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The role of The Netherlandsin international platforms

and supranational bodies oninternational CSR matters

February 2019

The role of The Netherlands in international platforms and supranational bodies on international CSR matters

3The role of The Netherlands in international platforms and supranational bodies on international CSR matters

1 Conclusions & Recommendations 4

2 Introduction 9

3 The OECD Guidelines for Multinational Enterprises 13

4 The UN Guiding Principles on Business and Human Rights 20

5 International initiatives in the Extractive Sector 23

6 International initiatives in the Garment and Textile Sector 34

7 Extending the Dutch policy approach 49

8 Appendices 55

Table of contents

4 The role of The Netherlands in international platforms and supranational bodies on international CSR matters

Conclusions & Recommendations1

This report evaluates the contribution of The Netherlands to international agreements

and legislation in the field of international corporate social responsibility (ICSR), which

is increasingly referred to as responsible business conduct. This evaluation is part of

a wider evaluation of the Dutch policy on international corporate social responsibility

as developed and implemented between 2012 and 2018.

The scope of this report is focused on the OECD MNE Guidelines, the United Nations

Guiding Principles on Business and Human Rights, and the efforts of the Dutch Ministry

of Foreign Affairs in the Garment/Textile and Extractives sectors. This first chapter

draws the key conclusions based on the learnings across the different subsections of

the report. Each conclusion is accompanied by one or more recommendations.

The first conclusion is not the most important one, yet a semantic one which influences

the language used in the rest of the report.

1.1 The narrative and language around CSR and Responsible Business Conduct are in development.The term ICSR is not used outside The Netherlands and therefore causes unnecessary

confusion. The terms CSR and sustainability are losing ground, often associated with

philanthropy and environmental issues respectively. The term Responsible Business Conduct

is gaining ground, most likely driven by the consistent use of that term by the OECD

Working Party. However, it is always spelled out fully, not abbreviated to RBC. The SER has

also adopted this terminology, progressing from ICSR covenants to RBC agreements.

This new terminology also avoids the use of the unknown term covenants.

No longer use the Dutch terms ICSR and covenants, instead consistently refer to

responsible business conduct and (multi-stakeholder) sector agreements. Spell out

responsible business conduct;

Use the terms CSR and responsible business conduct interchangeably, but always

illustrate what is meant with some examples, to avoid confusion with philanthropy.


Conclusions & Recommendations1

1.2 The Dutch government lacks an overall policy on Responsible Business Conduct.Several policy documents and legislation have been released by different ministries

(CSR Pays off, NAP B&HR, transposition of the EU Non-Financial Reporting Directive, etc),

but they are not explicitly connected to each other or to important international developments

such as the SDGs launched in 2015. As there is no national vision or theory of change, nor

a process for interministerial alignment, there is a risk of fragmentation and inconsistency

across ministries and even across departments within ministries. This is further worsened by

frequent rotation of staff within the relevant directorates of the Ministry of Foreign Affairs.

Develop an overall, government-wide vision on responsible business conduct linked to

the Sustainable Development Goals, with a corresponding theory of change;

Connect a broader set of sustainable development topics into this vision and a

corresponding action plan, including environmental topics (such as climate change and

circular economy) and social topics (such as living wage and labour conditions);

Create a mechanism to regularly connect and align the efforts and people across depart-

ments and ministries. This should not become an administrative burden, but rather focus

on consistency, dilemmas, trade-offs and the prevention of unintended consequences;

Review the policy at least biannually to explicitly address the connection to and

relevance of new important developments (such as the SDGs in 2015).

1.3 The Netherlands is widely acknowledged as a leader in the field of responsible business conduct.Representatives from other countries, NGOs, labour unions and international organisations

credit The Netherlands and the Dutch Ministry of Foreign Affairs for its active contribution to

various international partnerships and initiatives. In addition to the active contributions to

the OECD Working Party on Responsible Business Conduct, the focus on Human Rights and

Sustainable Value Chains and the active role of The Netherlands to finalize the negotiations

for the EU Conflict Mineral Regulation during its 2016 EU Presidency added to this. Other

countries credited for their leadership in this field are France and to a lesser extent Germany.

Continue to leverage the convening power of The Netherlands;

Continue to monitor developments in other countries closely.


1.4 The external perception is that Dutch responsible business conduct policy is predominantly focused on voluntary measures, avoiding legislation as much as possible.This may be caused by the strong focus on the voluntary sectoral responsible business

conduct agreements and the efforts to scale this sectoral approach through partnership with

other national sectoral initiatives. Several of the external stakeholders also commented that

The Netherlands is attempting to scale up the sectoral agreement approach, yet without

always being sensitive to contextual differences in what is possible and perhaps acting a bit

prematurely without adequate proof of its effectiveness.

Consistently highlight the intended smart mix of hard and soft law measures in

responsible business conduct policies and position the sector agreements in that context,

rather than solely focusing on the voluntary sector agreements;

Implement and highlight policy measures to drive uptake of responsible business

conduct by laggard companies, such as exclusion from subsidies, government tenders

and economic diplomacy benefits like trade missions;

Focus on promoting the sectoral, multi-stakeholder approach, rather than striving to

replicate the Dutch sectoral agreements in other countries or at the EU level.

1.5 The responsible business conduct efforts of the Dutch government have led to increased awareness and engagement in companies, but it is too early to assess the impact on the actual conditions in global value chains. Interviews in the business sector indicate that the activities initiated and funded by

The Netherlands have led to increased awareness and engagement among Dutch companies

and the wider MNE business community. They also seem to have contributed to the

development and dissemination of global standards, guidelines and (sectoral) guidance.

Continue to work closely with the OECD Working Party on Responsible Business Conduct,

the EU and other drivers in this field;

Stimulate that they assess the impacts of international agreements and legislation in

global value chains.


1 Conclusions & Recommendations

1.6 The Netherlands’ contributions to the work of the OECD Working Party on Responsible Business Conduct was highly visible and much appreciated. Funding a full-time chair for this working party for five years is seen by many as an exceptional

contribution. Also, all people interviewed credited the strategic insight, commitment and

network of the chair of the working party as instrumental to its effectiveness as well as to

developing sectoral and cross sector due diligence guidance documents and further

development of the NCP system. His role at the OECD also benefited the Dutch Ministry of

Foreign Affairs in its work in this field.

Stay closely connected to the Working Party on responsible business conduct at the

OECD, for example by providing senior staff as support to the incoming chair;

Continue to highlight the relevance of the OECD MNE Guidelines within the context of

increased attention for the SDGs and the UNGPs.

1.7 The Dutch Ministry of Foreign Affairs is well placed to drive convergence across international sectoral initiatives in the Garment/Textile and Extractives sectors.The Ministry has deep, in-house expertise on both sectors and is involved in many initiatives

in both of these sectors. The flip-side of involvement in so many initiatives could be

fragmentation and lack of focus.

For focus sectors, create an overall sector action plan with a sectoral theory of change to

connect the efforts and drive focus and convergence.

“In the field of responsible business conduct, the implementation of Dutch policy is split up across ministries and departments. At times, there is a lack of coherence even within a single ministry. Other countries are struggling with this as well.”

Joseph Wilde, OECD Watch/SOMO

quote


1.8 Despite repeated calls by The Netherlands (in partnership with likeminded countries), the European Commission has not yet updated the EU CSR policy.Within the EU< there are many sub-plans related to responsible business conduct, but these

are not connected. There is opportunity to create a new overarching plan connecting the

SDGs, UNGPs, OECD Guidelines and other initiatives, which would be best addressed at the

EU rather than at the national level. Yet the political will to achieve this seems absent in the

current European Commission.

Continue to partner with likeminded member states to call on the European Commission

for an update to the CSR action plan. In parallel, set an example by working with other

member states to align national initiatives;

Continue to partner with likeminded countries and international organisations to engage

business to take responsibility for their value chains.

1.9 There are many Dutch people active in the Responsible Business Conduct field.This includes Dutch nationals at international organisations such as the ILO, the Business

Industry Advisory Committee to the OECD, CSR Europe, etc. This could potentially backfire

and create a perception that this is too much of a Dutch affair, without the support of

other countries and stakeholders. Also, this could create an overreliance on funding from

the Dutch government.

Always (encourage to) recruit funding and other support from other countries to

broaden the support base.

“The Netherlands should continue to fulfil a pioneering role in this field, even if the European Commission is less engaged. It is well-placed to partner with like-minded states to promote and create stronger obligations for companies.”

Catelene Passchier, FNV/NCP/ILO

quote


2.1 Background and objectivesThis evaluation report is part of the evaluation of the Dutch policy on international

corporate social responsibility (ICSR) as developed and implemented between 2012 and

2018. This evaluation process is coordinated and led by the Policy and Operations

Evaluation Department (IOB) of the Ministry of Foreign Affairs (MFA).

This evaluation reviews Dutch ICSR policy with a clear focus on the role of the Ministry

of Foreign Affairs in the development and implementation of five instruments:

1) sector covenants; 2) frameworks for private sector instruments; 3) frameworks for

procurement by the government; 4) international agreements and legislation;

5) activities of Dutch embassies.

This report is focused on the policy area of international agreements and legislation.

The government has participated in various international, multilateral initiatives with the

aim to promote ICSR, for example by introducing laws, regulations or (voluntary) standards.

In general, such measures aim to create leverage (critical mass) for realising changes in

global supply chains and a level playing field. Agenda-setting initiatives often focus on

specific sectors such as textiles/garments and extractives.

The research should provide answers to the following questions:

What activities have been undertaken by the Dutch government to address international

CSR at the EU, international organisations and other governments?

What has been the relevance of these activities in view of the aim to reduce problems in

global supply chains?

What outputs and (intermediate) outcomes have resulted from these activities? Or what

results are expected from these activities?

What have been positive or negative, unintended effects of these activities?

(e.g. in terms of prices and competition)

How do the outputs/outcomes of the activities compare to the inputs? (efficiency)

To what extent can results of international cooperation and legislation be attributed to

the efforts of the Dutch government? What has been the position and agenda-setting

role of the Dutch government in these initiatives?

How coherent has the Dutch government been regarding its role in international CSR

initiatives? What is the coherence vis-à-vis other policies of the Dutch government,

e.g. on competition?

Introduction2


2.2 Organisation of this reportChapter 1 of this report provides conclusions and recommendations, based on the lessons

learnt from this evaluation process.

Chapter 2 is the introduction to this report, providing information on the background,

objectives, and the structure of the report.

Chapter 3 of this report is dedicated to the support provided to and the dissemination of

the OECD MNE Guidelines and the associated guidance documents. Chapter 4 focuses on

the actions around the UNPGS. The OECD Guidelines and the UNGPs (which are integrated

into the 2011 update of the OECD Guidelines) are the key frameworks on which the

2012-2018 responsible business conduct policy of The Netherlands are based.

Chapter 5 focuses on international initiatives in the extractive sector, followed by

chapter 6 which focuses on international initiatives in the textile and garments sector.

These two sectors were selected as they are focus sectors for The Netherlands and

internationally.

Chapter 7 of this report explores the efforts undertaken by the Dutch Ministry of Foreign

Affairs to internationally extend the Dutch approach on responsible business conduct.

Each chapter is structured the same way, starting with some context to the policy area,

followed by insight into the input and activities of the Dutch Ministry of Foreign Affairs,

as well as the output, outcomes and impacts of each policy area. Where relevant,

these findings are supported by quotes from the people interviewed outside of the

Ministry of Foreign Affairs. These insights are then combined into lessons learnt.

Each chapter closes with an assessment against the evaluation criteria of effectiveness,

additionality, relevance, efficiency and coherence.

Throughout the report, the term responsible business conduct is used instead of ICSR.

Many of the Dutch policy documents use the term ICSR, yet this term is unfamiliar outside

The Netherlands, where the terms responsible business conduct and CSR used more

frequently. The appendices provide a glossary of the terms used and an overview of the

people interviewed in the course of the project. Wherever possible, documents and websites

referenced in this report are included as footnotes on the respective pages of each chapter.


