Mandatory Reporting
What is mandatory reporting?
Human rights reporting used to be voluntary and selective. Today, more and more governments are requiring companies to publish clear information about how they identify and address human rights risks in their operations and supply chains. These mandatory reporting laws turn private commitments into public information that workers, communities, investors and regulators can actually use.
For NomoGaia, reporting is not just about glossy sustainability stories. It is about evidence: where risks are, what actions companies take, and whether those actions make a difference for people on the ground. Strong reporting rules help close the gap between promises and practice, and create a record that can support better policy, better enforcement and, ultimately, better outcomes for rightsholders.
Why mandatory reporting matters
Mandatory reporting laws are generally separate from due diligence laws. There is substantial disagreement over the purpose and value of current disclosure laws. Done well, it pushes companies to track not only their policies and processes but also real-world outcomes for rightsholders. It can and should be used to empower regulators, investors, affected populations, companies, and business partners to track reductions in human rights harms in increasingly mature human rights management.
01
Experience with early transparency laws shows that vague obligations tend to produce disclosures that do little to change behavior. More effective laws require companies to clearly describe how they carry out human rights due diligence, how they identify risks, and how they evaluate to what extent those risks generate actual and potential impacts at their operations. These laws enable regulators to then follow the concrete steps companies are taking to address their impacts. Effective reporting frameworks also expect companies to show progress over time, including what has worked, what has not, and what gaps remain. NomoGaia’s assessments, case studies and datasets support regulators designing or revising such laws.
02
