There is increasing focus on whether a business is conducting its operations in a sustainable way, and without violating human rights. There are significant risks here, which will differ depending on the sector in which the business operates. Key issues, currently under scrutiny from the public and press, include: whether a business's supply chain is sustainable, whether it causes environmental harm in its operations (including when products reach end of life), whether it employs victims of modern slavery, uses child labour and/or abuses land rights.
These risks are relevant not only to the operations of the parent company but also to its subsidiaries and wider supply chain (see Liability for supply chains and subsidiaries ). In order to mitigate such risks, many businesses are now undertaking due diligence of their operations and supply chains.
Many businesses have now pledged to follow the Guiding Principles on Business and Human Rights (UNGPs) in their day to day operations. Where business fail to do so, they expose themselves to risk of civil claims, together with significant brand damage.
Human rights due diligence is particularly relevant in the UK, given the requirements for larger businesses to produce a Modern Slavery Statement pursuant to the UK's Modern Slavery Act. We looked at the UK government's guidance on modern slavery reporting during the pandemic in our article here.
See also OECD complaints.
Key contacts
If you have any questions, contact a member of the Human rights claims team for assistance:
