What does human rights due diligence legislation mean for my company?

A wave of new legislation is raising the bar for what companies are expected to do about human rights risks in their operations and supply chains — and the direction of travel is clear. The EU's Corporate Sustainability Due Diligence Directive (CSDDD), Germany's Supply Chain Due Diligence Act, France's Duty of Vigilance Law, and anticipated reforms to the UK's Modern Slavery Act all point towards a world in which robust, evidenced human rights due diligence is not optional — it is a legal obligation.

At its core, this legislation requires companies to identify where human rights risks exist across their operations and supply chains, take meaningful action to prevent and address those risks, engage with affected workers and stakeholders, and report transparently on what they are finding and doing. Critically, the standard being set is not a paper exercise. Regulators, investors and civil society are increasingly looking for evidence of genuine, operational commitment — not just well-drafted policies.

What does 'good' actually look like?

The legislation draws heavily on the UN Guiding Principles on Business and Human Rights (UNGPs) and the OECD Guidelines for Multinational Enterprises. In practice, meeting the standard these frameworks set requires:

• Knowing your supply chain well enough to understand where the real risks are — not just at tier one
• Engaging meaningfully with suppliers and workers rather than relying solely on audits and self-assessment
• Ensuring your own purchasing practices don't inadvertently create the conditions for labour abuses
• Having credible processes for workers to raise concerns and access remedy
• Reporting honestly on progress, including where problems have been found and what is being done about them

Where does ETI fit in?

Many companies facing this legislation for the first time instinctively reach for legal counsel — and understanding your specific legal exposure is a sensible first step. But legal advice alone won't deliver what the legislation actually demands. Knowing what the law requires and building the operational capability to meet it are two very different things.

This is where ETI membership becomes essential. ETI has been supporting companies to do exactly this work for over 25 years. Our members benefit from a proven human rights due diligence framework, practical programmes across the supply chain issues that matter most, and a tripartite community of companies, NGOs and trade unions that provides the kind of multi-stakeholder credibility no audit or legal opinion can replicate.

Companies that are already doing this work through ETI are not scrambling to respond to new legislation — they are ahead of it. For those just starting the journey, there is no faster or more credible way to build genuine capability.

Explore ETI's Mandatory human rights and environmental due diligence guidance

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See our HRDD legislation tracker

Human rights due diligence (HRDD): a complete guide for business