'Practical Guide: Supporting Due Diligence with IT Tools and Software Solutions'

Companies face the challenge of effectively integrating human rights and environmental due diligence obligations into their processes and identifying risks and violations early on. IT-tools and software solutions offer support by optimising processes, systematically recording data, and facilitating the analysis of complex supply networks.

However – despite their promises – digital solutions also present challenges. The data collected is often incomplete or based on self-reporting, making it difficult to obtain a realistic picture of the actual risks. There is also a risk that companies will rely too heavily on technical solutions, neglect their management responsibility, and overlook direct dialogue with stakeholders – especially those potentially affected. This can result in overlooking important information on human rights and environmental risks and violations that are not captured by software tools.

Other challenges include the fact that companies may not fully understand the evaluation methodology of the IT tools. [...] Finally, the cost and effort required to implement many of these tools can pose a hurdle, especially for smaller companies. [...]

For these reasons, digital solutions should not be seen as a panacea. Rather, they should be seen as complementary instruments in the due diligence process, which only realise their full value if they are combined with a sound human rights and environmental analysis of their own and a long-term commitment to the rights of those affected. [...]

This practical guide sheds light on current developments in the field of digital tools for human rights and environmental due diligence, presents use cases and discusses challenges and open questions in dealing with IT tools. To this end, we have addressed the topic in two workshops with companies and civil society organisations. [...] Please note: This guide does not describe or evaluate individual IT tool providers. [...]