Anaid Velasco March 2025 German Law on Due Diligence in the Supply Chain and its Environmental Implications for Latin America and the Caribbean Centro Regional de Transformación Social Ecológica

© Friedrich-Ebert-Stiftung The Friedrich-Ebert-Stiftung, founded in Germany in 1925, is a private and non-profit institution, committed to the ideals of Social Democracy. It was named after Germany’s first democratically elected president, Friedrich Ebert, and continues his political legacy of shaping politics in the spirit of freedom, solidarity and social justice. The Foundation follows this mandate both in Germany and abroad through political education programs, international cooperation, and the promotion of study and research. Centro Regional Transformación Social-Ecológica, 2025 Yautepec 55, col. Condesa, Cuauhtémoc, C.P. 06140, Mexico City Phone:+52(55) 5553 5302 https://fes-transformacion.fes.de/ FESTransformacion FESTransformacion FES_TSE FESTransformacion To request additional publications, please contact: transformacion@fesmex.org Commercial use of all media edited and published by the Friedrich-Ebert-Stiftung is not permitted without written consent of the FES. The views expressed in this publication are not necessarily those of the Friedrich-Ebert-Stiftung. Responsible Dr. Michael Bröning Director of the FES Regional Centre on Social-Ecological Transformation in Latin America Translator Magdalena Palencia Castro Proofreading, layout and design ICO- Inteligencia Creativa ISBN 978-607-8887-35-4

Anaid Velasco March 2025 German Law on Due Diligence in the Supply Chain and its Environmental Implications for Latin America and the Caribbean

Contents Introduction ......................................................  3 Chapter 1. The LkSG and its Environmental Specifications .......................  4 Chapter 2. Scope of the Law for the Protection of the Environment and Human Rights in Latin American and Caribbean countries ..........................  7 Chapter 3. Progress and Additions Approved Through the European Union Due Diligence Law.............................  10 Chapter 4. Conclusions for the Region.......................................  12 Annex ..........................................................  13 References ......................................................  14

Introduction In June 2011, Germany passed the Law on Corporate Due Diligence Obligations for the Prevention of Human Rights Violations in Supply Chains(Lieferkettensorgfaltspflichtengesetz – LkSG in German). This regulation, which came into force in January 2023, establishes the obligation of German companies to exercise due diligence in human rights and environmental matters within their supply chains. The goal is to prevent or minimize any risk to human rights or the environment, or to put an end to violations of related obligations. Before the approval of this law, various international efforts had already been made with the same objective – establishing principles of corporate responsibility in the context of due diligence to fully comply with human and environmental rights during business activities, even outside a company’s national territory. One of the most notable efforts is undoubtedly the United Nations Guiding Principles on Business and Human Rights(UNGPs)(UN, 2011). Another key reference is the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct (OECD, 2023), first adopted in 1976 and updated in 2011 to reflect the content of the UNGPs. However, the LkSG is an important reference, as it elevates due diligence standards and principles to legal responsibilities, making them binding and enforceable. This aspect is particularly relevant considering that Latin America and the Caribbean(LAC) is an important trading partner for Germany. In 2019, trade between Germany and LAC amounted to 55 billion dollars, making it the most significant and stable trading partner within the European Union, accounting for 13% of exports and 30% of imports (ECLAC, 2020). In countries such as Brazil and Mexico, Germany has a strong presence, with economic cooperation focused on the automotive industry, the energy and raw materials sector, and the transportation and logistics industries. This document will examine the scope and content of the LkSG, its key environmental aspects, and its implications in the context of LAC. It will reference important regional standards, such as those included in the Regional Agreement on Access to Information, Public Participation, and Access to Justice in Environmental Matters in Latin America and the Caribbean, known as the Escazú Agreement; the United Nations system recommendations on the human right to a healthy environment, and the Advisory Opinion 23 of the Inter-American Court of Human Rights, which addresses the environment and human rights. Finally, a brief comparison will be made with the European Union’s Corporate Sustainability Due Diligence Directive (CSDDD) to highlight the elements in which due diligence obligations have been strengthened. Introduction 3

