Human rights due diligence: Evolving rules to embrace adoption

The human rights due diligence (HRDD) landscape in business is relatively arid, with only 37% of global companies conducting HRDD processes and a paltry 16% extending these efforts to cover their entire supply chains. This, however, is poised to change, with the introduction of the EU Supply Chain Law slated to make supply chain due diligence mandatory by 2026.

In this Insight, we look in-depth at how HRDD can be conducted by exploring the key players, demand drivers, challenges, and future directions.

Key takeaways

Until recently, the regulatory environment for HRDD was rather lax and defined by limited and broad guidelines for voluntary practices. However, the proposed EU Supply Chain Law will make HRDD mandatory for large European companies from 2026.

Currently, HRDD services are mostly provided by traceability and supply chain management solutions players, who want to either cross-sell HRDD solutions to their existing customer bases or up-sell their existing products with enhanced HRDD features. Pure-play HRDD providers were recorded to be fewer than a handful.

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