thegrievance mechanism (chapter 4.6) on violations that have occurred, shall be provided to therelevant business units and the related processes - they shall implement measures to prevent,mitigate and end negative impacts related to their own business enterprise and the full supply
chain.

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These measures shall be:• Specific,• Measurable,• Accountable,• Realistic,• Timebound,(SMART) to enable a committed implementation and to measure its effectiveness
80_b

80_a_x4.3.1.1 Prevention and
Mitigation Measures at
the Business Enterpriseand Direct Suppliers• The business enterprise shall take immediate action to stop any past, current or imminent risk
detected within its own operations and/or at direct suppliers.

• If the risk violation cannot be fixed in foreseeable future, the business enterprise shall draw up
and implement a corrective action plan (CAP) for ending or minimising the violation, without
delay.

82_b

Corrective actions within the own business enterprise shall consider according to applicability:• Revision and/or update of the own business policy and relevant commitments.

• Revision and/or update of the supplier code of conduct.
• Alignment of purchasing practices, considering risk assessment findings and identified impacts.
• Training of employees and workers shall cover information on the risk, the rights of the workers,
their role on preventing or mitigating harms, etc. – any information and content that is relevant
to prevent and mitigate future harm.

• Upgrading of the business enterprise/facility such as the further implementation ofoccupational health & safety measures, investments in state-of-the-art technology to minimize
environmental risks, etc.

• Strengthening management systems to improve tracking of risk related information to flag
those prior to their occurrence or to establish systematic measures to mitigate risks of harm in
the beginning. Allowing workers the right to form or join a trade union, and to bargain
collectively, etc. Generally, granting the provision of the enabling rights.
82_c• Stakeholders such as workers, trade unions and worker representative organisations shall be
engaged during the development of the corrective action plan and its implementation.

82_d• As more complex the risk, as stronger the business enterprise shall consult expert advice indrawing up a response.

n/a• With regard to the non-compliant supplier, the development of a CAP shall take into accountthe following criteria:

81_x• I ncentives for suppliers to comply with the due diligence requirements as set by the businessenterprise.

100

• T
 raining of employees and workers regarding due diligence obligations and expectations.
Any information and content that is relevant to prevent and mitigate future harm shall becovered by the training.

82_c

• S
 takeholders such as workers, trade unions and worker representative organisations should
be engaged during the development of the corrective action plan and its implementation.

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98_a

Exclusion Criteria• A
 s more complex the risk, as stronger the business enterprise shall consult expert advice indrawing up a response.

4.3.1.2 Prevention andmitigation measures atindirect suppliers:

83_x
85

In addition, the business enterprise can use choke points in the supply chain to check and manage
compliance with their human rights and environmental expectations for the upstream supply
chain. Choke points are key suppliers within the supply chain that, due to their role and position,
can exert greater influence on the upstream supply chain (e.g. raw material processors, etc.) andthus better ensure human rights and environmental expectations in these areas.
In addition, the business enterprise shall define an internal plan to seek to prevent and mitigate
harm in its supply chain such as following:• Setting internal measures to manage risks in its supply chain by means of e.g.:• Supplier assessments (definition of prequalification of suppliers),• Supplier consolidation,• A dapting purchasing practices in product development (e.g. raw materials, etc.), buying andplanning (e.g. order placement deadlines, capacity planning, etc.)• etc.

• Develop and establish pricing models to account for the cost of wages, benefits and81_x

investments that are reflected in buying prices (e.g. fob).
• Establish incentives for suppliers such as• Developing and maintaining long term relationship with suppliers• Integrating suppliers expectations into business enterprise supplier contracts• I ncrease of orders to the benefit of well performing suppliers in relation to quality and due
diligence expectations.
• Understanding the local contexts suppliers are operating in and as such the related risks.
96_x

4.3.1.3 Generally• In addition, the measures applied shall be regularly checked for their effectiveness. The review
interval and measures to improve the effectiveness of the defined measures will depend on theseverity of any violations that have occurred or may occur (chapter 4.4).

83_b• A termination of the business relationship with any violating supplier shall only be considered if:• The violation is defined as very serious.
• The measures do not remedy the situation according to the defined timetable.
• T he business enterprise has already fully leveraged all other less severe means to end theadverse impact.
• The influence pressure has no prospect of success.

83_b

Possible disengagement shall be done responsibly. In that case the business enterprise shall:• comply with national laws, international labour standards and the terms of collective
bargaining agreements.

• Provide detailed information explaining the business decision to the suppliers management andof applicable also the related workers union.

• Flag the decision of ending the business relationship with sufficient notice to the supplier.

