Business & Human Rights – Assessing the implementation of the “Protect, Respect and Access to Remedy” Framework By Dante Pesce, Member of the UN Working Group on Business and Human Rights First Annual Global Employers Summit, October 6-7, 2015

UN Framework on Business and Human Rights How can governance gaps and corporate human rights abuses be addressed? 2005 Special Representative appointed to ‘identify and clarify’ existing standards and practices with regard to business and human rights 2008 UN Protect, Respect and Remedy Framework 2011 UN Guiding Principles on Business and Human Rights articulating the corporate responsibility to respect human rights and human rights due diligence 2011 – 2017 UN Working Group on Business and Human Rights

… OCDE Directrices para Empresas Multinacionales (1976) UN Global Compact (1999) ISO (2010) ISO (1996) Johannesburg Summit Rio Summit Libro Silent Spring 1962 Libro Silent Spring 1962 ILO declaration (1977)) Evolution of Corporate Sustainability UNGP are not in a vacuum

UN Guiding Principles  Include all internationally recognized human rights  Apply to all States and to all business enterprises  Do not create new international law obligations  Are to be implemented “with particular attention to … individuals … at heightened risk of becoming vulnerable or marginalized, and with due regard to the different risks that may be faced by women and men”  Unanimously endorsed by the UN Human Rights Council in 2011

UN Guiding Principles

UN Working Group on Business and Human Rights  Our ambition  “Speed up and scale up”

“Tracking progress and ensuring coherence”

Convergence around the UN Guiding Principles United Nations European Union Organisation for Economic Cooperation and Development International Finance Corporation World Bank Industry Associations (back latter) Many others.....

Sustainable Development Goals

UNGP convergence with international standards ILO MNE declaration UN Guiding Principles UN Global Compact OCDE guidelines for MNE ISO26000 for Social Responsiibility G4

NATIONAL ACTION PLANS (NAPs)  Definition of NAP  An evolving policy strategy to protect against adverse human rights impacts by business enterprises  The Process of NAPs  Coordinated and coherent government leadership  Multi-stakeholder and transparent consultation  A process of continuous monitoring of implementation  The Content of NAPs  Compatible with the UNGPs  Context specific based on baseline assessment  Smart mix of mandatory and voluntary measures  Working Group portal: 

States that have produced a national action plan:  UK - launched September 2013  The Netherlands - launched December 2013  Italy - launched March 2014  Denmark - launched April 2014  Spain - launched in the summer of 2014 (*subject to approval by the Spanish Council of Ministers)  Finland - launched October 2014  Lithuania - launched February 2015  Sweden - launched August 2015

 States that are in the process of developing a national action plan or have committed to doing one:  Argentina, Azerbaijan, Belgium, Chile, Colombia, Germany, Guatemala, Greece, Ireland, Jordan, Malaysia, Mauritius, Mexico, Mozambique, Myanmar, Norway, Portugal, Slovenia, Switzerland, USA  States in which either the NHRI or civil society have begun steps in the development of a national action plan:  Ghana, Kazakhstan, Nigeria, Republic of Korea, South Africa, Tanzania, The Philippines

Why are the Guiding Principles useful for business?  Concrete: Prescribe specific actions for companies to manage their human rights impacts  Define expectations: Require companies to refrain from harming human rights; development initiatives are not an offset  Facilitate dialogue: Companies can begin discussions with governments, workers and communities on the basis of shared values and expectations  Manage risks: Ignoring human rights involves costs to companies (e.g. reputational, financial, legal, operational)

Human rights due diligence Policy commitment to human rights Assessing impacts Tracking & monitoring Integration & acting upon findings Communicating and reporting STAKEHOLDER ENGAGEMENT & ACCESS TO REMEDY Process of continuous improvement

Why are the Guiding Principles useful for business?  Key expectation  “Do no harm”

Business Associations & Initiatives Support for UN Guiding Principles

Examples of companies that engage on the Guiding Principles through business initiatives

Sustainability Yearbook 2015

IOE: What does the “Corporate Responsibility to Respect” mean for business? The responsibility to respect is a standard of expected conduct recognized by virtually every voluntary and soft-law initiative. It means avoiding infringing the rights of others and successfully addressing adverse impacts of business activities if and when such impacts occur. Its scope is determined by a business’s actual and potential impact, both of its own activities and those of its relationships, e.g. with other business partners, such as suppliers, as well as governments and customers. It is a baseline responsibility and applies to all internationally recognized human rights.

The IOE advises companies to do the following: Assess the risk of actual or potential impacts of business operations on all existing human rights instruments. A useful tool for this assessment is the UNHCHR publication Human Rights Translated: A Business Reference Guide. Keep it simple: companies will learn a lot by taking one or two rights through a due diligence process. This will create replicable processes for additional rights assessments. Prioritize the rights that could be impacted, bearing in mind that there is risk of non- respect both directly and indirectly through business relationships, for example within the supply chain. Spend time identifying appropriate interlocutors within stakeholder groups and explore, through dialogue, how the company’s activities may impact them now and in the future and how negative impacts can be avoided. Clearly set out, and communicate, the company’s responsibilities, expectations and commitments both internally and externally. A useful tool for this is the interpretive guide released in November 2011 by UNHCHR.

The IOE advises companies to do the following: Give visibility to the company’s activities in this regard – demonstrate engagement. Allocate financial and human resources to due diligence, stakeholder dialogue and follow-up processes. Realize that the corporate responsibility to respect is ongoing – this requires periodic review mechanisms. Consider creating a complaints handling procedure, rather than waiting until allegations of nonrespect occur despite best efforts. Such as system should ensure that all allegations are properly received, considered, addressed and rectified before escalating into a major issue, or even crisis, which will be more difficult to manage and potentially cause costly reputational damage. Consult with national employers’ organizations as a key partner. Many provide forums for the exchange of information and good practice.

Opportunities  From political commitment to practices  From silos to collaboration (global, national, company)  From some countries to many countries from all regions  From global business associations to local associations  From few pioneers to mainstream  From headquarter to subsidiaries  From company to supply chain  From large to small  From opacity to transparency

 Dedicated portal on the Working Group’s activities: unwg  Information about the Forum on Business and Human Rights:  Business and Human Rights Resource Centre: