Summary of developments:
- Coalition agreement (2018) commits the new government to supporting binding legislation at the European level to strengthen social and environmental responsibilities of transnational companies.
- Luxembourg Due Diligence Initiative (2018) campaign proposes human rights due diligence legislation to cover all companies headquartered in Luxembourg.
The 2018 coalition agreement commits Luxembourg's new government to strengthening the human rights and environmental obligations of transnational companies. It states:
"Luxembourg will support European initiatives to strengthen the social and environmental responsibility of transnational companies in the management of their supply chains and will commit itself at European level to binding and effective legislation. In this context, the possibility of legislating on due diligence for companies domiciled in Luxembourg will be explored, as it will ensure respect for human rights and the environment throughout their value chain and would be a complementary measure to the National Action Plan on Business and Human Rights, which underlines the importance of due diligence in preventing human rights violations and environmental damage caused by companies' activities."
♦ Coalition agreement (French), pp. 217-8
The initiative brings together 13 associations and organisations from Luxembourg society to push for a law to force multinational firms located in Luxembourg to protect, respect and repair any damage to human rights or the environment caused by them anywhere in the world. The united front wants legislation to implement compulsory due diligence for multinationals in Luxembourg, to ensure they respect human rights, adhere to working standards and environmental regulations throughout the supply chains of their subsidiaries. The proposal includes a supervisory body with the power to sanction, as well as access to remedy mechanism for victims of corporate human rights violations. The platform is currently comprised of ASTM, Caritas, Cercle de Coopération, CPJPO, Justice et Pax Luxembourg, etika, Fairtrade Lëtzebuerg, Frères des homme, Greenpeace Luxembourg, OGBL, OGBL solidarité Syndicale, Partage.lu and SOS Faim. It has submitted its proposals to political parties and requested they be integrated into their electoral programmes.