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The Model Contract Clauses (MCCs) 2.0

The MCCs 2.0 are modular, editable, and adaptable model contract clauses designed for use across sectors. The clauses help companies implement human rights and environmental standards in their supply chains. 

The Model Contract Clauses to Protect Workers in International Supply Chains (MCCs) 2.0 translate the UN Guiding Principles on Business and Human Rights (UNGPs) and OECD Due Diligence Guidance for Responsible Business Conduct (OECD Guidance) into contractual obligations that can be included in supply contracts for the manufacturing and sale of goods. They are designed to be used across sectors. Because they are modular, businesses can choose which of the MCCs to adopt or adapt in their supply chain contracts. The RCP team can edit and modify the clauses to suit the needs of different stakeholders.

​The MCCs were developed by a Working Group of the American Bar Association’s Business Law Section, with generous support from the Laudes Foundation and pro bono counsel from Linklaters LLP. They were published in 2021 in The Business Lawyer Journal.

 

Legal Framework

Because they were prepared by a working group focused on the United States, MCCs 2.0 assume that buyers are located in the United States. However, a European Working Group is developing the European Model Clauses (EMCs) for Responsible and Sustainable Supply Chains, based on the MCCs 2.0. The EMCs Zero Draft for Consultation Version was published in July 2024, and the EMCs 1.0 are expected to be published in Fall 2025.
 

In general, the MCCs 2.0 do not state the human rights performance standards themselves. For the most part, substantive human rights standards and ethical purchasing practices are not contained in the MCCs 2.0 and are instead assumed to be specified in “Schedule P” and “Schedule Q” respectively. You can find an example of Schedule Q, aka, the Buyer Code, here.

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Model Contract Clauses (MCCs) 2.0 Drafting Docutment

This is a Word document, designed for use by attorneys, is easy for cutting and pasting the MCCs 2.0 into contracts and can be adapted as needed.

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Full Report: "Balancing Buyer & Supplier Responsibilities"

For more details on the background and development of the MCCs 2.0, we invite you to download the full report, "Balancing Buyer & Supplier Responsibilities."

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Upcoming Events

Nov. 24RCP will join CORE and blue marble legal in co-hosting "Pizza and Purpose," an informal gathering of BHR professionals following Day 1 of the UN Forum on Business and Human Rights in Geneva. This casual meetup is the perfect place to make connections, grab a bite to eat, and discuss all things mHREDD. Register here.

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