The Promotion of Sustainable Supply Chains by German Development Cooperation

The aim of German development cooperation (DC) is to reduce negative social and environmental effects in global (textile) supply chains and to contribute to their long-term sustainability. The evaluation therefore examined the interplay of development cooperation instruments and measures. The evaluation was completed in 2023.

The global textile supply chain faces numerous social and environmental sustainability challenges. These include, for example, the disregard of labor rights or environmental pollution due to the improper use of chemicals. To promote sustainable textile supply chains, the German Federal Ministry for Economic Cooperation and Development (BMZ) uses various instruments to address specific target groups along the textile supply chain (instrument mix). The target groups include textile factories in the partner countries, purchasing companies, consumers in Germany and political and legislative actors.

The evaluation analyzed the BMZ's promotion of sustainable textile supply chains. The object of the evaluation was the interplay of development cooperation instruments and measures to promote sustainable global supply chains in the textile sector. The measures are primarily implemented by state implementing organizations (e.g. GIZ) and often with the participation of private sector and civil society actors. The evaluation questions related on the one hand to the extent to which the instruments used or their combination were suitable, and on the other hand to the extent to which the desired objectives were achieved.

Key findings and recommendations

• A positive result of the evaluation is that the instrument mix of German development cooperation addresses relevant social and environmental challenges in the textile sector. All relevant target groups are addressed.
• The BMZ also played a key role in the creation of the Supply Chain Due Diligence Act (LkSG). For the first time, this provides binding legal requirements for purchasing companies to fulfill their corporate due diligence obligations more actively.
• However, there is no guiding concept at strategic and operational level to promote textile supply chains. Given the length of textile supply chains, the complexity of the need for development policy action and the large number of stakeholders, the BMZ would need a guiding concept for strategic management of the instrument mix.
• The lack of a guiding concept can be seen, among other things, in the activities in the partner country Bangladesh: although moderate, comprehensible contributions to the protection of workers from occupational accidents and to environmental protection were identified, these have not (yet) led to fundamental changes.
• DEval therefore recommends that the BMZ develop an overarching impact and action-oriented concept for the promotion of sustainable global textile supply chains. In addition, the BMZ should make greater efforts to achieve national, European and multilateral policy coherence. Further recommendations are aimed at voluntary initiatives such as the Textile Partnership and promoting sustainable public procurement.