Human Rights Due Diligence (HRDD)
Improve your impact on people and reduce risk with a holistic approach to Human Rights Due Diligence.
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Position Green supports companies throughout all stages of Human Rights Due Diligence. Our HRDD Solution empowers you to gain a comprehensive understanding of how well you manage human rights and where the risks are within your own operations and supply chain. This is a key first step in proper HRDD.
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What is Human Rights Due Diligence?
Human Rights Due Diligence (HRDD) is essentially a management tool that helps companies to minimise 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 Human 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 were released which 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 will shortly adopt its own mandatory HRDD law that will require all large companies within the EU 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.
Several current and upcoming laws require companies to either conduct HRDD or define human rights risks within their supply chain:
- Norwegian Transparency Act (in force)
- German Supply Chain Due Diligence Act (in force)
- Dutch Child Labour Due Diligence Law (in force)
- French Duty of Vigilance Law (in force)
- UK Modern Slavery Act (in force)
- Australian Modern Slavery Act (in force)
- California Transparency in Supply Chains Act (in force)
- Dutch Bill on Responsible and Sustainable International Business Conduct (upcoming)
- Canadian Modern Slavery Act (upcoming)
- EU Directive on Sustainability Due Diligence (upcoming)
A guide to Human Rights Due Diligence
Download the guide and read about:
- What is HRDD?
- Who is affected by it?
- What does it look like in practice?
- What are the consequences of not following HRDD?
- What is the suitable call to action?