Dr. Rachel Widdis:

I thank the Chair and members of the committee for the opportunity to present this morning. I provide input as a practitioner and in my capacity as Europe, Middle East and Africa director at Article One. I work with corporations globally to advance respect for human rights throughout their operations and supply chains. I teach business and human rights at the School of Law at Trinity College Dublin, and am a non-executive director of a State-owned company. As a member of the Irish Coalition for Business and Human Rights, I support the contribution of my colleagues today.

For context, there have been important changes in what is expected of business regarding impacts on human rights and environment. A decade ago, the UN Guiding Principles on Business and Human Rights set down the expectation that business would respect human rights and "do no harm". Some companies voluntarily adopted these principles and are considered leaders in practice today. However, most did not. In practice, positive change was slow and ultimately occurred at low levels. Now, key trends have altered this landscape. First, interest has come from consumers, employees, and shareholders into better business practices. Countries have adopted single issue laws, for example, the UK Modern Slavery Act. Second, the scope and pace of regulation has accelerated. European countries such as Norway, Switzerland, and Germany in 2021, passed broader so-called supply chain due diligence laws. These laws aim to prevent harm occurring in the first place. Broadly, they require certain companies to identify, assess, and address their negative impacts on human rights across their operations and global supply chains, and to be accountable for this process. The German law, which came into force on 1 January 2021, requires certain companies to report publicly on the effectiveness of their due diligence, for example to prohibit child labour. I work with companies which are evolving their business model and practices. Responsible business conduct is an adjustment. Companies recognise that it is the right thing to do, and no business wants the operational, reputational or legal risk of being linked to human rights abuses and damage to the environment. In short, engaged businesses recognise it is their business to engage.

In March, the EU Commission published the proposed Corporate Sustainability Due Diligence Directive. As its officials stated, "with these rules we want to stand up for human rights and the green transition". The hope or expectation is that this EU initiative will in time lead to a global standard of business practice. National laws and the proposed directive mark a paradigm shift from voluntary principles to hard law. They go beyond reporting out and set down corporate due diligence as a robust process. The EU framework itself needs to be content-ambitious and aim for a level playing field. It requires large EU and non-EU companies, and later companies in identified "high impact sectors", to take appropriate measures to prevent, mitigate and remediate adverse impacts. These measures range from inadequate workplace health and safety and exploitation of workers, to biodiversity loss and ecosystem degradation. They include accountability mechanisms, and oversight by directors of EU companies; both of which are important to deliver remedy for those affected and to underpin success.

It is key that the thrust of the proposed directive should not be watered down. It will evolve and could be strengthened in multiple ways. During the course of my work, I see both positive impacts of business and also terrible abuses affecting people and communities. Companies here in Ireland and across the world are moving to align with new human rights and environmental due diligence laws. They are supportive and seeking guidance. Across the EU, citizens and stakeholders expect products and services to be delivered with responsible business conduct. These laws and the proposed directive are needed along with valuable markers to advance and deliver that.

I am pleased to assist with further detail.