Evolving State Expectations on Company Due Diligence and Public Reporting
In recent years, a number of States have developed new regulations with respect to corporate due diligence and company reporting. The legislative landscape is constantly evolving but the following examples are noteworthy as of April 2025. Note the below list is not exhaustive. In addition to the below, some lawmakers in other countries such as Mexico and South Korea are considering mandatory due diligence legislation. Japan has issued Guidelines on Respecting Human Rights in Responsible Supply Chains (2022).
Australia
The Australian Modern Slavery Act (2018) requires companies with consolidated revenue greater than AUS100 million to publish an annual statement about the slavery risks in their operations and what they are doing to assess and reduce those risks. The statement also needs to include a similar assessment of their supply chain. It was amended in 2024 toestablish an independent Australian Anti-Slavery Commissioner for victims and survivors, business and civil society to engage on issues and strategies to address modern slavery. As of 2025, the law is under review by Government following a 2024 independent review.
Canada
The Fighting Against Forced Labour and Child Labour in Supply Chains Act (2023) requires certain companies doing business in Canada to report annually on the measures they are taking to prevent and reduce risks of forced labour and child labour in their supply chains.
European Union
Several trade-related regulations concerning raw materials have been adopted by the EU in recent years which require human rights due diligence in supply chains if commodities are to be placed on the European Union market.
The EU Regulation on Conflict Minerals (applicable from 1st January 2021) sets out due diligence obligations for the so-called “upstream” part of the mineral supply chain, which includes those who import raw materials (specifically tin, tungsten, tantalum, gold (3TG) to smelting and refinery plants in the EU. For “downstream” companies that use refined forms of these metals and minerals from conflict areas in components and goods, the European Commission will soon release an online platform where downstream companies can voluntarily share information on their due diligence for metals and minerals.
In 2023, the EU Batteries Regulation entered into force, replacing the 2006 Batteries Directive. This Regulation, which comes into effect in stages, aims to make batteries sustainable throughout their lifecycle. Companies placing batteries on the EU internal market will have to demonstrate that the materials used for their manufacturing were sourced responsibly. This means that social and environmental risks associated with the extraction, processing and trading of the raw materials used for battery manufacturing (such as lithium and cobalt) will have to be identified and mitigated. Next steps:
- 18th August, 2025: Supply chain due diligence obligations and end-of-life management obligations start to apply.
- 18th February, 2027: Removability and replaceability of portable batteries and LMT batteries become mandatory.
- 31st December, 2027: Recycling and material recovery targets for batteries become effective.
Further information on implementation is available on the European Commission website.
The EU Deforestation Regulation (EUDR), which repeals the EU Timber Regulation, covers operators and traders that import cattle, wood, cocoa, soy, palm oil, coffee, rubber, and some of their derived products, such as leather, chocolate, tyres or furniture. They must implement mandatory due diligence processes to avoid contributing to deforestation and reduce carbon emissions. After the implementation deadline, it will be prohibited to place relevant products on the EU market, or export them from the EU, unless they are: 'deforestation-free' (which means that the relevant products contain, have been fed with or have been made using, relevant commodities that were produced on land that has not been converted from forest to agricultural use, whether human-induced or not, after 31 December 2020); produced in accordance with the relevant legislation of the country of production; and covered by a due diligence statement indicating no more than a negligible risk of non-compliance. Implementation has been delayed by one year until 30 December 2025 for large and medium-sized companies, and 30 June 2026 for micro and small enterprises.
In November 2024, the EU adopted the Forced Labour Regulation. This bans products being placed on the EU market after 13 December 2027 if they have been made using forced labour, defined in accordance with ILO conventions as "all work or service which is exacted from any person under the menace of any penalty and for which the said person has not offered himself voluntarily". Forced labour has been identified in a number of raw material supply chains, including minerals and agricultural products.
The European Commission will establish a non-exhaustive database of forced labour risks indicating where there is reliable and verifiable evidence that products produced by a specific economic sector in particular geographic areas present a higher risk of being made with forced labour. Based on an assessment of possible risks, Commission (for forced labour outside the EU) or member state authorities (for forced labour within their territory) may initiate an investigation if there is a suspected violation.
