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  • A Human Rights Approach to Due Diligence: Reflections on key principles
22
October
2025

A Human Rights Approach to Due Diligence: Reflections on key principles

Human rights due diligence
Equality, non-discrimination and racism
Justice, victims’ rights and judicial cooperation
Environmental and social sustainability
This publication discusses how businesses can meet their human rights and environmental responsibilities. It focuses on key elements of mandatory human rights due diligence and presents reflections on principles from international law and EU law. The paper explains why risk-based human rights due diligence is needed and how it should be implemented. It also highlights the importance of stakeholder engagement, access to remedies, and oversight. It aims to inform EU policymakers and stakeholders about ways to effectively promote responsible business conduct and to ensure adequate protection of rightsholders.
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  • Executive summary
  • Introduction
  • 1. Why is mandatory human rights due diligence needed?
    • 1.1 The EU context
  • 2. A risk-based approach within human rights due diligence
    • 2.1. Business responsibility to respect human rights
    • 2.2. Risk-based approach to identification and assessment of adverse impacts
    • 2.3. Shared responsibility in implementing due diligence across the chain of activities
    • 2.4. Ongoing monitoring in line with a risk-based approach
    • 2.5. A risk-based approach to responsible disengagement
  • 3. Stakeholder engagement
    • 3.1. Conditions and stages of effective stakeholder engagement
  • 4. Access to effective remedies and civil liability
    • 4.1. Civil liability provisions and due diligence obligations
    • 4.2. Overriding mandatory application
    • 4.3. Representation of victims in civil proceedings for effective access to justice
  • 5. Oversight and enforcement
    • 5.1. Supervisory authorities
    • 5.2. Dissuasive penalties and their uniform application
  • About this publication


5. Oversight and enforcement

The effective implementation of HRDD hinges on establishing strong enforcement mechanisms such as administrative supervision, criminal sanctions, civil liability and company grievance mechanisms [82]
 Caygın Aydın, F., Dicalou, M., Holly, G., and Morris, D., Mandatory human rights due diligence laws: Key design features and practical considerations, Danish Institute for Human Rights, Copenhagen, 2025.
.

The UNGPs set out complementarity [83] United Nations and Shift, ‘Enforcement of Mandatory Due Diligence, Key Design Considerations for Administrative Supervision’, Policy Paper, 2021, p.7;
between administrative supervision and civil liability, which are both an expression of a Member State’s duty to protect. While effective judicial mechanisms remain at the core of ensuring access to remedy [84]
 UN Human Rights Council, ‘Guiding Principles on Business and Human Rights: Implementing the United Nations “Protect, Respect and Remedy” framework’, p. 23.
, administrative, legislative and other non-judicial mechanisms play an essential role in complementing and supplementing judicial mechanisms [85]
 UNGPs 1,3, 25, 26 and 27 and the commentaries thereon.
. While civil liability provides judicial remedies to individuals or communities for harm suffered due to corporate actions or negligence, administrative oversight focuses on broader regulatory compliance by proactively monitoring companies, applying non-criminal sanctions or corrective orders, investigating suspected cases of corporate abuse, providing guidance on practical application of HRDD, etc.

Pairing a civil liability regime with administrative oversight by a supervisory authority, which can act autonomously and on its own initiative, can help ensure a comprehensive and proactive approach. HRDD laws should not preclude victims from resorting to both types of recourse simultaneously, allowing them to seek different types of remedy.


5.1. Supervisory authorities

Mandatory HRDD laws should establish or designate independent supervisory authorities with powers to investigate, enforce and sanction breaches, making them central actors in safeguarding fundamental rights. Their role is particularly important for high-risk sectors and contexts where victims – especially those in vulnerable situations – may lack effective domestic remedies.

A national supervisory authority should at least:

  • be of a public nature, independent from the companies or other market interests;
  • be free from conflicts of interest and external influence;
  • should neither seek nor take instructions from any entity;
  • have a separation of monitoring/sanctioning and advisory/educational functions;
  • have expertise in business and human rights standards;
  • have adequate resources (human and financial); and
  • have powers to carry out the tasks [86]
     see CSDDD Recital 75, Articles 24, 25, and United Nations and Shift, ‘Enforcement of Mandatory Due Diligence, Key Design Considerations for Administrative Supervision’, Policy Paper, 2021.
    .

