Robust due diligence laws across Europe are needed to support businesses respect human rights and contribute to sustainable development, says a new focus paper from the EU Agency for Fundamental Rights (FRA). The paper recalls that legal certainty and effective enforcement are key to protecting people and guiding companies towards responsible conduct.

As the EU prepares for the Corporate Sustainability Due Diligence Directive, FRA’s focus paper ‘A human rights approach to due diligence: reflections on key principles’ explores the key elements of a human rights-based approach, highlighting the gaps and opportunities in current due diligence practices.

It endorses a proactive, risk-based approach, emphasising the need for ongoing monitoring, meaningful stakeholder engagement, and harmonised legal standards.

Some of the key findings include:

• Risk-based and proactive due diligence: Companies should proactively identify and address any actual and potential human rights impact of their work.
• Comprehensive coverage: Human rights due diligence assessments should not be limited to direct partners as this undermines due diligence and risks leaving critical human rights violations unaddressed. Actors lower in the supply chain also need to be assessed.
• Ongoing monitoring: Companies must regularly review and adapt their processes to promptly identify and address adverse human rights impacts.
• Stakeholder engagement: Meaningful involvement of people and civil society organisations is essential for identifying risks, developing targeted solutions, and building trust.
• Clear standards: Harmonised civil liability rules across the EU are needed to ensure legal certainty and equal access to justice for everyone.
• Empowered supervisory authorities: Supervisory authorities should be equipped to investigate, require information, conduct inspections, order remedial actions, and impose penalties that are effective, proportionate and dissuasive.
• Alignment with international standards: New and emerging laws should align with established international standards to promote policy coherence and uphold the highest standards of human rights protection.

As the debate around corporate sustainability evolves, the paper serves as a resource for policymakers seeking to safeguard fundamental rights and promote responsible business conduct.

Its recommendations offer some key elements for designing and enforcing human rights and environmental due diligence legislation that protects vulnerable people and communities but that remains practicable and relevant for business.