HREDD - How amfori Services Help you Find Value in Your amfori Membership?



HREDD Context

Since the endorsement of the UNGPs (United Nation Guiding Principles) in 2011 and the publication by the European Commission on "The EU Corporate Sustainability Due Diligence Legislative Proposal", businesses are expected to comply more with responsible business laws. Read here about the position of amfori. As a result, regulators, public buyers, investors, stakeholders, and consumers have growing expectations regarding companies’ responsibility to respect human rights and the environment and remediate adverse impacts.

Expectations regarding the HREDD (Human Rights and Environmental Due Diligence) will increase significantly. amfori offers services and tools that help members in their Due Diligence.

amfori Products: amfori BSCI & amfori BEPI

To align with the ‘responsible business international framework(s)’ which are quickly evolving, we have revamped the amfori environmental programme, the amfori BEPI (Business Environmental Performance Initiative), to enable our members to identify risks in production sites before choosing appropriate mitigation measures. To develop the Environmental Risk Assessment, we used a ‘severity x likelihood’ approach to assess the risk level of each self-declaration and to build the risk scoring system. This is done by allowing members to launch the Risk Assessment on their Business Partner’s site by targeting 8 performance areas.

In the same line, amfori BSCI (Business Social Compliance Initiative) provides our amfori members with guidelines and tools to exercise human rights due diligence in their supply chain. Currently, the revision of the system aims at aligning with the OECD (Organisation for Economic Cooperation and Development) guidelines for responsible business conduct, as well as with the laws and regulations coming from the EU level.

In turn, the amfori members can track the environmental performance (amfori BEPI) and social performance (amfori BSCI) within their supply chains and comply with the legal requirements.

amfori Solutions

We are currently developing a risk mapping tool to complement risk classification. This will be displayed under the amfori Sustainability Platform, and it will allow members to have a more granular view of the risk topic once they have mapped their supply chain.

As part of the amfori Insights platform, our Country Risk Classification supports members in determining the level of risk related to a country’s governance and gives them an overview of that trade and sustainability situation. It therefore helps members understand their supply chain by identifying both potential and actual risks. In addition, members will also be able to find the country's legislation benchmarking, which will guide them to map out their future business path. This will be available in September 2022. More information will be shared soon.

amfori Speak for Change programme - our Supply Chain Grievance Mechanism

Last year in May 2021, we launched the pilot phase of the amfori Supply Chain Grievance Mechanism, the Speak for Change programme. This initiative responded to a clear need, and in some cases, future legal requirement of amfori members. The programme not only aims to provide effective access to remedy, but also effective remedy across supply chains by using the joint efforts of amfori members.

Read all about it in this article.

amfori Stakeholders Engagement Activities

As mentioned at the beginning, it is essential to ensure that businesses comply with the international framework(s). Therefore, on 19 May 2022, amfori held its first ‘Multi-Stakeholder Dialogue on Risks and Opportunities surrounding the European Corporate Sustainability Due Diligence Legislation’. This event brought together a select group of leading experts on business and human rights, policymakers, as well as representatives from business and civil society from Germany and beyond to discuss risks and opportunities surrounding the European Corporate Sustainability Due Diligence legislation. A common concern of companies expressed at the event was how legislation can help them identify and mitigate breaches of rules in their supply chain.

Meaningful stakeholder engagement and constructive dialogue, as well as the involvement of stakeholders in sourcing countries, are crucial to ensure future progress. If you want to know more about our first multi-stakeholder dialogue on HREDD, please visit this page.

amfori Capacity Building Portfolio

amfori invests in capacity building activities to further support amfori members in their human rights and environmental due diligence journey.

If you want to know more about the various capacity building activities on due diligence, please check our website.

To conclude

amfori offers a holistic approach to due diligence through our set of tools and services, as well as continuous improvement programmes designed to support you, our members, in your due diligence efforts. We will regularly inform you about the latest tools and lesilative developments.