Could mandatory human rights and environmental due diligence be coming to Australia?

Yesterday the EU Commission released its much anticipated proposed Directive on Corporate Sustainability Due Diligence (Directive). The Directive requires large organisations operating in the EU to undertake mandatory human rights and environmental due diligence (mHREDD). If the Directive is adopted, member states will be required to incorporate the requirements of the Directive into national laws and there are likely to be significant implications for Australian businesses.

The Directive's due diligence obligations are consistent with the standards enshrined in the UN Guiding Principles on Business and Human Rights and the OECD Due Diligence Guidelines for Responsible Business Conduct.