April 05, 2019
Acknowledging the limits to what governmental enforcement can achieve, members of the European Parliament have proposed a law that would require companies to carry out human rights due diligence checks across their global supply chains.
Sponsors of the measure hope that by publicly reporting on human rights risks, and on what they have done to deal with them, companies can show stakeholders, including investors, that they are committed to responsible and sustainable business. The proposed law is based on the United Nations Guiding Principles (UNGPs) on Business and Human Rights.
“We cannot trace international trade between states and regions any more, it is between companies in very long and complex supply chains," said MEP Heidi Hautala, who is a member of the Parliament's Working Group. "The groundwork that has been laid…will lead to the adoption of an EU-wide law on human rights accountability and due diligence”