Human rights due diligence (HRDD)

At the heart of a company’s human rights responsibility is human rights due diligence (HRDD). The HRDD process defines concrete actions to implement human rights responsibility in a company’s value chain and begins with a human rights impact assessment (HRIA). 

We assist companies carry out HRIAs and other steps in the HRDD process.

Opiniojuris

Due diligence at the heart of corporate sustainability 

The central importance of due diligence in implementing sustainability is clearly reflected in the pertinent regulation and both in the areas of human rights responsibility and environmental responsibility. 

Notes on human rights due diligence (HRDD): 

  • Understanding the meaning and content of due diligence is key to implementing a company’s human rights responsibility. The obligation defines how well a company must know its value chain and what actions a company must take to meet the requirements and expectations of human rights responsibility.
  • Implementing human rights due diligence is a process that is specified in the UN Guiding Principles on Business and Human Rights. The Guiding Principles specify the four elements of the HRDD process: human rights impact assessment (HRIA), integration, tracking, and communication. A well-conducted HRIA is the foundation and prerequisite for the success of the HRDD process.
  • An HRIA conducted in accordance with the UN Guiding Principles also provides the information needed for the Double Materiality Assessment (DMA) related to sustainability reporting.
  • Due diligence defines, among other things, different responsibility requirements for companies of different sizes. Large companies are required to take more actions than small companies. Public sector ownership in a company brings additional requirements for responsible conduct.
  • According to the UN Guiding Principles on Business and Human Rights, a company should rely on the help of an external human rights expert if the company does not yet have sufficient internal expertise to implement human rights responsibility. The goal should be to increase internal expertise.