Review of G7 Government-led Voluntary and Mandatory Due Diligence Measures for Sustainable Agri-food Supply Chains

Annex A. Selective inventory of government due diligence measures for sustainable agricultural supply chains

 

Name of the measure (and date of adoption)	RBC risk scope	Entity scope	Commodity scope	Enforcement	Reference to international OECD standards on Due Diligence and RBC
Mandatory measures
Corporate due diligence disclosure measures
California Transparency in Supply Chains Act (2010)	Modern Slavery and Human Trafficking	If the entity is doing business in the state of California (and) an annual worldwide gross receipts in excess of USD 100 million.	N/A	The Attorney General has exclusive authority to enforce the Transparency in Supply Chains Act and may file a civil action for injunctive relief	No
UK Modern Slavery Act (2015)	Modern Slavery and Human Trafficking	If the entity carries on business in any part of the UK and has an annual turnover above GBP 36 million, wherever incorporated or formed	N/A	If an entity fails to produce a statement, the Secretary of State can seek an injunction requiring compliance. Failure to comply with the injunction would be contempt of court, punishable by an unlimited fine. The Modern Slavery Statement Registry, although a voluntary system at the moment, is an important tool for transparency.	No
EU Corporate Sustainability Reporting Directive (2023)	ESG/ Sustainability risks	All EU listed companies (listed SMEs being covered as of 2026) and/or Net turnover of EUR 40 million; balance sheet total of EUR 20 million and/or 250 employees on average over the financial year.	N/A	EU Member States set their own enforcement and penalty rules under the directive	Reference to OECD Guidelines and Due Diligence Guidance, ILO MNE Declaration and UNGPs.
Trade-based measures
US Lacey Act (2008, last amended)	Wildlife trafficking	The US Lacey Act applies to both individual and enterprises without specific scope or threshold and establishes a general prohibition to import or introduce a number of species, plants, and wildlife.	Wildlife, fish, and plants	Any person who engages in conduct prohibited by any provision of the Lacey Act and in the exercise of due care should know that the fish or wildlife or plants were taken, possessed, transported, or sold in violation of, or in a manner unlawful under, any underlying law, treaty, or regulation may be assessed a (i) civil penalty, (ii) criminal penalty or (iii) a permit sanction by the Secretary	No
Japan’s Act on the Promotion of Use and Distribution of Legally Harvested Wood and Wood Products (known as the Clean Wood Act) (2016)	Illegal harvesting	The Japan Clean Wood Act defines “Wood-related Business Entity” that are covered under the act as “a person engaged in the business of manufacturing, processing, importing, exporting or selling (excluding sale to consumers) the Wood and Wood Products, the business of constructing buildings and other structures using wood or any other business using the Wood and Wood Products which are specified by an Ordinance of the competent ministries”.	Timber products	Failure to comply with the provisions of the Act can result in the revocation of registered status for businesses that are registered. (art. 14) Amendment act was promulgated in May 2023, which includes penal provisions for the violation of the order regarding due diligence activities such as information collection. https://www.japaneselawtranslation.go.jp/outline/76/905R415.pdf	No
US Uyghur Forced Labour Prevention Act (2021)	Forced Labour	The US UFLPA applies to all entities that source goods that are “mined, produced, or manufactured, wholly or in part” in Xinjiang or if their supply chain has a nexus with Xinjiang (US CBP, 2021). The US Department of Homeland Security also provides a the “UFLPA Entity List”, to help companies identify high-risk entities suspected of being engaged in forced labour activities	High-risk commodities including polysilicon, tomatoes and cotton provided by CBP’s operational guidance (Appendix A)	The US Custom and Border Protection and the Office of Trade and the Office of Field Operation are the primary entities responsible for enforcing the Uyghur Forced Labor Prevention Act.	Reference to OECD Due Diligence Guidance for RBC and UNGPs in CBP’s accompanying guidance.
UK Environment Act (2021)	Deforestation	The UK Environment Act covers “regulated persons”, defined as a person (other than an individual) who carries on commercial activities in the UK. Secondary legislation will be added to specify a certain turnover threshold for companies to be in scope.	Forest-risk commodities	Further regulation the Secretary of State may provide additional information on enforcement, including on the establishing of an enforcement authority and sanctions (Schedule 17, part 2).	No
