The pact, which is part of the government’s 2019 national action plan on due diligence in a professional environment, is a voluntary measure businesses sign up for. Companies agree to implement certain efforts towards due diligence.
Signatories have to raise awareness on the respect of human rights among staff, for instance, and train them up to help protect them. They should also provide tools to identify infringements against these rights, as well as put procedures in place to address violations. An annual report on the measures put in place is also part of the agreement.
“I am pleased to see that 50 companies have already committed themselves to a joint effort to promote and respect human rights by signing the National Pact on Business and Human Rights, and I hope that many companies will follow suit," Asselborn (LSAP) stated in a press release on 6 July.
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The minister in the past has been criticised for his lack of action regarding due diligence infringements by companies based in Luxembourg such as adult entertainment giant Mindgeek or cyber intelligence company NSO. Referring to such cases, Asselborn had stated his preference for an EU-wide directive, rather than national legislation.
“I have always been committed to the publication of the draft directive,” Asselborn said during the signature of this agreement. “Now we are participating in a committed way in the negotiations for an ambitious result for Luxembourg and we hope that the ongoing work will progress as quickly as possible. With this pact too, companies will be able to prepare themselves now for a future directive on duty of care.”
Business union UEL and the national institute for sustainable development and corporate social responsibility INDR were present at the event.
Companies who have signed the agreement will receive training support from the ministry, as well as an expert review of their annual reports. Among signatories of the pact are the ABBL, the CFL, the Luxembourg Red Cross, Bamolux, Lineheart, Mindforest, SuperDrecksKëscht, LuxConnect and the Luxembourg chamber of commerce.