The UK government’s plans to introduce mandatory human rights due diligence legislation have been welcomed by retailers and industry organisations, but there are concerns over the omission of environmental protections.
Campaigners who have long called for wider supply chain accountability see the lack of environmental focus as a major gap in the government’s plans.
Business secretary Jonathan Reynolds announced the outcome of the government’s Responsible Business Conduct (RBC) review on 4 November, confirming that large businesses will be required to identify, assess and address risks of human rights abuses and labour exploitation across their operations and supply chains.
The announcement follows sustained lobbying from businesses, trade unions and NGOs for mandatory human rights and environmental due diligence (mHREDD). In October, 33 organisations, including leading UK retailers and brands, joined the Ethical Trading Initiative (ETI) in writing to the prime minister Andy Burnham calling for clearer legislation.
As previously reported by Green Retail World, Charles Tyrwhitt, The White Company and major UK supermarkets were among the businesses supporting the campaign, coordinated by the ETI, British Retail Consortium (BRC) and Corporate Justice Coalition.
Dear PM…: Charles Tyrwhitt, The White Company, grocers call for mHREDD legislation
The new regime will apply to UK businesses with global turnover exceeding £350 million, as well as non-UK businesses generating more than £350 million in UK turnover.
Requirements will be aligned with the UN Guiding Principles on Business and Human Rights and OECD Guidelines for RBC.
The government will also give a regulator powers to investigate businesses suspected of placing goods made using forced labour on the Great Britain market and direct their withdrawal where exploitation is identified and due diligence obligations have not been met. The EU’s Forced Labour Regulation will apply in Northern Ireland under the Windsor Framework.
Giles Bolton, executive director of the ETI, said: “Today’s announcement is a huge step forward for workers in global supply chains, and for the many responsible businesses, trade unions and NGOs that have called for it.”
However, he said the organisation would strongly encourage the government to ensure that both public sector procurement and environmental due diligence were included in scope, alongside a clear timetable for businesses to prepare.
The BRC also welcomed the commitment to mandatory human rights due diligence, but director of policy Tom Ironside said the omission of environmental requirements was disappointing. He added that the proposed £350 million turnover threshold needed “careful consideration” to ensure businesses exposed to similar risks faced consistent obligations.
The ETI has identified several priorities for the legislation’s development, including putting workers and trade unions at the heart of due diligence, providing routes to remedy for those harmed, covering businesses’ full value chains and incorporating environmental impacts as the regime develops.
On why public sector procurement being included, the ETI argues that government purchasing power can help influence supplier behaviour across entire sectors.
The government intends to legislate as soon as parliamentary time allows and has committed to working with stakeholders on implementation. A centralised RBC guidance hub will also be established on GOV.UK to help businesses understand and prepare for the new requirements.
[image credit: Green Retail World]