Two other relevant Directives relating to due diligence and reporting are currently under revision by the EU as part of the February 2025 ‘Omnibus I’ package on sustainability. The 2022 Corporate Sustainability Reporting Directive (CSRD), which replaced elements of the 2014 Non-Financial Reporting Directive (NFRD) requires companies of certain threshold sizes to disclose information on environmental, social and governance topics, including human rights due diligence, in accordance with European Sustainability Reporting Standards (ESRS). The 2024 Corporate Sustainability Due Diligence Directive (CSDDD) which covered mandatory human rights and environmental due diligence is also under revision. As of April 2025, requirements for implementation by companies have been postponed by two years and one year respectively.
France
The French loi de vigilance (2017) requires companies companies headquartered in France with 5,000 or more employees in France or 10,000 employees worldwide (including through direct and indirect subsidiaries) to establish mechanisms to prevent human rights violations throughout their supply chain. They must provide an overview of measures taken pursuant to a “vigilance” plan in relation to human rights and fundamental freedoms in their annual reports. The publicly available vigilance plan must explain the implementation of risk evaluation procedures and mitigation actions taken, if any. The plan should discuss the business and disclose its subsidiaries, established suppliers, and contractors.
Third parties can apply for an injunction requiring a company implement a “vigilance” plan. Companies could be subject to liability if individuals harmed by a company’s failure to establish or implement a plan seek damages for corporate negligence.
Germany
The German Supply Chain Due Diligence Act (2021) which came into effect in 2023, places environmental and human rights supply chain due diligence obligations on enterprises to with at least 3,000 employees in Germany (from 2024, with at least 1,000). In April 2025, the German coalition government announced its intention to repeal the Act in favour of the EU Omnibus proposals (see above).
Norway
Norway's Transparency Act (2022) requires certain companies to carry out due diligence activities to ensure they are operating responsibly, respecting both human rights and decent working conditions.
Switzerland
Article 964 of the Swiss Code of Obligations (Swiss Code) requires companies meeting certain criteria (such as listed companies, banks, insurance companies and others in the financial sector - with 500 or more employees, and a turnover of CHF40 million) to report on non-financial matters, including (but not limited to):
- policies adopted in relation to any climate action goals, social issues; employee-related issues, respect for human rights and combating corruption, including due diligence;
- the measures taken to implement the policies and an assessment of their effectiveness (including performance indicators); and
- the main risks related to the issues above and how the business will address these risks within its own operations and those that arise from its business relationships, products or services.
The Swiss Ordinance on Due Diligence and Transparency (2022) in the Sectors of Minerals and Metals from Conflict Areas and Child Labour (ODDT) sets out due diligence obligations in relation to minerals and metals (tin, tantalum, tungsten, gold (3TG)) from conflict-affected and high-risk areas and in relation to child labour. Does not apply to SMEs. The indicative list of conflict-affected and high-risk areas is provided under EU Regulation 2017/821.
United Kingdom
The UK Modern Slavery Act (2015) requires disclosure of activities companies are undertaking to eliminate slavery and human trafficking from their supply chains. It is accompanied by guidance updated in 2025. Statements are available in a government registry.
Schedule 17 of the UK Environment Act (2021) contains provisions on not placing ‘‘forest risk commodities (FRC)’ (raw or derived products) on the UK market if they were produced on land where use or occupation was illegal under local laws. The prohibition is not yet in force as of 2025, pending implementing regulations.
United States
Section 1502 of the US Dodd Frank Act (2010) requires persons to disclose annually whether any conflict minerals that are necessary to the functionality or production of a product of the person, as defined in the provision, originated in the Democratic Republic of the Congo or an adjoining country and, if so, to provide a report describing, among other matters, the measures taken to exercise due diligence on the source and chain of custody of those minerals, which must include an independent private sector audit of the report that is certified by the person filing the report.
The Uyghur Forced Labor Prevention Act (UFLPA) (2021) establishes a rebuttable presumption that any goods, wares, articles and merchandise mined, produced or manufactured wholly or in part in the Xinjiang Uyghur Autonomous Region of the People's Republic of China are prohibited by Section 307 of the Tariff Act (the section which prohibits the importation of any product manufactured, mined or produced using forced or child labour). The accompanying UFLPA Operational Guidance for Importers sets out the types of documentation which the authorities may request if the presumption is to be rebutted, such as documents evidencing a due diligence system and supply chain tracing.