1. The LkSG and its Environmental Specifications As noted in the introduction, the Law on Corporate Due Diligence Obligations for the Prevention of Human Rights Violations in Supply Chains(LkSG) aims to reinforce human rights compliance obligations, with a special emphasis on labor rights, as well as obligations related to the environment. It applies mandatorily to companies with headquarters or branches in Germany that: 1. Have their central administration, principal place of business, administrative headquarters or statutory seat in Germany, and 2. Normally employ at least 3,000 people in Germany, including personnel working abroad. 1 To clarify its scope of application, the law specifies that “supply chain” refers to all products and services of a company. It includes all steps in Germany and abroad necessary to manufacture products and provide services, from raw material extraction to delivery to the final customer, including: a. The actions of a company within its own business area. b. The actions of its direct suppliers, i.e., partners in a supply contract for goods or services whose supplies are necessary for the production of the company’s product or for the provision and use of the corresponding service. c. The actions of its indirect suppliers, i.e., any company that is not a direct supplier but whose supplies are necessary for the production of the company’s product or for the provision and use of the corresponding service. As part of their due diligence responsibility, the obligated parties must identify human rights risks, which are actualized when there is a sufficient probability that a violation of one of the prohibitions mentioned in the law is imminent. In this regard, the LkSG specifies that the legal situations contemplated are those outlined in various human rights treaties and three environmental agreements. Those regulations address issues such as forced labor, freedom of association, collective bargaining, gender equality, labor discrimination, child labor, the elimination of child labor, mercury production or use, the treatment of mercury waste, the production and use of persistent organic pollutants(POPs), as well as the import and export of hazardous waste(see Annex). Regarding environmental specifications, the law identifies risk situations in two areas: i) risks to human rights(which touch on environmental aspects) and ii) risks related to the environment. Below is a brief description of each: i) Risks to Human Rights: According to LkSG, a human rights risk is a factual situation in which there is sufficient probability of an imminent violation of one of the prohibitions stated in the law. Some of these prohibitions are directly related to environmental aspects, such as: 1. The prohibition to causing any harmful alteration of the soil, water pollution, air pollution, harmful noise emissions, or excessive water consumption that: a. Significantly impairs the natural bases for the preservation and production of food. b. Denies a person access to safe and clean drinking water. c. Hinders access to sanitary facilities or destroys them. d. Harms the health of a person. 2. The prohibition of unlawful evictions and the illegal seizure of land, forests, and waters in the acquisition, development, or other use of land, forests, and waters that are necessary to secure a person’s livelihood. ii) Environmental Risks: The scope of these risks is established by considering the obligations contained in three international environmental treaties: 1 As of January 1, 2024, the stipulated threshold was set at 1,000 employees. 4 Friedrich-Ebert-Stiftung e.V.

