Tracking and Measuring Human Rights Risks

How should investors expect businesses to take action on salient human rights impacts?

Investors should expect businesses to show how they have listened to rights-holder representatives and understood the issues. This includes considering if and how they might have contributed to the problem, such as driving prices down too far or placing excessive pressure on suppliers. Businesses should engage with their teams, suppliers, and business partners to clarify expectations, provide training, influence, support, and reward compliance or improvements. They should continuously look for ways to improve efforts, such as adopting more responsible purchasing practices and ensuring proper selection of suppliers and business partners.

How can businesses measure and communicate human rights improvements?

Businesses can measure and communicate human rights improvements by tracking the progress of their actions over time and reporting on this progress to a range of stakeholders. This can involve reporting on safer workplaces, the input of worker voices through trade unions, and assessments and guidance to suppliers. For example, after the Rana Plaza Factory collapse, the accord on fire and building safety led to significant improvements. Companies should also consider root causes of adverse human rights impacts, such as land taken from indigenous groups without consent, and report on their efforts to mitigate or avoid these issues.

How should companies report on their human rights due diligence efforts?

Companies should report on their human rights due diligence efforts by detailing:
- Risk mapping and research
- Engagement with potentially vulnerable stakeholders
- Outcomes and learnings from engagements
- Training and support provided to employees, partners, and suppliers
- Assessments and monitoring, including types of issues found and root causes
- Actions taken to influence remediation and the extent of its effectiveness
- Policy improvements and public commitments