The Danish Institute for Human Rights released the report A smart mix of measures on business and human rights in Latin America which assesses and describes the policy and regulatory development on business and human rights in Argentina, Brazil, Chile, Colombia, Mexico, and Peru, and the region (August 2025).
Human Level’s Take:
- Latin America is an increasingly important region for global supply chains, yet companies face a fragmented regulatory landscape on business and human rights.
- So far, the Inter-American Commission and Court of Human Rights has provided the strongest and widest expectations for companies in the region. But so have regional treaties like the Escazú Agreement, which is reshaping expectations on transparency, participation and environmental justice.
- Most governments have also introduced issue-specific legislation, covering environmental impacts, labour rights, equality and non-discrimination in the workplace, the rights of Indigenous Peoples, Tribal and Afro-descendent Communities’ rights, land rights and anticorruption. However, these laws often operate in silos and do not amount to a comprehensive mandatory human rights due diligence (MHRDD) framework.
- Companies operating in the region can begin to prepare for due diligence legislations and regulatory convergence, though, as Brazil, Chile, Colombia and Peru debate mandatory HRDD laws (Mexico’s equivalent bill has been tabled).
- Furthermore, starting to apply regional expectations like the Escazú Agreement (e,g., in terms of meaningful engagement with Indigenous, Afro-descendent and local communities, access to information and access to remedy) can strengthen trust and reduce community conflict, securing long-term license to operate.
Summary
- The state of Latin American legislation related to business and human rights. All Latin American countries assessed in this report have laws in place regulating business conduct on specific human rights-related areas, such as on environmental protection, labour standards, non-discrimination and equality, rights of Indigenous, Tribal and Afro-descendant communities and anti-corruption. These are currently directing corporate behaviour and establishing human rights-related priorities. Several countries have also adopted National Action Plans on Business & Human Rights (NAPs), which, while not binding, signal possible future legislation on business and human rights and increased attention to these matters. Regionally, the Inter-American Commission and Court on Human Rights have been setting standards on corporate behaviour and state protection. In 2019, the Commission adopted a report titled ‘Business and Human Rights: Inter-American Standards’, which serves as a benchmark for how regional human rights expectations apply to businesses. Most countries in the region and in the Caribbean have also adopted the Escazú Agreement, an environmental rights treaty which sets expectations on access to information, public participation and environmental justice.
- Where the gaps remain. No country among those studied has specific laws prescribing mandatory human rights due diligence (MHRDD). However, legislators in Brazil, Chile, Colombia and Peru have presented mandatory human rights due diligence bills, which are under discussion. In Mexico, a similar bill was presented in 2020 but has been tabled. Currently, the regulatory ecosystem is perceived as fragmented, with measures in one domain (e.g., environmental law) being disconnected from measures related to other rights (e.g. labour, community, Indigenous land rights). Access to remedy is also still a major challenge: judicial routes are often slow, expensive, or inaccessible. This increases the risk of escalation into protest, conflict or litigation. Additionally, meaningful engagement with affected communities, particularly Indigenous and Afro-descendent groups, remains limited despite regional obligations.
- What this means for companies conducting rights-respecting business in the region. Current fragmentation across countries and policy areas means that companies need to navigate a patchwork of obligations, which creates compliance complexity and risk. Weak remedy systems and limited stakeholder engagement processes and requirements also raise the likelihood of human rights impacts occurring and escalating into community conflict, protest or litigation – affecting companies’ operations and reputation. Using regional frameworks like the Escazú Agreement can help companies shape regional ESG strategies and guide engagement with impacted groups (especially when addressing environmental impacts), in a way that incorporates transparency and disclosure, participation and remedy. There is also an expectation that regulatory convergence will happen in coming years, as countries debate mandatory HRDD and align policies with global best practices. Going beyond compliance by conducting and implementing meaningful HRDD measures in the region can build both resilience and readiness.