Introduction2

2.3 Methodology and disclaimerThe research was conducted through a combination of desk research and interviews.

After a (desk research) quick scan of a long list of international initiatives in which

The Netherlands played a relevant role, a selection of key instruments and themes was

made in an interactive workshop. Workshop participants included representatives from

the Sustainable Economic Development Department (DDE), the Department of International

Trade Policy and Economic Governance (IMH), the Multilateral Organisations and Human

Rights Department (DMM), and the Inclusive Green Growth Department (IGG) as well as

the Policy and Operations Evaluation Department (IOB).

To be considered for the focus phase, instruments and initiatives had to meet the

following selection criteria.

International/multilateral scope;

With the aim to promote or enforce responsible business conduct;

Dutch Ministry of Foreign Affairs has/had an active stake;

Developed and implemented between 2012-2018.

By placing other key initiatives on a scale ranging from “limited influence of The Netherlands”

to” fully initiated by The Netherlands”, a pattern emerged highlighting the multifaceted work

of the Dutch Ministry of Foreign Affairs to (further) develop initiatives in the textile sector and

around the extraction of raw materials and the elaborate contribution to the dissemination

of the OECD Guidelines. Therefore, initiatives in these two sectors and the OECD Guidelines

were selected for the focus phase of this evaluation research process. By no means does this

selection imply that other initiatives and instruments on the long list are not important,

or that the Dutch Ministry of Foreign Affairs did not influence them as part of the ICSR policy.

A selection was made to warrant an effective evaluation process, yielding insights on the

contribution of The Netherlands to key instruments as well as initiatives in specific,

focus sectors.

The focus phase consisted of a series of interviews within the Ministry of Foreign Affairs,

followed by interviews with representatives from international organisations, other

governments, business and other relevant stakeholders. The business community was

not included in the scope of the stakeholders for this research, as they have less sight of

The Netherlands’ contribution to international developments and frameworks than the

other stakeholders.


The research was conducted by an independent consultant, Marjolein Baghuis of Change in

Context between September and December 2018. This report is not an in-depth academic

study or analysis. It is a policy evaluation report with a limited scope in the instruments and

initiatives researched.

In the policy period under review, due to a change in government, two ministers led the

Aid & Trade agenda. In the external interviews, most people reflected that the policy focus

and objectives seemed unchanged after the change from Lilianne Ploumen to Sigrid Kaag.

Yet several interviewees commented that the personal interest on specific topics seems to

differ substantially, leading to different actions by the two ministers.


3.1 Context The OECD Guidelines are recommendations to companies on themes such as human rights,

labour rights, the environment, consumer interests, corruption, innovation, competition and

taxation1. They provide voluntary principles and standards for responsible business conduct,

hence without strict, legally enforceable requirements.

In 2011, just prior to the policy period under evaluation, the OECD Guidelines were updated.

Besides the financial support of The Netherlands to this revision process, many Dutch

nationals played an important role in the development process. As of the 2011 update, the

OECD Guidelines integrate the United Nations Guiding Principles on Business and Human

Rights (UNGPs). The UNGPs encourage governments to expect from business that they

respect human rights throughout their operations.

The OECD Guidelines and the UNGPs urge business to carry out due diligence. By signing the

OECD MNE Guidelines and the United Nations Guiding Principles on Business and Human

Rights (UNGPs), the Dutch government has agreed to address companies on their behaviour.

Both of these instruments are central to the Dutch policy on responsible business conduct.

In 2013, the OECD Investment Committee established the Working Party on Responsible

Business Conduct. Its mandate is to assist in furthering the effectiveness of the guidelines,

fostering NCP functional equivalence, pursuing the proactive agenda, promoting engagement

with non-adhering countries, partner organisations, and stakeholders, and serving as central

point of information on the guidelines. The proactive agenda includes the development of

sectoral guidance for the extractives, financial, garment and footwear, and agricultural sectors.

1 More information is available on the OECD Responsible Business Conduct website

The OECD Guidelines for Multinational Enterprises

3

“As a small trading nation, The Netherlands understands the need for international standards very well. Fairness is seen to be in the national interest, with consensus and social dialogue providing an enabling environment for trade.”

Dan Rees, BetterWork

quote

http://mneguidelines.oecd.org


The table below provides insight into the objectives of these initiatives, as well as the

financial support by the Dutch Ministry of Foreign Affairs. Details of the activities undertaken

by the Dutch Ministry of Foreign Affairs within the context of these initiatives are provided in

the subsequent sections of this chapter.

3.2 Inputs & activities by the Dutch governmentDuring the policy period under evaluation, The Netherlands invested staff and budget

resources to strengthen both the awareness and the impact of the OECD Guidelines.

From 2013 to 2018, Roel Nieuwenkamp served as the first Chair of the OECD Working Party

on Responsible Business Conduct. During this time, he was based fulltime at the OECD,

yet he remained formally employed by the Dutch Ministry of Foreign Affairs. He was

seconded to the OECD with a clear objective to further the implementation of the OECD

Guidelines and to contribute towards an international level playing field for responsible

business conduct. According to both internal and external sources, he did this extremely

well. He both succeeded in his mission based on the Dutch policy, yet at the same time

he managed to maintain a neutral chair’s role, albeit a very active one.

His activities at the OECD included:

Integrating the OECD Guidelines into international declarations and policies;

Driving the establishment and quality of National Contact Points (NCPs) in OECD

countries, which are important for the implementation of the OECD Guidelines;

Boosting the structural capacity of and support for the responsible business conduct

secretariat within the OECD. This included creating alliances with other countries to

generate broader (financial) support for OECD initiatives;

Creating demand and support for sectoral guidance by involving business and other

stakeholders, and by making smart use of the parallel developments of the Dutch RBC

voluntary agreements and the OECD sector guidance.

Name Main objective Targeting change byFunding by MFA

‘12-‘18

OECD Working Party on Responsible

Business Conduct

Furthering the effectiveness of the OECD Guidelines

Companies headquartered in OECD countries Budget not available

Sectoral GuidanceTailored guidance on due diligence for companies in

specific sectors

Companies in the textile, agricultural minerals,

extractive andfinancial sectors

Budget not available


Besides the investment in the working party chair, The Netherlands also financially

supported the development of sectoral guidance on due diligence for the textile sector,

the agricultural sector and the financial sector and contributed to the OECD Due Diligence

Guidance on Responsible Business Conduct. Furthermore, The Netherlands Ministry is

always well-represented and vocal at meetings around the OECD Guidelines, providing

insights from the Dutch voluntary sector covenants wherever relevant. It shows strong

commitment and interest to join such meetings with a delegation of three to four people.

The Dutch delegations consistently advocate a multi-stakeholder approach, the creation

of a level playing field and the strengthening of the NCPs. However, some of the people

interviewed had the perception that the contribution of the Dutch government is skewed

towards the process side, rather than the content itself.

In addition, The Netherlands’ permanent delegation to the OECD also takes initiative to

regularly convene like-minded countries on the topic of responsible business conduct.

Prior to relevant OECD meetings, the so-called Friends of Responsible Business Conduct

meet to determine a joint strategy. Members of this group include the Ambassadors to the

OECD of countries like Canada, France, Norway, Poland, Switzerland, the United Kingdom

and the United States. The Dutch permanent delegation also successfully called for the

Employment, Labour and Social Affairs and Investment Directorates within the OECD

Secretariat to work together better.


3

“For most working party chairs at the OECD, that role comes on top of another role they have within their national government. It shows very strong commitment from the Dutch government that the chair could dedicate his full attention to this role. He was fully funded by The Netherlands, including an extensive travel budget to promote responsible business conduct and the OECD MNE Guidelines around the world.”

Cristina Tebar-Less, OECD

quote


The permanent delegation at the OECD and the chair of the Working Party on Responsible

Business Conduct worked together with the (Dutch permanent representation to the) ILO

to align and connect the OECD Guidelines and the ILO MNE declaration2. This was also

supported by the Dutch Ministry of Social Affairs. The underlying objective was to ensure

a more coherent set of expectations towards companies and to avoid the establishment of

a parallel system of National Contact Points for the ILO, rather than connecting this to the

OECD NCPs.

The Ministry of Foreign Affairs funds the independent National Contact Point3 and

houses its secretariat. The NCP is tasked with raising awareness of the OECD Guidelines with

businesses, trade unions and non-governmental organisations; and contributing to the

resolution of issues that arise from the alleged non-observance of the Guidelines in specific

instances. The functioning of the Dutch NCP is subject to a separate evaluation and is not

included in this report.

The Dutch Ministry of Foreign Affairs funds OECD Watch4, a global network of civil society

organisations. Its key aim is to inform and advise the wider NGO community on how to

make use of the OECD Guidelines for Multinational Enterprises and its associated grievance

mechanism to achieve corporate accountability and access to remedy.

3.3 The resulting output, outcomes and impactsAs mentioned in the introductory chapter, research on theoutcomes and impact of policy

in this field is extremely limited and even so, results are very hard to attribute to specific

initiatives. This section provides an overview of the outputs generated in the context of

the OECD Guidelines.

Through the outreach efforts of the chair of the Working Party on Responsible Business

Conduct, the OECD Guidelines are now embedded in the work of the UN Working Group

on Business and Human Rights, the European Union institutions, the Council of Europe,

the Association of Southeast Asian Nations and the Organization of American States5.

In 2015, when Germany hosted the G7, the OECD Guidelines were referenced in the

Leaders’ Declaration6.

2 The ILO MNE Declaration (2017), ILO website3 More information is available on the NCP website4 More information is available on the OECD Watch website5 More information on the achievements of the Working Party on responsible business conduct and its Chair available in

A Glass Half Full (2018, OECD, Nyenrode, Netherlands)6 G7 Summit Germany, Leaders’ Declaration, Think Ahead. Act Together (2015)

https://www.ilo.org/empent/areas/mne-declaration/lang--en/index.htm

https://www.oecdguidelines.nl/ncp

https://www.oecdwatch.org/

http://mneguidelines.oecd.org/oecd-guidelines-for-mnes-a-glass-half-full.htm

http://mneguidelines.oecd.org/oecd-guidelines-for-mnes-a-glass-half-full.htm

https://www.g7germany.de/Content/EN/_Anlagen/G7/2015-06-08-g7-abschluss-eng_en___blob=publicationFile&v=3.pdf


To date, 48 governments have committed to create an NCP 7. Through a system of peer

reviews8 and offering other support, the quality of NCPs has increased significantly. In 2017,

both the NCPs and the peer review system were included in the ministerial statement made

by the OECD Council, which is binding for member states.

The Dutch NCP is recognized as an example for other NCPs, extending its impact beyond

Dutch companies.

In five years, the Responsible Business Conduct secretariat at the OECD grew from one

to 15 people. This was made possible by voluntary contributions from individual member

countries as well as structural funding from within the OECD. This not only secures

continuation of the responsible business conduct secretariat, but also makes it less of a

Dutch affair.

Through sector-level multi-stakeholder processes, the text of the OECD Guidelines developed

from negotiated, quite difficult to read guidelines, to more concrete, sectoral guidance

documents. These documents are now available for five sectors: extractives, minerals,

agriculture, garments and the financial sector9. The sectoral guidance for due diligence is

seen as useful and effective, making due diligence more concrete and actionable for

companies in these specific sectors.

7 A list of active NCPs is available on the OECD MNE Guidelines website8 An overview of completed peer reviews is available on the OECD MNE Guidelines website9 An overview of sectoral guidance is available on the OECD MNE Guidelines website


3

“As the OECD is based on economic cooperation, it is seen as an important and business-friendly institution by the business community. It is therefore smart for The Netherlands to continue investing in the OECD and its different instruments.“

Catelene Passchier, FNV/NCP/ILO

quote

http://mneguidelines.oecd.org/ncps/

https://mneguidelines.oecd.org/ncppeerreviews.htm

http://mneguidelines.oecd.org/sectors/


Connecting with the Dutch sectoral agreements allowed for mutual learning and benefitting

from each other’s experience and insights. In May 2018, a cross-sectoral guidance document

on due diligence10 was released, providing advice on how to perform due diligence in practice.

Based on these outputs, the outcome is growing awareness, commitment and action by the

business community in the field of responsible business conduct. And this is expected to

continue growing in the years to come.

