GLOSSARY
Human rights and environmental due diligence
Human rights and environmental due diligence is the ongoing process by which a company identifies risks of human-rights abuse or environmental harm across its own operations and supply chain, takes steps to prevent or mitigate them, and tracks and discloses the results. It's a concept shared across international guidance such as the OECD Guidelines for Multinational Enterprises.
Why it matters for Tier-2/3
As due-diligence mandates like the EU's CSDDD spread, even Tier-2/3 suppliers not directly regulated increasingly get pulled into a customer's due-diligence process as part of the downstream supply chain. Keeping documented records of identified risks and corrective actions makes it much faster to respond when a customer's due-diligence request arrives.
Related
Informational only — this does not replace an official ESG evaluation. Independent content; not affiliated with or endorsed by any framework organization.