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80_x

4.3.2 Cause, Contribute,
Linked toOnce the business enterprise has identified a violation within its supply chain as part of the due
diligence process, it must assess whether it has caused, contributed to or is linked to the violation.
The outcome will determine the expectations for the business enterprise on how to respond to theviolation.
Cause• If the business enterprise has caused a violation, its business activities, products or its services
have directly caused the violation. In other words, a direct correlation can be establishedbetween the business enterprise, its activities or omissions.

• Any action that is causing the harm shall be stopped.
• Possible remaining harm shall be mitigated.
• The harm must be remedied.
• Future harm must be prevented or mitigated.
Contribute
A business enterprise contributes to a violation if, through its activities or omissions, itcauses or encourages another enterprise to commit a violation or facilitates the violation by
the other enterprise.
• Any action that is causing the harm shall be stopped.
• Possible remaining harm shall be mitigated.
• The harm must be remedied.
• Future harm must be prevented or mitigated.
• Leverage of the business enterprise shall be used to prevent or mitigate the harm.
Linked to
The link is defined through the relationship between the harm and a business enterprises products,
services or its operations. If a business enterprise is linked to the harm, the harm is caused throughanother entity/business relationship.
• Prevent or mitigate harm through different measures (e.g. adapting purchasing practices,etc.)• Use of leverage to influence the supply chain partners.
102_x
103

4.4 Continuous
Monitoring

The business enterprise shall check, review and communicate on the effectiveness of theimplemented measures (chapter 4.3).

106_a_x4.4.1 Progress andEffectiveness of
Measures - BusinessEnterprise’s Own
Operations

As a first step, the business enterprise shall ensure that the defined measures have actually been
implemented within the defined timeframe.

102_a_x

Furthermore, qualitative and quantitative indicators shall be checked that provide information on
how well or how effective the respective measure has contributed to the desired goal and result.
The indicators to be checked can already be determined when defining the measures (according
to SMART criteria, Chapter 4.3 ) and are compared with the situation on the ground at the time of
measurement.

102_b

For this purpose, all known and available information shall be used for validation. For example,
this includes information from the grievance mechanism or data from regularly conductedevaluations.

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If the business enterprise is not in a position to verify the prevention of injuries by its measurestaken through internal data and resources and if the risk of serious damage is very high, should
the risk occur, the business enterprise shall consult external expertise.

102_c

4.4.2 Progress andEffectiveness of
Measures - BusinessEnterprise’s Supply Chain

In particular, for implemented measures in the supply chain, the more severe the impact ofviolations, the more the business enterprise shall review the effectiveness of the implemented
measures, adjust them if necessary and consult external expertise if the severity of violations is
expected to be particularly high.

102_a_x4.4.3 General• Whenever possible, direct (e.g. how much water was consumed, etc.) and indirect indicators(e.g. do workers understand what is a violence?, etc.) shall be monitored to confirm thatnegative effects have been or are being avoided.

• Information and reports from workers or their representative organisations shall be part of

102_a_x

ongoing monitoring.

• If no improvement is identified through the implemented measures, it shall be verified whether

106_a_x

the measure was implemented at all.

• If the business enterprises rely on the implementation of due diligence at choke points in the

106_b

supply chain, the business enterprise shall conduct audits at these points.

• The business enterprise shall document the evaluation of the measures taken in a

106_a_x

comprehensible manner.

• The results of the review of the effectiveness of the defined measures shall be included in the

102_dcommunication on the due diligence measures implemented, which the business enterprise
publishes regularly.
111_x
107_x

4.5 Transparent
Communication

The business enterprise shall communicate publicy and transparent about its implemented due
diligence obligations on an annual basis and its human rights impact.
Therefore, and in order track and trace the progress of the due diligence process, the businessenterprise shall continuously document their implemented due diligence obligations internally anduse it for public communication.

14_a_x4.5.1 Content and
Implementation

Elements of a transparent communication shall be:• The business policy itself or comparable value statements.

110_c_x• A description about the business enterprises due diligence management system, incl. how
due diligence is incorporated into decision-making processes.

109_x

• E
 xplanation of the business enterprise’s grievance mechanism and remediation process forthis business enterprise own operations and its supply chain.

108_x

• A
 n annual report regarding implemented due diligence obligations, as described above andbelow, to reflect performance and progress in this regard.

108_a

The report shall:• Reflect the performance and progress of the business enterprise related to human rights andenvironmental due diligence of the past fiscal year.

114_x• Whether or not the business enterprise engages in multi-stakeholder initiatives.

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111_b

Chapter

Exclusion Criteria• Be publicly available latest 4 month after the past fiscal year at the website of the businessenterprise.

107_x
116

• Shall be accessible to anyone interested.

111_c• Be available for 7 consecutive years and accessible without any cost.

