Duty of vigilance: A recent international report warns of companies’ non-compliance, particularly in France

The World Benchmarking Alliancehas just published a report analyzing the practices of the 2,000 most important companies on the planet in terms of human rights due diligence. The “alarming” results show companies’ delay in this area, and French companies are far from being an exception to the rule.

The countdown has begun before the European duty of vigilance comes into force. Adopted last April and officially published a few days ago, the European Corporate Sustainability Due Diligence Directive (CSDDD) will gradually require large European companies or those operating in Europe to better respect human and environmental rights throughout their production chains.

Until then, the work of compliance promises to be enormous,as large companies are so far behind on their duty of vigilance.This international study thus reveals significant gaps between company practices and societal expectations in pursuit of a fairer and more inclusive economy.

Although some companies show that good performance is possible, the majority fail to meet fundamental expectations. The report highlights that 90% of the companies evaluated do not even meet half of these expectations. Moreover, only 4% of companies pay a living wage to their direct employees, and less than 1% set this goal for their supply chain.The report also highlights the lack of transparency in companies’ political engagement strategies, with only 11% of them having a public policy on this subject.

Companies based in countries with human rights regulations perform on average 60% better than those in countries without such regulations. Furthermore, those in high-impact sectors perform 80% better than other sectors.Yet even France, a pioneer in regulation, is not spared!

“As for the financial sector, it is particularly behind, as 90% of financial companies have not even begun to implement any human rights due diligence measures.”The report emphasizes the importance of a combination of regulatory frameworks, voluntary guidelines, and collective stakeholder efforts to improve human rights due diligence practices and reduce potential negative impacts on people.

It is to address these regulatory, economic, and reputational challenges thate-Attestationshas deployed an SRPM “Supplier Risk and Performance Management” platform, incorporating advanced modules for managing risks related to labor law and human and fundamental rights.

“It is urgent that the European Commission, the Council of the European Union, and the new European Parliament prioritize the development of essential guidelines to help companies fulfill their due diligence obligations,”analyzes Richard Gardiner (Head EU Public Policy – World Benchmarking Alliance) in the face of this global delay.A project that should keep European institutions and large companies busy for the next three years.

Learn more : Social Benchmark 2024 Insights ReportExecutive summary Source: World Benchmarking Alliance