Workstreams

• Implementing human rights due dilligence into practice
• Respecting human rights in raw material value chains and supply networks
• Establishing a cross-company grievance mechanism

Implementing human rights due dilligence into practice

In the multi-stakeholder process, guidelines on integrating due diligence requirements into business management processes were developed.

Within a working group all members shared their experience and challenges with implementing due diligence in global supply and value chains. A scientific study accompanied the process to identify hurdles in the implementation of due diligence. The sector dialogue identified stakeholder engagement and management approaches for the deeper upstream supply chain as focus topics. Each company developed an action plan addressing one of the focus topics and shared their progress in the multi-stakeholder format.

Due diligence in politically sensitive contexts

In some instances, companies face situations in their value chains in which states do not adequately fulfill their duty to protect human rights or violate human rights themselves. There is sometimes a tension between economically significant relationships and potential violations of human rights. In the context of the thematic focus, experience and recommendations on dealing with human rights risks in certain regions were collected and made available internally to members.

Thematic focus Effectiveness indicators and process proposal

The implementation of human rights due diligence is an ongoing process that companies must regularly review and improve. Within the thematic focus group, a practical guide entitled "Effectiveness of preventive and remedial measures" was published by a service provider. The issue of measuring effectiveness is a relevant topic that members continue to address regarding the action plans.

Respecting human rights in raw material value chains and supply networks

Raw material supply chains present significant social and environmental risks for the automotive industry. They are often complex, with numerous subcontractors in a market dominated by a few key enterprises. This makes it harder for any single company to influence the market as a whole and therefore renders individual measures less effective. However, collaborative action creates an opportunity to bring about far-reaching changes in the interests of those affected by supply chain activities.

The focus of the sector dialogue was on the raw materials copper and lithium. Responsible copper and lithium mining, among other things, constitute an important contribution to the sustainable decarbonisation of Germany’s automotive industry and therefore to its long-term competitiveness. Demand for lithium and copper is forecast to increase by a factor of 18 and 10 respectively as we transition fully to electric drives.

Pilot project copper – Benefits and limitations of voluntary sustainability standards as part of human rights due diligence using the example of the copper supply chain

Using the copper supply chain as an example, the objective of the project was to help enterprises integrate voluntary sustainability standards appropriately into their own due diligence processes and to identify complementary measures. In a first step, criteria and a methodology for evaluating and comparing voluntary sustainability standards were developed with the support of a service provider and applied to two copper standards. Building on this, the project group commissioned an analysis of the extent to which standards can contribute to the prevention of human rights risks in the copper supply chain and when additional measures are required. These were compiled in a Guidance Note for complementary measures by the service provider.

In the form of a Practical Guide "Integrating standards in human rights due diligence" the project group makes its combined findings available to companies.

Pilot project lithium – Dissemination and promotion of cross-country recommendations for responsible lithium mining & recommended actions

The objective of this project was to disseminate and communicate jointly developed cross-country recommendations for responsible lithium mining and recommended actions through a dialogue with external stakeholders. Through the sector dialogue, German automotive firms were able to share their experience of calling on their business partners to implement the recommendations. The project held a series of discussion sessions with external stakeholders – primarily enterprises in the lithium supply chain and both state and civil society actors in mining regions – in order to promote the recommendations, examine specific aspects in more depth and develop greater influence.

The cross-country recommendations for responsible lithium mining and recommended actions were developed in a two-stage process. A final version and a joint, public positioning by the sector dialogue automotive industry and its members took place in September 2023.

Establishing a cross-company grievance mechanism

Grievance mechanisms help enterprises to identify adverse human rights impacts at an early stage and to provide suitable remedy for those affected. Each company is individually responsible for setting up an effective grievance mechanism. In practice, however, implementing this core element of human rights due diligence can be challenging especially in the deeper supply chain. A sector-wide approach allows for the pooling of resources and can support accessibility along the value chain. Against this background, the sector dialogue developed a concept for a cross-company grievance mechanism in Mexico, given that many German automotive companies operate in the country and had identified various human rights risks.

Pilot project – Setting up and piloting a cross-company grievance mechanism for the automotive industry in Mexico

The grievance mechanism designed by the Sector Dialogue was implemented jointly with Mexican partners. A multi-stakeholder board consisting of three German automotive companies, as well as representatives of Mexican and German civil society, trade unions and governments was established. The German Federal Ministry for Economic Cooperation and Development (BMZ) supported the launch of the project.

The pilot of the so-called “Mecanismo de Reclamación de Derechos Humanos” (MRDH) ran from May 2024 to December 2025. During this period, a wide-ranging information campaign was conducted, informing over 100,000 people in Mexico about the mechanism. More than 120 submissions were made to the MRDH's online complaints portal. Seventeen complaints were declared admissible under the rules of procedure, and seven of these were resolved.

The cross-company grievance mechanism took into account the entire upstream value chain of the participating companies in Mexico. It complemented the enterprises’ own complaint mechanisms in order to close gaps in human rights protection and accountability. An evaluation of the pilot was conducted to provide insights into the strengths and challenges of the approach. The research report derives recommendations and learnings for the further development of individual and collaborative complaint mechanisms.