This briefing is intended for policy makers across markets considering introducing human rights and environmental due diligence (HREDD) regulatory tools for investors and corporations. 

Doing so can help to establish a level the playing field for responsible corporate and investor practice and reduce the negative human rights and environmental impacts of economic activities.

This briefing explains the ‘risk-based approach’ to HREDD, as defined in the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises. Adopting a risk-based approach gives investors and investees the discretion to focus and prioritise their efforts on the areas of the value chain where adverse impacts are, or are likely to be, most severe, and therefore create material risks for investments. Such an approach ensures due diligence guidance and/or requirements are proportionate, practicable and effective.

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