107_x• Shall be precise, comprehensible and reader-friendly through sufficient information(e.g., actual examples).

108_x• Reflect if any human rights and environmentally related risks or violations the businessenterprise has been identified.

• Reflect the risk assessment process.
• Reflect the risk prioritisation process and why some risks have been prioritised over others.
Accordingly the extend of the business enterprises communication shall be proportionate to
the risk of harm.
110_c• Reflect what measures it has set• related to the risk management,

108_x
110_a_x• the risk analysis

110_d_x• regarding prevention measures and• m itigation measures, both for the own business enterprise operations as well as for their
supply chain (downstream and upstream, see chapter 2)

110_e• possible adjustments on the grievance mechanism.

109_x

• p
 ossible adjustments on the business policy in order to manage the identified risks and/or
violations for their own business enterprise operations and its supply chain.

110_b_x• R eflect what the business enterprise has done to remedy violations reported through thegrievance mechanism or other channels of information and lessons-learned (impact on
adapting measures).

110_a_x• Reflect how the business enterprise determine the effectiveness of its set measures.

110_b_x• Reflect what conclusion it draws from the assessment of measures for future measures.

107_x

• P
 rovide sufficient information, so that the reader is able to evaluate the adequacy of anenterprise’s response to human rights.

114_x

• H
 ow the business enterprise engages meaningfully with affected stakeholders (It can containspecific examples and cases handled by the business enterprise, however, affectedstakeholders must not be exposed and anonymity shall be ensured.)

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Exclusion Criteria• Take into consideration the protection of business and trade secrets.

• Further the business enterprise shall ensure that channels of communication are appropriate

115

for potentially affected stakeholders.
44_a
118_x
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4.6 Access to Remedy

If the business enterprise has caused or contributed to a violation against human rights, labour
rights and/or the environment, the business enterprise shall provide for or cooperate inappropriate remedy that aims to restore the harmed individuals or groups.
Therefore, the business enterprise shall have processes in place to enable remediation in the firstplace.

153

Part of the process is an accessible and functional grievance and reporting mechanism thatallows potentially affected stakeholders to raise and submit a complaint regarding violations ofdue diligence along the supply chain, including violations within the own business operations.

118_x
120_x

Therefore, the business enterprise shall establish its own grievance and reporting mechanisms(operational-level grievance mechanism) or shall cooperate with an external grievancemechanism that covers the effectiveness criteria for non-state based, non-judicial grievancemechanisms of the UNGPs (e.g., mechanisms of industry associations).

131_x

4.6.1 Principles of thegrievance mechanism1.) The business enterprise shall establish rules of reporting procedure and how complaints arehandled within the business enterprise in text form that are available publicly. These rules ofprocedure shall provide stakeholders full transparency to the grievance mechanism process
and procedures.

29_x
126_x

2.) The business enterprise shall nominate a person or persons who will be entrusted to theprocess. These persons shall offer a guarantee of impartiality; in particular, they shall be
independent and not bound by instructions and bound to secrecy.

134_b_x
1513.) The business enterprise shall publish clear and comprehensible information on accessibility andresponsibility regarding the complaints procedure in an appropriate manner. This includes aswell to adapt the accessibility of the grievance mechanism to the different stakeholders andtheir access barriers.

142_a_x4.) The complaints procedure must• be accessible to potential parties involved,• maintain confidentiality of identity,• e nsure effective protection of the complainant against disadvantage or punishment as aresult of the complaint.

120_x5.) The business enterprise shall establish its own complaint mechanism or can cooperate in an
external grievance mechanism, e.g.:• engaging in multi-stakeholder initiatives that provide supply chain grievance mechanisms,• enter into agreements to mediation with possible MSI’s,• agreements with trade unions,• agreeing to enter into mediation with the OECD National Contact Points.
The business enterprise might also combine both in order to cover possible gaps. Anyway, thebusiness enterprise is required to consult existing guidance on establishing the grievancemechanism.

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120_a_x6.) The business enterprise shall ensure that the provided grievance mechanisms does notpreclude access to judicial recourse for victims of human rights violations. The businessenterprise should further not interfere with civil or criminal investigations or human rights
examinations.

149_x7.) The effectiveness of the grievance mechanism must be reviewed at least once a year. If theenterprise expects a significant expanded risk situation in its own business area or at its supply
chain, the effectiveness of the grievance mechanism shall be reviewed on an ad hoc basis.

