Jurisdiction
For products sold in Canada
Law Summary
Various proposed Canadian bills aim to introduce mandatory human rights and environmental due diligence (mHREDD) for Canadian companies operating abroad, requiring risk identification, prevention, mitigation, and potentially remedy access. Enactment of such federal legislation is still pending.
Law Obligation
- Develop and implement human rights due diligence procedures, in respect of its activities, its affiliates and its business relationships. When establishing due diligence procedures, consider the intersection of sex and gender with identity factors; consult those directly affected; and acknowledge the connection between human rights and the environment
- Identify and assess actual and potential adverse impacts on human rights resulting from company’s activities as well as from its business relationships
- Cease any activity that led to the adverse impacts and take remedial action
- Prevent any adverse impacts on human rights from occurring outside Canada because of its business relationships
- By means of an internal alert mechanism, be notified of any potential adverse impacts on human rights
- Monitor and document the implementation and effectiveness of its due diligence procedures.
- Annually, starting within one year of this Act’s enactment, entities must publicly disclose a due diligence report. The report should detail established procedures, their effectiveness, business activities, relationships, affiliates, human rights risks, mitigation measures, and other necessary information.