3.4 Lessons learnt1. Roel Nieuwenkamp’s network and insight into relevant developments made him

effective for the OECD and The Netherlands. With him moving to a new role outside

the OECD, it will be key to undertake efforts to stay connected to developments in

the Working Party on Responsible Business Conduct.

2. The strong focus on the OECD Guidelines has been very successful for The Netherlands

and the OECD, yet there may be a need to raise and/or maintain the relevance of the

OECD Guidelines in the new narrative which is increasingly dominated by the SDGs

and the UNGPs.

3. There are many Dutch people involved in this field. Some people interviewed felt that

there are perhaps too many and this could backfire. So far this does not seem to be the

case, but it is important to beware of this and always involve people from other countries

to generate a broader support base.

10 OECD, Due Diligence Guidance for Responsible Business Conduct (2018)

“The OECD MNE Guidelines are central to Dutch policy on responsible business conduct, but today they seem to play a less central role in the policies of other countries. The SDGs and UNGPs have become the key frameworks going forward.”

Bernedine Bos, CSR Europe

quote

http://mneguidelines.oecd.org/OECD-Due-Diligence-Guidance-for-Responsible-Business-Conduct.pdf


3.5 Assessment against the evaluation criteriaThe mix of activities and support for the OECD Guidelines and related initiatives are relevant

to improve conditions in global value chains. The work of the chair of the Working Party on

Responsible Business Conduct at the OECD was applauded time and again in the interviews

as highly relevant and effective.

The significant investment by The Netherlands and the chair’s personal effectiveness

were critical (additional) for the effectiveness of the Working Party on Responsible

Business Conduct.

The Netherlands has consistently supported the OECD and the developments to further the

dissemination and impact of the OECD Guidelines. These activities are coherent with each

other and with the overall Dutch responsible business conduct policy.

However, it is too early to assess whether these investments by the Dutch government have

been either effective or efficient in driving change in global value chains and company

behaviour, ultimately impacting people on the ground.


3


4.1 Context The UN Guiding Principles on Business and Human Rights (UNGPs) are a set of guidelines

for states and companies to prevent, address and remedy human rights abuses committed in

business operations11. They were endorsed by the UN Human Rights Council in June 2011.

To promote the effective and comprehensive dissemination and implementation of the

UNGPs a UN Working Group12 was established. This Working Group is composed of five

independent experts, of balanced geographical representation.

As of the 2011 update, the OECD Guidelines integrate the UNGPs. By signing the OECD MNE

Guidelines and the UNGPs, the Dutch government has agreed to address companies on their

behaviour. Both of these instruments are central to the Dutch policy on responsible business

conduct. For the integration of the UNGPs, in 2014, the Dutch government released a National

Action Plan on Business and Human Rights13.

4.2 Inputs & activities by the Dutch governmentThe Netherlands contributes to the work of the Working Group by providing input to the

consultations for its reports that serve as further guidance and interpretations of the UNGPs.

The Dutch Ministry of Foreign Affairs also actively participates in the annual UN Forum on

Business and Human Rights, for example by speaking on panels. Furthermore, the Dutch

Ministry of Foreign Affairs supports other countries in the process to adopt a National Action

Plan on Business and Human Rights, and it has initiated a European peer learning exercise,

which was subsequently organised by Belgium.

During the 2016 Dutch EU Presidency, business and human rights was a prominent theme

on the agenda. In May 2016, a pan-European multi-stakeholder conference Business and

Human Rights was jointly organised by European civil society and The Netherlands to

advance the implementation of the Business and Human Rights agenda of the European

Union and its member states14.

11 More information available on the Business & Human Rights Resource Centre website12 More information available on the UN Human Rights website13 The full National Action Plan is available on the Business and Human Rights website14 More information available on the EU Roadmap conference website

The UN Guiding Principleson Business and Human Rights4

https://www.business-humanrights.org/en/un-guiding-principles

https://www.ohchr.org/EN/Issues/Business/Pages/WGHRandtransnationalcorporationsandotherbusiness.aspx

https://www.business-humanrights.org/sites/default/files/documents/netherlands-national-action-plan.pdf

https://eu-roadmap.nl/


The Netherlands was very active in the formulation of the Recommendation of the

Council of Europe’s Committee of Ministers to Member States on business and human

rights15. Every five years, all Council of Europe members must report to the Committee of

Ministers on the progress of national implementation of the recommendation. The annexes

to the recommendation give substantive suggestions as to how states should fulfil their

duty to protect, how to promote corporate responsibility to respect human rights and how

to ensure access to remedy. In June 2016, the Council of the European Union released

Council Conclusions on Business and Human Rights16. As requested by those conclusions,

the EU Fundamental Rights Agency presented its recommendations on access to remedy

at the EU level in the area of business and human rights in 2017.

Currently, within the United Nations, a legally binding instrument is in development on

Transnational Corporations and other Business Enterprises with respect to human rights17.

This process was initiated in 2014 through a resolution drafted by Ecuador and South Africa,

which was adopted by the UN Human Rights Council. Initially, the European Union did not

support this resolution and therefore did not participate in the first session of the working

group to develop the UN Binding Treaty in 2015. As an EU member state, The Netherlands

was not engaged in the process either. For the second and third session in October 2016 and

2017, the EU was present during the deliberations of the intergovernmental working group.

4.3 The resulting output, outcomes and impactsThe efforts around the UNGPs by The Netherlands have raised awareness of business

and human rights both among EU Member States and business.

Given the complexity and the global nature of issues that are covered by the remit of

business and human rights, The Netherlands made a plea for a joint position in the EU on

the development of the binding treaty. The EU expressed concerns about the mandate of

the intergovernmental working group and brought forward two points:

15 Council of Europe Recommendation CM/Rec(2016)3 of the Committee of Ministers to member States on business and human rights16 Council of the European Union, Council Conclusions on Business and Human Rights (2016)17 More information available on the Business & Human Rights Resource Centre website

The UN Guiding Principleson Business and Human Rights4

https://search.coe.int/cm/Pages/result_details.aspx?ObjectID=09000016805c1ad4

https://ec.europa.eu/anti-trafficking/sites/antitrafficking/files/council_conclusions_on_business_and_human_rights_foreign_affairs_council.pdf

https://www.business-humanrights.org/en/binding-treaty


Any legally binding measure must be based on the UN Guiding Principles on Business

and Human Rights and should serve the goal to further strengthen and implement them;

A legally binding measure must be applicable to all economic actors.

The zero draft that was released in the summer of 2018 did not contain a reference to the

UNGPs and the draft maintains a focus on ‘business activities of transnational character’

rather than the scope of all companies. This raises the question whether the

intergovernmental working group takes the input of the EU into account. As the process

unfolds both The Netherlands and the EU will continue to formulate their positions,

taking into account the promotion of the UNGPs as an important objective.

4.4 Lessons learnt1. The Netherlands has actively raised awareness for the need for governments to address

the topic of business and human rights, especially within the EU.

2. 'The Netherlands contributes to the development process of initiatives stemming from

the UNGPs, in a constructively critical manner, often within the EU context. This is a

different role compared to the support of the further development and deployment of the

OECD MNE Guidelines.

4.5 Assessment against the evaluation criteriaThe actions taken by the Dutch government around the UNGPs in the international context

have a consistent focus on raising awareness of the importance of business and human

rights for governments.

The actions taken – including the plea to develop a joint EU position on the binding treaty

development process - are relevant in the current international context.

On raising awareness and supporting other member states with the development of their

National Action Plan on Business and Human Rights, the activities seem to be both

efficient and effective. It is too early to fully assess the efficiency and effectiveness of the

efforts undertaken around the Binding Treaty as this is still in development. The efforts of

The Netherlands around the UNGPs certainly contribute to the international developments,

yet they are less critical/additional than the efforts around the OECD MNE Guidelines.


5.1 ContextThe 2014 sector risk analysis18 conducted for the Dutch Ministry of Foreign Affairs identified

extractives as a key sector with risks in global value chains of Dutch companies, thus

warranting attention and action from the Dutch government.

From 2011 to 2018, the Ministry of Foreign Affairs has had a Special Envoy Natural Resources.

Initially, this role was focused more on securing a sufficient supply of national resources.

Over time, the focus shifted to also include the promotion of responsible sourcing of

minerals. The institutional priority on this sector was further strengthened by personal

commitment of people in the role.

Key international initiatives related to extractives in which the Dutch Ministry of Foreign

Affairs is involved are:

EU Conflict Mineral Regulation

EU Partnership for Responsible Minerals

Extractive Initiative Transparency Initiative

Voluntary Principles on Security and Human Rights

Natural Stone collaboration between Belgium and The Netherlands

The table on the following page provides insight into the objectives of these initiatives,

as well as the financial support by the Dutch Ministry of Foreign Affairs. Details of the

activities undertaken by the Dutch Ministry of Foreign Affairs within the context of these

initiatives are provided in the subsequent sections of this chapter.

18 KPMG MVO Sector Risico Analyse (in Dutch, 2014)

International initiativesin the Extractive Sector

5

“The Netherlands is very visible in extractive sector initiatives. It has diplomats specialized in extractive issues working on initiatives like EITI and EPRM”

Genevieve Jean van Rossum, French Ministry of Foreign Affairsquote

https://www.rijksoverheid.nl/documenten/rapporten/2014/09/01/mvo-sector-risico-analyse


5.2 EU Conflict Minerals RegulationIn 2014, in reaction to the US Dodd-Frank Act rule on conflict minerals, the European

Commission proposed an integrated EU approach to tackle the trade in minerals being used

to finance armed groups in conflict-affected and high-risk areas19. The European Parliament

wanted to develop a regulation mandating due diligence on conflict minerals incorporating

the OECD Guidelines. However, across the member states, the preferred approach was a

more voluntary approach to due diligence.

5.2.1 Inputs & activities by the Dutch government

The Netherlands used the EU presidency (January-June 2016) to progress the EU proposal

on a Regulation on Conflict Minerals, analogous to the Dodd-Frank Act in the US. The Dutch

Ministry of Foreign Affairs created momentum in the negotiations for this EU regulation

through two main interventions. The Director for International Trade Policy and Economic

Governance visited the majority of European capitals to meet with relevant policy makers to

understand their needs, resistance and acceptance levels. This consensus-seeking process

also involved talks with representatives of the European Parliament and the EU Trade

Commissioner, as well as with NGOs and the private sector.

* There are similar sector agreements for gold and metals. As these are primarily focused on Dutch companies, these are not included in this evaluation track.

° Covered in the earlier chapter on the Dutch contribution to the OECD.

19 The Conflict Minerals Regulation explained, European Commission website


‘12-‘18

EU Conflict Mineral Regulation

Tackle the trade in minerals being used to finance armed

groups in conflict-affected and high-risk areas

Importers of potential conflict minerals


EU Partnership for Responsible Minerals

Better social and economic conditions for mine workers and local

mining communities

Companies operating in the mining sector

2016-2019€ 3.75 million

Extractive Initiative Transparency Initiative

Promote transparencyand accountability in

countries’ managementof extractives

Countries

2011-2014 (EITI)€ 1 million

2017-2020 (EGPS)€ 2 million

Voluntary Principleson Security

and Human Rights

Offer human rights guidance for extractive

sector companies

Extractive sector companies

2013-2019€ 335,000

Natural Stone collaboration with Belgium*

Avoid risks in terms of human rights,

environmental pollution and child labour in natural

stone value chains.

Importers of natural stone

(companies andauthorities)


OECD Due diligence guidance for Responsible

Mineral Supply Chains°

Develop sectoral guidance for due diligence through a multi-stakeholder process

Brands, retailers, suppliers

€ 250,000

http://ec.europa.eu/trade/policy/in-focus/conflict-minerals-regulation/regulation-explained/


To ensure an effective and workable regulation and to avoid a disproportionate burden

on SMEs, the Dutch MFA team set the objective that the regulation should cover 95% of the

imports. In parallel to the conversations between the Dutch Ministry Foreign Affairs and

representatives of 20 member states, the member states were asked to share anonymous

customs data on the number and quantities of imports registered in their country.

Data analysis by the Dutch Ministry of Foreign Affairs showed that in order to cover 95%

of the imported volume, far fewer than 95% of the companies would need to be included.

