AGT launches Responsible business conduct guide ahead of EU due diligence law

In preparation for upcoming legislation, the Dutch Agreement on Sustainable Garments and Textiles (AGT) has drafted an extensive document that assists enterprises in the field in engaging in international responsible business behavior conduct (RBC).

The document contains links to resources, company samples, and definitions of words, making it handy for organizations from different industries to get started with international RBC. The document attempts to assist businesses in preparing for forthcoming due diligence legislation.

Last week, the European Commission approved a proposal for a rule on corporate sustainability due diligence, which means that apparel companies selling and operating in the EU will be held accountable for their impact on the environment and people working in their supply chains.

The annual assessment of participating firms in the Dutch Agreement on Sustainable Garments and Textile, which just expired, was based on the ‘Practical guidance for companies on IRBC and OECD due diligence.’

This framework, which has received excellent feedback from the Organization for Economic Co-operation and Development (OECD), uses a thorough questionnaire to put the OECD Guidelines for Due Diligence into practice. This means that businesses identify, prevent, and mitigate potential supply chain risks, as well as account for how they handle them. The framework explains what a corporation should focus on first, why it’s important, what tools are useful, and who can help.

Last year, the European Union proposed the Corporate Social Responsibility Directive (CSRD). The evaluation methodology aids businesses in preparing for this, as well as upcoming due diligence rules. It walks firms through the due diligence process step by step and provides examples of how companies are already doing so.

According to the OECD Guidelines, enterprises from all industries can start with the Dutch Agreement on Sustainable Garments and Textile because it involves the basics of a competent due diligence system.