Addressing the aftermath of disrupted global apparel supply chains during the COVID-19 pandemic, the Responsible Contracting Project (RCP) and Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ) have jointly unveiled the Supplier Model Contract Clauses 1.0 (“SMCs”) to enhance human rights and purchasing practices in the apparel and textiles industry through innovative contracting practices.
The SMCs were recently unveiled on September 19th during a closed-door online meeting of STTI members. These clauses and accompanying documents are available online at the Responsible Contracting Project website: responsiblecontracting.org/smcs.
The SMCs were designed to prioritize the concerns of apparel suppliers, including garment manufacturers. They incorporate various obligations for buyers, such as setting reasonable deadlines, paying prices that support responsible business conduct, aiding suppliers in upholding human rights standards, and minimizing requests for free samples.
The SMCs operationalize three core RCP Principles: a shared commitment to ongoing, risk-based HREDD; supporting suppliers' human rights performance through responsible purchasing practices; and prioritizing victim-centred human rights remediation over traditional contract remedies.
The SMCs act as a practical tool for companies to enhance their contracts and can be adapted, edited and customized. They are based on the UN Guiding Principles on Business and Human Rights (UNGPs) and the Organisation for Economic Cooperation and Development’s Due Diligence Guidance for Responsible Business Conduct (OECD Guidance) and can enhance compliance with evolving human rights and environmental due diligence laws and trade sanctions
The SMCs' development was supported by pro bono counsel from Linklaters LLP and at the request of STTI. The SMCs follow the pan-industry Model Contract Clauses 2.0 (MCCs) released in 2021, which emphasized shared responsibility and human rights due diligence based on global principles.
GIZ's projects, Initiative for Global Solidarity (IGS) and FABRIC, will conduct online and in-person training sessions to promote the SMCs in Europe and Asia. Further promotion is planned at various events, including an in-person event in Bonn (Germany) on November 22 and the annual International Apparel Federation conference in Philadelphia (USA) on October 23-24.
The SMCs are expected to gain traction as companies adapt their contracts to comply with the German Supply Chain Due Diligence Act and prepare for the EU Corporate Sustainability Due Diligence Directive.
Contracts are fundamental in shaping business relationships. The introduction of SMCs represents a significant stride toward upholding human rights and promoting better purchasing practices in the apparel and textiles industry. |
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