Topic: 2024-Supply Chain Stability
Country: Austria
Delegate Name: Adilyn Petros
A new regulatory framework with regards to supply chains, especially the EU Supply Chain Act, is being introduced by the European Union to which Austria belongs.
The legal framework being pursued by Austria and the EU aims at making companies more responsible for human rights and environmental standards within their supply chains. The initiative aims to put companies under a regulatory spotlight, making sure they compel their suppliers to uphold ethical, environmental, and labor standards. Companies will be expected to proactively identify and mitigate risks in their supply chains, reporting on due diligence efforts and rectifying any violations they uncover.
It is with regard to human rights and environmental impacts that the act will force businesses to adopt a risk management approach, shifting the responsibility from the individual state to the corporation. In addition, the act demands public disclosure of such practices for more scrutiny by different stakeholders, including NGOs, consumers, and regulatory bodies.
Austria, as a member of the UN, has an opportunity to contribute to global supply chain governance through international cooperation and alignment with UN frameworks. Austria has a longstanding tradition of supporting international human rights and environmental initiatives, and this position could be instrumental in advancing supply chain due diligence at a global scale.
The UN has already taken on efforts toward corporate responsibility, like the UN Guiding Principles on Business and Human Rights. These principles insist that companies respect human rights and undertake due diligence procedures to make sure their operations are not found to cause actual or potential harm to the community or the environment. This could typically include Austria’s encouragement of EU businesses to show consistency with UN standards, technical assistance to countries with less-developed regulatory infrastructures, and facilitating communication between corporations and society.
It is through membership in the UN that Austria has an avenue to act on the need for standards on human rights and sustainability into international trade agreements and can facilitate sharing best practices. This role is important, as global supply chains have become highly interconnected, and Austria’s involvement in multilateral forums can help ensure both EU regulations and UN principles are upheld across borders.
Over all, Austria is in a position to use its position within the EU to advocate for the harmonization of regulations between EU member states and UN initiatives. By supporting global supply chain standards, Austria can help create a level playing field for businesses where ethical sourcing will become the rule rather than the exception. Its commitment to sustainability and human rights places the country in a very strategic position to have its voice heard in international deliberations, especially in supply chains characterized by manufacture, agriculture, and technology that are not easy to trace and are liable to exploitation.
Sources:
https://www.bindergroesswang.at/en/law-blog/2023/next-step-towards-eu-supply-chain-act.
https://ascii.ac.at/news/making-disruptions-in-global-supply-chains-visible/