1. The Minamata Convention on Mercury, October 10, 2013. 2. The Stockholm Convention on persistent organic pollutants, May 23, 2001. 3. The Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal, March 22, 1989. Thus, environmental risks include actions or omissions related to: a. The production or use of mercury and the treatment of mercury waste. b. The production, use, management, collection, storage, and disposal of persistent organic pollutants (POPs). c. The export and im2port of hazardous waste. The next section will analyze the implications of these provisions in the regional context of LAC. Before doing so, it is essential to address, in a very general way, the mechanisms and procedural aspects that contribute to the effective implementation of the law and, consequently, to achieving due diligence in the supply chains of German companies. The LkSG establishes obligations that stem from due diligence. The appropriate way to address these obligations is determined based on the nature and scope of the company, the company’s capacity to influence the party directly responsible for a human rights or environmental risk, and the severity of the violation. Below are the specific obligations derived from due diligence: 1. Establish a risk management system across all business processes. 2. Designate a person or persons within the company to monitor risk management. 3. Conduct a yearly risk analysis to identify risks within the business area and those of direct suppliers. Once risks are identified, they must be assessed and prioritized. The results of this risk analysis should be communicated internally to those responsible for relevant decision making. 4. Issue a risk policy statement that contains the strategy regarding human rights, the company‘s priority risks, and the definition of expectations based on the risk analysis, among other things. 5. Establish preventive measures within the company’s business area and with regard to direct suppliers. These include contractual guarantees that a direct supplier will meet expectations related to human rights and the environment, applying initial and ongoing training measures to implement the contractual guarantees, and agreeing on contractual control mechanisms. These measures and their effectiveness should be reviewed annually and whenever the company expects a significant change or expansion of risks. 6. Adopt remedial measures – without unjustified delay – to prevent, end, or minimize the scope of such violations. These measures should aim at ending the infringement. In some cases, the company may also terminate the contractual relationship with direct suppliers. For example, when the violation of a legal protection or an obligation related to the environment is considered very serious, or if the implementation of the developed measures does not remedy the situation, or the company has no other less severe means, and its increased capacity to exert influence has no prospects of success. 7. Establish a complaints procedure that allows people to report risks related to human rights and the environment, as well as violations of obligations related to these. A procedure for amicable resolution within the company can be proposed, ensuring impartiality, independence, and confidentiality. 8. Implement due diligence obligations regarding indirect supplier risks. 9. Continuously document compliance with due diligence. All related documentation must be kept for at least seven years from its creation. Additionally, the company must prepare an annual report on its compliance with due diligence obligations for the previous fiscal year and make it available to the public on the company’s website no later than four months after the end of the fiscal year. It is important to note that, when designing and implementing these due diligence measures, the company must duly consider the interests of its employees, the The LkSG and its Environmental Specifications 5

employees in its supply chains, and those who may be directly affected by the company’s economic activities or the activities of a company within its supply chain, such as local communities affected by the company. The law provides three types of recourse for affected communities and rights holders: 1. Complaints to the company’s internal grievance mechanism. As part of the due diligence obligations, the law requires each company to establish an appropriate internal complaints or reporting procedure where the identity of the complainant is kept confidential throughout the process. Those responsible for handling the procedure must be independent and not bound by instructions from the company. 2. Procedure before the authority. The authority responsible for overseeing the application of this law is the Federal Office for Economic Affairs and Export Control, which is supervised by Germany’s Federal Ministry for Economic Affairs and Energy. This procedure can be initiated upon request when there is a failure to comply with the due diligence obligations set out in the law, or if protected rights under the law have been violated. However, the law also allows for some ex officio interventions by the authority, which are discretionary, aimed at monitoring the compliance with due diligence obligations, and detecting, ending and preventing violations of these obligations. Failure to comply with due diligence obligations also results in administrative violations punishable by fines of up to 50,000 euros. 3. Civil liability action. The claim for damages – for example, through the civil route – is not specifically contemplated in this law; however, the law does state that any liability arising in these terms will not be affected by the application of other procedures provided for in the law itself. 4. Finally, it is important to note that the law establishes that any person who claims to have been violated in their legal protection may authorize a national union or a non-governmental organization to initiate the procedure and assert their rights. 6 Friedrich-Ebert-Stiftung e.V.

2. Scope of the Law for the Protection of the Environment and Human Rights in Latin American and Caribbean Countries Latin America and the Caribbean(LAC) is a region where conflicts derived from the exploitation of nature have persisted. A third(28%) of the socio-environmental conflicts in the world occur in this region(ECLAC, 2024: 46). There are different definitions of environmental or socio-environmental conflicts. Some of them refer to the way in which nature is exploited in performing the different economic activities that are part of the production chain; to the negative impacts associated with this exploitation; to the types of activities and actors impacted by the exploitation of nature – predominantly public and private extractive activities that affect indigenous and local communities – and the unjust distribution or unequal access to natural elements (water, air, soils, biodiversity, etc.). The most prevalent conflicts in the region are associated with the following activities: nuclear, recreational tourism, industrial or service activities, biodiversity and conservation, waste management, infrastructure, fossil fuels, climate and energy justice, water management, biomass and land use, and extraction and construction materials, with the latter being the category that generates the most conflict. 2 Socio-Environmental Conflicts by Category Nuclear 9 Recreational tourism 25 Industry or services 33 Biodiversity and conservation 35 Waste management 64 Infrastructure 86 Fossil fuels, climate and energy justice 141 Water management Biomass and land use Mineral extraction and construction materials 157 174 317 0 50 100 150 200 250 300 Source: Own elaboration based on data from ECLAC and the Environmental Justice Atlas. 2 ECLAC, 2024, with data from the Environmental Justice Atlas. Available at https://ejatlas.org/ Scope of the Law for the Protectión of the Environment and Human Rights in Latin America and Caribbean Countries 7

