“… we renew our call on all governments to develop, implement, and enforce mandatory human rights and environmental due diligence requirements for businesses headquartered or operating within their own jurisdictions or, where appropriate, to further strengthen these regulatory regimes where they already exist.” – a statement from 94 investors representing over $6.3 trillion in AUM

On 7 October 2021, 94 investors representing over $6.3 trillion in assets under management and advisement, sent a statement to European Commissioners and the European Parliament, voicing their support for mandated human rights and environmental due diligence (mHREDD) (the “Statement“). The Statement was sent in light of the upcoming European Commission legislative proposal on Sustainable Corporate Governance. The proposal would require companies to consider their human rights and environmental impacts, allowing them to better manage sustainability related matters in their value chains and overall operations.


Continue Reading 94 Investors Representing Over $6 Trillion of AUM Voice Support for Mandatory Human Rights and Environmental Due Diligence

On 1 January 2019, the Modern Slavery Act 2018 (Cth) (MSA 2018) came into force in Australia. The MSA 2018 requires entities based or operating in Australia with an annual consolidated revenue of more than 100 million AUS dollars to report annually on the risks of modern slavery in their operations and supply chains, and the actions taken to address those risks. The requirements of the MSA 2018 reflect increasing and strengthening modern slavery obligations around the world (see, for example, our previous Blog Post and earlier Legal Update).

The Australian Council of Superannuation Investors (ACSI) has published a report (the Report) evaluating the quality and compliance of reporting by companies listed on the Australian Securities Exchange (ASX200) during the first reporting cycle under the MSA 2018.  The report sets out a number of recommendations, including how companies can improve their disclosures and how investors can exert their influence to encourage best practice in modern slavery reporting.  Although the recommendations are focused on the ASX200 and the MSA 2018, the Report’s findings are of broader relevance to best practice reporting beyond Australia – and will be of interest to all stakeholders concerned with modern slavery reporting and emerging mandatory human rights and environmental due diligence legislation.


Continue Reading Business and Human Rights – Reinforcing Modern Slavery Reporting – Lessons from Australia

‘With the most significant change since the GRI Standards launched in 2016, the revised Universal Standards set a new global benchmark for corporate transparency. Fully addressing gaps between the available disclosure frameworks and intergovernmental expectations for responsible business, including human rights reporting, they will enable more effective and comprehensive reporting than ever before.’

Judy Kuszewski, Chair of GRI’s Independent Global Sustainability Standard’s Board

The Global Reporting Initiative (GRI) have revised their Universal Standards to emphasize and require more transparency in reporting on human rights impacts and due diligence obligations. This is a significant update because all entities reporting in accordance with the GRI standards are required to report on the Universal Standards (now GRI 1, 2 and 3). Previously, human rights-related disclosures were addressed largely in the GRI 400 series on Social topics, on which an organization is required to report only if it determines those topics to be material. Under the revised Universal Standards, all companies reporting in accordance with the GRI Standards will need to be able to identify (and disclose) how they identify severe risks to the economy, environment and people—this now clearly includes impacts on human rights connected with their business, and what they are doing to address these risks.

This development is part of a multi-phase project to update the GRI’s human rights-related disclosures, and the emphasis on “double materiality” brings the GRI standards in line with the UN Guiding Principles on Business and Human Rights (UNGPs) and emerging mandatory human rights and environmental due diligence legislation (see our Previous Blogs here and here).  For companies that already adhere to the UNGPs, these revisions may not present a significant new challenge in practice; however, for companies that have not to date sought to explicitly adhere to the UNGPs, this will present a new challenge in terms of meeting the revised GRI standards.


Continue Reading Business and Human Rights: Revised GRI Standards Integrate UN Guiding Principles on Business and Human Rights and Foreshadow Emerging Mandatory Human Rights and Environmental Due Diligence Legislation