The place of voluntary standards in managing social and environmental risks in global value chains

Abstract

Under the notion of human rights due diligence (HRDD), firms are under a responsibility to account for the social and environmental impact connected to their operations across global value chains. This responsibility intersects with the sphere of operation of voluntary sustainability standards (VSS), that certify production against certain social and environmental criteria. With mandatory European rules on HRDD in the making, the question arises about the extent of alignment of VSS with HRDD notions and, consequently, the possibility for this form of transnational private regulation to complement EU HRDD legislation. After presenting the regulatory effects of HRDD in global value chains and its current transposition in EU instruments, this contribution examines the relation between private standards and HRDD. By delving into the substantive requirements and policies of several schemes certifying agricultural commodities, it studies the extent to which they manage social and environmental risks in global value chains, and their possible support to firms subject to upcoming HRDD obligations.