While a third of socio-environmental conflicts in the world occur in LAC, the region is the most dangerous for environmental and territorial defenders. In this sense, Latin America systematically records the highest number of documented murders of defenders; in 2023, 85% of all cases occurred in LAC, meaning 166 of the 196 killings in 2023 occurred in this region. More than 70% of these murders took place in Brazil, Colombia, Honduras, and Mexico, with 43% of victims being indigenous people and 12% women. As for the type of industry causing the conflict, it is precisely mining and extractive industries that have put the lives of defenders most at risk(Global Witness, 2024: 14). This is due to the fact that mining processes generate impacts such as the pollution of natural elements by the extraction, smelting, and transportation processes; competition for the use of water and land; destruction and fragmentation of habitats; overlapping mining concessions in areas with high biodiversity or protected natural areas; environmental liabilities, and informal and illegal high-risk activities(ECLAC, 2020: 46). To address these circumstances, international organizations as well as independent experts from the United Nations system have emphasized the need to reinforce various state and non-state obligations aimed at improving how economic and productive activities are carried out in territories, improving environmental governance, and ensuring a favorable and safe milieu for the defense of the environment and territory. Among such recommendations, stand out those related to enacting mandatory legislation on due diligence in human rights and environmental matters, as well as to ensuring that the proposed legally binding instrument on business and human rights explicitly incorporates the right to a clean, healthy and sustainable environment, and includes environmental and climate change impact assessments among the required due diligence measures(UN, 2024: 22). Similarly, the Inter-American Court of Human Rights has pointed out that companies must act accordingly, respecting and protecting human rights, as well as preventing, mitigating, and taking responsibility for the negative consequences of their activities on human rights. 3 In addition to due diligence, it is recommended that businesses’ commercial decisions utilize data on attacks, trends affecting civic space, and the main causes of harm, which will help strengthen the processes and procedures for detecting, preventing, mitigating, and repairing human rights and environmental harm across their operations (Global Witness, 2924: 14). It is within this framework that the LkSG contributes, if effectively applied, with binding due diligence obligations that are critical and necessary in a regional context such as LAC’s. Certainly, there are opportunity areas for improving these obligations according to international human rights recommendations. For example, while this law does not literally and explicitly recognize the autonomous character of the human right to a healthy environment, 4 it does mention explicit prohibitions against causing any harmful alteration of the soil, water contamination, atmospheric pollution, harmful noise emissions, or excessive water consumption that: → Significantly impairs the natural bases for food the preservation and production of food. → Denies a person access to safe and clean drinking water. → Makes it difficult for a person to access sanitary facilities or destroys them. → Harms the health of a person. All these cases are related to other human rights directly tied to the environment, such as the human right to food, the human right to health, and the human right to water, and are therefore linked to environmental damage that may affect the full enjoyment of such human rights. On the other hand, the LkSG also recognizes as a risk to human rights unlawful evictions, and bans the illegal seizure of land, forests and water in the acquisition, development, or other use of land, forests and water sources that sustain a person’s livelihood. For example, actions aimed at land use change related to forest land could fall into these legal provisions. The LkSG likewise considers situations related to the enforcement of rights such as the right to consultation and the right to free, prior and informed consent of indigenous communities under ILO Convention 169. As the regional context has shown, these are situations that persist in LAC, especially due to extractive activities, typically mining, which are also part of other economic activities’ supply chains. 3 Cfr. Caso Pueblos Kaliña y Lokono Vs. Surinam, citing the UN, Guiding Principles on Business and Human Rights: Implementation of the United Nations Framework to“Protect, Respect and Remedy.“ Report of the Special Representative of the Secretary-General on the Issue of Human Rights and Transnational Corporations and Other Business Enterprises, John Ruggie, Doc. ONU A/HRC/17/31, 21 March 2011, principles 11 to 15, 17, 18, 22 and 25. 4 See paragraphs 62 y 63 of the OC23 of the Inter-American Court of Human Rights. 8 Friedrich-Ebert-Stiftung e.V.

