Human Rights Impact Assessment (HRIA) refers to the systematic process of identifying and analyzing the impact of a company’s business activities on the human rights of stakeholders, including employees and partner company workers. More than a mere fulfillment of legal obligations, it is a core tool constituting the ‘S’ dimension of ESG management.
The concept of HRIA originated from the process of predicting and identifying the impact of business on human rights. It is regarded as one of the key instruments of Human Rights Due Diligence (HRDD) required by the UN Guiding Principles on Business and Human Rights (UNGPs). In 2011, the United Nations officially published the UNGPs, which clarify that while not legally binding, businesses have a responsibility to respect human rights.
[Human Rights Impact Assessment(HRIA) © ESG.ONL/ESG Today]
In South Korea, the National Human Rights Commission of Korea developed the ‘Human Rights Management Reporting and Evaluation Guidelines’ in 2022, which include content on human rights policy declarations, conducting Human Rights Impact Assessments (human rights due diligence), identifying and mitigating adverse impacts, human rights management information disclosure, and human rights education. The commission recommended implementation by public institutions and state-owned enterprises, and many organizations now conduct assessments and disclose results in accordance with these guidelines. The scope of HRIA evaluation includes not only employees and workers but also local community residents and consumers, with particular priority given to examining the rights of vulnerable groups such as persons with disabilities, non-regular workers, and women.
The outcome of HRIA serves as foundational evidence for human rights-related items required by major ESG disclosure frameworks such as the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB). Amid the strengthening of global supply chain due diligence requirements, HRIA functions as evidence of corporate human rights management that draws the attention of investors, regulators, and consumers.
by Editor O