Over three-fourths of OECD countries have adopted due diligence laws based on OECD standards. In addition to mandatory measures, due diligence expectations are also being incorporated into government guidance, government-led partnerships and government incentives for business. As the number of laws and policy measures grows so does the need to recall what due diligence means—and what it doesn’t mean – and to support businesses and regulators in navigating the new expectations. 

Alignment with international standards in the design and implementation of due diligence regulations is key to avoiding a proliferation of inconsistent expectations as well as preserving internationally recognised good practice.  

The OECD is actively leveraging its standards, technical expertise, and its ability to convene policy makers and experts to ensure coherence in policy making on due diligence.

A vast landscape of sustainability initiatives has developed over the last two decades. These initiatives reflect a growing demand by consumers, investors and governments for greater clarity on the sustainability of products, companies, supply chains and investments. Such sustainability initiatives can be multi-stakeholder, government- or industry-led, and can play an important role in promoting collective action to solve problems and scale up responsible and sustainable practices in global supply chains. At these same time, many sustainability initiatives also face mounting scrutiny over their credibility and impact. New mandatory due diligence requirements mean that these initiatives are seeking to align with international due diligence standards to demonstrate their role and value.

To shed greater light on their ambition, core activities, scope and composition, the OECD helps sustainability initiatives assess their alignment with OECD due diligence guidance, using our bespoke alignment assessment tools. To date, the OECD and independent assessors used this methodology to evaluate over 20 initiatives across the minerals, garment & footwear and agriculture sectors that cover more than 20,000 enterprises globally. The OECD also developed Due Diligence Checkers for initiatives and companies to self-check their own requirements for participating companies against OECD due diligence recommendations.

Data collection includes understanding what motivates companies to adopt these practices and how effective they are in creating positive changes for people, the environment, and society. It also includes understanding the costs and benefits of due diligence to businesses. The OECD is focusing on building a stronger foundation of evidence on how due diligence is being implemented by companies and sectors across global supply chains and its impacts on business, people and planet with the aim of supporting effective policymaking and a more responsible global business environment.