Contribution
It is a pleasure to serve under your chairship, Mr Dowd. I am sure I speak for us all in extending warm thanks to you for stepping into the breach at the last minute to enable us to have this timely and important debate, and I thank the hon. Member for Southgate and Wood Green (Bambos Charalambous) for securing it.
It is clear that UK business has global environmental and human rights impacts. UK business has impacts on climate change, biodiversity loss, pollution, waste management, deforestation, and of course on human rights and labour rights, as we have already discussed. The Government have acknowledged those concerns.
This debate comes at a particularly timely moment because, as the hon. Member for Southgate and Wood Green pointed out, we await with bated breath the Government release of announcements. I note that the hon. Member for Glasgow North (Martin Rhodes) tabled a question to the Secretary of State in January asking when the responsible business conduct review would be published. The Minister for Trade responded with one word: “Soon.” It is now five months later, so perhaps today’s Minister could assure us in her wind-up that soon really will mean soon. We would very much appreciate seeing that review.
Although we have some parts of an existing legal framework—for example, the Modern Slavery Act and the Environment Act 2021—they are too narrow to meet internationally accepted standards. Single-issue measures such as robust legislation to prevent and address modern slavery, including through import and export restrictions of goods and services that involve forced labour, are useful but not in themselves sufficient to address the full range of human rights and environmental risks and harms. In particular, if they require companies only to report, rather than to take action, they do not have the force that we need.
The UK risks falling behind its international partners. The UK was once a frontrunner on environmental and human rights legislation, but progress has stalled. The EU’s corporate sustainability due diligence directive will apply, of course, to UK companies that generate significant turnover in EU markets, meaning that UK businesses will face mandatory due diligence obligations abroad without equivalent domestic standards at home. That does not make sense. The UK would be better able to produce and sell goods and services in the EU single market, as well as continue to position itself strongly as a global leader on human rights, if we had our own mandatory environmental and human rights due diligence legislation.
It is not just campaigners who are calling for that; business is calling for a new law. A clear majority of businesses surveyed by the British Institute of International and Comparative Law believe that current UK laws do not provide clarity or sufficient legal certainty on human rights obligations. Nearly three quarters of UK businesses believe that additional regulation would provide benefits, including greater legal certainty and a level playing field. Indeed, I met with people from a large business in my own constituency just a couple of weeks ago who made exactly that point. A level playing field is needed. Business is calling for it.
As has already been reflected, major businesses including the British Retail Consortium, John Lewis Partnership, Tesco, Sainsbury’s and Twinings are all calling for new mandatory due diligence laws on human rights and the environment. As we have also heard, over 160 businesses and investors representing trillions of pounds of investment are calling for the failure to prevent liability model. That failure to prevent model is what underpins the Bribery Act 2010. We already have the legal model in UK legislation that we can adopt in the same way. We do not have to reinvent the wheel; it is simply about applying the wheel more consistently. Three parliamentary Committees have already recommended this. Parliament’s Joint Committee on Human Rights has specifically recommended legislation modelled on the failure to prevent framework of the Bribery Act 2010.
We have business calling for that legislation. We have parliamentary Committees and parliamentarians calling for it. The Good Business Matters pledge has secured cross-party support from over 80 MPs and peers from eight different political parties. We also have public support: 145,000 citizens have signed a petition calling for such legislation, and a YouGov survey indicates that three quarters of the British population support stronger legislation in this area.
In summary, introducing mandatory human rights and environmental due diligence legislation is not only the right thing to do to protect the environment and human rights around the world and to be consistent; it is good for our economy. We miss out on opportunities by not adopting such legislation. It is called for urgently by major businesses that want the Government to support them in showing leadership in this area. It is strongly called for by British citizens, who care—people in this country really care about the standards under which our goods and services are produced. We see that in the strong outcry about the continued import of goods and services from stolen land in Israeli settlements in the west bank; in the outcry over the import of goods that are produced under slave labour conditions by Uyghurs in China; and in the outcry over the import of goods and services that result in deforestation, environmental devastation and climate damage. It is time for the Government to act, and I very much hope that the Minister will assure us that they will do so soon.