Human Rights Due Diligence

Baroness Sheehan Excerpts

Tuesday 20th July 2021 Lords Chamber

Asked by

[Baroness Sheehan]

To ask Her Majesty’s Government what plans they have to make human rights due diligence mandatory for businesses, in particular those engaged in forest risk commodities.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

My Lords, the Government expect businesses to target their human rights due diligence approaches according to the UN Guiding Principles on Business and Human Rights. We currently have no plans to make this mandatory because there is existing legislation which holds businesses to account on human rights. All UK quoted companies are required to report on relevant human rights issues in their annual reports, and large businesses must publish supply chain transparency statements on steps they take to prevent modern slavery.

[Baroness Sheehan (LD) [V]]

My Lords, I thank the Minister for his reply. The European Commission plans to publish its sustainable corporate governance proposal this autumn, and UK companies operating in the single market would fall into its scope. I hear what the Minister says about the Government having no plans, but what consideration are they giving to keeping pace with the European Commission? Does he really believe that the current law is satisfactory to enable business practices to ensure that all commodities and services are subject to human rights and environmental due diligence processes?

[Lord Callanan (Con)]

Of course, we will keep these matters under review, but we believe that mandating compliance presents some practical challenges in definition, enforcement and so on. However, we will of course keep it under review.