Overview
New York City has long been a global leader in commerce, culture, and progressive innovation. As the City continues to invest in infrastructure, development, and services, there is a growing opportunity to align economic growth with global standards for human rights, labor equity, and environmental sustainability.
The Office of Council Member Yusef Salaam is considering a legislative proposal that builds on this momentum—encouraging companies that do business with the City or operate at scale within its borders to lead with transparency, integrity, and social responsibility.
Inspired by international best practices such as the European Union’s Corporate Sustainability Due Diligence Directive (2024/1760), this proposal is thoughtfully tailored to New York City’s local powers in procurement, land use, and consumer protection. It would support businesses in identifying and addressing risks in their supply chains—helping ensure that the goods and services fueling our economy reflect the City’s values of fairness, environmental stewardship, and human dignity.
By promoting accountability and supporting responsible business practices, New York City has the opportunity to set a new standard for what ethical, inclusive growth can look like in the 21st century.
The Challenge
While the City has made strong strides in addressing local labor standards and climate emissions, it lacks a legal mechanism to evaluate how corporations:
- Source their materials,
- Treat workers across global supply chains, or
- Impact communities abroad through pollution, deforestation, or unsafe labor conditions.
As a result, companies may receive taxpayer-funded contracts or land use benefits while engaging in or profiting from harmful practices elsewhere—undermining our efforts on climate justice, wage equity, and responsible development.
Legislative Proposal at a Glance
The Corporate Human Rights and Sustainability Due Diligence Act would apply to any company that:
- Holds City contracts of $1 million or more annually;
- Receives public land use approvals, tax abatements, or subsidies;
- Generates over $50 million in annual gross receipts from NYC operations.
These “covered businesses” would be required to:
✔ Conduct Annual Risk Assessments of human rights and environmental harms in their operations and direct suppliers
✔ Submit Public Due Diligence Reports to the Department of Consumer and Worker Protection (DCWP)
✔ Maintain a Grievance Mechanism for workers and communities to raise concerns confidentially and without retaliation
✔ Meet Due Diligence Conditions for receiving City contracts, subsidies, and land use approvals
✔ Appear in a Public Registry tracking compliance, transparency scores, and any violations
✔ Respect Whistleblower Protections for employees, subcontractors, and external watchdogs who report abuses
Enforcement authority would include fines, corrective orders, and—when necessary—contract suspensions or debarment from future City work.
Status
The proposal is currently under review and development. Council Member Salaam is actively consulting with labor leaders, environmental advocates, procurement experts, and business stakeholders to refine the framework and ensure effective implementation.