A new approach to human rights
due diligence in Europe

In January 2021, the European Parliament’s legal affairs committee adopted a report that urges the European Commission - the EU’s executive branch – to set up comprehensive legislation for mandatory due diligence requirements on both human rights and environmental risks. The proposal, which the European Parliament’s voted on in March 2021, would set a new precedent for environmental and human rights due diligence since it would substantially increase legislative scrutiny over the operational impact of entities established in the EU on a global scale.

According to the report, the proposed EU law would require these companies to monitor, identify, prevent and remedy  risks related to the environment and human rights. The proposal seeks to include all operations and business activities, in particular supplier and sub-contractor relations, in the new diligence guidelines.

While no organisation is immune to risks related to the environment or human rights, failing to establish a robust due diligence regime can have a substantial impact. Recent headlines prove that clandestine and unethical behaviour by third parties often leads to a considerable reputational and regulatory backlash for all involved parties.

Download our whitepaper and explore how changing laws increase the need for companies to engage in human rights due diligence.