121_x until
130_x

4.6.3 Core criteria of
the grievancemechanism

The grievance mechanism shall fulfil the core criteria of the OECD Due Diligence Guidance
for Textile and Footwear. The grievance mechanism shall be:• Legitimate: The processes shall be fair, transparent, accessible and anonymous. The grievancemechanism shall be developed and updated under consultation of all relevant stakeholders

131_x until
137_x• Accessible: The grievance mechanism shall be accessible to all those affected by the enterprise’s

138_x until
140_x• Predictable: The business enterprise shall define the internal process for the grievance

141_x until
144_x• Equitable: The business enterprise shall be mindful of any power imbalances and ensure equal

145_x until
147_x• Transparent: The business enterprise shall publicize the existence of the mechanism and a

148_x• Rights-compatible: The business enterprise shall ensure that outcomes and remedies accord

sphere of influence. Adequate assistance shall be provided for those who may face barriers toaccess (e.g. illiteracy, language barriers, etc.)

mechanism and shall make it transparent (e.g. organisational requirements, contact person,
processing, timetable)

access to the grievance mechanism.

publicly available, formalised procedure for dealing with complaints. The mechanisms andprocesses shall be communicated to employees and all potentially affected stakeholders (e.g.,
suppliers, subsuppliers, etc.).

with internationally recognized human rights.
149_x until
149_a_x• A source of continuous learning: The business enterprise shall define key indicators for use of

150_x• Dialogue-based: Solutions should be developed in mutual agreement instead of top-down. If

new knowledge in continuously improving the grievance mechanism.

the business enterprise participates in an external grievance mechanism, they shall define theinterface process (e.g., responsible person, communication flow, etc.)
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4.6.4 Provide Remedy

As mentioned, business enterprises shall provide for or co-operate in the remediation ofadverse impacts they have caused or contributed to.

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Annex 4: Regulations and Conventions
The conventions taken into account in the German Act on Corporate Due Diligence Obligations for the Prevention of
Human Rights Violations in Supply Chains:
1. Convention No. 29 of the International Labour Organization of 28 June 1930 concerning Forced or Compulsory
Labour (Federal Law Gazette 1956 II pp. 640, 641) (ILO Convention No. 29)
2. Protocol of 11 June 2014 to Convention No. 29 of the International Labour Organization of 28 June 1930
concerning Forced or Compulsory Labour (Federal Law Gazette 2019 II pp. 437, 438)
3. Convention No. 87 of the International Labour Organization of 9 July 1948 concerning Freedom of Association
and Protection of the Right to Organise (Federal Law Gazette 1956 II pp. 2072, 2071), as amended by theConvention of 26 June 1961 (Federal Law Gazette 1963 II pp. 1135, 1136) (ILO Convention No. 87)
4. Convention No. 98 of the International Labour Organization of 1 July 1949 concerning the Application of the
Principles of the Right to Organise and to Bargain Collectively (Federal Law Gazette 1955 II pp.1122, 1123), as
amended by the Convention of 26 June 1961 (Federal Law Gazette 1963 II pp. 1135, 1136) (ILO Convention No. 98)
5. Convention No. 100 of the International Labour Organization of 29 June 1951 concerning Equal Remuneration for
Men and Women Workers for Work of Equal Value (Federal Law Gazette 1956 II pp.23, 24) (ILO Convention No.
1000)
6. Convention No. 105 of the International Labour Organization of 25 June 1957 concerning the Abolition of Forced
Labour (Federal Law Gazette 1959 II pp. 441, 442) (ILO Convention No. 105)
7. Convention No. 111 of the International Labour Organization of 25 June 1958 concerning Discrimination in Respectof Employment andOccupation (Federal Law Gazette 1961 II pp. 97, 98) (ILO Convention No. 111)
8. Convention No. 138 of the International Labour Organization of 26 June 1973 concerning the Minimum Age for
Admission to Employment(Federal Law Gazette 1976 II pp. 201, 202) (ILO Convention No. 138)
9. Convention No. 182 of the International Labour Organization of 17 June 1999 concerning the Prohibition and
Immediate Action for the
Eliminiation of the Worst Forms of Child Labour (Federal Law Gazette 2001 II pp. 1290, 1291) (ILO Convention no.
182)
10. International Covenant of 19 December 1966 on Civil and Political Rights (Federal Law Gazette 1973 II pp. 1533,
1534)
11.International Covenant of 19 December 1966 on Economic, Social and Cultural Rights (Federal Law Gazette 1973 II
pp. 1569, 1570)
12. Minamata Convention on Mercury of 10 October 2013 (Federal Law Gazette 2017 II pp. 610, 611) (Minamata
Convention)
13. Stockholm Convention of 23 May 2001 on Persistent Organic Pollutants (Federal Law Gazette 2002 II pp. 803,804) (POPs Convention), last amended by the decision of 6 May 2005 (Federal Law Gazette 2009 II pp. 1060,
1061)

