We are campaigning for the UK government to introduce new legislation that enforces mandatory social and environmental due diligence for all companies operating in the UK. Doing so would bring the UK in line with other advanced economies, most notably the EU, which recently introduced the Corporate Sustainability Due Diligence Directive (CS3D).

What is CS3D? 

The EU's CS3D legislation introduces new social and environmental due diligence obligations for companies operating within the EU. To copmly with the legislation, companies must show that they are acting to address any actual or potential human rights abuses or environmental harm taking place throughout their supply chains, including in the operations of their subsidiaries and suppliers.

According to Good Corporation, "companies will need to go beyond mere statements of commitment and ensure their actions and systems can provide sufficient evidence to underpin any claims". Independent verification of due diligence processes is going to be a central part of the legislation's enforcement to counter 'greenwashing'. 

The legislation is unique in that it does not simply require firms to carry out this due diligence, it also imposes harsh penalties on those firms that fail to do so in an effective and transparent way. Those companies that fail to abide by the legislation are likely to face "significant fines, exclusion from EU public procurement, potential civil liability claims and possible sanctions for company directors".

Is there any similar legislation in the UK?

The UK was considered a world-leader for implementing the Modern Slavery Act in 2015, which was intended to prevent human rights abuses throughout corporate supply chains. But the legislation has 'failed to bring about any substantial change in practice.' Companies have focused on developing reports on supply chain issues to comply with the legislation, but these reports have not been independently vetted, and the companies have not been required to take any action to counteract potential abuses taking place in their supply chains. 

UK legislators recently debated a private members bill that attempts to deal with these oversights in the Modern Slavery Act. The Commercial Organisation and Public Authorities Duty (COPAD) Bill was debated in early April, but this bill has been placed on hold due to the general election. 

The COPAD Bill would oblige companies operating in the UK to conduct mandatory human rights and environmental due diligence. It would also include a duty to prevent harm, and would hold any corporation that failed to act to prevent harm throughout its supply chain liable for these failings. The Act is modelled on the Bribery Act, which requires businesses to demonstrate that they have implemented all reasonable measures to prevent bribery. In the same way, the COPAD Bill would require companies to take measures to 'identify, address, and prevent harms' in their supply chains. 

We are campaigning for UK legislators to pass the COPAD Bill, which would bring the UK in line with countries like Germany, France and Norway, which have all introduced mandatory supply chain due diligence.