Human rights due diligence (HRDD) is the process by which companies identify, prevent, mitigate, and account for the impact of their operations and supply chains on people. 

It is a structured, ongoing approach that goes beyond voluntary statements or one-off audits, helping organisations understand and manage real-world impacts on workers and communities. 

This page explains the meaning of HRDD, its roots in international standards, and how it differs from traditional audit or compliance approaches. It also points to practical guidance for companies seeking to implement effective HRDD. 

The origins of human rights due diligence 

HRDD is grounded in the United Nations Guiding Principles on Business and Human Rights (UNGPs), adopted in 2011. The UNGPs establish that companies have a responsibility to respect human rights wherever they operate. 

Key expectations include: 

• Avoid causing or contributing to human rights harm
• Prevent and mitigate potential impacts
• Provide or cooperate in remedy when harm occurs 

Human rights due diligence translates these responsibilities into practical steps across governance, risk management, and supplier engagement. 

How HRDD differs from audits and compliance 

While audits and compliance programmes focus on checking adherence to rules or regulatory requirements, HRDD is risk- and impact-focused. 

Key differences include: 

• Focus: Audits check compliance with policies; HRDD identifies actual or potential harm to people.
• Timing: Audits are periodic; HRDD is continuous and embedded in operations.
• Stakeholder engagement: HRDD involves workers, communities, and other affected parties, whereas audits may rely mostly on documentation.
• Purpose: Audits often meet reporting obligations; HRDD is action-oriented, focused on preventing and mitigating real-world impacts. 

HRDD goes beyond ticking boxes. It requires companies to actively manage their impacts and adapt processes as risks evolve. 

Core elements of human rights due diligence 

Effective HRDD typically involves five interconnected steps: 

1. Embed responsible conduct – integrate human rights considerations into governance, policies, and procurement decisions.
2. Identify and assess risks – map operations and supply chains, prioritise the most severe risks, and engage stakeholders.
3. Prevent and mitigate impacts – adjust business practices, strengthen supplier systems, and build capacity where needed.
4. Track effectiveness – monitor progress using clear indicators, feedback, and ongoing review.
5. Communicate and provide remedy – report on actions taken and ensure accessible grievance mechanisms for affected parties. 

These steps form a continuous cycle, ensuring HRDD adapts as business operations and risks evolve. 

Why understanding HRDD matters 

• HRDD is increasingly required by law in multiple jurisdictions
• Investors and customers are expecting credible human rights risk management
• Effective HRDD strengthens supply chain resilience, operational decision-making, and stakeholder trust 

Understanding HRDD is the first step toward designing a system that protects people and aligns with both business and societal expectations. 

Next steps 

To explore HRDD in more detail and see how to implement it across your business, start with the main pillar page: 
Human rights due diligence: a complete guide for business

For step-by-step guidance on embedding HRDD into your operations, see: 
How to implement HRDD in your company

These pages provide the tools, frameworks, and examples to translate HRDD principles into practical action.

Frequently asked questions 

What does HRDD cover? 
It covers all human rights risks and impacts arising from a company’s operations, subsidiaries, suppliers, and business relationships. 

Is HRDD mandatory? 
Legal requirements are expanding, but HRDD is widely recognised as best practice for managing risk and protecting people. 

How is HRDD different from ESG reporting? 
ESG reporting tracks environmental, social, and governance performance, while HRDD specifically focuses on identifying and managing risks to people. 

File(s)

Mandatory human rights and environmental due diligence guidance

Developed to help companies navigate emerging mHREDD legislation, this Guidance also supports businesses in aligning with international standards.

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