IAF supports European corporate due diligence at OECD Forum in Paris

The International Apparel Federation (IAF) had participated extensively in the recently held Organisation for Economic Co-operation and Development’s (OECD) Forum on Due Diligence in the Garment and Footwear Sector in Paris, France in February 2023. At the event, the federation expressed its support for European corporate sustainability due diligence legislation, while calling for the legislation to be implemented along the lines set by the OECD’s due diligence guidance, and for effective enforcement, so as to create a level playing field.

This event brought together suppliers, brands, representatives of non-governmental organizations (NGOs), civil societies organisations (CSOs) and governments from all over the world. It was also the first time since the COVID-19 pandemic that an in-person event had been held. The IAF represented the interests of both small and medium-sized brands and garment producers at the event, according to the press release.

International Apparel Federation had been a major participant in the Organisation for Economic Co-operation and Development Forum on Due Diligence In The Garment and Footwear Sector (OECD) in Paris, France on February 20, 2023. There, the Federation expressed support for European corporate sustainability legislation.

IAF, along with several of its global partners in the Sustainable Terms of Trade Initiatives (STTI), stressed that good purchasing habits are essential to due diligence. STTI was a group of 13 organizations representing 10 countries in the garment industry. It was supported by IAF, GIZ Fabric and the Better Buying Institute (BBI). Faruque Hassan, president and CEO of Bangladesh Garment Manufacturers and Exporters Associations (BGMEA), and Matthijs Crietee (secretary general of IAF); Marsha Dickson (president and cofounder) and Lindsay Wright (senior manager for communications at BBI).

“Ironically, the way due diligence is implemented in a supply chain can lead to bad purchasing practices in itself. Corporate sustainability due diligence is inherently a risk sharing exercise and not a risk transfer exercise,” said Matthijs Crietee is secretary general of IAF.

Crietee was also a participant in a panel that was hosted by The Industry We Want and another STTI participant (VITAS), both from Hanoi (Vietnam). Alexander Kohnstamm (executive director of Fair Wear Foundation) moderated the panel. Anosha Wahidi (head of Division of German Federal Ministry for Economic Cooperation and Development) and Joy Roeterdink (head of Corporate Sustainability of Suit Supply), were also present at the Paris panel.

Although due diligence legislation may have some advantages for manufacturers (e.g. better enforcement of purchasing practices), the path to that point is filled with pitfalls.

“Ironically, the way due diligence is implemented in a supply chain can lead to bad purchasing practices in itself. Corporate Sustainability Due Diligence is inherently a risk sharing exercise and not a risk transfer exercise,” added Crietee.

Dr. Liang Xiaohui was part of a panel that looked at ways brands and suppliers can better collaborate to share the cost and responsibilities of due diligence. This included Michael Bride from PVH and Anant Ahuja at Shahi Exports. Sarah Dadush, responsible contracting project at Rutgers Law School.

Dr. Liang talked about STTI’s origins within the Star Network, IAF, and the COVID pandemic, and the coming together of manufacturer associations from different sourcing countries to create a collaborative solution. Dadush highlighted contracts that acknowledge the impact of purchasing practices on human rights outcomes, and commit buyers to supporting their suppliers’ own HRDD performance. Bride asked brands to realize that it was no longer possible to point fingers at suppliers and blame them when something went wrong. She also called for industry change to adapt to increasing regulations.

A few senior sustainability leaders from forward-thinking brands attended the event, however, their counterparts from other departments or senior leadership were absent. Due to the important topic, it would have been a good idea for more manufacturers to attend. Improving purchasing practices requires work that stretches across companies and across supply chains and it is a challenge for all ‘Paris regulars’ to see this reflected in the 2024 Forum’s attendance, added the release.

Fibre2Fashion News Desk NB

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