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14. Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal of 22
March 1989 (Federal Law
Gazette 1994 II pp. 2703, 2704) (Basel Convention), as last amended by the Third Ordinance amending Annexes
to the Basel Convention of 22 March 1989 of 6 May 2014 (Federal Law Gazette II pp. 306/307).
The following section maps Section 2 of the German Act on Corporate Due Diligence for the Prevention of Human
Rights Violations in Supply Chains of July 16, 2021„…Section 2 Definitions(1) Protected legal positions within the meaning of this Act are those arising from the conventions on the protectionof human rights listed in nos. 1 to 11 of the Annex. (2) A human rights risk within the meaning of this Act is acondition in which, on the basis of factual circumstances, there is a sufficient probability that a violation of one of
the following prohibitions is imminent:
1. the prohibition of the employment of a child under the age at which compulsory schooling ends according to thelaw of the place of
employment, provided that the age of employment is not less than 15 years, except where the law of the place of
employment so provides in accordance with Article 2 (4) and Articles 4 to 8 of Convention No. 138 of theInternational Labour Organization of 26 June 1973 concerning Minimum Age for Admission to Employment(Federal Law Gazette 1976 II pp. 201, 202);
2. the prohibition of the worst forms of child labour for children under 18 years of age; in accordance with Article 3
of Convention No. 182 of the International Labour Organization of 17 June 1999 concerning the Prohibition and
Immediate Action for the Elimination of the Worst Forms of Child Labour (Federal Law Gazette 2001 II pp. 1290,
1291) this includes:a) all forms of slavery or practices similar to slavery, such as the sale and trafficking of children, debt bondage
and serfdom, as well as forced or compulsory labour, including the forced or compulsory recruitment ofchildren for use in armed conflicts,b) the use, procuring or offering of a child for prostitution, for the production of pornography or for pornographic
performances,c) the use, procuring or offering of a child for illicit activities, in particular for the production of or trafficking in drugs,d) work which, by its nature or the circumstances in which it is carried out, is likely to harm the health, safety or
morals of children;
3. the prohibition of the employment of persons in forced labour; this includes any work or service that is required ofa person under threat of punishment and for which he or she has not made himself or herself available voluntarily,
for example as a result of debt bondage or trafficking in human beings; excluded from forced labour are any workor services that comply with Article 2 (2) of Convention No. 29 of the International Labour Organization of 28 June
1930 concerning Forced or Compulsory Labour (Federal Law Gazette 1956 II p. 640, 641) or with Article 8 (3) (b)and (c) of the International Covenant of 19 December 1966 on Civil and Political Rights (Federal Law Gazette 1973
II pp. 1533, 1534);
4. the prohibition of all forms of slavery, practices akin to slavery, serfdom or other forms of domination or
oppression in the workplace, such as extreme economic or sexual exploitation and humiliation;

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5. the prohibition of disregarding the occupational safety and health obligations applicable under the law of theplace of employment if this gives rise to the risk of accidents at work or work-related health hazards, in particular
due to:a) obviously insufficient safety standards in the provision and maintenance of the workplace, workstation andwork equipment;b) the absence of appropriate protective measures to avoid exposure to chemical, physical or biologicalsubstances;c) the lack of measures to prevent excessive physical and mental fatigue, in particular through inappropriate workorganisation in terms of working hours and rest breaks; ord) the inadequate training and instruction of employees;
6. the prohibition of disregarding the freedom of association, according to whicha) employees are free to form or join trade unions,b) the formation, joining and membership of a trade union must not be used as a reason for unjustified
discrimination or retaliation,c) trade unions are free to operate in accordance with applicable law of the place of employment, which includes
the right to strike and the right to collective bargaining;
7. the prohibition of unequal treatment in employment, for example on the grounds of national and ethnic origin,social origin, health status, disability, sexual orientation, age, gender, political opinion, religion or belief, unless
this is justified by the requirements of the employment; unequal treatment includes, in particular, the payment ofunequal remuneration for work of equal value;
8. the prohibition of withholding an adequate living wage; the adequate living wage amounts to at least theminimum wage as laid down by the applicable law and, apart from that, is determined in accordance with theregulations of the place of employment;
9. the prohibition of causing any harmful soil change, water pollution, air pollution, harmful noise emission orexcessive water consumption thata) significantly impairs the natural bases for the preservation and production of food,b) denies a person access to safe and clean drinking water,c) makes it difficult for a person to access sanitary facilities or destroys them ord) harms the health of a person;
10. the prohibition of unlawful eviction and the prohibition of unlawful taking of land, forests and waters in theacquisition, development or other use of land, forests and waters, the use of which secures the livelihood of aperson;11. the prohibition of the hiring or use of private or public security forces for the protection of the enterprise’s projectif, due to a lack of instruction or control on the part of the enterprise, the use of security forcesa) is in violation of the prohibition of torture and cruel, inhumane or degrading treatment,b) damages life or limb orc) impairs the right to organise and the freedom of association;

