Adverse human rights impacts are bound to be discovered in any complex supply chain. Reacting to such discoveries promptly and efficiently to limit the scope, scale, and severity of such impacts has to be the joint goal.
1 Remediating Adverse Human Rights Impacts
1.1 Notice of Potential or Actual Violations. (a) Within _ days of (i) Supplier having reason to believe there is any potential or actual violation of human rights (including an adverse environmental impact) linked to either Buyer’s, Supplier’s or a subcontractor’s contractual activity, or (ii) Buyer’s receipt of any oral or written notice of any potential or actual such violation, Supplier shall provide to Buyer a detailed summary of (1) the factual circumstances surrounding such threat or actual violation; (2) the specific human rights (or environmental impact) implicated; (3) the investigation and remediation that has been conducted and/or that is planned as informed by implementation of the ongoing operational level grievance mechanism process set forth in Section _ and (4) support for Supplier’s determination that the investigation and remediation has been or will be effective, adequate, and proportionate to the violation. (b) If Supplier reasonably believes that Buyer’s breach of Buyer’s human rights obligations (including an adverse environmental impact) caused or contributed to the threatened or actual human rights or environmental adverse impact and that effective remediation requires Buyer’s participation, Supplier shall notify Buyer and provide details supporting its claim. If Buyer rejects Supplier’s allegation, Buyer shall provide Supplier with its written explanation rejecting Supplier’s position. In such case, the Dispute (hereinafter defined) shall be resolved under Section _. (c) Supplier hereby designates (name) (title) at (email address) and Buyer designates (name) (title) at (email address) to send/receive all notices provided under this provision [and in addition, notices shall be given as specified in Section _ for general notices under this Agreement].
Clause Type | Environmental, Social |
Jurisdiction | United States common law of contracts since the EU’s CSDDD creates hard obligations in response to such adverse human rights impacts. |
Industry | Multiple / cross-industry |
Focus Area | Collaborative |
Scope | both |
Contract Type | Master Services Agreement (MSA), Construction Agreement, Franchise Agreement, Purchase Agreement / Order |
Relevant UNSDGs | Goal 3: Good Health and Well-being, Goal 6: Clean Water and Sanitation, Goal 8: Decent Work and Economic Growth, Goal 12: Responsible Consumption and Production, Goal 15: Life on Land, Goal 16: Peace, Justice, and Strong Institutions |
Connecting Clauses | Yes. This is slightly revised from Section 2.1 of the MCCs Version 2.0 and there are multiple cross references in the original clause together with definitions of multiple words. |