Due Diligence Fund

Global agricultural supply chains face growing expectations to address environmental and human rights risks. International frameworks such as the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises on responsible Business Conduct provide the foundational principles for identifying, preventing, and addressing adverse impacts in business operations.

Building on these standards, recent legislation – including the German Supply Chain Due Diligence Act (LkSG), the EU Corporate Sustainability Due Diligence Directive (CSDDD) and the EU Regulation on Deforestation-free Products (EUDR) – requires companies to identify, prevent and address risks across their supply chains.

Effective due diligence therefore becomes a key element of responsible and resilient supply chains. It strengthens transparency, improves relationships with suppliers and supports long-term competitiveness. Beyond regulatory compliance, it enables companies to manage risks, maintain access to international markets and contribute to more sustainable and resilient agricultural production in countries of origin.

The DDF identifies and funds promising, practical and innovative approaches to corporate HREDD in agricultural supply chains that are designed to be adaptable and scalable. 

Projects focus on primary production in supply chains and address risks affecting people and the environment directly on the ground. They cover key due diligence topics such as deforestation-free supply chain, climate and biodiversity, digital participation, gender equity and social inclusion, as well as living income and living wages. Potentially affected people and groups (“rightsholders”), such as smallholder farmers and plantation workers, are actively involved in project design and implementation and benefit from the measures introduced. 

Experience from previous funding rounds shows that compliance with LkSG, CSDDD and EUDR is feasible in practice – and that going beyond minimum legal requirements is beneficial for all involved supply chain actors. 

The DDF supports companies in establishing and continuously implementing sustainable due diligence processes. Monitoring, evaluation and the public dissemination of results generate practical insights and transferable approaches that companies can adapt to other supply chains. 

Projects should: 

• demonstrate strong potential to prevent or mitigate adverse impacts
• apply a risk-based approach, building on a previously conducted risk assessment
• follow a process-oriented approach rather than implementing isolated measures
• go beyond minimum legal due diligence requirements
• be designed to be scalable and adaptable
• promote gender equity through targeted measures

The DDF competition follows a multi-stage process:

1. Submission of a short proposal:
   The partnership submits a short proposal outlining the project concept and the applicant partnership.
2. Shortlisting and development of a long proposal:
   Eligible applications that best align with the DDF objectives will be shortlisted and invited to submit a long proposal with a more detailed project design.
3. Selection of projects:
   Based on predefined evaluation criteria, GIZ and BMZ select the most promising long proposals. Selected projects receive funding from GIZ through financing agreements and technical support throughout implementation.

Project proposals are to be submitted by partnerships consisting of: 

• one or more commercial partners based in the EU, the European Economic Area (EEA), Switzerland or the United Kingdom (UK)

And at least one of the following:

• one or more commercial partners based in a OECD-DAC-listed country
• one or more public-interest organizations with relevant expertise

Co-funding is required by the European-based companies depending on their size. 

Eligible commercial partners are those that are connected to an agricultural supply chain through production, processing, distribution or enabling services, that can cause, contribute to, or be linked to adverse impacts, and that have or can build leverage to prevent or mitigate those impacts.