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Human Rights Due Diligence

A clear path to human rights compliance

Start your human rights due diligence (HRDD) journey with Position Green. Get a full risk picture of impacts in your supply chain and track actionable data to self-manage compliance – from local laws to international frameworks.

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HRDD at a glance

What is human rights due diligence (HRDD)?

Human Rights Due Diligence (HRDD) is essentially a management tool that helps companies to minimize their negative human rights impacts.

HRDD is the process of identifying, assessing, preventing, mitigating and remedying negative human rights impacts, and accounting for how the company has done this. Building a strong human rights culture within a company and regularly engaging with potentially impacted people is key to this process.

Negative human rights impacts are linked to internationally recognised human rights, as defined in the International Bill of Rights and the ILO’s Fundamental Conventions. These include protections against forced and child labour, the right to health, the right to collective bargaining and the right to not be discriminated against. In addition, businesses may not negatively impact the land or cultural rights of indigenous people, their employees’ freedom of thought and the right to a healthy environment.

As companies can impact so many different human rights, it is vital to conduct HRDD to identify and reduce existing and potential negative impacts.

What is the scope of HRDD requirements?

In 2011, the UN Guiding Principles for Business and Human Rights was released. It set out that companies should respect human rights and provided HRDD as a framework for how to do this. This framework was soon adopted by the OECD.

An increasing number of national laws are now mandating that companies conduct human rights due diligence. In addition, HRDD is integrated into the EU’s understanding of its Green Deal, meaning that HRDD is required to fulfil EU Taxonomy alignment and is also a central part of CSRD disclosure requirements.

The EU’s new Corporate Sustainability Due Diligence Directive (CSDDD) will require all in-scope companies to conduct HRDD. There are also several niche EU Directives and proposals that will be best met by companies conducting HRDD, such as the EU Deforestation Regulation and the proposed import bans for products and materials linked to forced labour.

There will be trickle-down effects for actors within the supply chain of companies responding to mandatory HRDD laws as these companies will increasingly demand the same standards throughout their value chain.

How does HRDD relate to the CSDDD?

The Corporate Sustainability Due Diligence Directive (CSDDD) will require in-scope organisations to carry out human rights and environmental due diligence – or sustainability due diligence – throughout their own operations and supply chain. HRDD is the framework that the CSDDD requires companies to utilise when complying with the law, applying it to both human rights and environment impacts.

HRDD is rooted in the UN Guiding Principles of Business and Human Rights and used in the OECD guidelines for multinational enterprises – the frameworks on which the CSDDD regulations are based. This means that if you already integrate HRDD into your reporting repertoire, you are in a strong position to comply with the new directive.

What is Canada’s Modern Slavery Act?

In 2023, the Canadian Parliament passed Bill S-211, the Fighting Against Forced Labour and Child Labour in Supply Chain Act, other wise known as the Modern Slavery Act. This Act aimed at combating forced labor and child labor in corporate supply chains and came into effect January 1, 2024.

Get full control of your HRDD process

Our HRDD software is designed by human rights experts to automate assessment and engage suppliers in improving their impacts, enabling better business for a fairer world.

Easily align your targets and reporting with local laws and prepare for the new Corporate Sustainability Due Diligence Directive (CSDDD) with confidence. Get in touch today to see our HRDD software in action.

High-impact HRDD software features

Easy-use templates for supplier surveys

Get going directly with the supplier assessment process. Use survey templates based on OECD guidelines, with key metrics developed to quickly analyze human rights risks and performance. Capture the right supplier data for the right decisions.

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High-impact HRDD software features

Risk assessment that’s context driven

Achieve a clear overview of suppliers in high-risk settings. Score suppliers based on recognized international indexes, distilled into best-practice methods and preset KPIs. A country risk score gives you decisive insights on material aspects – from worker rights to corruption.

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High-impact HRDD software features

Flexible and transparent data management

An adaptable data collection structure, easy visuals and customizable dashboards let you measure and demonstrate compliance with ease. Use dynamic export features to produce reliable reports and assured statements in line with regulations.

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Unlock value with our sustainability services 

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Advisory that takes your further

Follow up on HRDD and risk assessment with strategic next steps. Our seasoned advisors guide you in extracting the most value from reported data – from human rights compliance to impact at scale.

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Train your workforce in human rights

Upskill your organization with e-learning courses for insights on how human rights and business practices are connected. Build the foundation for compliance and reporting that adds business value.

Customer stories

Discover how Position Green has helped customers take their sustainability work to the next level.

“Position Green helps us guide our suppliers”

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“Position Green aids supply chain transparency”

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Sustainability Manager

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A guide to Human Rights Due Diligence

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