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.

Select target paragraph3

Connect to a paragraph
Connect to an entity
Disable highlights
Add to table of contents