EU makes step forward towards tackling commodity driven deforestation and associated human rights abuse

European Parliament responds to EC Communication on forests with call for progressive mandatory due diligence legislation on forest risk commodities

26 Oct 2020

Last week, the European Parliament took an important step towards protecting the rights of forest-dependent peoples and curbing global deforestation caused by unsustainable commodity production, trade and consumption. A majority of MEPs voted in favour of placing mandatory due diligence obligations on businesses and investors whose operations and supply chains are related to the production, harvest or extraction of forest-risk commodities. The report, which contains key recommendations on the need to uphold human rights, comes as a welcome development for indigenous and community leaders and human rights defenders in producer countries who have been calling for many years for EU legislation to ensure that commodity supply chains linked to the EU market are free from deforestation and associated human rights abuses.

The adoption of the report, and the strength of its proposals, have been welcomed by civil society organisations supporting communities impacted by corporate activity and harmful commodity production and trade.

“We support the European Parliament recommending legislative measures to minimise impacts of EU consumption on human rights and forests,” said Angky Samperante of Pusaka (Indonesia).

“We are pleased that the Parliament has recognised the need for a strong accountability regime, including penalties for companies and access to remedy for victims.” Said Angky.

Jean-Marie Nkanda, from Reseau Ressources Naturel in the Democratic Republic of Congo, said “We support the European initiative to regulate supply chains. We are happy that the recommendations support sanctions for companies, without which the regulation won’t change their behaviour.”  

EU consumption must not be linked with deforestation or human rights violations

This legal initiative, which takes the UN’s Guiding Principles on Business and Human Rights as a reference point, sends a clear signal to the Commission about the need to ensure that EU consumption of forest-risk commodities is not associated with the destruction of forests or the violation of human rights. Adopting a rights-based approach, the text looks beyond existing national laws in host states, and introduces sustainability criteria to contribute to EU efforts to comply with international human rights and environmental commitments. Importantly, the Parliamentary report clearly recommends EU consumption of all commodities covered by the proposal must respect the collective rights of indigenous peoples and local communities to lands, territories and resources – both i) lands formally recognised by host states, and ii) customary lands which may not be formally recognised. The Parliament also recognises the precarious role and situation of human rights and environmental defenders on the frontline of the fight against deforestation and other environmental destruction. 

Free, prior and informed consent (FPIC) and redress are essential elements of the legal proposal

Under the proposal, all ‘operators’ placing products on the EU market would need to map and assess their entire supply chain, and can only place commodities on the EU market if they conclude there is a negligible risk that products are linked to deforestation or human rights violations (including production on customary land without FPIC). If deforestation or human rights risks or impacts are uncovered, companies would need take steps to prevent or mitigate the risk or impact, or cease supply, in consultation with stakeholders. Financial institutions funding these activities would also need to undertake due diligence.

For indigenous peoples and local communities in producer countries, another key component of the Parliament’s call for an effective EU legal framework is the provision of redress for harms associated with corporate operations. The report recommends the creation of a civil liability regime, as well as enabling affected parties to challenge corporate non-compliance through both judicial and non-state grievance mechanisms.

Increasing corporate accountability for human rights and environmental harms

The EU Parliament has made a strong and clear statement to the Commission: the proposal, if adopted, would represent a real advance towards strengthening corporate accountability for human rights and environmental harms. It will be important that any regulation retains the proposed flexible and stepwise approach to addressing detected human rights and deforestation risks in supply chains, to ensure the law has a genuine impact on corporate behaviour and contributes to the improvement of human rights.

In order to secure genuine reform of EU supply chains it is now essential that the Commission develops an effective legal instrument based on the Parliamentary recommendations that set out a strong, progressive mandatory due diligence regulation for EU businesses and financial institutions. As the Parliament’s proposal has recognised, the future legal framework now to be compiled by the Commission must align with international human rights commitments, recognising customary land rights and granting effective access to remedies for right-holders affected by commodity-driven human rights violations and deforestation. 

“Indigenous peoples, communities and human rights defenders in producer countries as well as citizens in the EU now look to the Commission to act on this progressive report,” said Almudena Garcia-Sastre, EU Policy and Advocacy officer at FPP.

“It is vital that the Commission ensures that the Parliament’s recommendations on upholding human rights, land tenure security, FPIC and right to remedy are fully incorporated into the legislative proposal for regulating forest risk commodities,” she said.