Regarding the scope of environmental-related risks, specifically the fulfillment of obligations under three international environmental treaties – namely, the Minamata Convention on Mercury, the Stockholm Convention on Persistent Organic Pollutants, and the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal – it is worth mentioning that these agreements are directly related to the impacts of industrial activities and their supply chains. However, these are not the only international environmental treaties whose compliance could be compromised by such activities, an aspect that is more broadly addressed in instruments such as the European Union Directive on Corporate Due Diligence in Sustainability, which will be discussed in the next section. Finally, a crucial aspect in terms of environmental justice and the respect for the human right to a healthy environment in LAC is identifying how the LkSG contributes to fulfilling the objectives and standards of the Regional Agreement on Access to Information, Public Participation, and Access to Justice in Environmental Matters in Latin America and the Caribbean, known as the Escazú Agreement. While not all countries in the region have ratified it, there is hope that this will happen in the coming years. In this sense, the LkSG contributes to exercising the right of access to information by requiring the documentation and periodic reporting of due diligence obligations, which must be made freely available to the public on the company’s website. Furthermore, the establishment of complaints mechanisms and the corrective measures derived from these procedures contribute to the right to access justice in environmental matters, while the participation of affected populations in the planning and implementation of due diligence measures is directly related to the right to participation, according to the agreement. Given the recent mandatory enforcement of the LkSG, it is still not possible to definitively determine how it will contribute to improving environmental governance in the region. However, procedures have already begun under its guidelines. For example, some organizations have initiated a case in Brazil(Client Earth, 2024), urging the Federal Office of Economics and Export Control to investigate three of the country’s largest meat producers, as new investigations suggest that the soy used to feed their cattle presents a high risk of human rights abuses and deforestation in Brazil. A new investigation has been presented to this office, tracking soybeans from the Brazilian Cerrado, where human rights violations are rampant, through the Netherlands, to soy terminals in Germany, and ultimately to the largest animal feed facilities, agricultural suppliers, and slaughterhouses in Germany. The results suggest a link between the three companies and human rights violations and deforestation in the Cerrado savanna, particularly through possible connections with Bunge, one of the largest soy traders in the world, which exports hundreds of thousands of tons of soy from the Cerrado to Germany every year and has a troubling history of deforestation links. According to the NGOs, the likelihood that the soy is contaminated is high enough to justify a thorough investigation of the companies. Despite some claims about deforestation by Tönnies, and generic statements on human rights by each company, the NGOs maintain that there are reasons to doubt that the appropriate measures are being taken. Scope of the Law for the Protectión of the Environment and Human Rights in Latin America and Caribbean Countries 9

