Duty of care: take the lead with ISO 20400

Like an electroshock. On April 24, 2013 in Dhaka, the Rana Plaza collapsed like a house of cards in the heart of the Bangladeshi capital. The disaster claimed over 1,100 lives and cast a harsh light on the ravages of fast fashion. In this poorly-maintained building, raised four storeys without authorization, thousands of underpaid workers were making clothes every day for numerous brands, particularly Western ones.

Bruno Frel

The tragedy raised awareness quickly and highlighted the need for principals to take a closer look at their subcontracting chain, points out Bruno Frel, responsible purchasing specialist for the AFNOR group. In France, a 2017 law obliges large companies to draw up a risk reduction plan, and incurs civil liability in the event of failure to do so. The European Union will follow suit with a similar directive in 2024: the CS3D (Corporate Sustainability Due Diligence Directive).

CS3D: a directive for very large companies

But from omnibus to omnibus (the name given to the procedure for renegotiating several pieces of legislation at once), the backtracking that has been taking place in the EU since 2024 on the subjects of ecological transition and CSR is threatening this virtuous principle: as with CSRD, the sister directive on sustainability reporting, the deadlines and thresholds for the directive’s applicability are in the process of being relaxed. At the end of June 2025, a new proposal emerged to reserve the measures for companies with over 5,000 employees (instead of 1,000 initially) and sales of at least 1.5 billion euros (instead of 450 million). Their vigilance will be limited to direct suppliers.

A nonsense and a lack of vision, says Stéphane Brabant, a business lawyer specializing in these issues and former expert to John Ruggie, Kofi Annan’s Special Representative (Global Compact and UN Guiding Principles). This setback is the result both of poor interpretation and communication on the subject, and of the influence of a current coming from the United States, irritated by extraterritoriality, and which is also seeking to weaken the European Union,” he analyzes. But all over the world, notably in China and Latin America, governments are adopting similar ESG reporting or vigilance regulations! The duty of vigilance is nothing more than a case-by-case obligation of means, with an assured return on investment for companies, who look after their profitability while respecting human dignity. A chain of well-treated suppliers contributes to the development of the countries concerned, and ultimately creates new markets for the company.

Avoiding the duty of vigilance: a (very) risky bet

What’s more, lightening the law doesn’t eliminate the risk,” points out Vincent Leroux Lefebvre, another responsible purchasing expert at AFNOR. In terms of image, being associated with a scandal like Rana Plaza is disastrous for the companies involved. Faced with increasingly committed consumers, there is a risk of boycott, estimated at 30% of sales lost for several years. And there’s another danger: investors. They may pull out abruptly in the event of a scandal, with stock prices plummeting instantly,” continues Vincent Leroux Lefebvre. Finally, there’s the question of ethics. To put it another way: do we accept slavery to produce our consumer goods? On this point, the legal framework has not changed. In Europe, regulations authorize customs to seize suspect products, with a major economic risk for the company.

Although the latest twists and turns in Brussels, initiated by Germany, are tending towards a limitation of duty of care obligations, companies cannot avoid the subject. This is where standardization comes in. To guide them in their approach, they can rely on ISO 20400 , a voluntary, non-certifiable standard dedicated to responsible purchasing. It’s a real guide to improving your subcontracting chain and making long-term progress.

Voluntary standards, a performance tool

It all starts with a risk map, to clearly identify the company’s ecosystem and its priorities. When buying temporary staff, for example, you need to be sure of your service provider’s practices in terms of non-discrimination in hiring, training, occupational health and safety, job insecurity, etc.,” explains Bruno Frel of AFNOR. However, environmental issues are secondary here! Rooftop beehives don’t solve the specific risks of this situation. Mapping allows us to concentrate on the essentials, without losing focus.

The ISO 20400 standard also helps to structure its approach so as to act in the company’s best interests. Following the proposed methodology shows, for example, that the most economical approach is not always the most relevant in the long term. For example, tires that cost less to buy can generate significant fuel overruns over their entire life cycle. The standard helps us to ask all these questions, to analyze and make the best decisions for the company and its stakeholders. Often in a spirit of common sense, says Bruno Frel.

The AFNOR group provides training, advice and case studies to help business players grasp these issues, with one objective in mind: to grasp the standard and use it wisely, while controlling risks. A robust tool that contributes to business performance and resilience!