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12. the prohibition of an act or omission in breach of a duty to act that goes beyond nos. 1 to 11, which is directly
capable of impairing a protected legal position in a particularly serious manner, and the unlawfulness of which
is obvious upon reasonable assessment of all the circumstances in question.
(3) An environment-related risk within the meaning of this Act is a condition in which, on the basis of factual
circumstances, there is a sufficient probability that one of the following prohibitions will be violated:
1. the prohibition of the manufacture of mercury-added products pursuant to Article 4 (1) and Annex A Part I of
the Minamata Convention on Mercury of 10 October 2013 (Federal Law Gazette 2017 II pp. 610, 611) (Minamata
Convention);
2. the prohibition of the use of mercury and mercury compounds in manufacturing processes within the meaningof Article 5 (2) and Annex B Part I of the Minamata Convention from the phase-out date specified in theConvention for the respective products and processes;
3. the prohibition of the treatment of mercury waste contrary to the provisions of Article 11 (3) of the Minamata
Convention;
4. the prohibition of the production and use of chemicals pursuant to Article 3 (1) (a) and Annex A of the Stockholm
Convention of 23 May 2001 on Persistent Organic Pollutants (Federal Law Gazette 2002 II pp. 803, 804) (POPsConvention), last amended by decision of 6 May 2005 (Federal Law Gazette 2009 II pp. 1060, 1061), in the version
of Regulation (EU) 2019/1021 of the European Parliament and of the Council of 20 June 2019 on persistent organic
pollutants (OJ L 169 of 26 May 2019 pp. 45- 77), as last amended by Commission Delegated Regulation (EU)2021/277 of 16 December 2020 (OJ L 62 of 23 February pp. 1-3);
5. the prohibition of the handling, collection, storage and disposal of waste in a manner that is not environmentallysound in accordance with the regulations in force in the applicable jurisdiction under the provisions of Article 6 (1)(d) (i) and (ii) of the POPs Convention.
6. the prohibition of exports of hazardous waste within the meaning of Article 1 (1) and other wastes within themeaning of Article 1 (2) of the Basel Convention on the Control of Transboundary Movements of Hazardous
Wastes and their Disposal of 22 March 1989 (Federal Law Gazette 1994 II pp. 2703, 2704) (Basel Convention), as
last amended by the Third Ordinance amending Annexes to the Basel Convention of 22 March 1989 of 6 May 2014
(Federal Law Gazette II pp. 306, 307), and within the meaning of Regulation (EC) No 1013/2006 of the European
Parliament and of the Council of 14 June 2006 on shipments of waste (OJ L 190 of 12 July 2006 pp. 1-98)(Regulation (EC) No 1013/2006), as last amended by Commission Delegated Regulation (EU) 2020/2174 of 19
October 2020 (OJ L 433 of 22 December 2020 pp. 11-19)a) to a party that has prohibited the import of such hazardous and other wastes (Article 4 (1) (b) of the Basel Convention),b) to a state of import as defined in Article 2 no. 11 of the Basel Convention that does not consent in writing to thespecific import, in the case where that state of import has not prohibited the import of such hazardous wastes(Article 4 (1) (c) of the Basel Convention),c) to a non-party to the Basel Convention (Article 4 (5) of the Basel Convention),d) to a state of import if such hazardous wastes or other wastes are not managed in an environmentally soundmanner in that state or elsewhere (Article 4 (8) sentence 1 of the Basel Convention);
7. the prohibition of the export of hazardous wastes from countries listed in Annex VII to the Basel Convention tocountries not listed in Annex VII (Article 4A of the Basel Convention, Article 36 of Regulation (EC) No 1013/2006) and15.12.2023

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Annex 4:
Regulations and Conventions