3. Progress and Additions Approved Through the European Union Due Diligence Law In April 2024, the European Parliament approved the Corporate Sustainability Due Diligence Directive(CSDDD) 2024/1760, which sets a regulatory harmonization standard for EU members. These countries must gradually adopt and incorporate such standards into their national legislation within two years. Some obligations will come into effect in July 2027, others in July 2028, and a third group in January 2029, depending on the size of the company and its global net turnover. While this directive builds on some of the obligations and content of the LkSG, it is much more ambitious in scope and objectives. The text sets standards regarding: 1. The obligations of companies related to actual and potential adverse effects on human rights and the environment from their own operations, their subsidiaries’ operations, and operations carried out by their business partners along their supply chains. 2. The responsibility arising from the failure to comply with due diligence obligations. 3. The obligation for companies to adopt and implement a climate change mitigation transition plan aimed at ensuring that the company’s business model and strategy are aligned with the transition to a sustainable economy and the limitation of global warming to 1.5°C, in line with the Paris Agreement. Thus, the CSDDD clearly highlights the need to integrate aspects such as the climate crisis. The design of the companies’ climate change mitigation transition plan must include: a. Clear, time-bound objectives related to climate change for 2030 and for five-year steps until 2050, based on conclusive scientific data and, where applicable, absolute targets for reducing greenhouse gas emissions across Scope 1, Scope 2, and Scope 3 categories. b. A description of the identified decarbonization levers and key actions planned to achieve the objectives mentioned in point a), including, where applicable, changes in the company’s product and service portfolio and the adoption of new technologies. c. An explanation and quantification of the investments and financing to support the execution of the climate change mitigation transition plan. d. A description of the role of the management, leadership, and supervisory bodies in relation to the climate change mitigation transition plan. Furthermore, the directive integrates the pro persona principle, stating that if any provision conflicts with another EU legislative act that pursues the same objectives, but establishes broader or more specific obligations, the provision of the other legislative act will prevail in the case of a conflict and will apply to those specific obligations. Another notable aspect, whose scope increases in the CSDDD compared to the LkSG, concerns activities that form part of the supply chain.“Supply chain” includes: i) activities by business partners involved in earlier links of the company’s supply chain related to the production of goods or provision of services by the company, including design, extraction, sourcing, manufacturing, transportation, storage, supply of raw materials, products, or product parts, and the development of products or services; and ii) activities by business partners involved in later links of the company’s supply chain related to the distribution, transport, and storage of the company’s products, when those partners carry out these activities for the company or on its behalf. Regarding human rights compliance risks, in addition to those contained in the LkSG, the CSDDD adds any measurable environmental degradation, such as harmful soil change, water or air pollution, harmful emissions, excessive water consumption, land degradation, or any other impact on natural resources, such as deforestation, which substantially harms the ecosystemic services through which an ecosystem contributes directly or indirectly to human well-being. This inclusion of ecosystemic services allows a direct connection between this conduct and the human right to a healthy environment, a right that has been explicitly recognized in various constitutional texts in LAC countries. However, the obligation to protect nature and its elements beyond their instrumental value to humans, i.e., recognizing their intrinsic value as some jurisdictions in LAC do, remains pending. 10 Friedrich-Ebert-Stiftung e.V.

In addition to the previous provisions, the catalogue of prohibitions and obligations in environmental instruments increases. It not only includes those derived from the three treaties covered by the LkSG, but adds additional specific obligations derived from: 1. The Convention on Biological Diversity, concerning the obligation to avoid or minimize adverse effects on biodiversity. 2. The Cartagena Protocol on the development, handling, transport, use, transfer, and release of genetically modified organisms. 3. The Nagoya Protocol on access to genetic resources and fair and equitable sharing of benefits arising from their utilization. 4. The Convention on International Trade in Endangered Species of Wild Fauna and Flora(CITES), related to the prohibition of importing, exporting, re-exporting, or introducing marine specimens listed in Appendices I to III without permission. 5. The Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade, related to the prohibition of importing or exporting chemicals listed in Annex III. 6. The Montreal Protocol on substances that deplete the ozone layer, as part of the Vienna Convention for the protection of the ozone layer. 7. The Convention on the Protection of the World Cultural and Natural Heritage, related to the obligation to avoid or minimize adverse effects on natural heritage sites. 8. The Ramsar Convention on Wetlands of International Importance especially as Waterfowl Habitat, related to the obligation to avoid or minimize adverse effects on wetlands. 9. The International Convention for the Prevention of Pollution from Ships, which includes the prohibition of discharging into the sea: i) hydrocarbons or oily mixtures, ii) harmful liquid substances, iii) dirty water; the prohibition of illegal pollution by harmful substances transported by sea in bulk; and the prohibition of illegal pollution by ship waste. Despite expanding the catalogue of international environmental treaties, there are still opportunities to better integrate issues whose resolution is being negotiated in the international context. For example, issues related to plastic pollution or better integration of obligations derived from the Convention on Desertification concerning integrated watershed management. Progress and additions approved through the European Union Due Diligence Law 11

