Today’s businesses are expected to take responsibility for how their suppliers affect people and the environment. Modern global supply chains are often vast and complex and establishing traceability can be a challenge.
Companies can affect the human rights of their employees and contract workers, their customers, workers in their supply chains, communities around their operations and end users of their products or services. They can have an impact – directly or indirectly – on virtually the entire spectrum of internationally recognised human rights.
The UN Guiding Principles on Business and Human Rights (UNGPs) call upon businesses to make a public commitment to respect human rights, carry out human rights due diligence and provide a remedy when things go wrong. Human rights due diligence is the process through which a company understands when, where and how it could have impacts on human rights and prioritises these impacts for action. In practice, this means assessing suppliers and other business partners to identify and address human rights risks caused by, linked to or contributed to the company.
At the EU level, a legislative process is underway to establish mandatory human rights due diligence for companies covered by the Non-Financial Reporting Directive (NFRD) in 2021. This calls for companies to ensure they have the right processes in place to meet emerging legal requirements. With expertise from KPMG member firms around the world, we understand the challenges and developments in both a global and local context and have the knowledge and experience to guide your business through a sustainable supply chain journey.
KPMG can assist you with:
- Development of human rights policies and supplier standards
- Integration of human rights policies and standards into corporate processes
- Alignment with key international standards on business and human rights, including the UN Guiding Principles, the UN Global Compact, the OECD Guidelines and key ILO Conventions
- Human rights due diligence, e.g. risk assessment, impact assessment (HRIA)
- Supplier evaluation and performance monitoring.