Oeko-Tex launches responsible business tool for supply chains

Oeko-Tex is launching its responsible business tool and certification, which it hopes will help retailers and textile and leather brands comply with due diligence regulations.

Oeko-Tex claims that the responsible business tool is based on a wide range of international policies with a focus on climate protection and aims to prevent and mitigate existing and potential negative impacts of companies’ own business operations, their supply chains, and in their broader business relationships. This is in response to increased pressure on companies to take responsibility for human rights and the environmental impact of their supply chains.

Georg Dieners, the organization’s secretary general, said that it was crucial for them to expand their portfolio with this approach. Oeko-Tex has supported open supply chains, corporate accountability, and product safety for more than three decades. A thorough examination and evaluation are crucial when it comes to due diligence. They used their tried-and-true, globally standardized approach and 30 years of expertise in the textile and leather industries to produce this strong standard.

The standard is based on the OECD Guidelines for Multinational Enterprises, the OECD Due Diligence Guidance for Textiles and Footwear, and the UN Guiding Principles on Business and Human Rights (UNGPs). Additionally, it guarantees adherence to the proposed European Directive on Corporate Sustainability Due Diligence as well as the German Supply Chain Act. The Oeko-Tex Responsible Corporate approach for conducting due diligence is divided into six phases, similar to the OECD Guidelines: business policy, risk assessment, integration of suitable actions, continuous monitoring, transparent communication, and complaint system.

Oeko-Tex also offers a seventh optional module on climate action. Companies pledge to uphold the Paris Agreement’s goal of keeping global warming to 1.5 degrees Celsius above pre-industrial levels in the climate module. Companies can use this module to chart their supply chain improvements, strategy execution, and climate performance. It also allows them to measure internal changes.

Oeko-Tex Responsible Business is a modular framework that makes it easier for both big multinational corporations and newbies to gain access. The self-assessment can be used independently to examine the state of your due diligence. This overview of the company’s ethical business practices shows where there is room for development.

The following step of validation can be chosen by each participant through an audit, which yields a certificate and a report that can be made public. Interested parties can submit an application on the Oeko-Tex website and choose whether to move forward with the audit after completing a self-evaluation.

The certificate, which has a three-year expiration date and can afterward be extended, comes with annual compliance audits.