8. the prohibition of the import of hazardous wastes and other wastes from a non-party to the Basel Convention(Article 4 (5) of the Basel Convention).
(4) A violation of a human rights-related obligation within the meaning of this Act is a violation of a prohibition
stated in paragraph (2), nos. 1 to 12. A violation of an environment-related obligation within the meaning of thisAct is a violation of a prohibition referred to in paragraph (3), nos. 1 to 8.
(5) The supply chain within the meaning of this Act refers to all products and services of an enterprise. It includes all
steps in Germany and abroad that are necessary to produce the products and provide the services, starting fromthe extraction of the raw materials to the delivery to the end customer and includes
1. the actions of an enterprise in its own business area,
2. the actions of direct suppliers and3. the actions of indirect suppliers.
(6) The own business area within the meaning of this Act covers every activity of the enterprise to achieve thebusiness objective. This includes any activity for the creation and exploitation of products and services,
regardless of whether it is carried out at a location in Germany or abroad. In affiliated enterprises, the parent
company’s own business area includes a group company if the parent company exercises a decisive influence on
the group company.
(7) A direct supplier within the meaning of this Act is a partner to a contract for the supply of goods or the provisionof services whose supplies are necessary for the production of the enterprise’s product or for the provision anduse of the relevant service.
(8) An indirect supplier within the meaning of this Act is any enterprise which is not a direct supplier and whose
supplies are necessary for the production of the enterprise’s product or for the provision and use of the relevant
service. “German Act on Corporate Due Diligence for the Prevention of Human Rights Violations in Supply
Chains. (2021, 16. Juli), bmas.de, accessed September 2, 2022,
https://www.bmas.de/SharedDocs/Downloads/DE/Internationales/act-corporate-due-diligence-obligations-supply-chains.pdf?__blob=publicationFile&v=3

Annex 5: Risks and their references
The following shall give a brief context how the listed risks as mentioned in chapter 4.2 are to be understood.
Detailed information about the risks is to be found in the mentioned references and legal basis.
Child labour and worst forms of child labour
Legal basis: ILO 79, ILO 138, ILO 142, ILO 182, Supply Chain Due Diligence Act §2 (2) no. 1 and 2
Extract:• Prohibition of employment of children below the age of 15.
•

Prohibition of the worst forms of child labour below the age of 18 years.

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Sexual harassment and sexual and gender-based violence in the workplace
Reference: OECD (2017), OECD Due Diligence Guidance for Responsible Supply Chains in the Garment andFootwear Sector, page 116
Extract:• Zero-tolerance on sexual harassment, includes unwelcome sexually determined behaviour, etc.
Forced labour
Legal basis: ILO 29, ILO 105, German Supply Chain Due Diligence Act §2 (2) no. 3 and 4
Extract:• Prohibition to employ persons in forced labour,•

Prohibition of all work or service exacted under menace of any penalty, unvoluntary work.

Slavery
Legal basis: German Supply Chain Due Diligence Act §2 (2) no. 4
Extract:• Prohibition of forms of slavery, any forms of domination or oppression in the workplace.
TortureLegal basis: German Supply Chain Due Diligence Act §2 (2) no. 11
Extract:• Prevention of any torture and cruel, inhuman, or degrading treatment, etc.
Working time
Legal basis: ILO 1, ILO 14, German Supply Chain Due Diligence Act §2 (2) no. 5, c
Extract:•

Prohibition of inappropriate work organisation in terms of working hours and rest breaks,•

Provision of at least 24 consecutive hours break within 7 workdays, etc.

Occupational health and safety
Legal basis: Legal basis: ILO 155, ILO 164, German Supply Chain Due Diligence Act §2 (2) no. 5
Extract:• rohibition to disregard occupational health and safety obligations applicable under the law of the place ofP
employment, etc.

Trade unions and collective bargaining
Legal basis:
ILO 87, ILO 98, ILO 135, ILO 154, German Supply Chain Due Diligence Act §2 (2) no. 6
Extract:•

Employees are free to form or join trade unions, etc.

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Unequal treatment in employment
Legal basis: ILO 110, ILO 111, ILO 159, German Supply Chain Due Diligence Act §2(2) no. 7
Extract:• rohibition of unequal treatment in employment due to national or ethnic origin, social origin, health status,Pdisability, sexual orientation, age, etc.

Wages
Legal basis: ILO 26, ILO 131, German Supply Chain Due Diligence Act §2 (2) no. 8
Extract:• rohibition of withholding and adequate living wage, amounts to at least the minimum wage as laid downPby the applicable law and, apart from that, is determined in accordance with the regulations of the place of
employment.

Bribery and corruption
Legal basis:
The OECD Guidelines for Multinational Enterprises, VII. Combating Bribery, Bribe Solicitation and Extortion,
 he OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions
T(the Anti-Bribery Convention), etc.
Extract:•

 nterprises should not, directly or indirectly, offer, promise, give, or demand a bribe or other undue advantageE
to obtain or retain business or other improper advantage, etc.

Responsible sourcing from homeworkers
 egal basis: OECD (2017), OECD Due Diligence Guidance for Responsible Supply Chains in the Garment andL
Footwear Sector, ILO 177
Extract:•

Identifying the presence of homeworkers in supply chains,•

Supporting the formalisation of their work status,•

Equal treatment between homeworkers and other wage earners.

Land grabbing
Legal basis: German Supply Chain Due Diligence Act §2 (2) no. 10
Extract:•

Prohibition to unlawfully evict a person,• rohibition to unlawfully take land, forests and waters in the acquisition, development or other use of land,P
forests and waters, the use of which secures the livelihood of a person, etc.

