Workshop 2 on cooperation among companies in the due diligence process

The second company workshop on 16 January 2025 in Cologne focused on cooperation between companies in the due diligence process - for example via industry initiatives and audit pooling. Here you can find the key results of the workshop:

Industry initiatives – pooling resources and opening discussion forums

Cooperation through industry initiatives offers many advantages: in secure discussion forums, companies can share practical knowledge and work towards a common understanding or establish shared industry standards. By pooling resources, all participants can reduce their effort and bureaucracy. Through collective action, companies can achieve greater impact along the supply chain, enhance their credibility with stakeholders, and better meet regulatory requirements. Such collaboration initiatives are worthwhile and should (continue to) receive government support.

Finding a suitable initiative

Given the diversity of industry initiatives, companies are advised first to consider their strategy, how they wish to allocate their time and financial resources, and what impact they want to achieve. A thorough review of available options and a good match are essential in finding a suitable initiative.

Potential research sources include industry associations, multi-stakeholder initiatives like industry dialogues, or platforms such as the SME Standards Compass. The experience of business associations can also be very useful in this context. Companies should plan their level of engagement in advance and be aware of the effort involved. New partnerships might be necessary if specific challenges are not adequately addressed. In both cases, collaborative efforts make the most sense when all parties share the same interests. Cooperating with civil society can also be very beneficial and help to build trust and facilitate dialogue with local stakeholders.

Companies – implementing due diligence obligations

Industry initiatives can help identify risks, develop appropriate measures, and improve transparency in supply chains. For instance, the members of the Automotive Industry Dialogue have developed extensive guidelines that both companies and their suppliers can use. However, participation in such initiatives does not relieve companies of their own responsibilities; they remain individually accountable for implementing due diligence measures.

Requests to the Federal Government – inform, network, set guidelines

Many companies feel uncertain and cautious about engaging in industry initiatives due to antitrust concerns. Currently, BAFA is preparing a paper on industry initiatives and antitrust law to offer guidance for companies on the legal framework. Companies can also approach the Federal Cartel Office with specific questions about cooperative projects to receive an expert assessment.

Additionally, companies are seeking information on existing points of contact and expert knowledge. In particular, when it comes to working with countries with weak rule of law, companies see a need for government support to mobilise local actors and governments.

Associations – strengthening and supporting members

There is significant potential for associations to act as service providers for their member companies even more strongly in the future: they can facilitate networking, offer expert advice (for example on antitrust issues), and support the creation of new initiatives. By doing so, associations could foster cooperation among companies to meet due diligence obligations and help create valuable synergies within an industry.