4. Conclusions for the Region The regional context in LAC demands the implementation of activities with the highest possible standards in environmental protection and human rights. The high socio-environmental conflict and the dangers surrounding environmental and territorial defenders are just some of the factors that highlight the need for binding due diligence obligations that lead to the prevention of actions or omissions that result in violations of human rights and environmental obligations, as well as the implementation of immediate and effective reparative measures in cases where these violations have already occurred. In this context, the LkSG and the CSDDD can help improve compliance with these standards by setting specific obligations for companies and their direct suppliers in terms of detecting and preventing risks and damage, as well as establishing ad hoc mechanisms that allow for the reporting of violations of human rights and environmental obligations, beyond the existing jurisdictional mechanisms in the various countries in the region. Many of these mechanisms are often overwhelmed by workloads, which can lead to delays in addressing violations and serious damage to the full exercise of human rights, including those related to the environment. In countires such as Honduras and El Salvador, which have not yet signed or ratified the Escazú Agreement, or in Peru and Brazil, which have not ratified it, the LkSG and CSDDD become strategic by establishing obligations concerning the right of access to public information, as well as serving as an alternative forum for preventing and resolving conflicts over violations of environmental human rights. This contributes to the right of access to justice and the creation of favorable and safe environment for those defending these environmental human rights. In countries that have signed and ratified this important agreement, such as Argentina, Bolivia, Chile, Colombia, Ecuador and Mexico, both regulations, in addition to contributing in the previously mentioned ways, offer mechanisms that strengthen obligations to repair damages resulting from violations of human rights, both regarding the people affected by these violations and the damage and impacts generated in nature. Thus, while the due diligence obligations do not explicitly recognize the human right to a healthy environment(as they do with the human right to water), they do include useful and necessary tools for defending the environment and human rights related to it, such as risk identification, the obligation to implement preventive actions, immediate cessation of activities in case of violations, and the establishment of reparative measures. Certainly, both regulations present areas for improvement in protecting the environment and environmental human rights. For instance, they do not recognize the intrinsic value of nature, focusing instead on the instrumental value of the environment. However, the effective implementation of both will, in practice, improve the scope of these regulations. Additionally, considering global trends, such as those in the energy sector where investments in renewable energy (lithium) will involve extractive activities(mining), it is crucial to make effective and unrestricted progress in applying these regulations. Tis is particularly important given that more than half of the minerals needed for the energy transition are located within or near indigenous and rural peoples’ lands(Owen, J.R., et al., 2022), which poses a risk to the fundamental human rights of these communities. In terms of environmental justice, their protection must be prioritized. 12 Friedrich-Ebert-Stiftung e.V.

Annex Human Rights Agreements and Environmental Treaties Convention No. 29 of the International Labor Organization, of June 28, 1930, concerning forced or compulsory labor. June 11, 2014, Protocol , relating to Convention No. 29 of the International Labor Organization, of June 28, 1930, on forced or compulsory labor. Convention No. 87 of the International Labor Organization, of July 9, 1948, concerning freedom of association and the protection of the right to organize. Convention No. 98 of the International Labor Organization, of July 1, 1949, concerning the application of the principles of the freedom of association and collective bargaining. Convention No. 100 of the International Labor Organization, of June 29, 1951, concerning equal remuneration for men and women workers for work of equal value. Convention No. 105 of the International Labor Organization, of June 25, 1957, concerning the abolition of forced labor. Convention No. 111 of the International Labor Organization, of June 25, 1958, concerning discrimination in employment and occupation. Convention No. 138 of the International Labor Organization, of June 26, 1973, on the minimum age for admission to employment. Convention No. 182 of the International Labor Organization, of June 17, 1999, on the prohibition of the worst forms of child labor and immediate action for their elimination. International Covenant on Civil and Political Rights , of December 19, 1966. International Covenant on Economic, Social and Cultural Rights , of December 19, 1966. Minamata Convention on Mercury , of October 10, 2013. Stockholm Convention , of May 23, 2001, on persistent organic pollutants. Basel Convention , of March 22, 1989, on the control of transboundary movements of hazardous wastes and their disposal. Annex 13