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Annex 5: Risks and their references

Hazardous chemicals
Legal basis:
OECD (2017), OECD Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Sector
Extract:•

Support and define a common MRSL based on credible scientifically based assessment of hazards,•

Communicate the MRSL to all relevant suppliers,•I dentify substitutes for chemicals on the MRSL based on scientific data and inter-nationally accepted
methodology for assessing hazard and risk, etc.

Water
Legal basis: German Supply Chain Due Diligence Act §2 (2) no. 9,
Extract:• rohibition of causing any harmful water pollution or excessive water consumption that significantly impairs thePnatural bases for the preservation and production of food,Greenhouse gas emissions
Legal basis: OECD (2017), OECD Due Diligence Guidance for Responsible Supply Chains in the Garment andFootwear Sector
Extract:•

Identify and measure greenhouse gas emissions in operations and products,•

I mprove energy use efficiency and reduce greenhouse gas emissions through different measures according to theidentified emission spots.

Soil degradation
Legal basis: German Supply Chain Due Diligence Act §2 (2) no. 9
Extract:•

I t shall be prohibited to cause any harmful soil change that significantly impairs the natural bases for thepreservation and production of food, etc.

Air pollution
Legal basis: German Supply Chain Due Diligence Act §2 (2) no. 9
Extract:•

It shall be prohibited to cause any air pollution that harms the health of a person, etc.

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Harmful noise emissions
Legal basis: German Supply Chain Due Diligence Act §2 (2) no. 9
Extract:•

It shall be prohibited to cause any harmful noise emission

Deforestation
Legal basis:
EU Proposal for a Directive on Corporate Sustainability Due Diligence Annex to the EU Proposal for a Directive on
Corporate Sustainability Due Diligence, Violations of rights and prohibitions included in international human rights
agreements.
Extract:• rohibition of placing on the market certain commodities and derived products if the requirement of “legal” andP“deforestation free” cannot be ascertained through due diligence.

• rohibition of causing any measurable environmental degradation, such as harmful soil change, water or air
Ppollution, harmful emissions or excessive water consumption or other impact on natural resources, that (e)affects ecological integrity, such as deforestation.

•

 rohibition to unlawfully evict or take land, forests and waters when acquiring, developing or otherwise use land,P
forests and waters, including by deforestation, the use of which secures the livelihood of a person in accordancewith Article 11 of the International Covenant on Economic, Social and Cultural Rights.

Animal welfare
Legal basis: World Organisation for Animal Health, Terrestrial Code Extract: Expectations for the conditions
animals should experience when under human control:•

Freedom from hunger, malnutrition and thirst•

Freedom from fear and distress•

Freedom from heat stress or physical discomfort•

Freedom from pain, injury and disease•

Freedom to express normal patterns of behaviour

Mercury
Legal basis: German Supply Chain Due Diligence Act §2 (3) no. 1, 2 and 3
Extract:•

Prohibition of the manufacture of mercury-added products•

Prohibition of the use of mercury and mercury compounds in manufacturing processes• rohibition of the treatment of mercury waste contrary to the provisions of Article 11 (3) of the Minamata
P
Convention.

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Annex 5: Risks and their references
Annex I: Declaration of Conformity
Annex II: Terms of Use and Code of Conduct

Persistent Organic Pollutants
Legal basis: German Supply Chain Due Diligence Act §2 (3) no. 4 and 5
Extract:•

Prohibition of the production and use of chemicals as stated in the mentioned policy.

•

 rohibition of the handling, collection, storage and disposal of waste in a manner that is not environmentallyPsound in accordance with the regulations in force as stated in the policy.

Hazardous and other Waste
Legal basis: German Supply Chain Due Diligence Act §2 (3) no. 6, 7 and 8
Extract:•

Prohibition of exports of hazardous wastes•

Prohibition of the import of hazardous wastes and other wastes

General risk
Legal basis: German Supply Chain Due Diligence Act §2 (2) no. 12
Extract:• rohibition of an act or omission which is directly capable of impairing a protected legal position in a particularlyP
serious manner, and the unlawfulness of which is obvious upon reasonable assessment of all the circumstances inquestion.

Annex I: Declaration of Conformity
See declaration of Conformity in STANDARD 100 or LEATHER STANDARD (oeko-tex.com).

Annex II: Terms of Use and Code of Conduct
The OEKO-TEX® Terms of Use (ToU) apply for all OEKO-TEX® products. The ToU can be found atwww.oeko-tex.com/ToU and the OEKO-TEX® Code of Conduct (CoC) at www.oeko-tex.com/coc.

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