The analysis led to proposals for thresholds per material covered in the Regulation;

only imports above the threshold are covered. By being pragmatic about the applicability,

the coverage of the regulation is extensive, while not overburdening the SMEs responsible

for the remaining 5% of the imported volume. This also makes the enforcement more

manageable. This policy development process built on the learnings of the implementation

of the Dodd-Frank act in the USA20.

5.2.2 The resulting output, outcomes and impacts

The combination of in-depth, bilateral engagement and data analysis was an effective way

to reach a political agreement on the conflict mineral regulation in the trilogue across the

European Parliament, the European Commission and the Council of the EU. On June 15,

political agreement21 22 was reached. Other key elements that advanced the political

agreement were a transitional period for implementation, focus on conflict finance only

(excluding other topics like child labour and environment) and the development of voluntary

tools to increase the transparency and visibility of due diligence on conflict minerals in

supply chains.


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20 Resource Policy, Exaggerating unintended effects? Competing narratives on the impact of conflict minerals regulation,

Koch & Kinsbergen (2018)21 Political understanding following the 15 June trilogue22 EU Presidency leads to agreement on conflict minerals, Government of The Netherlands website news item 20 June 2016

“Although their initial stance always seems against binding regulation, I was grateful to the Dutch Ministry of Foreign Affairs for bringing the negotiation for EU Conflict Minerals Regulation to an end.”

Judith Sargentini, European Parliament

quote

https://www.sciencedirect.com/science/article/pii/S0301420717302222

https://www.sciencedirect.com/science/article/pii/S0301420717302222

https://mediacentrum.groenlinks.nl/sites/default/files/political%20understanding%20conflict%20minerals%2015-06-2016_0.pdf

https://www.government.nl/latest/news/2016/06/20/eu-presidency-leads-to-agreement-on-conflict-minerals


The political agreement formed a solid foundation for the final version of the regulation.

In November 2016, the text of the regulation and the declarations of the Council and the

European Commission were agreed, and early 2017, the European Parliament and the

Council of the EU adopted the legal text. As of 2021, EU importers of the covered minerals

will need to carry out due diligence on conflict minerals in their supply chains.

This due diligence is mandatory for the 600-800 largest European importers of these

minerals. Partial voluntary due diligence is requested of approximately 900.000 companies

further downstream in the supply chain.

It is too early to assess the outcomes and impact of this regulation as it is not yet in force.

The regulation works across the EU but requires national enforcement. At this moment,

several EU member states are struggling to find or establish an authority to enforce this

regulation. The Netherlands is expected to appoint an authority for this in 2019.

This EU regulation supports those companies already well-underway and has led to more

awareness among the laggards in the industry. It will level the playing field for all EU-based

companies from 2021 onwards.

5.3 European Partnership for Responsible MineralsThe European Partnership for Responsible Minerals (EPRM)23 is a multi-stakeholder

partnership created in 2015 to further better social and economic conditions for mine

workers and local mining communities, by increasing the number of mines that adopt

responsible mining practices in conflict and high-risk areas. It was set up to complement

the EU Conflict Minerals Regulation.

The EPRM brings together government, the private sector and NGOs with the aim to end

unintentional and unwanted financing of armed groups and the abuses that result from this.

23 More information available on the EPRM website

“The current European Commission has developed very few policies in the field of responsible business conduct, except on conflict minerals. The Dutch government actively lobbied for this EU regulation with other member states, finding a balance between different needs, resulting in obligations which seem to be workable for business.”

Winand Quadvlieg, VNO NCW

quote

https://europeanpartnership-responsibleminerals.eu/


It does this by offering business a platform for investigating the origins of their raw materials

and determining whether they have been mined in decent, conflict-free conditions.

Due diligence checks are performed on aspiring member companies. The initial focus is on

tin, tungsten, tantalum and gold or their derivatives, often referred to as 3TG. These are the

same minerals which are included in the US Dodd-Frank Act and in the European Conflict

Mineral Regulation. Over time, EPRM may broader the list of covered minerals to include

other minerals such as cobalt, of which 60% is mined in conflict-affected and high-risk areas.


In addition to driving the political agreement behind the EU Conflict Minerals Regulation,

in 2015, The Netherlands initiated the EPRM. By establishing a community of practice,

EPRM strengthens companies’ capacity to learn about due diligence. Through partnership

and a multi-stakeholder approach, participants can share learnings and aim to achieve

things they cannot do alone.

In setting up EPRM, The Netherlands looked for complementary skills in other partners.

For example, Germany’s technical expertise on monitoring & evaluation and the creation of

supporting infrastructure for the initiative builds on the Dutch initiating and innovation roles.


While The Netherlands initiated EPRM and filled the first chair position, it currently is

supported much more broadly. EPRM is funded by The Netherlands, the UK and Germany.

The European Commission (DG Trade, DG Devco, DG Growth), some large companies and

NGOs are also actively engaged. The secretariat is hosted by The Netherlands (at RVO).


5

“The Dutch government has shown clear leadership on responsible minerals. During its EU presidency, it put responsible mineral sourcing on the agenda and laid the foundation for the EU Conflict Mineral Regulation. The Netherlands actively looked for partners and opportunities to align best practices. It helped spearhead the European Partnership for Responsible Minerals, to which it brought other governments and it hosts the secretariat.”

Leah Butler, Responsible Business Alliance

quote


In 2018, EPRM was chaired by the US-based Vice President of the Responsible Business

Alliance and Director of the Conflict Free Sourcing Initiative within the Electronic Industry

Citizen Coalition. As of 2019, The Netherlands based NGO Solidaridad has taken on the

chair role.

EPRM has developed a strong name and an active network, yet it is too early to really

assess the impact it has had. Most projects have a three-year timeline which have not

gone full cycle. Also, is it very hard to measure the results of awareness-raising activities.

To date, companies do not seem to be taking up due diligence in a structural way, although

this differs across industries. The tech industry was relatively easy to engage, as many

companies have already been working on responsible sourcing for the past decade.

The automotive industry poses more of a challenge. NGOs seem to be more engaged,

in reaction to the lack of engagement of the corporate sector.

In 2020, it will be more clear what outcomes and impact EPRM and its projects have delivered.

In order to have scalable impact in the future, EPRM will need to grow. With more corporate

members and additional countries involved, EPRM would be less dependent on the Dutch

Ministry of Foreign Affairs. The dominant role for The Netherlands on EPRM does raise

questions, as it is not clear to all parties involved whether The Netherlands will continue this

leadership role and funding going forward.

Only a few Dutch companies are involved in EPRM. Some of the people interviewed attribute

this to the companies’ investment in the voluntary RBC agreement on gold.

5.4 The Extractive Industry Transparency Initiative (EITI)EITI24 was first launched by the UK Prime Minister in 2002 to promote transparency and

accountability in countries’ management of extractives. Guided by the belief that a country’s

natural resources belong to its citizens, the EITI established a global standard25 to promote

the open and accountable management of oil, gas and mineral resources. The EITI Standard

requires the disclosure of information along the extractive industry value chain from the

point of extraction, to how revenues make their way through the government, and how they

benefit the public.

24 More information is available on the EITI website25 More information on the EITI Standard is available on the EITI website

https://eiti.org/who-we-are

https://eiti.org/standard/overview



The Netherlands has provided support for EITI in various ways. This includes funding from

early on in the establishment process. The Netherlands actively promotes EITI membership

and the EITI standards to resource-rich developing countries. The Netherlands is also active

in the international board and the working groups of EITI. From 2012 to 2015, the Dutch

Ministry of Foreign Affairs seconded one full time person to EITI. For 2017-2020, the Ministry

of Foreign Affairs also offers financial support for EITI-related projects under the Extractives

Global Programmatic Support Multi-Donor Trust Fund.


This secondment did provide visibility of the Dutch investment in EITI. The role at EITI was

supposed to be a strategic secondment, yet in the end, there was only limited contact with

the Ministry of Foreign Affairs in the Hague, limiting the strategic influence by The Netherlands.

As of 2018, 51 countries were members of EITI26. These are mostly non-OECD countries.

The lack of OECD country members undermines their plea for developing countries to be

more transparent. While The Netherlands actively supported EITI as of 2005, it did not

become an implementing member until 2017, preceded by Norway (2009), the UK (2014)

and Germany (2016). The Netherlands now has to be transparent itself as well. This includes

accountability on gas exploration, fracking plans and the profits derived from the sale of

natural resources such as oil and gas. The Dutch Ministry of Economic Affairs and Climate

Policy is tasked with the collection and publication of the data required by EITI. Some of the

interviewees commented that there seems to be resistance within this ministry to this

transparency requirement.

5.5 The Voluntary Principles on Security and Human RightsThe Voluntary Principles (VPs)27 offer human rights guidance specifically for extractive sector

companies. They comprise of a set of principles designed to guide companies in maintaining

the safety and security of their operations with respect for human rights. Participants in

the Voluntary Principles Initiative – including governments, companies and NGOs – agree to

proactively implement or assist in the implementation of the VPs.


5

26 An overview of the member countries is available on the EITI website27 More information is available on the Voluntary Principles website

https://eiti.org/countries

http://www.voluntaryprinciples.org/



During 2012-2013, the Netherlands chaired the Voluntary Principle Initiative. During this

period, the organisation became a foundation. During the entire period under review,

several Dutch embassies promoted the VPs. From February 2017 to February 2018,

The Netherlands chaired the Voluntary Principle Initiative.

The Netherlands continuously strives to inspire dialogue between companies and civil

society. This fits well with the so-called “polder model”, the Dutch version of consensus-

based economic and social policy development. In the field of extractives, companies and

civil society often refused to be in the same room, let alone engage in dialogue to work on

issue resolution or increased understanding of each other’s point of view. During the year

of chairing the Voluntary Principle Initiative, The Netherlands organized a fieldtrip to

Nigeria during which companies and NGOs jointly visited several ministries, the Nigerian

police, a meeting of the security forces, a mining company and the Shell campus.

During its second year in the chair role, The Netherlands questioned whether it was

worthwhile to continue with the Voluntary Principle Initiative if support from other

constituencies did not pick up.


The focus on the multi-stakeholder approach was successful, both for the organisation itself

and within activities organised, such as the fieldtrip to Nigeria in which both companies and

NGOs participated. It created a stronger sense of shared goals and commitment.

The question raised on commitment by the Dutch chair to discontinue the Voluntary

Principles Initiative sparked a stronger involvement from both companies and NGOs.

Since then, participating companies have supported the initiative more by organizing

conferences and other events; NGOs offered administrative support.

5.6 Natural stone collaboration with BelgiumThe way natural stone is quarried and traded poses risks in terms of human rights,

environmental pollution and child labour. To minimise the risk of such abuses and make the

production and supply chain for natural stone as sustainable as possible, Dutch and Belgian

parties in the sector, NGOs, trade unions and the Dutch and Flemish government are

negotiating an RBC agreement on natural stone28.

28 More information about this process is available on the IRBC Agreements website of the SER

https://www.imvoconvenanten.nl/natuursteen?sc_lang=en


The development of a voluntary agreement for the natural stone sector is part of a wider

series of such so-called RBC agreements (or covenants) in The Netherlands. These are

covered in a separate track of the evaluation process. The agreement for the natural stone

sector is also included in this part of the evaluation because of the partnership with

Belgian stakeholders.

After a scandal about child labour in the supply chain for the cobblestones (kinderkopjes)

in Ghent, the Flemish government engaged the natural stone sector to work on an approach

to avoid such issues in the future. This engagement process included many of the

Dutch companies as well. In parallel, in The Netherlands, preparations were underway for

an RBC agreement on natural stone. The companies from both countries then asked to

investigate the opportunities for a joint approach, so the Dutch and Flemish governments

would have the same expectations of natural stone companies.


Similar to other voluntary sectoral agreements, the Dutch Ministry of Foreign Affairs

financially supports the creation process. It made sense to combine these processes,

rather than develop local guidance in parallel. In addition to the Dutch and Flemish

governments, the process includes the Benelux sectoral organisation (Febenat29),

as well as labour unions and NGOs.


