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Environmental, Social and Governance (ESG) promises have filled annual reports for years, yet many workers in global supply chains still face low wages, unsafe conditions, and abuse. Voluntary commitments have rarely translated into real remedy for those harmed. That is why governments are now turning to mandatory human rights due diligence (mHRDD) laws, which require companies to identify, prevent, and address human rights abuses in their operations and supply chains. The key question is whether these rules will truly force companies to pay and protect workers, or simply create another layer of ESG “window dressing.” For more labour rights insights and workplace updates, visit our Labour Rights page.
Why ESG alone has failed workers
ESG frameworks were meant to guide responsible business conduct, but they often prioritize reputation over real accountability. Companies publish glossy sustainability reports and codes of conduct, yet workers still encounter wage theft, union-busting, and unsafe factories.
Because traditional ESG is largely voluntary, firms can cherry-pick metrics, ignore tough issues, and outsource responsibility to suppliers. This weak, box-ticking approach shows why stronger, binding labour rights obligations are needed.
What mandatory human rights due diligence requires
Mandatory human rights due diligence aims to change this dynamic. Companies must under new European and other laws:
- Maps and evaluates human rights risks in its value chains.
- Act practically to stop and reduce abuses.
- Involve workers, trade unions, and communities in risk assessments.
- Publicly report impacts and measures.
- Give or make recompense where injuries are done.
Crucially, many proposals include civil liability, meaning companies can face legal action and financial consequences when they fail to respect workers’ rights.
Read more: The Return of 70-Hour Workweeks: Are Labour Rights Moving Backwards?
Can mHRDD deliver real remedy?
Whether mHRDD will truly protect workers depends on enforcement and worker participation. Strong supervision, meaningful penalties, and access to courts are essential so that labour rights are not just theoretical. Monitors, complaint and remedy negotiation should take a central position among workers, and unions.
If implemented robustly, mandatory human rights due diligence can move business from ESG promises to real accountability, helping ensure companies both pay and protect workers throughout their supply chains.
