ETI welcomes UK commitment to mandatory human rights due diligence

The Ethical Trading Initiative (ETI) has welcomed today’s announcement that the UK will introduce mandatory human rights due diligence (mHRDD). The new UK supply chain law will apply to UK businesses with a global turnover of over £350m, and non-UK businesses with a UK-generated turnover of over £350m.

The new regime will require large businesses to identify, assess and address risks of human rights abuses and labour exploitation in their operations and supply chains, in line with the UN Guiding Principles and OECD Guidelines. A regulator will be able to direct the withdrawal of goods made with forced labour from the GB market where due diligence obligations have not been met. The government says it will legislate as soon as parliamentary time allows.

The announcement follows sustained calls from ETI’s business, trade union and NGO members, along with many other partners including the British Retail Consortium and Corporate Justice Coalition. In October, 33 organisations, including leading UK retailers and brands, joined ETI in writing to the Prime Minister calling for clearer regulation.

ETI works with businesses, trade unions and NGOs to advance human rights and improve human rights in global supply chains. Existing members include leading supermarkets, fashion brands, the Trades Union Congress, global trade unions and both national and international NGOs and ETI looks forward to supporting many more businesses to prepare for this new legislation.

Giles Bolton, Executive Director, ETI, said:
“Today’s announcement is a huge step forward for workers in global supply chains, and for the many responsible businesses, trade unions and NGOs that have called for it. ETI stands ready to work with government on the detail, so the law puts workers at the heart of due diligence, creates a level playing field for responsible businesses and gives people who are harmed a route to remedy. We will also strongly encourage government to ensure that both public sector procurement and environmental due diligence are included in scope, and that a clear timetable is set out so businesses can prepare.”

Philip Jennings, ETI Board Chair said:
“Around the world, more and more countries are making due diligence a legal duty, and today the UK has taken its place among them. Global supply chains connect workers, businesses and consumers across borders, and a common international standard, built on the UN Guiding Principles and OECD Guidelines, is what makes respect for workers’ rights possible at scale. The UK’s commitment sends a strong signal to its trading partners, and to workers everywhere who make the goods we rely on.”

ETI says the success of the new regime will depend on the detail, and is calling on government to ensure it:

• puts workers and their trade unions at the heart of due diligence, including remedy
• covers the full value chain, in the UK and overseas, including businesses’ own purchasing practices
• brings environmental harms into scope as the regime develops
• includes public sector procurement, recognising the public sector’s purchasing power to shape supplier behaviour across whole sectors
• sets proportionate expectations, so the largest businesses use their leverage to support suppliers rather than push requirements onto them
• sets out a clear timetable, with legislation brought forward in this parliamentary session
• gives the regulator a role beyond forced labour goods, with sanctions that drive improvement and a route to remedy for people who are harmed
• comes with guidance developed through consultation with businesses, trade unions, NGOs and lived-experience experts

ETI welcomes the government’s commitment to work with stakeholders and will be developing detailed guidance to help businesses understand and prepare for the new requirements.