Energy from waste to be included in UK Emissions Trading Scheme: What you need to know
by Pete Watkins
View post
The focus on human rights due diligence is increasing. Many companies will be impacted, either directly or indirectly through their value chain, by the growing scrutiny of their due diligence practices. This emphasises the importance of having robust policies and processes to understand and address the negative impacts across a company’s operations and their extended supply chain.
The regulatory landscape [1] around human rights and supply chain due diligence has seen a shift towards mandatory due diligence obligations for companies, with key legislative measures being introduced globally. In 2024 alone, the European Union enacted two new directives, the Corporate Sustainability Due Diligence Directive and the Ban on Products Made with Forced Labour, whilst other human rights-specific regulations have recently been introduced and proposed in countries such as Canada, the United States and South Korea.
Simultaneously, companies are receiving increased pressure for transparency from stakeholders, including clients, investors and employees. Growing media coverage [2] of corporate labour practices and human rights abuses in supply chains has led to a growing awareness of these issues among consumers and investors. Increased stakeholder scrutiny means that companies developing and implementing effective due diligence approaches, and demonstrating best practices, are well-positioned to gain favour with investors, clients, employees, and other relevant stakeholders.
Often companies have a limited understanding of the full extent of their supply chain. This hinders them from creating meaningful policies and processes to understand their human rights and environmental impacts. Additionally, approaches to due diligence vary according to sector, size and even the individual company level. A company can get started to create a higher understanding of its impacts, as follows:
An example of fostering internal engagement is the Everyone’s Business [3] app. Developed through a collaboration of retail companies, the app encourages technical employees to identify risks at supplier sites. It serves as an informal due diligence tool for understanding and monitoring risks by training staff on recognising human rights impacts. This supports enhanced awareness and reporting of risks and impacts, across a company’s full supply chain.
Companies that take proactive action to align their practices with evolving regulations will be better positioned to avoid reputational and financial repercussions. Now is the time to prepare for upcoming due diligence regulations and stakeholder scrutiny. By improving processes and engaging stakeholders, businesses can stay ahead of the curve, ensuring long-term sustainability and success. The urgency to act is clear, and those who adapt quickly will lead the way in ethical and responsible business practices.
To talk to our experts about your own human rights due diligence, just get in touch.
Business beyond compliance: The need for human rights action
Discussing how external pressures on human rights underscore the need for businesses to think strategically, and advice on how they can achieve that.
Human rights and the supply chain: Buying our way into trouble
Where to start with understanding how your purchasing decisions can be affecting your whole supply chain.
Building from firm foundations
Advice on how to ready your business or strengthen your human rights practices.
Understanding the human rights issues associated with artificial intelligence
Highlighting the human rights impact of AI, and what both governments and businesses are doing to manage the impact.
A healthy environment: A human right, or wrong?
For a truly Just Transition and sustainable future, the ratification of an enforceable, universal right to a healthy environment is imperative.
Forest for the trees: The human rights issue in deforestation
Human rights and deforestation are intrinsically linked. Roughly 25% of the global population live in or around forests and rely on them for their welfare, and 90% of those who live in extreme poverty depend on forests for some part of their livelihood.
This article was written by Laurien Callens and Jamie Macfarlane
---------------------------------------
References
[1] https://www.business-humanrights.org/en/big-issues/mandatory-due-diligence/
[2] https://www.business-humanrights.org/en/latest-news/wba-social-benchmark-2024/
[3] https://everyones.business/about
by Pete Watkins
by Eoin Noble, Daniel Ashton
by Maggie Zhang, Jane Gan