CCRcorp Sites  

The CCRcorp Network unlocks access to a world of insights, research, guides and information in a range of specialty areas.

Our Sites

TheCorporateCounsel

TheCorporateCounsel.net

A basis for research and practical guidance focusing on federal securities laws, compliance & corporate governance.

DealLawyers

DealLawyers.com

An educational service that provides practical guidance on legal issues involving public and private mergers & acquisitions, joint ventures, private equity – and much more.

CompensationStandards

CompensationStandards.com

The “one stop” resource for information about responsible executive compensation practices & disclosure.

Section16.net

Section16.net

Widely recognized as the premier online research platform providing practical guidance on issues involving Section 16 of the Securities Exchange Act of 1934 and all of its related rules.

PracticalESG

PracticalESG.com

Keeping you in-the-know on environmental, social and governance developments

The UK announced a new human rights due diligence law last week in a ministerial statement. This follows discussions earlier this year that recognized the need to address forced labor through legislation. A recent Herbert Smith Freehills memo gives us a look at the law’s major provisions:

  • “[the law would] apply to large UK and overseas businesses: UK businesses with global turnover of more than £350 million, and non-UK businesses with UK-generated turnover of more than £350 million, would be in scope.
  • Require companies to carry out risk-based human rights due diligence: in-scope businesses would need to identify, assess and address risks of human rights abuses and labour exploitation within their operations and supply chains. The regime would be aligned with the OECD Guidelines for Responsible Business Conduct and the UN Guiding Principles on Business and Human Rights.
  • Introduce new enforcement powers relating to goods made using forced labour: a regulator would be able to investigate businesses suspected of placing such goods on the Great Britain market and direct withdrawal where due diligence obligations have not been met and forced labour is identified. The Government separately intends to apply the EU Forced Labour Regulation in Northern Ireland.”

Details on the bill’s timeline are scant. For now, the government has simply announced its commitment to bringing the legislation forward. Future negotiations and debates could alter the law’s structure.

What’s interesting is that this due diligence law includes extraterritorial scoping. Up to now, we’ve seen provisions like this in several EU laws. The UK’s proposal shows that interest in such provisions is growing internationally. It only makes sense. Our economies are fully globalized. You can’t effectively implement forced labor bans and human rights due diligence laws by only looking at a firm’s economic activity in one country. A lot of questions remain to be answered about the UK’s new legislation, but it will bring the UK closer to parity with the EU’s CSDDD requirements.

Our members can learn more about supply chain due diligence here.

Back to all blogs

The Editor

Zachary Barlow is a licensed attorney. He earned his JD from the University of Mississippi and has a bachelor’s in Public Policy Leadership. He practiced law at a mid-size firm and handled a wide variety of cases. During this time he assisted in overseeing compliance of a public entity and litigated contract disputes, gaining experience both in and outside of the courtroom. Zachary currently assists the PracticalESG.com editorial team by providing research and creating content on a spectrum of ESG… View Profile