Research Consortium “Sustainability Governance of Global Value Chains”


  • The production of raw materials and agricultural goods is often associated with unsustainable labor and environmental conditions - particularly in countries of the Global South. In response, several European countries have introduced binding corporate due diligence regulations since the mid-2010s. Given their complexity and global scope, value chains pose a particular challenge for effective sustainability governance. This project investigates the largely unexplored impacts of these regulations - especially on conditions in the countries of production.
    Volkswagen Foundation, 2024-2028






    Research Questions

    What impacts do sustainability regulations have on producers (countries) in the Global South?

    Contribution to International Research

    Providing evidence on the impacts of sustainability regulations on producers (countries) in the Global South.

    Research Design and Methods

    In this project we employ a mixed-methods approach, combining quantitative analysis of large-N household surveys and secondary data with qualitative insights from in-depth interviews.


    Journal of International Business Policy | 01/2026

    Green Gifts from Abroad?: FDI and Firms' Green Management

    We show that foreign-owned firms are more likely to adopt green management practices to monitor and reduce environmental impacts. This effect is strongest in high- and upper-middle-income host countries and where FDI comes mainly from environmentally strong economies.

    Policy Brief Series: Insights on Industrial Development | 10/2025

    Resilient Global Supply Chains in Times of Escalating Trade Costs

    Escalating trade costs, driven by new tariff regimes, COVID-19, wars, and sustainability laws disrupt global supply chains and trade-led development. The 2025 US tariffs hit industrializing nations unevenly. Case studies show that export diversity boosts resilience and trade diversion gains.

    Journal of Development Economics | 2024

    Corporate Social Responsibility Along the Global Value Chain

    Locating substantial parts of the production process in developing and emerging economies, many firms face an increasing demand by stakeholders for Corporate Social Responsibility (CSR) along their value chains. Contractual incompleteness between firms and their suppliers at different stages of production can exacerbate the ability to meet these demands.

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