The downside of this partnership is that the process is taking longer than if the scope had

been limited to the Dutch sector, but the scope and the ambition are now set higher.

While the agreement is still in development, pilots have been set up to encourage

companies and the authorities to develop more responsible business conduct practices

when procuring natural stone. These pilots are supervised by a coalition of companies,

trade unions, NGOs and the Dutch government.


5

29 More information is available of the Febenat website

https://www.febenat.be/en/home-2/


5.7 Other Initiatives in the Extractives SectorThe Dutch Ministry of Foreign Affairs has also supported the development of the

OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from

Conflict-Affected and High-Risk Areas30 which is also referenced in the OECD section of

this report. This document was released in 2017 and offers detailed guidance for the textile

and footwear sector. As it was created through a multi-stakeholder approach, it forms the

fundament for due diligence efforts in the sector.

5.8 Lessons learnt on the involvement with the extractives sector1. The various initiatives supported, and the actions taken by the Dutch government to

drive responsible business conduct in the extractives sector include both mandatory and

voluntary measures. This shows that the Dutch policy is not only relying on voluntary

measures to change corporate behaviour.

2. The Netherlands supports many initiatives in the extractive sector, all working towards

a similar objective, yet in different ways. These activities are quite complimentary.

They each target different types of companies, such as EPRM and the VPs for leaders,

OECD Due Diligence Guidance and the RBC agreements for the mainstream/learners and

EU Conflict Mineral Regulation for the laggards. Through EITI, governments are targeted

and reached as well, yet less so in the capacity of regulator or supporter for companies

under their jurisdiction. However, a central vision with a clear theory of change across all

initiatives in the extractives sector is lacking.

3. Across the various initiatives, it is important to broaden the support beyond the Dutch

government and organisations. This process has started, but further support is needed to

make such initiatives less dependent on funding and other support from The Netherlands.

4. There is a clear appreciation for the personal commitment and expertise of the Dutch

experts and diplomats working on the different initiatives in the extractives sector.

5. The various initiatives have raised awareness of issues in the value chain, yet it is too

early to assess the outcomes and impact of these efforts for improve the conditions in

extractives value chains. The EU Conflict Mineral Regulation will take force in 2021

and the natural stone pilots have just started.

30 More information available on the OECD website

http://www.oecd.org/corporate/mne/mining.htm


5.9 Assessment against the evaluation criteriaThe process to gain alignment on the EU Conflict Mineral Regulation was both effective

and additional. The regulation would not have been established as quickly without the

commitment of the Dutch Ministry of Foreign Affairs. However, as the resulting regulation

is based on the (lower) common denominator and very focused in its scope,

it raises questions to what extent it will be effective in driving substantial change in

business practices.

Furthermore, taking the initiative to streamline a development process for European

regulation is seen by some as less consistent with Dutch responsible business conduct

policy, which is often perceived to be primarily focused on voluntary initiatives.

Also, The Netherlands generally looks at responsible business conduct in a much more

holistic, integral fashion, rather than focusing on specific raw materials and related issues.

A noteworthy policy inconsistency is the perceived resistance by The Netherlands to the

accountability required on its own extractive resources as an EITI member state.

This can backfire when the Dutch Ministry of Foreign Affairs is promoting transparency and

responsibility through EITI towards developing countries, while The Netherlands has only

recently started holding itself accountable to the same standards.

Other initiatives supported and actions taken by the Dutch governmental to drive responsible

business conduct in the extractive sector are more consistent with the perceived Dutch

focus on voluntary measures. They all drive awareness of issues in the sector. Yet it is too

early to assess whether the support to initiatives like EPRM, EITI, the VPs and the cooperation

with Belgium on Natural Stone was either effective or efficient in improving the outcomes

and impacts in international extractive value chains.


5


6.1 ContextIn April 2013, the world was shocked by the collapse of Rana Plaza. Over 1100 people died

in this terrible accident. This tragedy sparked a wave of initiatives at the national and

international level to change the conditions in the garment and textile sector.

Similar to the extractives sector, a sector risk analysis31 identified the garment and textile

sector as a key sector with risks in the value chain, thus warranting attention and action

from the Dutch government.

To create an overview of initiatives in the textile value chain and the different possible

interventions, in 2017 the Ministry of Foreign Affairs developed a stakeholder map.

International initiatives in the Garment and Textile Sector

6

31 KPMG MVO Sector Risico Analyse (in Dutch, 2014)

https://www.rijksoverheid.nl/documenten/rapporten/2014/09/01/mvo-sector-risico-analyse


Key initiatives related to textile value chains in which the Dutch Ministry of Foreign Affairs

is involved are:

Bangladesh Accord and the ILO Bangladesh RMG Programme

RBC Agreement on Sustainable Garments and Textile (textile covenant)

Strategic Partnership for Garment Supply Chains

ILO Better Work Programme

EU Flagship Garment Initiative

Living Wage initiatives

Other textile initiatives

The table on the next page provides insight into the objectives of these initiatives, as well as

the financial support by the Dutch Ministry of Foreign Affairs. Details of the activities

undertaken by the Dutch Ministry of Foreign Affairs within the context of these initiatives are

provided in the subsequent sections of this chapter.

6.2 The Bangladesh Textile sectorThe Accord on Fire and Building Safety in Bangladesh was signed on May 15, 2013.

It is a five-year independent, legally binding agreement32 between global brands, retailers

and trade unions designed to build a safe and healthy Bangladeshi ready-made garment

industry. All factories producing for Accord signatory companies are subject to independent

inspections on fire, electrical and structural safety. Governments are not party to the accord,

but they are involved by calling on companies headquartered in their country to adhere to

the Bangladesh Accord and to drive at remediation by the industry. In parallel, the Alliance

for Bangladesh Worker Safety was established, a legally non-binding, five-year commitment

to improve safety in Bangladeshi ready-made garment factories33. The Alliance was initiated

by two US Senators and represents the majority of North American imports from Bangladesh.

More extensive coverage of the activities by the Ministry of Foreign Affairs on responsible

business conduct initiatives in and for Bangladesh is provided in the country study, which

forms a separate track of the evaluation process. As the textile and garment sector is so

prominent in Bangladesh, some of the key initiatives are also included in this report.


6

32 More information available on the Bangladesh Accord website33 More information available on the Bangladesh Alliance website

http://bangladeshaccord.org/about/

http://www.bangladeshworkersafety.org/who-we-are/about-the-alliance



In the aftermath of the Rana Plaza disaster, the Dutch government got actively involved in

improving the safety and labour conditions in the Bangladesh textile sector. Via the strategic

partnership Fair, Green and Global Alliance, The Netherlands funds the Clean Clothes

Campaign34, which is one of the initiators of the Bangladesh Accord. The Dutch government

also actively promoted Dutch brands to adhere to the Bangladesh Safety Accord.


‘12-‘18

Bangladesh AccordImprove safety in

Bangladeshi textile sectorBrands, retailers,

suppliers, governmentNot applicable

Clean Clothes Campaign (via the Fair Green

Global Alliance)

Improving working conditions and

empowering workers in the global garment and

sportwear industries.

Consumers, companies and governments.

2016-2020€ 7.5 million

for the Alliance

ILO Bangladesh Ready Made Garment

Programme

Improve safety and labour inspection in the

Bangladeshi textile sector

Bangladeshi Government, producers

2013-2017: US$ 11 million

2017-2023: US$ 8 million

RBC Agreement on Sustainable Garments

and Textile

Reducing negative social and environmental

impacts in the supply chain by brands active on the Dutch textile market

Companies, industry associations, supported by NGOs

and trade unions

2016-2018€ 1.4 million

Strategic Partnership for Garment

Supply Chains

Verify and improve workplace conditions for garment workers,

together with Fair Wear Foundation, FNV and CNV

Brands, suppliers, governments

2016-2018:€ 32 million

ILO Better WorkProgramme

To improve working conditions in the garment industry and to make the sector more competitive

Governments, global brands, suppliers

2012-2018:€ 17.5 million

EU Flagship Garment Initiative

Initiatives to prevent responsibility of EU based

companies for abuses in garment sector

EU based companies Not applicable

Partnership for Cleaner Textile (PaCT)

Promote cleaner production process in

Bangladesh textile sector

Government, suppliers, brands

US$ 5,5 million

Global Living Wage Coalition

Develop a shared definition of and a

common methodology for living wage

Governments, factories, brands

€ 350,000

OECD Due diligence guidance for Garment

& Footwear sector*

Develop sectoral guidance for due diligence through a multi-stakeholder process

Brands, retailers, suppliers

€ 400,000

Social & Labor Convergence Project

Implement a converged assessment framework to improve

working conditions

Brands, retailers, manufacturers,

auditors, standard setters, governments

€ 95,000

* Covered in the earlier chapter on the Dutch contribution to the OECD.

34 More information available on the Clean Clothes Campaign website

https://cleanclothes.org/about/who-we-are


The Dutch Embassy in Bangladesh created a staff position to support improvements in the

textile sector in Bangladesh. The embassy also played an active role in the start-up phase of

the Bangladesh Sustainability Compact35. This is an agreement between the EU, US and

Canada, in close collaboration with the ILO. This allows these signatories to use its trade

position to press for labour rights in the garment sector.

For the Bangladesh Accord to be effective in the longer term, a strong, independent, local

industrial safety inspectorate is required. The inspectorate needs to be equipped to not only

inspect, but also to suggest improvement programmes and to monitor the progress.

The Dutch Ministry of Foreign Affairs also funded the ILO Bangladesh Ready Made Garment

Programme36, which strengthens the labour inspectorate and the safety program for all

export factories, including those not covered by the Accord or the Alliance.

In 2014, seven trade ministers released a joint statement37 at an OECD meeting to call on

companies under their jurisdiction to adhere to the Bangladesh Accord and to provide

compensation for the victims of the Rana Plaza collapse. The Netherlands played a

convening role for the meeting and the statement.

The five-year Accord ran from 2013 till 2018. In 2018, the Accord signatories decided to

prolong the programme and to prepare a transition for handover to the Bangladeshi

government. Due to the active lobby of the Bangladeshi manufacturers, at this point in

time, the Bangladeshi government does not want to prolong the Bangladesh Accord.

The Netherlands is one of the countries actively calling on the Bangladeshi government

to continue the Accord. In November 2018, Minister Kaag visited Bangladesh and actively

advocated the continuation of the accord during her meeting with Prime Minister Sheik

Hasina. This built on the letter sent by the ambassadors of the EU, US and Canada in

Bangladesh to continue the Accord38.


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35 More information available on the EU website36 More information available on the ILO programme website37 More information available on the Business and Human Rights Resource Centre website38 The letter is available for download on the Dutch government website

http://trade.ec.europa.eu/doclib/docs/2013/july/tradoc_151601.pdf

https://www.ilo.org/dhaka/Whatwedo/Projects/safer-garment-industry-in-bangladesh/lang--en/index.htm

https://www.business-humanrights.org/en/eu-countries-call-for-increased-compensation-for-victims-of-rana-plaza-building-collapse

https://www.rijksoverheid.nl/documenten/brieven/2018/10/23/brief-over-bangladesh-veiligheidsakkoord


At the time of publication of this report, the status of the Transition Accord is still unsure and

is subject to a court case. In December, a judge suspended the case and called on the

parties to resolve this outside of court. The court case will be continued late January.

In the meantime, efforts are underway to find a mutually acceptable compromise.

In September 2016, the Dutch Ministry of Foreign Affairs and the Dutch Embassy in

Bangladesh staged a conference on responsible sourcing39. The conference convened 380

high-profile participants from over 190 organisations, to discuss sustainable versus

unsustainable sourcing and to showcase new sourcing practices that would be beneficial to

all stakeholders in the garment value chain. Amongst the representatives were officials from

the Government of Bangladesh, NGO’s, international organisations, academics, international

buyers and brands, as well as suppliers. The conference showed the negative effects

of intense price competition on the global textile sector. At the conference, the Dutch

Minister for Foreign Trade and Development Cooperation made a plea for fair prices

and living wages.


