ETI is disappointed that the King's Speech does not include a commitment to mandatory Human Rights and Environmental Due Diligence (mHREDD) legislation and is calling on the UK Government to reconsider.

We welcome the UK Government’s focus on economic growth and stronger trade relationships. The evidence from our members, from investors, from independent research and from comparable frameworks internationally is clear: well-designed mandatory due diligence legislation supports those goals, it does not undermine them. 

Investors representing over £4.5 trillion in assets under management have already called on the UK Government to introduce such legislation. Research commissioned by the European Commission found that over three quarters of businesses said mandatory due diligence regulation would benefit them. It gives responsible companies the clarity and consistency they need and ensures they are not undercut by those who ignore the risks they create. 

mHREDD is precisely the kind of active, market-shaping intervention that would ensure responsible businesses are not undercut by those who externalise the costs of exploitation. Governments committed to a fair deal for working people cannot credibly limit that commitment to national borders. The workers in global supply chains whose labour underpins our economy deserve the same protection.

While the King's Speech made no explicit mention of modern slavery, the UK Government’s accompanying briefing notes reference it in the context of the Immigration and Asylum Bill - but primarily as an immigration enforcement problem rather than a supply chain accountability issue. This risks both narrowing protections for survivors and allowing the corporate practices that can create some of the conditions for exploitation to go unchecked. Without a legal duty on companies to identify and prevent harm in their operations and supply chains, exploitation is highly likely to continue regardless of how the immigration system is reformed. 

Meanwhile, the EU, France, Germany and others have already introduced binding frameworks. The UK already imports £20 billion of high-risk goods annually, and as the EU and US tighten restrictions on imports linked to forced labour, the UK risks being left behind, with UK consumers more likely to be sold goods tainted with forced labour that can no longer find markets elsewhere. The US has named the UK among 60 economies under investigation for insufficient enforcement on forced labour. This is not just a human rights issue. It is a trade and economic vulnerability that stronger responsible business conduct standards would directly address.

The UK's Modern Slavery Act, while a step forward in 2015, has demonstrated the limits of disclosure-based approaches without meaningful accountability. This is not just ETI's view. Independent academic research, three parliamentary committees, and the UN Committee on Economic, Social and Cultural Rights have all reached the same conclusion, with the UN Committee urging the UK to establish a mandatory human rights due diligence framework as a matter of priority. More than 27 million people are estimated to remain trapped in forced labour worldwide, and workers making products for UK businesses continue to face unsafe conditions, discrimination and the denial of fundamental rights. Yet fewer than 10% of the world's most influential companies currently assess human rights risks in their supply chains. Voluntary action alone is not delivering the change that is needed, and 80% of UK consumers would support a law that ensures the products they buy are free from abuse. 

The Government has committed to championing the rights and agency of women and girls to live free from violence. Women are disproportionately represented in some of the highest risk supply chains where gender-based violence and harassment remain significant and persistent risks. That commitment requires enforceable standards in the supply chains where so many of them work. We would urge the Government to bring forward legislation that delivers the protections that workers, responsible businesses, investors and the public are asking for.

Giles Bolton, Executive Director of ETI, said:

"We've been making the case for this legislation alongside businesses, trade unions and civil society for years – and it's been encouraging to see so many countries move forward with it. But the UK is being left behind, and UK multinationals are already having to comply with overseas legislation regardless. We'd urge the Government to look again at what mHREDD could deliver: not just for workers and communities, but for supply chain resilience and a level playing-field for the responsible businesses already doing the right thing. ETI has almost 30 years of experience driving practical change in global supply chains. We're ready to work in partnership with the UK Government to achieve meaningful progress that benefits workers, businesses and communities alike"