The Ethical Trading Initiative (ETI) is proud to announce the publication of its official position in support of mandatory human rights and environmental due diligence (mHREDD) regulation. This position reflects the shared values, insights, and expertise of our diverse membership — comprising trade unions, NGOs, and companies — as well as our broader network of partners, following an in-depth and collaborative consultation process. It sets out our call for legislation that ensures both private and public enterprises conduct meaningful due diligence of their human rights and environmental impacts throughout their value chains and outlines the essential principles for effective regulation in the UK and beyond.

As governments and institutions increasingly move towards regulating corporate responsibility through due diligence laws, ETI recognises the urgent need to advocate for strong, fair, and enforceable legislation. Grounded in over two decades of experience and guided by international standards, our position articulates a collective vision for mHREDD that upholds the rights of workers and communities, protects the environment, creates a level playing field for enterprises committed to responsible business conduct and ensures all enterprises can be held to account.

Why has ETI developed a consulted position on mHREDD?

The development of a clear and principled position on mHREDD is both a response to a shifting regulatory landscape and a reflection of our core mission. ETI has long championed voluntary due diligence and corporate accountability through its tripartite membership model, Charter, Base Code and more recent Corporate Transparency Framework. However, experience has shown that voluntary action by responsible businesses alone is not enough to drive the systemic change needed to protect people and the planet. There is no shortage of knowledge about what responsible business looks like — but a persistent gap in meaningful, consistent implementation.

The UN Guiding Principles on Business and Human Rights (UNGPs) and OECD Guidelines provide a strong foundation, but voluntary uptake has been uneven and insufficient. Recent legislation in the EU, France, and Germany represents progress, yet coverage remains patchy — leaving gaps for non-EU enterprises and high-risk sectors.

Mandatory regulation is a critical tool to help ensure that businesses across all sectors take meaningful action to identify, prevent, mitigate and account for human rights and environmental impacts in their operations and supply chains. We believe that well-designed mHREDD legislation, grounded in international standards and accompanied by strong enforcement mechanisms, has the potential to:

• Ensure a level playing field for responsible enterprises;
• Provide legal clarity and certainty for businesses;
• Ensure the UK keeps pace with its international peers.

How the position was developed

ETI’s position is the product of extensive consultation and dialogue with our members, partners, and allies, including companies, trade unions, and civil society. We engaged in a series of roundtable and one-to-one discussions to gather diverse perspectives and build a position written in consultation and rooted in consensus and practical experience.

We are particularly grateful for the insights shared by our trade union and NGO members, whose long-standing advocacy has helped shape the global conversation around mHREDD, and by our company members, who offered candid reflections on the opportunities and challenges of implementing due diligence in complex global supply chains.

Through this process, we have ensured that our position reflects the realities of business operations while staying firmly grounded in the rights of workers and affected communities.

What’s in the ETI position?

ETI’s position identifies 10 core principles to underpin effective mHREDD regulation:

1. Alignment with international standards – Consistency with the UNGPs and OECD Guidelines.
2. Prioritisation of salient risks – Focus on the most severe human rights and environmental risks.
3. Effective mitigation and remediation – Clear obligations for enterprises to prevent harm and ensure remedy.
4. Meaningful stakeholder engagement – Rightsholders, including workers, unions, and communities, must be central to the process.
5. Transparency – Public reporting on due diligence actions and impacts, including disclosure of supply chains.
6. Comprehensive scope – Covering all enterprises, across all sectors.
7. Proportionality – Expectations tailored to enterprise size, leverage and influence.
8. Constructive enforcement – Mechanisms that drive compliance and improvement.
9. Meaningful sanctions and legal recourse – Civil liability, penalties and access to justice for victims.
10. Implementation guidance and support – Government-backed tools and resources, particularly for small and medium-sized enterprises and micro, small, and medium-sized enterprises.

Next Steps: From position to advocacy

Publishing our position is only the beginning. ETI will now work to amplify this position in policy and advocacy spaces, both in the UK and internationally. This includes:

• Engaging with UK policymakers and parliamentarians to support the development of effective mHREDD legislation;
• Collaborating with civil society and business coalitions advocating for strong due diligence laws;
• Supporting our members in understanding and preparing for regulatory developments;
• Contributing to public discourse around the role of regulation in advancing responsible business and sustainability.

We will also continue to monitor developments such as the EU Corporate Sustainability Due Diligence Directive (CSDDD) and other national initiatives, and advocate for alignment and coherence across jurisdictions.

A critical opportunity for leadership

The UK has the chance to lead by example, embedding respect for human rights and the environmental into law and aligning with the growing consensus that due diligence must be a legal duty, not a voluntary option.

Giles Bolton, ETI Executive Director, explains:

“Mandatory due diligence isn’t just about helping companies manage risks – it’s about strengthening supply chain resilience and ensuring decent work and environmental sustainability. Over time, this can also reduce the burden on governments both here and overseas, by embedding responsibility directly within business practice.”

At ETI, we believe that well-designed mHREDD regulation can help shape a future where doing the right thing is both a legal requirement and a shared responsibility.

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ETI membership enables businesses to undertake their human rights due diligence with unmatched expertise, credibility and leverage. 

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