Over the past years, Fairtrade has increasingly promoted fair due diligence on human rights and the environment. For example, we trained hundreds of farmer organisations, ran innovative dialogue pilots, launched the Fairtrade Risk Map, published multiple HREDD guides and an e-course for Fairtrade traders, and conveyed producer perspectives to European Union (EU)policy makers.

Our work has been driven by the belief that fair and ambitious HREDD can strengthen the voice of farmers and workers, and advance collaboration, wellbeing, and sustainability in global supply chains.

In April 2024, Fairtrade International’s Standards Committee complemented these support measures with Standards requirements that ask traders, processors, and manufacturers, who at Fairtrade are all referred to as “traders,” as well as plantations and other “Hired Labour Organisations” to begin strengthening their HREDD practices. In the near future, related Standards requirements will be considered for farmer cooperatives.

The first new requirements went into effect in January 2025, and the subsequent steps of the due diligence process are required within couple of years. These requirements reflect the global consensus on HREDD, as outlined in the United Nations, Organisation for Economic Co-operation and Development (OECD) and EU norms and laws, and the requirements of some of our peers, from Rainforest Alliance, Bonsucro, GOTS and Better Cotton to the upcoming Standards of BLab.

Here are our five top motivations for making HREDD part of our Trader Standard.

1. Advancing human rights and sustainability

Fairtrade has promoted responsible business conduct for over 30 years, and we are thrilled about the strengthening global understanding that all companies need to respect human rights and the environment. This is a historic step.

However, it is not guaranteed that this consensus will actually lead to improved livelihoods, rights, and sustainability. We all have to work hard to promote the fair and ambitious implementation of this ideal.

Ambitious implementation is important throughout supply chains, from primary production to processing, manufacturing, and retail, because human rights violations can be found everywhere. For example, forced labour has been found in numerous European and North American industries, including food processing.

2. Fostering collaboration

The new Fairtrade Standards requirements are designed to promote fair and effective due diligence, based on dialogue, collaboration, and cost sharing.

These principles come from the UN, OECD, and EU norms. The OECD Due Diligence Guidance notes, inter alia, that “Companies need to provide adequate resources and training for suppliers … to implement due diligence.” The EU Corporate Sustainability Due Diligence Directive also expects companies to engage with affected stakeholders and business partners, and “provide targeted and proportionate support” to small and medium-scale business partners, to prevent and cease human rights and environmental harms.

However, these principles are a far cry from the reality of many global supply chains, where very little value accrues to primary producers and dialogue is rare.

That is why Fairtrade Standards clarify and guide the first steps that traders and producers need to take towards meaningful engagement and dialogue with each other, concrete collaboration, and adequate sharing of the costs of HREDD.

3. Supporting traders to thrive

The due diligence expectations and regulations are challenging for companies that operate in long supply chains. We support Fairtrade certified traders to thrive in this new business environment where due diligence is becoming the norm.

Fairtrade Standards break the HREDD expectations into concrete steps, and our HREDD guidance and training, tailored for different supply chain actors, has been widely appreciated for its clarity and simplicity. Fairtrade projects offer retailers, manufacturers, processors, and traders effective ways to contribute to risk mitigation in their supply chains.

Many of our support measures are particularly geared for small and medium-scale companies. However, our advice and support for dialogue with affected stakeholders can be highly valuable for large corporations as well, including companies with advanced HREDD systems.

4. Responding to expectations

Retailers expect Fairtrade to reduce human rights and environmental risks throughout Fairtrade certified supply chains. This is fostered by the full supply chain coverage of many sustainability laws, from modern slavery acts to rules on sustainability reporting, due diligence, and green claims.

Certifications are also in scope for the OECD Guidelines for Multinational Enterprises, therefore  we are expected to promote HREDD among certified organisations. Accordingly, expert bodies like the International Trade Centre and the German Helpdesk for Business and Human Rights assess and rank certifications based on their HREDD related Standards requirements.

5. Strive for fairness

Finally, we simply strive for fairness. Fairtrade has long supported and expected farmer cooperatives, plantations, and other producer organisations to take a variety of HREDD measures, including risk assessments, policies, and remediation work.

It is now time to ask traders to do the same. The new requirements bring parity to Fairtrade’s HREDD process expectations towards traders and plantations. In the meanwhile, we still continue to place higher requirements on primary producers, with regards to specific human rights and environmental issues, such as forced labour, gender equality, climate change, and biodiversity.

We invite traders, processors, and manufacturers to join the transition towards more inclusive, stable and sustainable supply chains!