References Client Earth (2024). German authorities urged to investigate top three meat companies over human rights risks in Brazil. Available at https://www.clientearth.org/ latest/press-office/ press-releases/german-authoritiesurged-to-investigate-top-three-meat-companies-over-human-rights-risks-in-brazil/ Economic Commission for Latin America and the Caribbean (ECLAC, 2020), The European Union, Germany, and Latin America and the Caribbean are strategic partners for a recovery with equality and sustainability: Alicia Bárcena. https://www.cepal.org/es/ noticias/la-union-europea-alemania-america-latinacaribe-son-socios-estrategicos-recuperacion __________(2023), Panorama de los recursos naturales en América Latina y el Caribe(LC/PUB.2024/4), Santiago, 2024.p.46. Available at https://www.cepal.org/ es/publicaciones/69138-panorama-recursos-naturalesamerica-latina-caribe-2023 Global Witness (2024), Silenced Voices. Available at https://www.globalwitness.org/es/missing-voiceses/#resource-library Inter-American Court of Human Rights (2017). Advisory Opinion OC-23/2017, Series A No. 23. Available at https://elaw.org/resource/iachr_co2317 Organization for Economic Cooperation and Development (OECD, 2023). OECD Guidelines for Multinational Entreprises on Responsible Business Conduct. Paris. Available at https://doi. org/10.1787/81f92357-en Owen, John R., et al. (2022). Energy transition minerals and their intersection with land-connected peoples, Nature Sustainability, N. 6, pp. 203-211. Available at https://doi. org/10.1038/s41893-022-00994-6 United Nations (2011). Guiding Principles on Business and Human Rights. New York and Geneva: Available at https://www.ohchr.org/sites/default/files/documents/ publications/guidingprinciplesbusinesshr_en.pdf __________(2024). Businesses, Planetary Boundaries, and the Right to a Clean, Healthy, and Sustainable Environment, Report of the Special Rapporteur on the issue of human rights obligations relating to the enjoyment of a safe, clean, healthy, and sustainable environment, David R. Boyd. Doc ONU A/HRC/55/43. Available at https://digitallibrary.un.org/ record/4036151?v=pdf 14 Friedrich-Ebert-Stiftung e.V.

About the author Anaid Velasco is a lawyer with extensive experience in environmental human rights, environmental law and climate justice. She is an active member of three commissions of the International Union for Conservation of Nature(IUCN) and co-chair of the Board of Directors of the Climate Action Network International(CAN-I). Author of several publications for Mexico’s Supreme Court of Justice, the Mexican Office of the United Nations High Commissioner for Human Rights, and the National Human Rights Commission, among other institutions. She participates as guest lecturer in academic programs, diploma courses and academic institutions in Mexico.

German Law on Due Diligence in the Supply Chain The German Law on Corporate Due Diligence Obligations for the Prevention of Human Rights Violations in Supply Chains(LkSG, in German), which entered into force in 2023, is an essential reference as it elevates due diligence standards and principles in human rights and environmental matters to legal responsibilities, making them binding and enforceable. The application of this law is particularly important in Latin America and the Caribbean, since the region is a relevant trading partner for Germany, and this legislation is expected to have a significant impact on the supply chains of the automotive, energy and raw materials sectors, where German companies hold a strong presence. Further information on this topic can be found here: ↗ http://www.fes.de/stiftung/internationale-arbeit