icon_arrow_1_down icon_arrow_1_left icon_arrow_1_right icon_arrow_1_up icon_arrow_2_down icon_arrow_2_left icon_arrow_2_right icon_arrow_2_up icon_facebook icon_linkedin icon_mail icon_mail_hover icon_partners icon_play icon_priority_1 icon_priority_2 icon_priority_3 icon_priority_4 icon_search_hover icon_search_normal icon_tick icon_twitter

ECCJ Study of Non-financial Reporting reveals need for UNGP framework

Share this article

ECCJ and Clean Clothes Campaign publish study analysing company reporting under the NFRD.

At present, under the EU Non-financial Reporting Directive (NFRD), companies are required by law to disclosure their human rights risks, impacts and due diligence in their annual reports. However there remains a problem: it is not specified how companies are meant to do this.  Meanwhile, studies continue to reveal companies failing to report properly on their human rights risks, impacts and due diligence.

This report provides a qaulitative study of four cases of company reporting under the NFRD, each with significant and serious human rights risks and impacts. The examples highlight the need to clarify the legal duty to report on human rights due dilignce.

ECCJ, together with the civil society Alliance for Corporate Transparency, endorses the UNGP reporting framework as the human rights reporting framework companies must use. This is because it provides the clearest and most sophisticated common standard for companies as to how to undertake and report on their human rights risks, impacts and due diligence.

Mandating the UNGP reporting framework would help guide companies to report; result in comparable data through a common standard; inhance the quality of information; and help protect rights' holders from adverse human rights impacts by companies. The UNGP reporting framework would also help prime companies for upcoming legal duties to undertake human rights due diligence.

Finally, the report calls for sanctions for non-compliance with the directive and disclosure of meaningful supply chain data, such as supplier lists, to empower civil society to hold companies account for what they say in their reporting.

 

Contact us

ECCJ Secretariat
Rue d’Edimbourg 26
1050 Brussels - Belgium


Telephone number: +32 (0) 2 893 10 26