Open letter calls for mandatory human rights due diligence legislation

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As civil society organizations, trade unions, investors and/or subject-matter experts from around the world committed to upholding human rights (including Indigenous Peoples’ rights), environmental protection, climate-change action, and fostering equitable and sustainable economic development, we call on the Government of Canada to adopt legislation requiring Canadian companies to undertake human rights and environmental due diligence throughout their global operations and supply chains.

The draft model legislation the Corporate Respect for Human Rights and Environment Abroad Act (May 31, 2021) proposed by the Canadian Network on Corporate Accountability (CNCA) acknowledges that all human rights are worthy of protection, moves beyond the limitations of voluntary initiatives and reporting-only approaches, provides insight on important human rights and environmental considerations, and lays the groundwork for more robust and comprehensive human rights and environmental due diligence legislation in Canada.

The CNCA’s proposed new law will:

establish a corporate duty to prevent human rights abuses and environmental damage;
create a corporate obligation to undertake comprehensive human rights due diligence; and
establish a right of action in Canadian courts (civil lawsuit) if Canadian companies, their subsidiaries, suppliers or subcontractors cause human rights abuse or environmental damage abroad. It would also establish a right of action if companies don’t develop, implement or report on adequate human rights and environmental due diligence procedures.

Adopting legislation such as the Corporate Respect for Human Rights and Environment Abroad Act (May 31, 2021) will incentivize Canadian companies to proactively prevent harms to human rights and environment, recognize the right to remedy for negatively impacted peoples, and help the Canadian government fulfill its international human rights responsibilities as set out in the United Nations Guiding Principles on Business and Human Rights.

Canadian companies includes those that are domiciled in Canada and those who sell goods or services in Canada if they also have a physical connection to Canada.

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