Government announces long-delayed supply chain law in wake of coverage from The Independent

Government announces long-delayed supply chain law in wake of coverage from The Independent Campaigners praise impact of coverage over the the new law, which is is set to compel large companies to monitor and respond to human rights concerns in supply chains - Bookmark - CommentsGo to comments Become an Independent member to bookmark this article Already a member? Log in The government will introduce new supply chain legislation that could be transformative to UK global development efforts, following extensive pressure from aid groups backed by coverage from The Independent. Last year, the previous Labour government launched a review into responsible business conduct policy as part of its Trade Strategy, with the outcome initially expected to have been announced at the end of March. Campaigners had hoped that a “mandatory supply chain due diligence law” would be introduced, which would ensure that suppliers in the developing world – including millions of small-holder farmers that supply things like coffee, tea, and cocoa – would get a fair deal from UK companies. Martin Rhodes, the Labour MP for Glasgow North, has previously told The Independent that reforming supply chain laws will be critical if the UK still wants to continue having a positive impact on global development in the wake of aid cuts. Now, the government has announced that such a law will indeed be introduced, in what is being considered a major win for campaigners. “This is a major step towards fairer supply chains and we welcome it. Farmers and workers should not pay the price for exploitation or irresponsible business practices,” Marie Rumsby, director of advocacy at the Fairtrade Foundation, said. “We have campaigned alongside partners to get this law over the line, including The Independent, which has played a vital role in highlighting the risks facing farmers and workers and the urgent need for [a supply chain] law.” Other pressurising actions include a mass lobby event in Parliament last year, as well as a petition that garnered more than 100,000 signatures. The new law is to require businesses to have appropriate processes in place to identify and address risks, rather than solely on whether a particular harm has occurred. It is also expected to see the creation of a regulator that will investigate concerns raised externally about company conduct or issues associated with particular goods. The announcement comes following extensive reporting pressure from The Independent around current risks in our supply chain risks and the need for stronger action - including risks related to the Super El Niño, the War in Iran, the climate impact on our food systems, and the financial cost of inaction. Eleanor Rosenbach, co-director of the Corporate Justice Coalition, said: “This announcement sends a strong message: corporate impunity is coming to an end. Following years of campaigning for [this] legislation, we welcome this landmark step for the UK, and for victims of corporate harm.” There has, however, been some disappointment that the new law is set to only include risks related to human rights, and not also environmental risks, which is what many people had been asking for. There is also concern that the law will only be applicable to companies with more than £350 million in turnover, potentially leaving some major UK consumer goods players out of the scope of the law. “Leaving out environmental due diligence is dangerous for the future resilience of our supply chains, and our food security,” said Fairtrade’s Rumsby. “For banana growers, human rights and environmental harm go hand in hand. Extreme heat, droughts, floods and increasingly unpredictable weather can devastate crops, spread diseases, threaten incomes and make it harder for farmers to make a decent living.” The Ministry for Business and Trade has been approached for comment. This article was produced as part of The Independent’s Rethinking Global Aid project Join our commenting forum Join thought-provoking conversations, follow other Independent readers and see their replies Comments