Such supervisory authorities would play a crucial role in ensuring compliance with mandatory HRDD by exercising powers to investigate companies, enforce compliance and issue sanctions. They should be able to request information from businesses, conduct investigations, order companies to cease non-compliant activities, impose penalties and adopt interim measures in cases of imminent severe harm. This enforcement framework, combined with supervisory authorities’ ability to act on their own initiative or in response to reported concerns, should enable them to effectively monitor and promote adherence to the mandatory HRDD requirements [87]
 see CSDDD Recital 75, Articles 24, 25, and United Nations and Shift, ‘Enforcement of Mandatory Due Diligence, Key Design Considerations for Administrative Supervision’, Policy Paper, 2021.
.

Previous FRA opinion on non-judicial mechanisms:

Member States should consider strengthening the role of non-judicial mechanisms in the business and human rights field. They can achieve this by providing more awareness raising and training of legal professionals, as well as by improving compliance with the decisions of such mechanisms and enforcement in cases of noncompliance. Member States should also consider strengthening the role of national human rights institutions, Ombuds institutions and consumer protection ombudsmen by empowering them, as appropriate, to file claims to court on behalf of individuals or in the public interest. They can achieve this by providing such institutions with a legal mandate to perform these tasks, as well as with adequate financial and human resources. Their staff should be trained in third-party legal representation. The EU should support Member States to improve the effectiveness of their OECD National Contact Points, as required by the OECD Guidelines for Multinational Enterprises. This could be done by providing financial support and facilitating training and exchange of expertise.

Source: FRA, ‘Business and human rights – access to remedy’ (2020), opinion 2.


5.2. Dissuasive penalties and their uniform application

In the EU, the CSDDD introduces an administrative supervision mechanism that creates a structured, EU-wide system for overseeing corporate sustainability practices. It gives these authorities tools to address companies that fail to comply with the obligations imposed by the directive, most importantly a power to impose ‘effective, proportionate and dissuasive’ penalties. [88] see CSDDD Article 24 and 25.

The Court of Justice of the European Union requires Member States to implement enforcement measures that act as a genuine deterrent for future violations, but these measures must also be proportionate to the harm caused and should be assessed in the light of the circumstances of each individual case [89]
 Tobler, C., ‘ECJ case law on effective, proportionate and dissuasive remedies’, in: European Commission: Directorate-General for Employment, Social Affairs and Equal Opportunities, Remedies and sanctions in EC non-discrimination law, Publications Office of the European Union, Luxembourg, 2006, pp. 8–16.


 Judgment of the Court of 2 August 1993, M. Helen Marshall v Southampton and South-West Hampshire Area Health Authority, C-271/91, ECLI:EU:C:1993:335.
. Similarly, as is the case for EU competition law, they should aim at prevention; therefore they should be high enough to deter illicit activities that otherwise would be profitable if they go unpunished [90]
 European Commission, ‘Fines for breaking EU Competition Law’, 2011.
.

FRA previous opinion on effective accountability systems

The EU and Member States should ensure that effective accountability systems are in place to monitor and, where needed, effectively address any negative impact of AI systems on fundamental rights. They should consider, in addition to fundamental rights impact assessments (…), introducing specific safeguards to ensure that the accountability regime is effective. This could include a legal requirement to make available enough information to allow for an assessment of the fundamental rights impact of AI systems. This would enable external monitoring and human rights oversight by competent bodies. The EU and Member States should also make better use of existing oversight expert structures to protect fundamental rights when using AI. These include data protection authorities, equality bodies, national human rights institutions, ombuds institutions and consumer protection bodies. Additional resources should be earmarked to establish effective accountability systems by ‘upskilling’ and diversifying staff working for oversight bodies. This would allow them to deal with complex issues linked to developing and using AI. Similarly, the appropriate bodies should be equipped with sufficient resources, powers and – importantly – expertise to prevent and assess fundamental rights violations and effectively support those whose fundamental rights are affected by AI. Facilitating cooperation between appropriate bodies at national and European level can help share expertise and experience. Engaging with other actors with relevant expertise – such as specialist civil society organisations – can also help. When implementing such actions at national level, Member States should consider using available EU funding mechanisms.

