Thailand is developing new legislation on responsible business conduct that would impose statutory obligations on large enterprises to manage human rights and environmental risks throughout their operations and supply chains. The Draft Act on the Promotion of Responsible Business Conduct, commonly referred to as the Human Rights and Environmental Due Diligence (HRDD) Bill, has been developed through extensive consultation involving a wide range of stakeholders, with the Ministry of Justice playing a leading role.

If enacted, the HRDD bill would reshape how certain large businesses operate and manage their supply chains, reflecting a recognition of international standards and global concerns regarding human rights and environmental protection. By introducing legally binding due diligence obligations, the draft aims to ensure that businesses operating in Thailand are held accountable for adverse impacts throughout their operations and supply chains, in line with emerging global legal frameworks.

Who Will Have to Comply?

The HRDD bill primarily targets large enterprises based on their annual revenue thresholds:

• Manufacturing businesses with annual revenue exceeding THB 500 million
• Wholesale, retail, or service businesses with annual revenue exceeding THB 300 million

The draft would also cover state-owned enterprises and foreign businesses operating in Thailand if their operations meet the applicable revenue thresholds.

What Does Human Rights and Environmental Due Diligence Involve?

Under the HRDD bill, due diligence is not a one-time checklist but an ongoing process with several key requirements:

• Adopt and publicly disclose a sustainability policy. Businesses must commit publicly to respecting human rights and protecting the environment, and must integrate this policy into corporate governance and risk management systems.
• Identify and assess risks. Companies must identify and assess risks of human rights violations and environmental harm across their operations and value chains.
• Prevent or reduce risks. Businesses must implement effective and proportionate measures to prevent or mitigate identified risks, rather than simply cutting ties with suppliers as a first resort.
• Consult meaningfully with stakeholders. Companies must engage with those most likely to be affected, such as workers, communities, or vulnerable groups.
• Provide remediation. Where harm has already occurred, businesses must provide appropriate compensation, restoration, or other remedies.
• Monitor, report, and disclose. Companies must track how due diligence is carried out and whether the measures taken are working, and make this information available.

These steps are closely aligned with international best practices and are designed to push companies toward proactive, rather than reactive, risk management.

How Can Liabilities Impact a Business?

Sanctions for noncompliance include administrative fines ranging from THB 1 million to THB 5 million. These administrative penalties do not limit or replace civil or criminal liability under other laws. Noncompliance can also lead to reputational damage and disruptions across business supply chains.

The Way Forward

The HRDD bill is still under development and will require time to complete the necessary legislative processes. The draft could be subject to revisions and further deliberation. Nonetheless, the HRDD bill provides a clear signal that Thailand is moving toward a future where responsible business conduct is not optional.

While the transition may be challenging, it also offers Thai businesses an opportunity to strengthen trust, resilience, and long-term sustainability. Businesses should be aware of the upcoming requirements and take proactive steps to prepare, ensuring that human rights and environmental responsibility are fully integrated into their operations.

Strong due diligence systems can help companies avoid reputational damage and supply chain disruptions. They may also improve access to international markets, particularly the EU, where similar rules are rapidly becoming the norm. Investors and consumers increasingly expect credible ESG practices, and early compliance could become a competitive advantage.