Why due diligence cannot be generic

Effective due diligence must be based on understanding actual and potential impacts on people and the environment in a specific operating context. That requires prioritisation and tailored actions.

In practical terms, meaningful sustainability due diligence is shaped by a Human Rights and Environmental Impact Assessment that clarifies questions like:

• which rights and harms are most salient for this business model?
• where in the value chain do the risks arise?
• which suppliers, activities, or commodities drive the risk?
• what leverage exists and what kind of measures are realistic?
• what information is needed to monitor progress?

Having conducted human rights and environmental impact assessment, it is often evident that many human rights and environmental risks are located in companies’ global value chains in third countries. In other words, many sustainability challenges originate outside a company’s direct control, in business relationships and supply chains. That makes collaboration with suppliers, partners, and (where relevant) stakeholders indispensable for credible sustainability risk management.

The OECD Due Diligence Checker is an anonymous, browser-based self-assessment that helps an enterprise compare its current due diligence practices with internationally recognised standards for responsible business conduct. It starts with 13 introductory questions for a high-level snapshot, with optional, more detailed question sets aligned to the typical six-step due diligence cycle. How this fits a responsible contracting toolkit: {TODO}