Source: FRA report: ‘Getting the future right – AI and fundamental rights’, 2020, FRA opinion 3.

From a rights-protection standpoint, strong penalties can incentivise preventive action aimed at avoiding harm in the first place, especially in high-risk supply chains affecting vulnerable groups, namely by serving as a deterrent against unlawful or abusive behaviour, and redress, namely by providing public and official recognition of the wrongdoing and conveying the message that justice is done [91] See footnote 43.
. In the context of EU harmonisation, while the regulatory acts sometimes prescribe core principles and factors for penalty determination, the discretion left to Member States may produce uneven sanctioning practices. The effectiveness of the provisions on penalties will ultimately depend on the supervisory authorities’ powers and resources and their willingness to apply sanctions. Strong penalties can incentivise companies to take more seriously preventive and mitigating actions and invest in tangible solutions before a human rights risk leads to violation, abuse or damage. This is particularly important in high-risk supply chains that affect vulnerable groups.

Supervisory authorities can play an important role in enforcing, supervising and guiding the application of mandatory HRDD. They should be equipped with the requisite mandate, such as the power to conduct investigations into potential non-compliance, including on their own initiative or based on received complaints; require companies to provide information related to their due diligence processes and impacts; conduct inspections and unannounced visits; order companies to take appropriate remedial actions for any harms or risks identified; and impose penalties or corrective measures. Finally, penalties should fulfil three criteria set out in the directive, i.e. effectiveness, proportionality and dissuasiveness.

Member States should ensure that the supervisory authorities they appoint are independent and equipped with the requisite legal mandate and competence and afforded adequate resources to effectively monitor compliance with the regulatory framework, conduct investigations and enforce their decisions.

Thus, if consistent with international standards and equipped with an appropriate mandate, tools and resources and training, supervisory authorities can contribute to changing corporate culture and provide a real avenue for rights holders.

4. Access to effective remedies and civil liabilityAbout this publication
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2024

Enforcing consumer rights to combat greenwashing

Tackling greenwashing is an issue where human rights, consumer rights and climate goals align. Companies use greenwashing to convince people to buy products that are not always as environmentally friendly as they claim to be. They mislead consumers and harm the environment. This report shows how a human rights approach can combat greenwashing. It is based on consultations with experts in 10 Member States. The report identifies gaps in existing laws and enforcement. It includes case studies of consumers seeking remedies for misleading environmental claims.
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Report / Paper / Summary
Artificial intelligence and big data
Data protection, privacy and new technologies
14
December
2020
Slovenian version now available
20 December 2024

Getting the future right – Artificial intelligence and fundamental rights

Artificial intelligence (AI) already plays a role in deciding what unemployment benefits someone gets, where a burglary is likely to take place, whether someone is at risk of cancer, or who sees that catchy advertisement for low mortgage rates. Its use keeps growing, presenting seemingly endless possibilities. But we need to make sure to fully uphold fundamental rights standards when using AI. This report presents concrete examples of how companies and public administrations in the EU are using, or trying to use, AI. It focuses on four core areas – social benefits, predictive policing, health services and targeted advertising.
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Report / Paper / Summary
Business and human rights
Justice, victims’ rights and judicial cooperation
Environmental and social sustainability
Business and human rights
6
October
2020

Business and human rights – access to remedy

Business activity affects not just customers, employees, and contractors along supply chains, but often entire communities and the environment. This makes it vital that every business complies with human rights. This comparative report looks at the realities victims face when they seek redress for business-related human rights abuses. It presents the findings of fieldwork research on the views of professionals regarding the different ways people can pursue complaints. The findings highlight that obstacles to achieving justice are often multi-layered.
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