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Sector Dialogue Automotive Industry

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The automotive sector plays a leading role for Germany’s economy. By integrating sustainability criteria into the procurement process, the sector can directly impact national and international supply chains. Thus, the automotive industry drives wider efforts to create a sustainable global economy. In collaboration with the Federal Ministry of Labour and Social Affairs, stakeholders representing business enterprises, associations, trade unions, civil society organisations and other initiatives collaborate to develop solutions that improve the human rights situation across global supply and value chains.

At production sites around the world, enterprises are working with a network of suppliers to promote decent employment, training, development and economic prosperity. Due to the complexity of their international operations German automotive companies deal with salient human rights risks in their supply and value chains, for example inadequate working conditions, child and forced labour, and environmental damage caused by raw materials extraction. New challenges are emerging as a result of the transformation of the industry, digitalisation, expansion of e-mobility and the increasing demand for specific raw materials. Facing structure-related issues, a joint approach based on industry-wide cooperation can increase impact for companies and rightsholders.

Following a successful development and pilot phase coordinated by the Federal Ministry of Labor and Social Affairs, the members are continuing the sector dialogue automotive industry as part of the UN Global Compact Network Germany.

Information on the topic

Today’s launch of the cross-company grievance mechanism (Spanish: Mecanismo de Reclamación de Derechos Humanos – MRDH) is marking an important step towards a just automotive supply chain ensuring access to remedy for workers and affected individuals in Mexico.

Within the Sector Dialogue Automotive Industry, representatives from companies, non-governmental organizations and politics have developed new frameworks on meaningful use of voluntary sustainability standards.

As of 1 January 2024, companies with at least 1,000 employees are subject to the regulations outlined in the German Supply Chain Act - among them, of course, several automotive suppliers. In their quest for guidance and good practice they - as well as companies from other industries - can benefit from the insights generated by the Sector Dialogue Automotive Industry.