EU: Mandatory HRDD needed, report finds, after Pakistan-based factories supplying to EU public sector linked to "widespread exploitation"; incl. cos. responses & non-responses
The testimonials from Karachi and Faisalabad are just the tip of the iceberg when it comes to worker exploitation in global supply chains linked to European procurement. But this also presents an untapped opportunity for change. When procurement is designed and implemented responsibly, it can improve conditions for millions of workers across industries.Sofia Käll, Programme Officer at Swedwatch
A new report published by the Swedish NGO, Swedwatch, investigates working conditions in factories in Pakistan, which indirectly supply to the EU’s public sector, including textiles to Sweden’s healthcare sector.
The report is based on interviews with 89 workers from 9 factories in Faisalabad and Karachi. It finds a range of rights violations, including payment below the minimum wage, excessive hours, unsafe workplaces, lack of social protection, and an absence of formal employment contracts.
In light of the report’s findings of abusive working conditions, the report calls for the introduction of “mandatory human rights due diligence, enforceable transparency requirements, fair purchasing mandates, and alignment with global standards”. In particular, the report notes the inefficacy of the voluntary EU Public Procurement Directive (2014).
Embedding human rights and environmental due diligence into procurement is essential for the EU to leverage its market power to help dismantle exploitative practices in global supply chains. By doing so, the EU can strengthen its position as a global leader in sustainability – turning ethical procurement into a strategic and competitive advantage.Swedwatch, "PUBLIC MONEY, PRIVATE HARM: The Role of EU Procurement in Perpetuating Labour Violations: Lessons from Pakistan and Sweden"
The report also alleges that companies sourcing from Pakistan’s textile sector rely on certification schemes that ‘mask’ labour rights violations in factories. The factories where abusive conditions were found in the report are allegedly certified by certification schemes from the companies Sedex and OEKO-TEX, from the industry body Amfori, and from the non-profit SAI. The report also says the investigated suppliers showcased their products at Messe Frankfurt’s global trade fair Heimtextil in 2025, and were listed in Heimtextil’s online directory of sustainable textile producers, despite labour abuses.
In July, the Business & Human Rights Resource Centre invited Sedex, OEKO-TEX and Messe Frankfurt to respond to the report’s findings. Additionally, we invited Sedex and OEKO-TEX to disclose the steps they take to ensure their schemes identify and mitigate labour rights risks in certified factories; and we invited Messe Frankfurt to disclose how it determines the sustainability profiles of textile producers in its online directory, and to what extent labour rights standards are included in the analysis. Responses from OEKO-TEX and Sedex can be read in full below; Messe Frankfurt did not respond.
The Resource Centre also received disclosures from the industry group Amfori and from the non-profit SAI, which are included in full below.