The UK Government’s research on the economic impact of the UN Binding Treaty on Business and Human Rights
19 December 2025: The Corporate Justice Coalition (CJC) welcomes the UK Government’s renewed interest in meaningfully engaging with the UN Legally Binding Treaty on Business and Human Rights and the recognition that responsible business conduct is a pillar of the United Kingdom’s economic mission.
If introduced, a UN Legally Binding Treaty on Business and Human Rights would create mandatory rules to hold corporations accountable for human rights and environmental harms in their operations and supply chains under international law.
As part of the UK’s engagement with this UN process, the Foreign, Commonwealth and Development Office (FCDO) has recently commissioned new research into the “potential ramifications of a UN treaty on business and human rights for the global business environment.” This research will assess how the proposed treaty could affect economic growth, including potential costs and benefits for UK companies and those they work with in the supply chain.
It is essential that this research considers not only the impact that the treaty will have on businesses, but also the impact it will have on workers, families, human rights defenders and communities who are being impacted by corporate abuse.
Download the full statement here.
In this statement we set out our principal concerns and offer four concrete criteria, summarised below, that must be met to ensure the legitimacy and utility of this research:
1. Account for the real costs of corporate abuse:
The FCDO must consider not only the impacts on business, but also the economic, social and environmental costs currently borne by society, including those associated with modern slavery, PFAS pollution and climate change.
2. Recognise the preventative value of the Treaty:
Government analysis should consider how the Treaty could significantly reduce harm before it occurs by establishing and enforcing a duty for companies to prevent harm. It should also assess the Treaty’s potential to reduce the risks and costs associated with ISDS mechanisms, which have led to multibillion-pound losses and may deter governments from strengthening social and environmental protections.
3. Centre rightsholder perspectives:
To be credible, this study must include meaningful participation from workers, affected communities, trade unions and civil society organisations, taking a gender-responsive approach and giving particular consideration to Global South contexts where structural power imbalances in supply chains are most pronounced.
4. Ensure full transparency:
It is essential that the FCDO publish the Terms of Reference, methodology, selected research institution and list of consulted stakeholders, ensuring a process that is open to public scrutiny.
The UK Government must recognise the primacy of human rights and urgently take action to ensure business respect for human rights at international and national level.
We reiterate the urgent call for the UK government to address the governance gaps that enable UK businesses to cause, contribute to, or be linked to human rights abuses and environmental harm. Responsible business conduct underpins sustainable markets and a healthy inclusive economy that works for everyone. Urgent action is required at national and international level to regulate business and protect workers, families and our shared planet.
Signed by:
ABColombia
Action for Southern Africa (ACTSA)
Corporate Justice Coalition
Earthsight
Freedom United
Labour Behind the Label
Peace Brigades International UK
Trócaire
Water Witness International
Womankind Worldwide