In 2017, the ILO published an overview of the activities and results of its Improving Working

Conditions in the Ready-Made Garment Sector Programme40. The review makes it clear that

while the programme has delivered many results, the process of enhancing workplace

safety in the Bangladesh garment industry must continue. The project has been extended

until 2023, funded by The Netherlands, Canada and the UK.

The Bangladesh Accord and the associated programmes helped to raise awareness, and

the safety of the workers increased in many factories. The labour inspectorate has started to

increase its capacity. However, the job is far from done. The labour inspectorate is not yet

able to perform its role without donor support from foreign governments. The prices of

garments have not yet gone up substantially, which makes it difficult for suppliers to comply

with requirements for safety and living wages. Especially the more expensive safety

measures are still lacking.

6.3 RBC Agreement on Sustainable Garments and TextileAfter the collapse of Rana Plaza and the signing of the Bangladesh Accord, in many

countries, national voluntary initiatives started to improve working conditions in

international supply chains in the garment sector.

39 More information available in the conference report: Conference on Sustainable Sourcing in the Garment Sector (2016)40 The full report is available on the ILO website

https://www.netherlandsandyou.nl/documents/publications/2016/12/15/report-conference-on-sustainable-sourcing-in-the-garment-sector

https://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/---ilo-dhaka/documents/publication/wcms_614088.pdf


In The Netherlands, the voluntary agreement for the textile sector is part of a wider series

of such so-called RBC agreements (or covenants). These are covered in a separate track

of the evaluation process. The RBC agreement for the Dutch textile sector is also included

in this part of the evaluation because of the recently announced partnership with the

German Textilbündnis.


On 4 July 2016, a broad coalition of businesses and other organisations signed the Dutch

RBC Agreement on Sustainable Garments and Textile (textiles covenant). Its aim is to promote

safety and equality for workers and prevent pollution and animal abuse in production

countries. The core requirement of the agreement is to carry out due diligence according to

the OECD Guidelines. The Secretariat is hosted by the Social and Economic Council of The

Netherlands (SER). The SER facilitated the negotiations that led to the agreement.

The Ministry of Foreign Affairs made funds available to support the Dutch Agreement on

Sustainable Garments and Textile for two years. The agreement stipulates that the garment

and textile sector will cooperate with the government on developing proposals for

long-term funding.

In January 2018, the German Partnership for Sustainable Textiles41 (Textilbündnis.) and the

Dutch Agreement on Sustainable Garments and Textile signed a cooperation agreement42.

The core objective of the partnership is to support companies with the implementation of

due diligence by harmonizing sustainability requirements, as well as promoting cooperation

within the EU and on the ground.


The RBC agreement now covers 48% of the Dutch market and nearly all Dutch brands.

The remaining half the Dutch market is supplied by foreign brands. The voluntary

agreement has helped to raise awareness of the issues and has led to the development of

action plans, policies and guidance, but it is too early to assess whether real improvements

have been realized on the ground43.


6

41 More information available on the Textilbündnis website42 More information available in the news item on the IRBC agreement website43 More information available in the 2016-2017 annual report for the textile IRBC agreement

https://www.textilbuendnis.com/en/

https://www.imvoconvenanten.nl/garments-textile/news/2018/1/duits-nederlandse-samenwerking?sc_lang=en

http://garments-textile-annual-report.internationalrbc.org/en_US/6044/86801/cover.html


Also, it is unclear how much of an effect the voluntary agreement has on the companies

which have not signed the agreement. There is opportunity to increase the outreach to

the foreign brands active on the Dutch market. An evaluation of the voluntary sector

agreement approach is the subject of another evaluation track. A mid-term review of

the textile agreement is foreseen for early 2019.

Most stakeholders in and near the textile sector appreciate the voluntary initiatives

supported by the Dutch Ministry of Foreign Affairs. However, some stakeholders feel that

such agreements are not sufficient – nor easily scalable enough - to have a significant

impact in the global garment and textile value chain.

6.4 Strategic Partnership for Garment Supply Chain Transformati-on with the Fair Wear Foundation and FNV/CNVThe Fair Wear Foundation44 is a non-profit organisation that works with brands, factories,

trade unions, NGOs and sometimes governments to verify and improve workplace

conditions for garment workers in 11 production countries in Asia, Europe and Africa.

Its 80 member companies represent 130 brands sold in 80 countries around the world.

The Strategic Partnership for Garment Supply Chain Transformation is an innovative

programme aimed at improving labour conditions in the garment industry45. It is a five-year

programme, running from 2016 to 2020. It is a joint effort by Fair Wear Foundation,

labour unions FNV and CNV, with support from the Dutch Ministry of Foreign Affairs.

44 More information is available on the Fair Wear Foundation website45 More information is available on the Fair Wear Foundation website

“The sectoral approach used by The Netherlands is unique. It may be difficult to scale up, as in many other countries, stakeholders are unwilling to collaborate in this way. But it is definitely opportune to bring companies together at the sector level and work with them and their stakeholders to identify and work on key sectoral risks.”

Bernedine Bos, CSR Europe

quote

“The textile sector needs a good kick. A string of national voluntary initiatives isn’t even a soft kick, it’s a time-consuming disturbance. That time would be better spent on international initiatives and partnerships. The sector needs scalable solutions, rather than multiplication of national initiatives, which creates administrative burden without clear added value.”

Baptiste Carriere-Pradal, Sustainable Apparel Coalition

quote

https://www.fairwear.org/about/

https://www.fairwear.org/wp-content/uploads/2017/02/FAQ-Strategic-Partnership_-2017.pdf


Projects are being developed in seven garment-producing countries in Asia and Africa.

The strategic partnership focuses on three key labour issues: living wages, gender-based

violence prevention and social dialogue.

The strategic partnership has been successful to address topics such as living wage,

social dialogue and gender-based violence. Due to the involvement of the Dutch Ministry

of Foreign Affairs, the work of the Strategic Partnership is now connected to the

implementation of the voluntary RBC agreement for the textile sector.

6.5 Better Work ProgrammeThe Better Work Programme46 is a partnership between the UN’s International Labour

Organisation (ILO) and the International Finance Corporation (IFC, part of the World Bank).

It brings diverse groups together (governments, global brands, factory owners, and unions

and workers) to improve working conditions in the garment industry and make the sector

more competitive.


From the onset, the Dutch Ministry of Foreign Affairs has supported the Better Work

programme both with funding and expertise. This commitment was recently extended

for another 4 years at € 2.5 million per year. Other donors include the US, Australian,

Swiss, Danish and German governments. The EU will join in the near future.


6

46 More information available on the BetterWork website

“As a donor, the Dutch Ministry of Foreign Affairs is agile. It does not just provide funding. It also really gets involved, bringing expertise into the programme design.”


quote

https://betterwork.org/about-us/the-programme/



To understand the impact of its work, in 2016, the Better Work Programme commissioned

Tufts University to conduct an independent impact assessment47. The impact assessment

demonstrates the causal effect of the Better Work programme on a wide range of working

conditions in garment factories, including the prevention of abusive practices, excessive

overtime and the gender pay gap.

The initial and continued funding by the Dutch Ministry of Foreign Affairs of the Better Work

Programme has made it possible to generate this impact. It also made it possible to generate

support from other governments.

6.6 EU Flagship Garment InitiativeAfter the launch of many public and private initiatives in the garment sector, the European

Commission started informal consultations with Member States on a so-called EU Flagship

Garment Initiative for the garment sector in 2014.


The EU Garment Initiative was taken up by The Netherlands during the EU presidency, but

it did not get as much attention and traction as the developments around the EU Conflict

Mineral Regulation. Neither the Dutch government nor the EU were striving for binding

regulation in the garment sector, although The Netherlands made it clear at the launch of

the EU Garment Initiative that regulation would be an option in the future in case voluntary

initiatives did not generate sufficient progress. This position of the Dutch government was

influenced by the voluntary sectoral approach which had then just started. In the eyes of

some of the people interviewed, the voluntary sector approach is a barrier to legislation,

which they deem necessary.

47 BetterWork impact report, How Better Work is improving garment workers’ lives and boosting factory competitiveness,

Tufts University (2016)

“Part of the Dutch textile sector is actively lobbying against EU regulation for the textile sector. They are using the voluntary sector agreement as a weapon against legislation. The expectation had been raised that there would be a legislation proposal for this sector during the Dutch EU presidency, building on the EU flagship garment initiative. Unfortunately, this was not the case.”

Judith Sargentini, European Parliament

quote

https://betterwork.org/blog/portfolio/impact-assessment/



The Dutch sectoral approach for the textile sector does not mean that The Netherlands has

no interest in collaboration at the EU level. Together with the German government,

it promoted the approach of national textile initiatives and scaling these up to the EU level.

The underlying assumption for this joint promotion is that the EU will not adopt an active

approach without sufficient bottom up pressure from member states. Another assumption is

that any mandatory due diligence requirements stemming from such regulation will still

require support programs for companies, similar to the Dutch and German sector initiatives.


Since the Dutch EU presidency in 2016, there has been limited activity on the EU Flagship

Garment Initiative. The EU has funded several programmes in the textile sector, most

prominently through the ILO. In April 2017, the Commission hosted the first High-level

Conference on responsible supply chain management in the garment sector, bringing

together various stakeholders to discuss such a garment initiative. Through a resolution48

the European Parliament called on the EU to strengthen its existing approach, also by going

beyond voluntary initiatives. The Parliament considers that voluntary initiatives are not

effective enough for addressing human rights and labour rights violations in the sector,

a view which is shared by many civil society groups. However, adopting binding legislation

on due diligence for EU based companies is currently not a priority for the Commission.

6.7 The Bangladesh Partnership for Cleaner Textile (PaCT)By addressing high water, energy, and chemical use through the adoption of best practices

in the textile sector, the Bangladesh PaCT49 drives the long-term competitiveness and

environmental sustainability of the textile wet processing sector. These best practices lead to

declining resource consumption, increasing profits, and an enhanced image in the global

apparel market.


6

48 European Parliament Resolution on the EU Flagship Initiative on the Garment Sector (2017)49 More information available on the PaCT website


https://www.textilepact.net/about-us/what-is-pact.html


PaCT addresses four critical issues in the entire textile supply chain:

Working with leading global brands to adopt environmentally sustainable buying practices

Promoting best practices in textile factories

Addressing sector transformation and regulatory policy gaps, and

Financing resource efficiency projects in textile factories

Led by the International Finance Corporation (IFC), PaCT works in partnership with NGO

Solidaridad, the Embassy of the Kingdom of The Netherlands, global apparel brands and

technology suppliers, textile factories, and the Bangladesh Garment Manufacturers and

Exporters Association (BGMEA).

To date, PaCT has partnered with 200 textile factories to support them with the

implementation of sustainable, resource efficiency projects. These projects have not only

led to savings in resources but are also realizing cumulative cost savings of an estimated

US$ 16.3 million per year for these factories.

6.8 Living Wage initiativesThe focus of certification schemes and standards is often on minimum wage, rather than

living wage. In part this was cause by the lack of a clear definition of living wage.


To further the development of an agreed definition of living wage, The Netherlands

co-funded research by the living wage experts Dr. Richard Anker and Ms. Martha Anker to

develop a universal method to calculate the cost of living50.

Together with the German Federal Ministry for Economic Cooperation, the Dutch Ministry

of Foreign Affairs organized the European conference on living wage51, which took place in

Berlin in November 2013. The resulting Declaration of Intent52 called upon all stakeholders

to “show their commitment to realizing living wages in international supply chains.”

It also provides a “shared understanding of the concept of a living wage and its importance.”

50 More information available on the Global Living Wage Coalition website 51 More information available on the Business & Human Rights Resource Centre website52 More information available in the Declaration of Intent

“The Dutch government is at the forefront of the debate on living wage.”

Baptiste Carriere-Pradal, Sustainable Apparel Coalitionquote

https://www.globallivingwage.org/

https://www.business-humanrights.org/en/european-conference-aims-to-draw-up-action-plan-on-implementing-living-wages-in-asia-berlin-25-26-nov

http://www.irinavandersluijs.nl/site/assets/files/1068/declaration_of_intent_on_living_wages.pdf


In 2016, Germany and The Netherlands co-organized another conference on living wage53,

together with the government of Pakistan. The Asian Living Wage Conference targeted

production countries to raise awareness on setting and enforcing minimum wages.

