Information on HRIA for businesses

Information on why and when businesses should commission HRIA.

According to the UN Guiding Principles, businesses are expected to assess their impacts (including those arising from operations and business relationships) by carrying out human rights due diligence. HRIAs can provide a process for businesses to understand and address their impacts in a specific project, activity or country context.

HRIA of business projects and activities can provide a structured approach to:

  • Identify adverse human rights impacts
  • Determine measures to address any adverse human rights impacts identified (through prevention, mitigation and remediation)
  • Facilitate dialogue between businesses, rights-holders and other relevant parties (for more information on the different stakeholders to engage in HRIA, see Stakeholder Engagement)
  • Facilitate capacity building and learning for company stakeholders, rights-holders and others involved in the impact assessment
  • Enhance the accountability of businesses
  • Build partnerships between businesses, rights-holders and other stakeholders

For more information, see section A.4 of the Welcome and Introduction guidance text.

HRIA, the UN Guiding Principles and other human rights initiatives

The UN Guiding Principles on Business and Human Rights articulate the expectation that businesses should respect human rights by implementing human rights due diligence. Human rights due diligence is a process for identifying, preventing, mitigating and accounting for the adverse human rights impacts with which a business is involved. The assessment of human rights impacts is a critical step in this process, and HRIA is one methodology that can be used to assess and address the impacts of business projects or activities.

According to the OECD Guidelines for Multinational Enterprises, which are binding on all OECD member states, businesses should: respect human rights, including by addressing human rights impacts with which they are involved; avoid causing or contributing to adverse human rights impacts; seek ways to prevent or mitigate impacts linked to the enterprise through a business relationship; have a policy commitment to respect human rights; carry out human rights due diligence; and provide for or cooperate in remediation of adverse human rights impacts. Many of these elements are embedded in this HRIA Guidance and Toolbox, and the OECD recognises HRIA as one method for identifying actual and potential human rights impacts.

The 2030 Agenda for Sustainable Development and its Sustainable Development Goals (SDGs) recognise businesses as a major driver of economic growth and aim at ‘unlocking the transformative potential of the private sector’. Respecting human rights in business activities is inherent to many SDGs, and impact assessment can be a key step contributing to fulfilment of the goals.

When should businesses commission HRIA?

Companies may decide to undertake HRIA for a wide range of reasons based on legislative and regulatory requirements, their industry and associated risks, their human rights commitments and/or their legacy around human rights issues. Developing ‘triggers’ for HRIA can be a good method to enable staff in businesses and financial institutions to identify projects or activities where HRIA would be a helpful approach. For instance, companies may decide to commission or undertake HRIA:

  • When a financer or investor requires human rights due diligence as part of the contract
  • When business partners (e.g., joint-venture partners) have been involved in human rights abuse
  • When entering a new country context with known human rights issues (e.g., forced labour, restrictions on freedom of expression or violent behaviour from security forces)
  • When an NGO, CSO, human rights group or other whistle-blower raises concerns about human rights impacts arising from the business project or activities
  • When beginning a high-impact, high-risk project (e.g., a new mine, dam or large construction project)
  • When the project or activities are or will be located on protected land or areas occupied by vulnerable populations (e.g., areas near indigenous communities, protected rainforests or refugee camps)
  • When internal risk-identification mechanisms flag a site or project for further review and investigation
  • When at risk of complicity in human rights abuses (see Phase 3: Analysing Impacts)
  • When the project or business activities will affect common property resources used by an entire community (e.g., groundwater, grazing land or fishing waters); or
  • When entering a new market or industry that may place consumers at risk (e.g., infant formula).

Severity of actual or potential human rights impacts should always guide decision-making on which projects warrant a stand-alone HRIA. Projects or business activities with the highest severity of impacts (e.g., threats to lives and livelihoods) should receive the highest priority. For more information on severity, see Phase 3: Analysing Impacts.

For HRIA of projects and activities, the assessment should be conducted as early as possible in the project cycle or when business activities commence. The HRIA should be repeated and re-evaluated at regular intervals and critical project gateways or other significant changes in context.

For more information, see sections A.4.5 and A.4.6 of the Welcome and Introduction text.

Additional information

The full Welcome and Introduction text provides more information on each of the points raised above. The text also includes more information on:

  • Why businesses need to assess their human rights impacts
  • How HRIA relates to human rights due diligence and the UN Guiding Principles
  • The differences and similarities between HRIA and other types of impact and risk assessment
  • Whether HRIA should be stand-alone or integrated with other impact assessments

For information on human rights standards and principles, including how they relate to HRIA, click here.

For an introduction to human rights impact assessment, including how HRIA differs from other forms of impact assessment, click here.

To learn more about stakeholder engagement in HRIA, click here.

To go back to the landing page and explore the different phases of HRIA, click here.

Businesses interested in working with DIHR, including on impact assessment and due diligence, can find more information here.