Human Rights Due Diligence is shifting. But your suppliers are already feeling the impact.

Over the past few weeks, I’ve been in conversations with European sustainability teams…

…and at the same time, on the ground in India—speaking with suppliers, farmers, and businesses across sectors.

What I’m hearing on the ground is very different from what’s being discussed in boardrooms.

And the gap is growing.

Geopolitical uncertainty is no longer abstract—it’s hitting suppliers directly

The ongoing conflict in the Middle East, especially involving Iran, is already disrupting supply chains in very real ways.

In just the last few weeks:

• I met a banana farmer exporting to the Middle East Prices had dropped so sharply that he told me: “There’s no point exporting anymore. We’re destroying the crop.”
• I spoke with an electric vehicle company Their view was clear: “Right now, the market is shifting so fast, it’s hard to predict where things are going.”
• I met a garment supplier exporting to the US Shipping disruptions through the Middle East were already affecting timelines and costs.

Across sectors, one pattern is emerging: Suppliers are absorbing the shock of global uncertainty first.

At the same time, expectations on HRDD are evolving—and increasing

In Europe, companies are navigating:

• evolving regulations like the Corporate Sustainability Due Diligence Directive (CSDDD)
• tighter budgets and shifting priorities

And now, another important development is coming into focus: New legislation on forced labour

This will have significant implications.

Any supply chain linked to forced labour risks may no longer be able to supply to European markets.

For many companies, this raises critical questions:

• Do we really understand what is happening beyond Tier 1?
• Are we confident about labour practices deeper in the supply chain?

And once again, the question comes back:

“Where should we focus our efforts now?”

But the risks inside supply chains are becoming more fragile

On the ground, the pressure is visible:

• Suppliers facing sudden price drops
• Export disruptions affecting production planning
• Businesses dealing with uncertainty they cannot control

And in this environment, risks to people don’t disappear.

They often increase—and become less visible.

In another recent engagement, during supplier visits with a European team, formal meetings suggested everything was in place.

But once we stepped outside those rooms, a very different reality started to emerge.

And in a factory where we supported a grievance mechanism, workers only began to speak up months later— not because of the system, but because trust slowly built over time.

This is the real tension companies now face

• Global uncertainty is increasing
• Supply chains are under pressure
• Regulations are tightening
• Budgets are constrained

But the need to understand what is really happening on the ground has never been greater

This is where many companies are rethinking their approach.

Not bigger programmes. Not more audits.

But more focused, practical engagement where risks actually exist.

India will remain central to this shift

Despite all the uncertainty, one thing is clear:

India is becoming more important—not less.

As companies diversify supply chains and deepen engagement here, the challenge is not just compliance.

It is understanding reality.

• How suppliers are actually coping
• Where risks are emerging
• What is changing on the ground

This is where Human Rights Due Diligence either becomes meaningful… or remains a paper exercise.

A final thought

In uncertain times, it’s natural to step back.

But from what I’m seeing on the ground, this may be the moment to do the opposite:Go closer to your suppliers. Because that’s where the real signals are.

If your team is currently navigating supplier engagement, human rights risks, or ESG implementation in India, I’d be interested to exchange perspectives.

Often, a short conversation helps bring clarity to what is actually happening on the ground.

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