“Responsible business conduct is not an add on”

When it comes to trade, do you think the global community is moving in the right direction?

Bettina von Reden: In recent years, there have been strong initiatives to make global trade more sustainable through regulation like the anticipated EU Corporate Sustainability Due Diligence Directive. Currently, however, we are seeing rollbacks. This creates uncertainty for companies that have already invested in sustainable supply chains.

Those who acted early to meet announced regulations now face competitive disadvantages if others are no longer required to meet the same standards.

Zachary Kiarie: From a producer perspective, farmers made major efforts to meet compliance deadlines that are now being postponed or revised. This required time, money, and commitment. Many farmers were on track. The key question remains: who bears the costs, and where is the producer voice in these frameworks?

Are you frustrated?

Zachary Kiarie: Yes. Producers worked toward clear targets, only to see the process paused. That uncertainty makes planning difficult and weakens trust in long-term commitments.

What are the concrete issues you mentioned?

Zachary Kiarie: Geo mapping is one example. Farmers invested significantly in polygon mapping, but there is no harmonized system. Different regions use different tools and methodologies, while producers are expected to compete under the same conditions. This lack of alignment creates confusion and inefficiencies.

So you would say there should be one tool for it?

Zachary Kiarie: Ideally, there should be harmonized approaches and interoperable tools. This would improve transparency, credibility, and fairness. A level playing field is essential before adapting to supply-chain-specific requirements.

Looking at legislative processes in the Global North – EUDR, CSRD, CSDDD – what do you think about them?

Zachary Kiarie: From the producer perspective, the objectives are positive:

They aim to ensure credible and sustainable supply chains. But producers must be meaningfully involved, and the distribution of costs must be addressed.

Bettina von Reden: At Fairtrade, we support the objectives of these regulations. Legislation can raise the bar and ensure companies take responsibility. Importantly, companies must share compliance costs and support producers. However, the processes have not always been sufficiently participatory, and reopening legislation risks weakening core responsibilities.

At Fairtrade, you focus on a due diligence approach called HREDD. What is that?

Bettina von Reden: HREDD stands for Human Rights and Environmental Due Diligence. It is based on the OECD Guidelines and the UN Guiding Principles. It‘s not a Fairtrade invention but an internationally recognized framework and a practical and structured approach to responsible business conduct. We support companies and producers in understanding how to identify, prevent, mitigate, and document human rights and environmental risks and impacts across supply chains. Ultimately, Fairtrade can only help companies identifying those risks. However, the responsibility for addressing them remains with the companies themselves. No seal can exempt them from this responsibility.

Everybody can contribute?

Bettina von Reden: Yes, absolutely. Effective due diligence works only when all actors in the supply chain take responsibility. Companies have a central role through their governance structures, risk analyses, and long-term sourcing decisions. But producers, governments, civil society and consumers also contribute by creating transparency, engaging in dialogue and supporting fairer business practices.

And where do you see this approach in the context of legislative processes?

Bettina von Reden: All these regulations are based on due diligence principles: identifying risks, preventing and mitigating harm, remedying violations, documenting processes, and ensuring transparency. What this means is that HREDD is not an additional layer on top, but a common foundation all these laws rely on.

So in your view, it should become a gold standard…

Bettina von Reden: It is less a standard and more an approach. Companies must take responsibility for impacts throughout their supply chains and can’t say that it’s not their business. That requires clear policies, defined responsibilities, ongoing risk analysis, monitoring, and management-level commitment. The aim is to embed responsible business conduct into standard practice. And yes, this should become the standard for all. Importantly companies are not expected to do this alone – partnerships such as those with Fairtrade can provide practical support to help translate this approach into day-to-day practice.

Zachary Kiarie: This aligns with core Fairtrade principles: transparency, shared responsibility, and accountability from producer to consumer. HREDD strengthens these principles.

What can Fairtrade do to support companies that want to take responsibility?

Bettina von Reden: We help companies understand their supply chains more deeply, identify risks together with producers, and develop preventive and mitigating measures that are realistic on the ground. While companies remain responsible for their own governance structures, Fairtrade provides standards, monitoring, and on-the-ground support. This combination helps companies move from commitment to action.

Zachary Kiarie:

We create dialogue platforms, jointly assess risks, and develop locally grounded solutions. Shared ownership increases long-term sustainability and business resilience.

What do you tell companies that only focus on margins and profits?

Bettina von Reden: Fairtrade is a voluntary system, therefore we usually work with partners committed to responsible sourcing, including paying the Fairtrade Minimum Price and Premium and complying with our standards. We understand that companies operate in competitive environments, and margins are an important reality. But focusing on margins alone is ultimately short‑sighted. Responsible business conduct is not an add‑on - it is a prerequisite for long‑term supply security. Climate impacts, human rights violations, and supply chain disruptions pose real operational and financial risks. Investing in responsible sourcing today helps avoid much higher costs tomorrow. For companies unwilling to act voluntarily, regulation and consumer expectation will hopefully play a crucial role in the future. Markets and legislation can create additional incentives for sustainable practices here.

Consumers often support sustainability in principle but buy cheaper products in practice.

Bettina von Reden: Many consumers have become more aware over the past decades, as reflected in the growth of Fairtrade and other certifications. Public procurement has also improved. However, responsibility for sustainable trade cannot rest solely with consumers: Unfortunately, our own market research shows that consumers generally support sustainability, but often end up choosing the cheaper, non-ethical product at the supermarket.

Zachary Kiarie: Awareness-raising by national Fairtrade organizations strengthens consumer engagement. When producers, companies, and consumers work together, systemic change becomes possible.

So this is the way to break the invisible wall?

Zachary Kiarie: Progress may be gradual rather than dramatic. But collaborative approaches are often the most effective. When all actors align around a shared goal, meaningful change will happen.

Is HREDD bureaucratic?

Bettina von Reden: No. Due diligence is a structured management process, similar to other risk-management systems companies already use. It does not have to be overly bureaucratic.

But bureaucracy is often mentioned in the debate.

Bettina von Reden: I know, but that perception is overstated. The German Supply Chain Act, for example, establishes a framework for responsible risk management. It requires companies to implement processes, define responsibilities, analyze risks, and take preventive or remedial action. It is a duty of effort, not a mere box-ticking exercise. Properly implemented, it creates a level playing field, strengthens coherent business practices, and ultimately supports resilient supply chains.