Global businesses often rely on social audits to manage human rights issues in their supply chains, despite evidence the model and its underlying logic are not fit for the purpose of improving outcomes for people and planet. The EU Sustainable Corporate Governance Initiative, including mandatory human rights and environmental due diligence (mHREDD) provides a key opportunity for a more comprehensive, effective and transformative approach.

To realise its potential, the Initiative needs to provoke best efforts to assess risks and address them, not a mechanical tick-box exercise which has characterised too many companies’ approaches to their duty of care to workers and communities. This briefing has been designed to provide policymakers and legislators with starting points for mandating effective due diligence.

These include:

1. Risk-based approach to prevent and address harm across all operations and value chains
2. Meaningful and safe engagement with affected stakeholders
3. Responsible purchasing practices, business and investments models, and increasing leverage with suppliers
4. Access to remedy