The chains in supply chains should never be literal. Thailand is receiving praise from anti-trafficking and labor rights organizations for advancing a draft law that would require companies to conduct human rights and environmental due diligence across their supply chains.

“Thailand is taking a major step toward strengthening corporate accountability by drafting a new law. This proposed Mandatory Human Rights and Environmental Due Diligence (mHREDD) law will build on Thailand’s existing commitments and align with international frameworks,”  said Walk Free, a global human rights organization.

The legislation, currently being drafted by the Ministry of Justice, is designed to ensure that goods produced in Thailand are free from exploitative labor practices and environmental harm. As global awareness increases, both consumers and governments are placing greater importance on ethical sourcing. Consumers are increasingly choosing to support companies that demonstrate respect for workers and environmental sustainability, while several governments are tightening regulations and restricting imports from companies that fail to meet these standards.

“Thailand can position itself as a leader in ethical business practices,” said Audrey-Anne Rochelamagne, from the European Union Representative Office in Thailand. “The most immediate benefit for companies that comply with such legal requirements is continued access to some of the world’s most lucrative markets.”

Thailand has already begun taking steps to strengthen corporate transparency and accountability. One such initiative is One Report,               a comprehensive reporting system now mandatory for all publicly listed companies in the Kingdom. The system integrates financial disclosures with information on social and environmental impact.

Seree Nonthasoot, a member of the United Nations Committee on Economic, Social and Cultural Rights, noted that One Report has gained international recognition as a meaningful advancement in applying human rights due diligence. However, he emphasized that implementation remains challenging for small and medium-sized enterprises (SMEs), which often require additional support and incentives to meet the evolving standards.

If enacted, Thailand’s mHREDD law would place the Kingdom among            a growing number of countries prioritizing ethical and sustainable business practices - setting a benchmark not only in the region, but potentially on the global stage.