UK to Mandate Human Rights Due Diligence for Large Firms
The United Kingdom government announced a new mandatory human rights due diligence regime that will cover services across the UK and goods throughout Great Britain. The rule targets companies that report a global turnover exceeding £350 million, equivalent to €420 million or $471 million.
Under the regime, affected firms must embed systematic checks to identify, prevent, and mitigate adverse human rights impacts linked to their operations and supply chains. The requirement applies uniformly to all qualifying businesses, regardless of sector, and will be enforced by the relevant UK authorities.
The policy aims to align the UK with international expectations for corporate responsibility, ensuring that large enterprises take proactive steps to respect human rights in every market where they operate.
Why it matters
Insurers will need to assess the new compliance risk for large corporate clients and may adjust underwriting criteria accordingly.
FAQ
Which businesses are subject to the new UK human rights due diligence regime?
Businesses with a global turnover of over £350 million.
What areas does the regime cover?
It covers services across the UK and goods throughout Great Britain.
What is the purpose of the due diligence requirement?
To identify, prevent, and mitigate adverse human rights impacts linked to a company's operations and supply chains.
Source: Commercial Risk Europe. See the original source for full details.
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