HUMAN RIGHTS DUE DILIGENCE IN CORPORATE ESG (ENVIRONMENTAL, SOCIAL, AND GOVERNANCE) PRACTICES: A COMPREHENSIVE ANALYSIS
Adri Kashyap
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Abstract
ESG due diligence has rapidly become a crucial aspect of investment choices, corporate finance, and company strategy. ESG's impact on the operational procedures of several firms is becoming more evident. Advancements in domestic and global laws will further enhance this. This paper examines the process of “human rights due diligence” (HRDD) adopted within corporate ESG considerations in India. HRDD requires businesses to proactively assess, prevent, mitigate and account for potential negative impacts on fundamental human rights linked to their operations and business relationships. Using the recent mandatory “Business Responsibility and Sustainability Report” (BRSR) framework as an anchor, the research maps the maturity of HRDD processes across listed Indian companies in high ESG risk sectors against reporting metrics around governance, policies, grievances, assessments, integrations and actions. Based on analysis of disclosures from sample companies, findings reveal moderate commitment reflected in formal policy statements but lack robust integration within due diligence processes for systematic identification and prevention of human rights risks. Gaps exist in undertaking continuous impact assessments, tracking the effectiveness of actions and providing transparency around monitoring systems, remediation processes and supply chain oversight. While Indian regulations now explicitly embed expectations to respect human rights within ESG reporting, findings indicate that the majority of companies have not internalized responsibilities sufficiently. They fail to demonstrate substantive movement beyond basic policy commitments. Recommendations provide actionable guidance focused on embedded HRDD responsibilities as integral to sustainable, accountable and socially responsible corporate conduct.
mergers and acquisitions
Keywords
Human Rights
Corporate Sustainability
Due Diligence
BRSR
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