EU regulatory developments on human rights: Implications for Australian businesses

Over the next few years, a range of new human rights focused regulations will come into effect in the European Union (EU), with potential direct or indirect implications and opportunities for Australian businesses. These laws reflect a wider trend internationally towards laws that expect action from businesses to address their human rights risks, including modern slavery. 

This brief has been prepared to help Australian businesses understand the evolving human rights regulatory landscape in the EU, and its implications. It explains the EU: 

(1) Corporate Sustainability Due Diligence Directive (CSDDD)

(2) Corporate Sustainability Reporting Directive (CSRD) 

(3) Forced Labour Regulation (FLR) 

The brief explains key elements of each regulation, and how Australian businesses may be impacted directly or indirectly. The brief also notes that the EU’s evolving regulatory framework may drive increasing expectations from EU stakeholders, including customers and investors, and drive momentum for similar reforms in Australia. Australian businesses that are developing and implementing human rights due diligence processes will be well placed to respond to expectations flowing from these developments.