A/HRC/44/43/Add.1 it did not receive any evidence of human rights due diligence integrated in the efforts to attract investments in such zones. For example, free industrial zones are not addressed in the chapter on business and human rights, and reference to the Guiding Principles on Business and Human Rights as providing the standards of expected conduct for all businesses operating in these zones is absent in publicly available information about them.21 In addition, any public information provides the detailed and full list of companies operating or in the process of obtaining permits in these zones, raising concerns about lack of transparency and proper oversight on their operations. 88. The Working Group remains concerned that development projects in free industrial zones could be rushed through without adequate assessment of their adverse social and environmental impacts. IX. Financial sector 89. During the meeting with the National Bank of Georgia, the Working Group learned that some positive steps had been taken in the financial sector to support the development of sustainable and responsible investments, in particular since the National Bank joined the Sustainable Banking Network in September 2017. The Code of Corporate Governance for Commercial Banks specifies that a bank should integrate sustainability issues, such as environmental, social and governance factors, into their long-term strategic development plans, thus considering financial and non-financial risks, including environmental and social risks, together. The Working Group hopes these initiatives will contribute to a shift in the approach to risk, which should focus less on financial risks to the bank, and more on potential negative impacts on people and the environment, in particular when financing large infrastructures and projects in the energy, mining and construction sectors that carry higher risks of negative human rights impacts. 90. The Working Group also learned about efforts to address the current gender imbalance in the composition of supervisory boards. It noted the requirement under the Code to ensure that female representation on supervisory boards would be at least 20 per cent – and in all cases a minimum of one female member – by the end of 2019. However, the Working Group learned that governmental institutions or agencies, including the National Bank of Georgia, were not subject to a quota requirement. It was therefore not surprising that none of the Bank’s seven board members were women. X. Policy coherence 91. In 2017, a council to ensure the effective implementation of the Sustainable Development Goals was established under the coordination of the Administration of the Government. The Head of the Administration acts as the Chair of the council, and the Resident Coordinator is the co-Chair. The council reports directly to the Prime Minister. It is composed of ministries and other government agencies but allows for the participation of representatives of United Nations agencies, European Union delegations, non-governmental organizations, business associations and academia, without voting rights. The meetings of the council take place at least once a year. To support the functioning of the council, four thematic working groups have been established on social inclusion, economic development, democratic governance, and sustainable energy and environmental protection. 92. Similar interministerial, multi-stakeholder coordination bodies exist under the Human Rights Council and the Administration of the Government to coordinate action for the effective implementation of the rights of the child, and on gender equality and combating violence against women and domestic violence. 93. The creation of dedicated and participatory bodies to deliver on human rights obligations is a positive development. However, the Working Group found no evidence of 21 See http://tfz.ge/en/444/; https://investingeorgia.org/en/ajax/downloadFile/569/ Free_Industrial_Zones_in_Georgia; https://potifreezone.ge/; and https://hualingfiz.ge/. 17

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