The Study of due diligence requirement through the supply chains focuses on due diligence requirements to identify, prevent, mitigate and account for adverse corporate impacts (abuses of human rights, including the rights of the child and fundamental freedoms, serious bodily injury or health risks, environmental damage, including with respect to climate). It examines existing market practices and regulatory frameworks as well as options for regulating due diligence in companies’ own operations and through their supply chain.
Through desk research, country analyses, interviews, case studies and surveys it identifies practices and perceptions regarding regulatory options. The assessment of options, ranging from no intervention to mandatory due diligence as a legal standard of care, considers economic impacts, impacts on public authorities, social, human rights and environmental impacts.
The study shows that while the UN Guiding Principles on Business and Human Rights’ standard of due diligence is increasingly being introduced into legal standards or proposed in Member States, only one in three businesses in the EU are currently undertaking due diligence which takes into account all human rights and environmental impacts. The survey respondents indicated that EU-level regulation on a general due diligence requirement for human rights and environmental impacts may provide benefits for business and the assessment of options looked into the administrative costs and burdens of each approach.
Read the full study here.