Unified Metrics Library - Lack of due diligence
Helper question
Did the company have a due diligence process to identify, prevent, mitigateand address adverse
human rights impacts, during the period?
Summary
Businesses that are especially dependent on global supply chains with strong due diligence
practices will have a strong advantage in sustainability and ESG topics.
Unit
Boolean: Yes or No
Description
Due diligence evaluates the actions taken by an organisation to identify and act on actual and potential risks to people and the environment. The process does not only cover the organisation’s own operations but its entire global supply chain.
Regulatory Definition
Share of investments in entities without a due diligence process to identify, prevent, mitigate and address adverse human rights impacts.
Sources
- Commission Delegated Regulation (EU) 2022/1288 of 6 April 2022 supplementing Regulation (EU) 2019/2088 of the European Parliament and of the Council with regard to regulatory technical standards specifying the details of the content and presentation of the information in relation to the principle of do no significant harm . ANNEX I (Table 3, Additional indicators for social and employee, respect for human rights, anti-corruption and anti-bribery matters, Human Rights, Indicator 10)
Examples
Examples of due diligence may include analyzing the impact of business operations on the company’s supply chain, the environment, or basic human rights.