Why building due diligence capability is now a strategic business decision
As we enter a new year, the message from regulators, investors, and global institutions is increasingly clear, there is no time left for superficial approaches to sustainability due diligence.
Across sectors and regions, companies are facing intensified scrutiny related to forced labour, migrant worker recruitment, land rights, and other human rights risks. Ongoing reporting by the Business and Human Rights Resource Centre shows a continued rise in allegations and cases linked to corporate value chains, many of which point back to gaps in due diligence processes and internal decision-making.
Recent developments demonstrate that expectations are no longer theoretical. Trade restrictions, enforcement actions, and new regulatory frameworks increasingly assess whether companies can show that risks are identified, acted upon, and managed in practice. This reflects a broader shift from policy commitments to operational implementation, where knowledge across functions becomes decisive.
The business case is no longer a question mark
A persistent concern among companies has been whether stronger human rights performance undermines competitiveness. That concern is now being directly challenged. A 2025 report by the United Nations Development Programme, Human Rights vs. Competitiveness, A False Dilemma? , finds no evidence of a financial trade-off. On the contrary, the report shows tangible financial benefits for companies that strengthen their human rights performance.
As UNDP concludes, the question is no longer whether businesses can afford to respect human rights, but how strong human rights performance can be leveraged for strategic advantage and sustainable competitiveness.
International standards are clear, implementation is not
Frameworks such as the UN Guiding Principles on Business and Human Rights, the OECD Due Diligence Guidance for Responsible Business Conduct, and ILO core conventions provide a well-established foundation.
What we consistently see in practice, however, is that challenges arise in translating these standards into everyday decisions, internal controls, procurement practices, and compliance systems. The OECD Global Corporate Sustainability Report 2025 highlights that companies with stronger internal competence are better positioned to manage risk and adapt to regulatory change.
Insights from resilience research, including work by the Stockholm Resilience Centre, further reinforce that social sustainability and human rights are central to managing today’s interconnected global crises.
Why knowledge building is the missing link
The gap is rarely a lack of intent. More often, responsibility for due diligence is fragmented across sustainability, legal, procurement, HR, compliance, and internal control functions, without a shared understanding of roles, thresholds, and escalation pathways. This creates both business risk and regulatory exposure.
This is why structured knowledge and competence building matters now more than ever.
Enact’s Sustainability Due Diligence Course provides a solid foundation for organisations that need a shared, practical understanding of how due diligence works in line with international standards. For organisations ready to go further, the Practitioners Workshop Series focuses on how sustainability due diligence is integrated into internal controls and corporate functions, where many of today’s most material risks arise.
Building knowledge is not a box-ticking exercise. It is a strategic investment in resilience, credibility, and long-term business performance. This is the moment to strengthen that capability.
Join us in Enact’s Sustainability Due Diligence Course or the Practitioners Workshop Series and start the year by turning expectations, standards, and risk into informed action !