EU Deforestation Regulation (2023)	Deforestation	The EU Deforestation Regulation applies to all EU to “traders” and “operators” that “place relevant products on the market or exports them”.[1] The regulation further defines “operators” as natural or legal person who, in the course of a commercial activity, places relevant products on the market or exports them; and “traders” as person in the supply chain (other than the operator) who, in the course of a commercial activity, makes relevant products available on the market.	Article 2 relevant commodities’ means cattle, cocoa, coffee, oil palm, rubber, soya, and wood; ‘relevant products’ means products listed in Annex I that contain, have been fed with or have been made using relevant commodities	The EU Deforestation regulation sees penalties ranging from fines proportionate to the environmental damage, confiscation of revenues gained by the importer and (temporary) prohibitions from exercising the simplified due diligence option offered under the regulation or placing relevant commodities onto the market	No
Mandatory due diligence
French Corporate Duty of Vigilance Law (2017)	Human rights, fundamental freedoms, health and safety and the environment	Headquartered in France and 5 000 employees in the company's direct or indirect French-based subsidiaries and with more than 10 000 employees if including direct and indirect subsidiaries globally.	N/A	Judicial enforcement is the sole enforcement mechanism (art 3). The court, upon being seized by "any interested person", can order the establishment, disclosure and effective implementation of vigilance measures, including under penalty payment.	No (Reference to UNGPs and OECD MNE Guidelines in Parliamentary work).
German Supply Chain Act (2023)	Human rights and specified environmental risks	Their ‘principal place of business’ in Germany and At least 3 000 employees in Germany, included those posted abroad.	N/A	The German Supply Chain Act allocates new powers to an existing administrative agency (i.e., the Federal Office for Economic Affairs and Export Control) to enforce its provisions.	No
Voluntary Measures
Government Guidances
Japan’s Introductory Guide on Environmental Due Diligence along the Value Chains: Referencing the OECD Guidance (2020)	Environmental risks	Japanese businesses	N/A		OECD Due Diligence Guidance for RBC
EU Code of Conduct on Responsible Food Business and Marketing Practices (2021)	Broad sustainability risks	A deliverable of the EU Farm to Fork Strategy and an integral part of its action plan. It sets out the actions that the actors ‘between the farm and the fork’, such as food processors, food service operators and retailers, can voluntarily commit to undertake to tangibly improve and communicate their sustainability performance.	Unspecified		Reference to the OECD-FAO Guidance
EU Guidance on due diligence to combat forced labour in supply chains (2021)	Forced labour	EU companies	N/A		OECD Guidelines, Due Diligence Guidance for RBC, UNGPs and ILO Tripartite Declaration
Japan’s Guidelines on Respecting Human Rights in Responsible Supply Chains (2022)	Human rights and labour rights	Japanese businesses	N/A		OECD Guidelines, Due Diligence Guidance for RBC, UNGPs and ILO Tripartite Declaration
Partnerships and initiatives
German Initiative on Sustainable Cocoa (2012)	Deforestation, biodiversity loss, human rights		Cocoa
Forum for Sustainable Palm Oil (2013)	Deforestation, biodiversity loss and human rights.		Palm oil
Forum for More Sustainable Protein Feed (FONEI) (2014)	Sustainable legume production, sustainable value chains, biodiversity loss, deforestation (and land conservation)		Protein feed (soy)
Amsterdam Declaration Partnership (2015)	Deforestation		Cattle, cocoa, coffee, palm oil, rubber, soy, wood, leather
EU’s Sustainable Cocoa Initiative (2020)	Sustainability risks, including child labour and child trafficking, the protection and restorations of forests, and to ensure a living income for cocoa farmers.		Cocoa
Forest Data Partnership (2021)	Deforestation		Forest risk commodities
Initiative for Sustainable Agricultural Supply Chains (2021)	Living wage and deforestation		Rubber, soy, palm oil, banana, coffee, cocoa, orange, cotton
Sustainable agri-food value chains (part of the Food Systems Summit) (2021)	Environmental, social, and economic impacts		Unspecified
FACT Dialogue (2021)	Deforestation, environmental, social and economic impacts		Forest Risk Commodities including palm oil, soya, cocoa, beef, and timber
France’s Sustainable Cocoa Initiative (2021)	Forced labour and deforestation		Cocoa