"Thailand to introduce mandatory supply chain due diligence law", 13 March 2025

Thailand is drafting a mandatory human rights and environmental due diligence law to strengthen corporate responsibility, business compliance, and supply chain accountability…

This proposed mandatory human rights and environmental due diligence law (mHREDD) will build on Thailand’s existing commitments and align with international frameworks.

The law will apply to businesses operating in Thailand, requiring them to identify, prevent, and address human rights and environmental risks in their operations and supply chains…

Why Thailand is introducing mandatory supply chain due diligence law

The country’s push for a supply chain due diligence law is driven by several factors:

• International trade and investment: Thailand is seeking Organisation for Economic Co-operation and Development (OECD) membership, a move that would require a demonstrated commitment to responsible business conduct.
  • Reputation and global standing: Strengthening human rights protections will enhance Thailand’s image as a responsible business hub.
  • Alignment with global standards: As more countries introduce due diligence laws, Thailand aims to stay competitive and meet international expectations…

Penalties and benefits under Thailand’s due diligence law

The law is expected to include a mix of penalties and incentives to drive compliance:

• Civil penalties: Companies that fail to meet their obligations could face financial consequences.
  • Tax benefits and public contracts: Businesses that comply with due diligence requirements may be rewarded with tax incentives and access to government contracts…

Thailand’s opportunity to lead in responsible business practices

By introducing a mHREDD law, Thailand can set a precedent in Asia for corporate responsibility.

The law will help ensure businesses take responsibility for human rights risks in their supply chains, protect vulnerable workers, and strengthen Thailand’s position as a leader in ethical and sustainable trade…