Due Diligence Fund

Commissioned by the German Federal Ministry for Economic Cooperation and Development (BMZ), the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH promotes the implementation of corporate due diligence on human rights and the environment (HREDD) in global agricultural supply chains. Considering recent supply chain legislation, such as the German Supply Chain Due Diligence Act (LkSG), the EU Directive on Corporate Sustainability Due Diligence (CSDDD) and the EU Regulation on Deforestation-free Products (EUDR), GIZ implements the Due Diligence Fund (DDF) as part of the Sustainable Agricultural Supply Chain Initiative (SASI). 

The aim of the DDF is to identify innovative approaches for the implementation of corporate HREDD processes. Companies in the agri-food sector, pairing up with public-benefit partners and/or suppliers in producing countries, can apply for funding for their project ideas, focusing on people and the environment upstream their supply chain. The DDF financially supports the best project proposals in their practical adoption on the ground and disseminates information on implementation to the public. A particular focus is on fostering engagement with all stakeholders – including the potentially or directly affected rightsholders - and to incentivize modes of “shared responsibility” along supply chains. The DDF thus develops solutions to meet the challenges of complying with corporate HREDD obligations in agricultural supply chains, as well as provides actual improvements regarding the living conditions of producers in partner countries.

We want to identify and financially support promising, practical and innovative approaches to corporate due diligence.  Our previous projects demonstrate that compliance with the LkSG, EUDR, and CSDDD is achievable—even beyond the minimum standards required. 

The focus is on both human rights and environmental due diligence on the ground in the partner countries. Potentially affected groups, such as smallholder farmers and plantation workers, will be actively involved in the project's design and implementation and will benefit from the measures taken. 

Companies should be supported by the DDF to establish and continuously implement sustainable processes in accordance with the regulations. Through monitoring and evaluation of the pilot projects and a public presentation of the results, added value is generated for companies. In this way, good practices or piloted approaches are created, which they can adapt for other or their own supply chains.  

Project proposals are to be submitted by a partnership consisting of: 

• Private companies based in the EU, the European Economic Area (EEA), Switzerland or the United Kingdom (UK).
• Private companies based in a DAC-listed country and/or
• Organizations with a public-benefit status