And to encourage collaboration across production countries and manufacturers to create

more of a level playing field, to avoid a race to the bottom against each other.


The initial study calculated living wage benchmarks for several textile producing countries.

Following this initial study on the definition of living wage, in October 2018, a contract was

signed with the ILO to test and accredit this method for further use. This testing and

simplification of the methodology is funded by The Netherlands.

The conferences did not generate concrete results in the value chains yet, but they did raise

awareness of the topic of living wage among governments of production countries,

manufacturers and brands. In countries like Vietnam, Myanmar, Cambodia and Bangladesh,

the conference may have encouraged governments to raise the minimum wage.

Within the context of the voluntary sector agreement, a living wage strategy was agreed in

October 2018. A training programme is foreseen for 2019, in collaboration with Fair Wear

Foundation and the labour unions FNV/CNV.


6

53 Conference report of the Asian Living Wage Conference, Realising living wage through social dialogue in the Asian textile sector (2016)

“I sometimes wonder about the number of initiatives the Dutch Ministry of Foreign Affairs can support in the field of sustainable garment value chains. Is there enough focus?”


quote

http://www.irinavandersluijs.nl/site/assets/files/1083/asia_living_wage_conference-report-2016.pdf


6.9 Supporting other Sector InitiativesThere are various initiatives driving better working conditions in the textile sector.

The Netherlands supports several of them financially. A selection of these initiatives is

listed below.

The Dutch Ministry of Foreign Affairs has also supported the development of the

OECD Due Diligence Guidance for Responsible Supply Chains in the Garment and

Footwear Sector54, which is also referenced in the OECD section of this report. This document

was released in 2017 and offers detailed guidance for the textile and footwear sector.

As it was created through a multi-stakeholder approach, it forms the fundament for due

diligence efforts in the sector.

The Social and Labor Convergence Project55 aims to bring together unique perspectives

to create an efficient, scalable and sustainable solution for social audits. It wants to create

the first industry-wide framework to assess social and labour conditions, a simple, unified

industry-wide descriptive tool and verification methodology. It was granted seed

funding by the Dutch Ministry of Foreign Affairs. The Netherlands also actively supported

the convergence mission, together with other countries in a similar or more active role.

The Social & Labour Convergence Project has made a strong start to align global

audit systems.

In 2013, the Dutch Ministry of Foreign Affairs and the ILO initiated the Pakistan Buyers’

Forum56, which seeks to improve cooperation across stakeholders towards sustainable

growth of the textile sector in Pakistan. The mission of the Buyers’ Forum is to create

a platform to facilitate and promote discussion on Buyers’ codes of conducts including

national and international law as well as international best practices, and their

implementation in Pakistan. The program is currently led by the ILO and IDH.

The forum is currently shaping three working groups to support the goals of the platform:

a government outreach/public policy working group, an enterprise improvement working

group, as well as one to strengthen communications towards different stakeholders.

The Netherlands also supports various international programmes and NGOs which are

active across several sectors, including the textile sector, such as Solidaridad and IDH.

54 More information available on the OECD website55 More information available on the Social and Labor Convergence Project website56 More information available on the Pakistan Buyers Forum website

http://www.oecd.org/industry/inv/mne/responsible-supply-chains-textile-garment-sector.htm

https://slconvergence.org/

http://buyersforum.info/


6.10 Lessons learnt on the involvement with the garment and textile sector1. The activities of the Dutch Ministry of Foreign Affairs in the garment value chains are quite

coherent. The stakeholder map developed in 2017 provides an overview of the role of

different instruments and initiatives, each targeting different types of stakeholders in the

value chains through different initiatives. However, a central vision with a clear theory of

change is lacking.

2. The different instruments and initiatives mostly focus on front-running brands and more

mainstream companies which are just starting to work on improving their value chains.

In parallel, initiatives are taken (or funded) to engage governments in the garment

producing countries, which can - over time - also reach brands and other companies

lagging behind.

3. The Netherlands supports many initiatives in the textile sector, all working towards a

similar objective, yet in different ways. It is unclear whether The Netherlands therefore

adds to an unnecessary proliferation of initiatives or is instead well-placed to influence

and align different initiatives and to encourage convergence and partnership between

the different initiatives. Through the Social & Labor Convergence Project, the Dutch

Ministry of Foreign Affairs does support alignment and convergence.

4. There is a clear appreciation for the personal commitment at both the political and staff

levels working on driving change in textile value chains.

5. Through the extensive investment in more sustainable textile value chains, awareness

of issues has been increased and some initial results have been achieved, yet it is unclear

how much the situation has really improved for the workers in the sector.


6


6.11 Assessment against the evaluation criteria of the initiatives (supported) in the garment and textile sectorThe various initiatives supported, and the actions taken by the Dutch government to drive

responsible business conduct in the textile sector have a consistent focus on the working

conditions in production countries. And while The Netherlands does not rule out legislation

to drive more responsible business behaviour, all initiatives supported in the textile sector

are voluntary measures.

These initiatives are very relevant within the current context of the textile sector. They drive

awareness of issues among different parties in the sector. Yet for most initiatives, it is too

early to assess whether the support to these initiatives was either effective or efficient to

improve the impacts in international textile and garment value chains.

As the Dutch government was often (among) the first to provide financial support to these

initiatives and organisations, the support has been described as critical (or additional).

Early support by the Dutch government also helped secure funding from others as well.

By spreading the funds and efforts across so many organisations and initiatives, a question

could be raised on the effectiveness. It is unclear whether this adds to the proliferation of

sector initiatives, or instead that this puts the Dutch government in the ideal position to

drive connection and alignment across these initiatives.

Lastly, while the international responsible business contact initiatives taken and supported

by the Dutch Ministry of Foreign Affairs seem consistent with each other, there is opportunity

to streamline policies with other ministries and the EU.


7.1 ContextInternationally, The Netherlands is quite visible in the field of responsible business conduct.

Because of its active stance, it is often seen as one of the leading countries in this field.

Besides working on specific frameworks (like the OECD Guidelines) and sectors

(like extractives and textile) in the international arena, The Netherlands Ministry of Foreign

Affairs also invests in sharing insights about its approach. The underlying objective for this

approach is the creation of a more level playing field.

7.2 Inputs & activities by the Dutch governmentIn December 2015, just prior to the EU presidency by The Netherlands, the Ministry of

Foreign Affairs organised an international conference on the EU and sustainability in

global value chains57. At this conference, Dutch policy makers shared the Dutch consensus

model with other countries and the EU.

This focus on making global supply chains more sustainable continued during the

2016 EU presidency by The Netherlands. This was a positive agenda focus area for the

presidency. In May 2016, The Netherlands Ministry of Foreign Affairs partnered with several

NGOs to stage a conference on Business and Human Rights. In the conclusions58, the

conference hosts call on the EU and member states to promote human rights due diligence

57 More information is available on the EU and Global Value Chains conference website58 EU Conference on Business and Human Rights, Conclusions of the hosts (2016)

Extending the Dutch policy approach

7

“The Dutch government is progressive and proactive with regards to sustainability. This is recognized not just in Europe but globally. It wants to leverage global ideas and make them scale.”

Baptiste Carriere-Pradal, Sustainable Apparel Coalition

quote

“The Dutch Ministry of Foreign Affairs is active in different areas of CSR, Business and Human Rights or responsible business conduct, with an international outlook. This is visible in the EU, UN and OECD context.”

Genevieve Jean van Rossum, French Ministry of Foreign Affairs

quote

https://www.euandgvc.nl/

http://eu-roadmap.nl/wp-content/uploads/2016/05/Conclusions-of-the-hosts-BHR-Conference-11-MAY-2016.pdf


by the private sector through different instruments such as multi-stakeholder agreements

and company law. Their conclusions also call for the strengthening of the OECD National

Contact Points and stress the importance of the UNGPs.

At the World Trade Organisation, in 2017, the Dutch Permanent Representation initiated

the Strategic Dialogue on Responsible Business Conduct in Global Value Chains.

It brings together leaders from relevant Geneva-based organisations like the World Trade

Organisation, (WTO), the International Labour Organisation (ILO), United Nations Conference

on Trade and Development (UNCTAD), International Trade Centre (ITC), World Business

Council for Sustainable Development (WBCSD) and some country representatives.

The initial meeting was hosted by The Netherlands. Follow-up meetings have been hosted

by the WTO and WBCSD.

Purpose of the strategic dialogue is to create shared ownership across organisations at

the leadership level, in order to stimulate a more integrated approach across organisations.

It focuses on:

The opportunities offered by the SDGs for further (inter-agency) collaboration;

Better linking and scaling up national and international, public and private approaches;

Fostering awareness and outreach around such approaches.

Prior to this strategic dialogue, the Permanent Representation in Geneva already started to

build bridges across different initiatives and organisations. This included encouraging the WTO

and UN organisations to connect and integrate each other’s programs and content more.

Over the past two years, the Dutch approach, including the voluntary sector agreements,

has been presented at the UN Forum on Business and Human Rights in Geneva. A relatively

large delegation from The Netherlands joins this forum every year, including representatives

from companies, NGOs, the National Contact Point and the Socio-Economic Council.

Meetings have been held at WTO and WBCSD.

“The Netherlands has taken a lot of initiative. It has made good use of the convening power generated through its EU presidency, thereby creating momentum that still continues today.”

Alette van Leur, ILO

quote

“The Netherlands has a strong, unequivocal voice that trade must incorporate responsible business conduct. Even though it is not part of the G7, or even the G20, it is able to influence other governments by forming partnerships.”


quote


On October 30, 2018, the Ministry of Foreign Affairs of The Netherlands, the European

Economic and Social Council (EESC) and the Social and Economic Council of

The Netherlands (SER) co-organized the conference Sustainable Development Goals and

Initiatives for Sustainable Value Chains59. The main goal of the conference was to raise

awareness on how varying types of initiatives, actions, policies, and laws can encourage

and ensure responsible business conduct and thereby contribute to the achievement

of the SDGs, and to develop follow-up actions for upscaling these to EU-level.

The event attracted 250 people, from different countries and different stakeholder

constituencies. The plenary sessions included high level keynote speakers from the

European Commission, the Dutch Ministry of Foreign Affairs and the United Nations.

The afternoon workshops focused on four sectors: textile, banking, extractives and

agro-food. The Dutch organizers wanted to raised awareness of Dutch initiatives,

but also gain insight on other develops and find ways to collaborate across the various

initiatives to jointly create a level playing field.

Another objective was to connect the OECD Guidelines and the UNGPs to the Sustainable

Development Goals, which have become increasingly important both for the Dutch

government and Dutch business. The event explicitly positioned responsible business

conduct / CSR as a key way to deliver on the Sustainable Develop Goals.

7.3 The resulting output, outcomes and impactsThe strong efforts by the Dutch government to extend its approach to other (EU) countries

receives mostly positive reactions.

Yet at the same time, because it is so visible, it also places The Netherlands’ own policies and

practices under closer scrutiny. An example is the perceived resistance of The Netherlands

to join EITI as a full member, rather than telling developing countries what to do as

a supporter of the initiative.


7

59 More information is available on the conference website: SDGs and Initiatives for Sustainable Global Value Chains

https://www.eesc.europa.eu/en/agenda/our-events/events/sdgs-and-initiatives-sustainable-global-value-chains


The 2015 conference on the EU and sustainability in global value chains resulted in

declarations on palm oil60 and agro-commodities61, as well as a set of conclusions drawn

by The Netherlands as the conference host62. These conclusions focus on the role of the

EU in making global value chains more sustainable, the multi-stakeholder approach, and

the crucial link between aid and trade. As the conference also brought together the different

EU ministers for development and trade, it made a clear statement about the need for a

more integrated approach.

At the 2018 Sustainable Development Goals and Initiatives for Sustainable Value Chains

conference, there was general agreement on the need for a more harmonized

European approach, and there was a repeated call for an EU Action plan on responsible

business conduct. The participants did not have a unified idea on the optimal balance

between legal and voluntary measures.

