Competitive Fund for the Promotion of Due Diligence
The German Federal Ministry for Economic Cooperation and Development (BMZ) and INA are promoting promising approaches to fulfilling corporate due diligence with a new competition fund.
- The focus here is on the core topics of the German Supply Chain Act and the forthcoming EU Directive on Corporate Sustainability Due Diligence as well as the forthcoming EU Regulation on Deforestation-free Products.
- Together with the agri-food sector and its suppliers, we want to achieve greater sustainability in global agricultural supply chains and improve the living conditions of smallholders and plantation workers. The focus is therefore on practical implementation on the ground in BMZ's partner countries.
- Projects are funded with a sum of up to EUR 123,000 over a period of up to 12 months.
There is currently no further call for proposals. Further information on the general conditions of the competition can be found here.
If you have questions, please feel free to write to us: ddf(at)giz.de
Background
Many of the products and raw materials that we take for granted in our lives are manufactured or extracted at high risk to human rights and the environment. In June 2021, the German government therefore passed the Supply Chain Due Diligence Act (LkSG), which came into force on January 1, 2023. The law serves to improve the international human rights situation by setting requirements for responsible supply chain management for companies. The aim is to improve the protection of fundamental human rights in global supply chains. Similarly, the EU Regulation on Deforestation-Free Products (EUDR), which came into force on June 30, 2023, aims to prevent deforestation and forest degradation. In addition, the Corporate Sustainability Due Diligence Directive (CSDDD) is being planned at EU level, which will further specify the requirements.
The adoption of the new government regulations presents companies with new challenges. At the same time, the regulations offer the opportunity to make supply chains more transparent and resilient.
The German Federal Ministry for Economic Cooperation and Development (BMZ) and the Initiative for Sustainable Agricultural Supply Chains (INA) support projects to fulfill corporate due diligence obligations in global supply chains: Through the Due Diligence Fund (DDF), companies in the agri-food sector, together with public-benefit partners, can apply for funding. The focus is on the impacts in the production countries.
What is the objective?
We want to identify and financially support promising, practical and innovative approaches to corporate due diligence. We want to show that compliance with the LkSG, EUDR and CSDDD is feasible - even beyond the specified minimum standards.
The focus is on both human rights and environmental due diligence on the ground in the partner countries. Those potentially affected, such as smallholders and plantation workers, should be specifically involved in the design and implementation of the project and benefit from the measures.
Companies should be supported by the DDF to establish and continuously implement sustainable processes in accordance with the regulations. Through monitoring and evaluation of the pilot projects and a public presentation of the results, added value is generated for companies. In this way, best practices or piloted approaches are created, which they can adapt for other or their own supply chains.
Which projects are being funded?
A total of 13 projects will be funded from two rounds of competition. Read more about the individual projects here.