Human Rights Due Diligence in South Asia

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I had the opportunity to present my views on the relevance of Human Rights Due Diligence in South Asia at an online certificate course organised by Oxfam India and HURBA in July 2020. I did this webinar together with Professor Tara Van Ho.

Human Rights Due Diligence (HRDD)  has become an important mechanism to operationalise National Action Plans on Business and Human Rights. Many countries have or are taking the legislative route by mandating HRDD while some are relying on voluntary measures.

European Union's draft HRDD legislation has created a buzz globally. A EU study on due-diligence states that a regulatory intervention on HRDD is warranted due to the following factors:

  • Complex and opaque global value chains – adverse HR and environment impacts
  • Despite existing reporting requirements and voluntary mechanisms – companies not implementing due-diligence
  • Corporate risk frameworks – materiality to co. vs severity to affected
  • Regulatory gaps in existing legal framework and obligations of Member States
  • Fragmentation and duplicity of voluntary/ mandatory requirements
  • Legal uncertainty
  • Lack of Access to Remedy

In South Asia, there are no (known) government processes towards mandatory HRDD/ legislation in accordance with the UNGPs at this stage. Most South-Asian countries in the region are in the process of developing their National Action Plans and are at varying stages of developing the NAP. 

Similar to that highlighted in the EU study, South Asian nations also face the dilemma of regulatory gaps in existing legal framework and obligations to international treaties and conventions. This is linked with the obligations under UNGP Pillar 1 - State duty to protect. 

MSME and informal sector in South Asian nations add to the complexity of mapping supply chains and their inherent risks. Businesses in the region, especially lower down the supply chain, operate at razor-thin margins raising the issue of the cost of compliance and the raises the question of who pays for the compliance?

Some of the policy options on HRDD in South Asia are:
  • Do nothing and let the market forces decide
  • Adopt voluntary guidelines for companies to conduct supply chain due-diligence
  • Go for mandatory reporting/ disclosures on HRDD
  • Bring in legislation requiring mandatory human rights due diligence (similar to EU HRDD). Within this there can be multiple levels such as:
    • Sector and/ or commodity specific (textiles, heavy machinery, automobiles)
    • Limited to large companies
    • Applicable to all companies across all levels
    • Remedial mechanisms – judicial/ non-judicial
 To view the full recording of the webinar please view the YouTube video below:

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