A/HRC/41/49
• Can involve prioritization (risk-based)
• Is dynamic
• Does not shift responsibilities
• Is appropriate to an enterprise’s circumstances
• Can be adapted to overcome the challenge of influencing business partners and other
business relationships, through both individual and collective measures
• Is informed by engagement with stakeholders
• Involves ongoing communication
48.
As stakeholders grappled with the question of how to speed up effective
implementation of this requirement, transparency in human rights due diligence reporting
systems was identified as a challenge that most businesses faced. Participants claimed that a
high percentage of human rights impact assessments were performed without a real
engagement with affected stakeholders and were merely a “ticking box” exercise. In that
regard, the demonstration of commitment by top executives and integration of due diligence
across corporate functions of the business enterprise were identified as potential solutions.
Another gap was the disconnection between corporate policies and local implementation. In
that context, the need for collective action and improved communication was identified as
key to overcome the challenges.
49.
Traceability was another key challenge for companies, in particular when addressing
issues beyond tier one in the supply chain. In that regard, participants discussed the
practical application of blockchain technology in supporting businesses to reduce risks and
to carry out human rights due diligence of their supply chains, as well as its potential use to
improve responsible sourcing that depended on the collection of quality and accurate data.
50.
Another important means for addressing current challenges was to leverage the role
that industry collaboration could play. An example was unveiled at the Forum, where the
International Council of Metals and Minerals, currently representing 30 per cent of global
mining production, presented a newly approved set of “performance expectations”.12 They
applied to all Council members, with the aim of improving the environmental and social
performance of the mining and metals industry, thereby reinforcing their commitment to the
Guiding Principles.
51.
Another theme in discussions on corporate human rights due diligence was the
complexity of value chains and business relationships and the implications for efforts to
implement effective human rights due diligence. The importance of working together with
both business partners and other stakeholders as a way to enhance human rights due
diligence and address systemic issues across the value chain was emphasized. An example
from the mining sector highlighted the value of developing a robust mitigation and
remediation process, in contrast to disengagement, and ways to support transition from
informal small-scale mining to a safer and better organized mining model that would
facilitate more effective due diligence. Another highlighted systemic issue concerned the
situation of migrant workers. Efforts to address negative impacts on migrant workers
employed by companies throughout supply chains included collective action to help
improve their living conditions, reimbursement of recruitment fees, developing a
comprehensive list of hiring requirements and shifting into a direct hiring model as well as
a predeparture training model for workers.
52.
An important recurring issue cited by companies was that joint ventures or
outsourcing presented challenges to exercising effective human rights due diligence.
Discussions also touched on other governance challenges arising in value chains and
business relationships. Participants highlighted the use of human rights provisions in
contracts, new transparency initiatives and measures focused on prevention.
12
12
See www.icmm.com/en-gb/publications/performance-expectations/pes.
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