On 12 and 13 March, the Big Buyers Communities of Practice on Social Procurement and Sustainable Solar PV gathered in Stockholm for a training on “Human rights due diligence in procurement”, delivered by business and human rights advisor Kristin Tallbo. The programme also featured an exchange with SwedWatch and Electronics Watch on their experience in identifying and monitoring human rights risks in global supply chains linked to public procurement. Over 15 European public buyers had the opportunity to discuss how to implement due diligence in public contracts across all phases of the procurement cycle. 

The training was framed around a recent assessment study that will soon be published on due diligence in the Public Procurement Directive. The current European legislative framework does not foresee any obligations on public buyers to require due diligence. There is a lack of methodologies, remediation pathways, sustainability baselines and recognised due diligence certifications. This, however, does not reflect the commitments of European public buyers, which are aware of their responsibility as a public entity and they are driven to make sure that human rights are respected across the entire supply chain.

Different procurement phases were covered in the training. For instance, on risk assessments and market engagement, it reflected on the methodologies that public buyers should implement when defining products and risk categories. Some public buyers define high-risk lists and focus on spending, while others apply a tender-specific approach and focus on product risks. This highlighted a key need: Public buyers need a common methodology that they can use to define their own risk categories and that would apply proportionality. The City of Oslo, for instance, adopts a two-pronged approach, setting higher standards for more advanced companies, and basic requirements for a less mature market. 

Selection and awards criteria are a fundamental phase in ensuring that due diligence is reflected in public contracts. These criteria, however, are not intended to evaluate the “quality” of due diligence, but their purpose is to verify the existence of policies and processes. Also in this case, EU countries adopt different methodologies. Some public buyers put more emphasis on the selection criteria and technical specifications such as ESPAP in Portugal, because they are easier to check and due to the framing of framework  agreements. On the contrary, other countries - public authorities, such as Swedish Regions are putting more emphasis on award criteria. The different approaches are due to a different interpretation of the “subject-matter” principle of the Public Procurement Directive that often leads to issues of “interpretation” and might cause a restrictive approach to introducing due diligence in public contracts.  

The training also covered several other key issues, such as how to establish and monitor contract performance conditions, which principles to consider when establishing remediation processes and how to run contract management, such as by self-assessment questionnaires and audits to the suppliers. 

Overall, the training showed public buyers that public procurement has a significant role but an underused potential to advance human rights and due diligence in public contracts. Public buyers were shown what they can do and how. And that the beauty of it is that public buyers don’t compete with each other in  public procurement, and by sharing their resources, they can drive due diligence forward. 

The Stockholm study visit also included an exchange with Electronics Watch and SwedWatch, who presented their approaches to identifying human rights risks and monitoring impacts beyond first-tier suppliers in global supply chains. The meeting included case studies from the textiles and minerals value chains, presentations on monitoring models and guidance for public buyers on how these approaches can be applied in procurement practice. Stay tuned for more updates from the Communities!

If you are interested in the topic, there is also a podcast available on Protecting Workers’ Rights in Supply Chains available in the general Public Buyers Community.