Jean Asselborn, Luxembourg's Minister of Foreign and European Affairs; Credit: SIP / Yves Kortum

Luxembourg's Ministry of Foreign and European Affairs has reiterated the government's commitment to strengthening the responsibility of transnational companies.

In a statement issued on Monday, Luxembourg's Minister of Foreign and European Affairs, Jean Asselborn, welcomed the press release published on 11 February 2021 by the “Initiative pour le devoir de vigilance au Luxembourg" (initiative for the duty of vigilance in Luxembourg) announcing the support of 32 companies and the ULESS union (Union Luxembourgeoise de l'Économie Sociale et Solidaire) in favour of a binding duty of diligence making it possible to prevent, mitigate and manage violations as well as the risks of human rights violations. The minister that the Luxembourg government continues to encourage economic players to source responsibly and to put in place effective risk management systems to this end.

Luxembourg's national action plan on business and human rights emphasises the importance of due diligence to prevent human rights violations and environmental damage caused by business activities. In accordance with the 2018-2023 government programme, the Ministry of Foreign and European Affairs commissioned an expert from the University of Luxembourg to conduct a study on the possibility of legislating on the due diligence for companies. This analysis will complement that currently being carried out by the government. The ministry has invited all stakeholders interested in participating in the survey to contact the commissioned expert Başak Bağlayan via email: biz.hrs.lu@gmail.com.

At the European level, in accordance with the priorities established by the government programme, Luxembourg reiterated its committment to a European initiative to strengthen the social and environmental responsibility of transnational companies in the management of their supply chains. The Grand Duchy therefore welcomed the announcement made by European Commissioner Didier Reynders to publish a related draft directive next June. 

The Committee on Legal Affairs of the European Parliament has just adopted a draft legislative initiative report on a duty of care in the supply chain of companies in terms of human rights and the environment, which sets a high level of ambition for the establishment of a credible instrument. Luxembourg confirmed its intention to participate actively in the negotiations of the draft European text in order to promote a binding and demanding European framework, allowing the European Union to play a credible pioneering role within the international community in the protection of human rights.

The European Commission launched a public consultation last October to seek the views of a wide range of stakeholders on sustainable corporate governance. Luxembourg's Foreign Minister welcomed the participation of members of Luxembourgish civil society, including the initiative for the duty of vigilance in Luxembourg in this consultation, the objective of which was to see how companies can better take into account in their business decisions the environmental, social, human and economic impact.