EuroCham and GIZ will launch Cambodia’s first Responsible Business Hub on Monday, which will serve as a base for companies to get assistance in adhering to international human rights due diligence standards.
The European Chamber of Commerce (EuroCham) said in a press release that it will set up a Responsible Business Hub (RBH) to strengthen the export sectors' abilities to adapt to and abide by the new global requirements for social and environmental due diligence.
“The RBH is a support desk offering a large variety of services in the field of responsible business practices to support investors and local businesses across sectors to advance their sustainability performance. The RBH Cambodia is part of a global network of RBHs,” it said.
The Cambodian economy is on a recovery path with the aim of revitalizing sustainable economic growth and capturing new emerging opportunities in line with regional and global trends.
However, it has an impact on Cambodia's exporting sectors, particularly the textile and garment industry, which must diversify, modernize, and practice sustainability in order to compete in the "new normal".
“This does not only encompass the need for higher productivity and efficiency of the private sector, but also the mandate to mitigate negative social and environmental impacts in production,” it said.
Global supply chains are becoming more important, and national and international trade agreements and legislation are progressive including sustainability and social and environmental due diligence, it said.
Germany, for instance, approved the Act on Corporate Due Diligence in Supply Chains in 2021, and the European Union is working on a draft Directive on Corporate Sustainability Due Diligence with the intention of introducing standards that are comparable.
“These kinds of regulations are already creating a new dynamic in the headquarters of international brands and retailers who are consequently also increasing their engagement with suppliers in the production countries in Asia,” it said. “How Cambodian export sectors are prepared for these requirements will be an important factor for future competitiveness.”
The initiative is supported by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ FABRIC) and the Textile Apparel Footwear and Travel Goods Association in Cambodia (TAFTAC). It will take place at the Himawari hotel on November 28.
Additionally, the launch will include expert input and panel discussions to provide insights on current trends, pending legislation, and its implications for several economic sectors in Cambodia.