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HUMAN RIGHTS DUE DILIGENCE
WHY
HRDD is increasingly moving from soft to hard law, with both Norway and Germany adopting new laws in 2021, following the French duty of vigilance law from 2017. At EU level, a proposal for mandatory HRDD was published in December 2022. The Norwegian Transparency Act, building on the UN Guiding Principles for Business and Human Rights (UNGP) and the OECD guidelines for Responsible Business (OECD GL), mandates the 9.000 largest companies to report on their HRDD systems and efforts. In addition to legal compliance, there is an increasing demand from public procurers as well as buying companies that suppliers can show how they deal with risks of breaches of human and labour rights as well as environmental damage that can be linked to their operations. HRDD is becoming the tool to meet this requirements and there is thus a clear business case for having HRDD as an integrated part of regular business operations.
HRDD is a key instrument understand and prioritise risks, put in place preventive measures and engage in corrective actions. Although anchored in the UNGPs and OECD GL, HRDD is not a one-size-fits-all solution, but need be adapted to each rather an approach and a way of thinking within the .
WHAT
Human rights due diligence is a process for systematic identification, prevention, mitigation, and remediation of potential or actual human rights risks and impacts associated with a company’s activities, being it in own operations or in the supply chain. It is a proactive approach that seeks to prevent or mitigate negative human rights impacts and promote positive human rights outcomes.
The following six steps as defined by OECD guidance. are key when conducting a HRDD:
- Embed responsible business conduct in policies and management systems
- Identify and assess adverse impacts
- Integrate and act to cease, prevent or mitigate adverse impacts
- Track implementation and results
- Communicate how impacts are addressed
- Provide for or cooperate in remediation when appropriate
HOW
A human rights due diligence should be adapted to the size, nature and context of a company and its operations. This is also underlined in the Norwegian Transparency from 2021. Risks will change over time, making a HRDD an ongoing risk management process.
Preventing human rights violations or improving human rights conditions means integrating respect for human rights at all levels of the company and the business operation, including the establishment of complaints mechanisms.
RBA can provide up-to-date knowledge, advise and adaptable tools in supporting companies in carrying out HRDD to meet the requirements from the Norwegian Transparency Act, public and private clients as well as information requests from investors.
We can provide in-house training, be a partner in developing internal policies and systems as well as carrying out a company level HRDD.
Do you want to know more?
RBA Human Rights Due Diligence Services
Development of policies, strategies, and procedures. We assist organisations in integrating human rights into business operations at all levels, including board, management and operations.
Support in carrying out Human Rights Due Diligence to meet internal standards, legal requirements and market demands from public and private clients. Overall assessment, starting by scoping for "salient risks" (scope, scale, adversity) to identify and prioritize human rights risks in any given national, local, or sector level with regards to on-going or planned business operations, supply chains and specific substances/raw material.
Training and capacity building for increased understanding and awareness of salient risks, paired with up-to-date approaches to deal with these and best practice examples. Trainings can easily be tailored to meet the specific needs of the company.
Advice on actions to prevent or mitigate risks.
Advice on applicable remedies in the company´s own operations and in the supply chain, here-under the set-up of grievance mechanisms (whistle-blowing) and facilitation of local stakeholder engagement processes.
Setting up ongoing monitoring systems and systems for internal and external communication. Identification of human rights concerns applicable for reporting.
Figure from: OECD DUE DILIGENCE GUIDANCE
FOR RESPONSIBLE BUSINESS CONDUCT (2018)