In general, other countries are interested to learn about the Dutch multi-stakeholder

approach. The Netherlands is appreciated for its leadership, its convening power and its

continuous drive for international collaboration and the use of international, harmonized

frameworks and tools.

60 The Amsterdam Declaration in Support of a Fully Sustainable Palm Oil Supply Chain by 2020 (2015)61 The Amsterdam Declaration ‘Towards Eliminating Deforestation from Agricultural Commodity Chains with European Countries’ (2015)62 EU and Global Value Chains Conference: Conclusions by the host (2015)

“The Netherlands has really made a difference in the field of responsible business conduct, perhaps more so than they realise or get credit for. At the same time, Dutch policy makers should not become too self-centred and keep a close watch on interesting developments elsewhere.”

Alette van Leur, ILO

quote

“For Germany, The Netherlands is an important ally to drive the responsible business and human rights agenda at the international level. We see and frame issues quite similarly, yet we may take different approaches in our policies. For example, the comprehensive covenant approach is not (yet) as relevant in the German setting.”

Holger Dreiseitl, German Federal Foreign Office

quote

https://www.euandgvc.nl/documents/publications/2015/december/7/declarations-palm-oil

https://www.euandgvc.nl/documents/publications/2015/december/7/declarations

https://www.euandgvc.nl/documents/publications/2015/december/7/conclusions-by-the-host


However, the multi-stakeholder approach so common in the Dutch processes (polderen)

cannot easily be copied in all EU countries. Some of the people interviewed felt that the

Dutch Ministry of Foreign Affairs was somewhat insensitive to the fact that this approach is

less applicable in Mediterranean and Eastern European member states. In these countries,

it is unlikely that labour unions, NGOs and companies will take place at the same table.

Also, for smaller economies, the national sectoral approach may not work in all key sectors,

as certain sectors may not have a significant number of headquarters in these countries.

In larger countries, the physical distances between key players will limit the ability/

willingness to meet regularly, which is needed to build trust and a shared vision.

And as the multi-stakeholder approach is not easily implemented in all member states,

the voluntary approach is not easy to implement for the EU.

Despite repeated calls by The Netherlands, other governments and other parties for an

updated EU action plan on CSR, this has not yet been created.

7.4 Lessons learnt1. The Netherlands is perceived as a country stimulating the multi-stakeholder approach,

with power to connect and convene different types of parties and partners.

2. While multi-stakeholder approaches are applicable everywhere, the Dutch approach

with voluntary RBC agreements (covenants) is not seen as relevant or possible in all

other countries.

3. The Dutch government is perceived to focus mostly on voluntary measures and soft law,

compared to countries like France which implemented a law obliging large companies to

have a due diligence plan in place and to report on progress.


7


7.5 Assessment against the evaluation criteriaWhile there is certain interest from other countries to learn more about the voluntary

sectoral initiatives in The Netherlands and cross border partnerships have been established

with Germany (textiles) and Belgium (natural stone), it is not yet clear whether the efforts to

extend the Dutch responsible business conduct approach are effective.

Many of the people interviewed were concerned that the Dutch multi-stakeholder sectoral

approach may not be relevant in many countries (yet), hence questioning the relevance and

efficiency of the efforts to extend the Dutch approach to responsible business conduct.

And while the promotion of the Dutch approach and activities by the Dutch Ministry of

Foreign Affairs are coherent, they may not always be fully consistent with other elements

of government policy visible to others, such as its international tax policies.

“The Dutch Ministry of Foreign Affairs consistently supports and levers the OECD MNE Guidelines. There are many initiatives in the garment sector, bringing this together in an OECD forum is very useful.”


quote


Appendices8

8.1 Glossary of terms and abbreviations

3TG: tin, tungsten, tantalum and gold or their derivatives, the minerals in scope of

the EU Conflict Mineral Regulation

B&HR: Business and Human Rights

Covenant: voluntary sector agreement

CSO: Civil Society Organisation

CSR: Corporate Social Responsibility (MVO)

EEAS: European External Action Service, European Union’s diplomatic service

EITI: Extractive Industry Transparency Initiative

EPRM: European Partnership for Responsible Minerals

EU: European Union

ICSR: International Corporate Social Responsibility (IMVO in Dutch)

IDH: the sustainable trade initiative (Instituut Duurzame Handel)

ILO: International Labour Organisation

IOB: Policy and Operations Evaluation Department of the Dutch Ministry of Foreign Affairs

MFA: Dutch Ministry of Foreign Affairs

MNE: Multinational Enterprise

NAP: National Action Plan on Business and Human Rights

NGO: Non-Governmental Organisation

OECD: Organisation for Economic Cooperation and Development

OECD MNE Guidelines: OECD Guidelines for Multinational Enterprises, also referred to

as the OECD Guidelines

RBC: Responsible Business Conduct

RVO: Netherlands Enterprise Agency, a government agency stimulating entrepreneurs

in sustainable, agricultural, innovative and international business

SDGs: Sustainable Development Goals

SME: Small and Medium-sized Enterprise

UN: United Nations

UNGPs: United Nations Guiding Principles on Business and Human Rights

VPs: Voluntary Principles on Security and Human Rights

WBCSD: World Business Council for Sustainable Development

WTO: World Trade Organisation


8.2 Contributors to this evaluation projectThis project would not have been possible without the support of the IOB team at

the Dutch Ministry of Foreign Affairs, nor without the many people listed below who

generously shared their time, insights and further documentation.

Dutch Ministry of Foreign Affairs

Elsbeth Akkerman: currently Ambassador to Vietnam, previously Head of Economic

Affairs at the Dutch Permanent Representation to the World Trade Organisation,

the UN and other International Organisations

Jan Pieter Barendse: Focal Point Raw Materials

Wouter Biesterbos: First Secretary, Economic Affairs Division at the Permanent Mission of

the Kingdom of The Netherlands to the United Nations, previously Regional Director at EITI

Ton Boon von Ochssee: previously Program Lead on International Corporate Social

Responsibility Agreements

Tjalling Dijkstra: Strategic Trade Policy Advisor

Iona Ebben: Senior Policy Officer Business and Human Rights

Marthe Harkema: Senior Policy Advisor on International Responsible Business Conduct

Marjoleine Hennis: Counsellor Social Affairs and Employment, Responsible Business

Conduct and Gender Issues at the Permanent Representation of The Netherlands to

the OECD.

Jos Huber: Senior Policy Advisor

Dirk-Jan Koch: currently Chief Science Officer, previously Special Envoy Natural Resources

Kirsten Kossen: Senior Policy Officer International CSR

Roel Nieuwenkamp: currently Ambassador for Argentina, Uruguay and Paraguay,

previously Chair of the OECD Working Party on Responsible Business Conduct

Ronald Roosdorp: Director for International Trade Policy and Economic Governance

Marjan Schippers: Strategic Policy Advisor European Integration Department,

previously Deputy Trade Director and Head of International Responsible Business

Conduct Division and Head of International Cooperation & Trade at The Netherlands

Permanent Representation at the EU.

CSR Europe

Bernedine Bos, Director Services at CSR Europe, previously Programme Manager

International Relations and Sustainable Market Development at MVO Nederland

Dutch Ministry of Economic Affairs and Climate Policy

Elske van Efferink: Senior Policy Advisor, previously worked for Ministry of Foreign Affairs


A representative of the European Commission (anonymous)

European Union External Action Service

Guus Houttuin, Senior Advisor Trade Issues, MSG Chair

European Parliament

Judith Sargentini, Member of the European Parliament

Maayke Cramers, Parliamentary Assistant at the European Parliament

FNV

Catelene Passchier, member of the Dutch NCP, Chair of the Workers Group at the ILO,

board member at Fair Wear Foundation, Special Advisor to the President at labour union

FNV (previously responsible for international CSR field at FNV)

French Ministry of Foreign Affairs

Genevieve Jean van Rossum, Special Representative for Bioethics and CSR

German Federal Foreign Office

Holger Dreiseitl, Deputy Head of Division Business and Human Rights

ILO

Alette van Leur, Director Sectoral Policies Department, International Labour Organisation

Dan Rees, Director Better Work Programme, International Labour Organisation

OECD

Cristina Tebar-Less, Head of Responsible Business Conduct Unit at the OECD

OECDWatch

Joseph Wilde: Senior Researcher Centre for Research on Multinational Corporations,

Coordinator of OECD Watch

Sustainable Apparel Coalition

Baptiste Carriere-Pradal, Vice-President, Europe

Socio Economic Council of The Netherlands

Jan van Wijngaarden: previously worked for Ministry of Foreign Affairs

Pierre Hupperts: Independent chair of the RBC agreement for the textile sector,

partner at The Terrace, chair of Social & Labor Convergence Project

VNO-NCW

Winand Quaedvlieg: Head Brussels Office Confederation of Netherlands’ Industry

and Employers, VNO-NCW, Permanent Delegate at BusinessEurope, chair of the

International Investment and Responsible Business Conduct Committee at BIAC

Appendices8


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http://www.europarl.europa.eu/legislative-train/theme-europe-as-a-stronger-global-actor/file-eu-garment-initiative

http://www.europarl.europa.eu/legislative-train/theme-europe-as-a-stronger-global-actor/file-eu-garment-initiative

https://ec.europa.eu/growth/industry/corporate-social-responsibility_en

https://ec.europa.eu/taxation_customs/business/tax-cooperation-control/administrative-cooperation/enhanced-administrative-cooperation-field-direct-taxation/country-country-reporting_en

http://www.responsiblemines.org/en/our-work/standards-and-certification/craft/



https://www.government.nl/topics/european-union/the-netherlands-eu-presidency

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http://mneguidelines.oecd.org/due-diligence-guidance-for-responsible-business-conduct.htm



https://mneguidelines.oecd.org/mining.htm



http://www.oecd.org/daf/inv/mne/stakeholder-engagement-extractive-industries.htm

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http://mneguidelines.oecd.org/responsible-supply-chains-textile-garment-sector.htm



https://mneguidelines.oecd.org/rbc-agriculture-supply-chains.htm



https://mneguidelines.oecd.org/rbc-financial-sector.htm



https://mneguidelines.oecd.org/child-labour-risks-in-the-minerals-supply-chain.htm



http://www.oecd.org/tad/xcred/oecd-recommendations.htm

http://www.oecd.org/tad/xcred/oecd-recommendations.htm

http://www.oecd.org/daf/anti-bribery/oecdantibriberyconvention.htm

http://www.oecd.org/daf/anti-bribery/oecdantibriberyconvention.htm


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https://www.rijksoverheid.nl/binaries/rijksoverheid/documenten/brochures/2014/05/28/nationaal-actieplan-bedrijfsleven-en-mensenrechten/nationaal-actieplan-bedrijfsleven-en-mensenrechten.pdf

https://www.rijksoverheid.nl/binaries/rijksoverheid/documenten/brochures/2014/05/28/nationaal-actieplan-bedrijfsleven-en-mensenrechten/nationaal-actieplan-bedrijfsleven-en-mensenrechten.pdf

https://www.unglobalcompact.org/



http://www.gcnetherlands.nl/nieuws

http://www.gcnetherlands.nl/nieuws

https://www.sdgcharter.nl/

https://www.sdgcharter.nl/

https://www.humancities.co/

https://www.humancities.co/

https://www.sdgi-nl.org/

https://www.sdgi-nl.org/




https://www.ictsd.org/sites/default/files/strategic_review_2017_ictsd_final_report.pdf

https://www.ictsd.org/sites/default/files/strategic_review_2017_ictsd_final_report.pdf


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https://www.ilo.org/dyn/normlex/en/f?p=1000:11110:0::NO:11110:P11110_COUNTRY_ID:102768

https://www.ilo.org/ilc/AbouttheILC/lang--en/index.htm

https://www.ilo.org/global/topics/decent-work/lang--en/index.htm

https://www.weforum.org/system-initiatives

https://www.weforum.org/system-initiatives



http://www.landgovernance.org/about-us/



https://landportal.org/organization/land-governance-multi-stakeholder-dialogue

https://landportal.org/organization/land-governance-multi-stakeholder-dialogue

http://www.responsiblesoy.org/about-rtrs/history/?lang=en

http://www.responsiblesoy.org/about-rtrs/history/?lang=en


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