The Corporate Justice Coalition is campaigning for a Business, Human Rights and Environment Act – how would the new law support Fair Trade?
The UK has long prided itself on ethical business leadership, but when it comes to corporate accountability, we are falling behind. The reality is stark: UK-based businesses continue to be linked to human rights abuses and environmental destruction, both at home and overseas. From Boohoo’s Leicester sweatshops to Shell’s devastation of the Niger Delta, the current regulatory landscape allows corporations to profit at the expense of people and the planet.
That’s why campaigners are calling for a new Business, Human Rights and Environment Act (BHREA). This legislation would require all businesses and public sector bodies to take meaningful steps to prevent human rights abuses and environmental harm within their supply chains. Crucially, it would introduce a ‘failure to prevent’ model—meaning companies could be held liable if they don’t take sufficient action to address risks in their operations. See the principles.
A strong BHREA would not only protect vulnerable communities and ecosystems, but it would also support businesses that are already striving to do the right thing. And this is where Fair Trade comes in.
Aligning business with Fair Trade values
For decades, Fair Trade enterprises have demonstrated that business can—and must—be conducted in a way that respects human rights, empowers workers, and protects the environment. Yet in today’s economy, these ethical businesses often face an uphill struggle, competing against companies that cut costs by exploiting workers and degrading the planet.
A BHREA would help level the playing field. By requiring all businesses to conduct human rights and environmental due diligence, it would move the corporate world closer to the Fair Trade model—where responsibility for ethical sourcing and worker rights isn’t just a voluntary commitment but a legal requirement.
Creating a fairer market for ethical business
Currently, companies that adhere to Fair Trade principles often bear the burden of proving their ethical credentials, while others continue with business as usual. This is not just unfair—it actively discourages companies from taking responsibility. A BHREA would change this dynamic, shifting the responsibility onto all businesses to show that they are not complicit in harm. Ethical businesses, including Fair Trade enterprises, would finally have regulatory backing that ensures their values become the norm rather than the exception.
Strengthening supply chains and supporting Global South producers
Many Fair Trade producers and suppliers in the Global South already operate under rigorous ethical standards, ensuring living wages, safe working conditions, and environmental sustainability. A BHREA would help reinforce these practices by requiring UK businesses to build ethical supply chains, rather than sourcing from exploitative and destructive alternatives.
In addition, as UK businesses adjust to meet higher due diligence standards, demand for responsibly produced goods—including Fair Trade labelled products—will rise. This would not only benefit Fair Trade producers but also encourage wider industry transformation.
The time for action is now
Across Europe, countries like Germany, France, and Norway are implementing laws that hold businesses accountable for their impact on human rights and the environment. The EU’s Corporate Sustainability Due Diligence Directive is already setting new standards for responsible business. If the UK does not act, we risk becoming a safe haven for companies that want to avoid accountability.
The Fair Trade movement has always championed business as a force for good. A Business, Environment and Human Rights Act is a crucial step towards making that vision a reality across the wider economy. By ensuring that all businesses are required to act ethically, we can help create a trade system that genuinely works for people and the planet.
Join the movement
If you believe in a fairer, more sustainable economy, now is the time to act.
Scottish Fair Trade is a proud member of the Corporate Justice Coalition who are leading the campaign for a Business, Environment and Human Rights Act. You can find out more and get involved here: Good Business Matters and help ensure that Fair Trade principles become the foundation of business in the UK.
Louise Davies, 20 March 2025
