This open-source resource aims to assist businesses in recognising, preventing, and managing potential risks related to human rights and environmental issues within their operations and supply chains.
It is designed for various industries, enabling businesses to evaluate and enhance their HREDD practices by standardising content, requirements, and terminology. It seeks to establish a cohesive approach to HREDD maturity assessments across the FMCG sector and other industries.
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Originally developed by FLA with support from Nestlé, the tool was further refined and tested by Proforest, with contributions from both buyers and suppliers. By using the tool’s comprehensive results, companies can conduct self-assessments of their due diligence systems and collaborate with suppliers to identify areas for improvement regarding their operations and supply chains.
While participation in this initiative is voluntary, the tool serves as a reference for best practices, encouraging supplier engagement and ongoing enhancement in human rights and environmental due diligence.
It aligns with OECD Due Diligence Guidance and UN Guiding Principles (UNGPs), facilitating global cross-sector consistency while alleviating the reporting demands on suppliers from multiple buyers.
AIM-Progress director Louise Herring said: “Converging approaches is central to AIM-Progress’s mission and, we believe, key to effective human rights and environmental due diligence that positively impacts lives throughout supply chains.
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By GlobalData“This tool would not have been possible without the openness of members such as Nestlé, who shared the foundational work they initiated with the FLA, and without the valued partnership and collaboration of The Consumer Goods Forum and Proforest.”
The Converged HREDD Assessment Tool was developed over three years through collaborative efforts involving pilot testing and feedback from stakeholders including AIM-Progress, CGF, FLA, Nestlé, and Proforest.
The collaborators have made this tool available as an open-source resource with the goal of establishing it as a standard industry practice for assessing HREDD readiness.
When applied at the parent company level, this tool enables businesses to evaluate their HREDD system maturity across both their operations and supply chains, encompassing service providers as well as goods suppliers. This practical resource can be used by organisations across various sectors to:
– Conduct self-assessments of HREDD systems within operations and supply chains
– Collaborate with suppliers to identify and mitigate potential risks
– Streamline due diligence processes in accordance with OECD and UNGP standards
FLA executive vice-president and chief innovation officer Richa Mittal said: “Companies gearing up for the Corporate Sustainability Due Diligence Directive and other reporting requirements need tools to engage with their suppliers on human rights and environmental due diligence (HREDD). Applicable across industries, this tool will help companies accurately assess their systems, while avoiding self-assessment and reporting fatigue.”
