'A Human Rights Approach to Due Diligence: Reflections on key principles'

...Adopting a human-rights-based approach, this paper focuses on the foundational elements stemming from international frameworks (UNGPs, OECD Guidelines) that are judged to be central to mandatory HRDD [human rights due diligence] and without which it cannot be effective. They build on recommendations of the Office of the United Nations High Commissioner for Human Rights (OHCHR) issued in 2021... These recommendations include ensuring a risk-based approach and scope of due diligence encompassing the entire value chain. They recall that the structure, sequencing and logic of HRDD should be in line with the UNGPs. They recommend proactive and meaningful stakeholder engagement and the use of leverage to prevent and mitigate adverse impacts. They note that such legislation should include corporate accountability and legal liability along with effective regulation of non-State-based grievance mechanisms. In this context, [the EU's Corporate Sustainability Due Diligence Directive] CSDDD represents a historic advance in terms of human rights protection, with the EU in a global leadership role promulgating law. In this it recalls that the CSDDD, is grounded in and advances goals relating to the functioning of the internal market and goals relating to the protection of human rights...

This focus paper... recalls principial elements of risk-based approach and normative standards Member States should introduce to enforce corporate responsibility. It will discuss these points in following sections:

1. why mandatory HRDD is needed,
2. a risk-based approach within HRDD,
3. stakeholders engagement,
4. access to effective remedies and civil liability, and
5. oversight and enforcement mechanisms.

...Business activities can negatively affect the entire spectrum of internationally recognised human rights: civil and political rights and economic, social and cultural rights. See the global heat map of the German Institute for Human Rights (GIHR)...

Although international voluntary frameworks have helped companies understand their responsibility to respect human rights, many still do not adequately integrate sustainability aspects into their operations...

In line with the UNGPs, the EU has adopted a comprehensive approach to human rights, sustainability and responsible business through a ‘smart mix’ of policy measures and legislation...

...Some of these laws are now subject to revision. In such recast process, it is important that the essence of these laws is preserved so that the EU can deliver on the Green Deal in a way that advances a just transition that serves the EU internal market and its people...

The CSDDD represents a clear step towards necessary legal harmonisation within the EU internal market, replacing a fragmented landscape of national due diligence regimes... with a coherent and uniform EU-wide standard. This uniformity reduces compliance burdens for multinational corporations while setting a baseline level of protection for rights holders across jurisdictions.