Can investors analyse human rights risks in supply chains?

At the moment, analysing the human rights risk footprint in supply chains can be a challenging exercise. Historically, there has been a lack of transparency, data, and understanding of the issues. What we do have, is a framework -- the 2011 UN Guiding Principles on Business and Human Rights (UNGP BHR). Moreover, this framework aligns well with the 2023 EU Corporate Sustainability Reporting Directive (EU CSRD).

If investors are continually asking companies to share more data on themselves, how can we possibly see into the supply chains? Whatever human rights risks we may hope to analyse at company level, the risk becomes greater in the supply chain, while the information for investors becomes murkier.

What should we be looking for? What should we ask companies to do to monitor human rights risks throughout the value chain? We share our framework, and invite your comments!


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