Emerging regulatory frameworks and due diligence legislation, such as CSDDD, are driving responsible business conduct both in the EU and globally. These legislations aim to raise RBC standards across the entire value chain of companies, with implications for upstream business practices in EMDEs. However, compliance with regulatory frameworks and implementation of RBC standards at the local level in EMDEs remains challenging, particularly in contexts where gaps and misalignments exist between local laws and global standards.
Governments in sourcing countries should work closely with those in EMDEs to facilitate the convergence between domestic policies and relevant frameworks, such as the CSDDD, enhancing national-level compliance and improving market attractiveness in EMDEs.
Key conclusions:
- The misalignment between international BHR requirements and local laws or cultural norms hinders the effective implementation of BHR requirements at the local level. In some cases, even with external support and investment, full compliance remains challenging, particularly in high-risk contexts within EMDEs. More work is needed on linking national BHR laws and policies with EU and other international regulations, to promote responsible business conduct while ensuring alignment with local culture and context.