A/HRC/4/74 page 4 8. In July 2006, the Special Representative posted a discussion paper on HRIAs on his web page at the Business and Human Rights Resource Centre,2 framing the subject and posing a number of questions for discussion. This paper comprises the findings of the Special Representative on HRIAs, including feedback on the discussion paper, updates on the various HRIA initiatives, and results of further research and consultation. 9. First and foremost among the Special Representative’s findings on the subject is that it is too early to offer a definitive evaluation of HRIAs for business, because to date only the summary of one such assessment has been made public (for BP’s Tangguh liquefied natural gas project in Indonesia), although other companies have undertaken private or related exercises. Shell’s application of the Human Rights Compliance Assessment tool with the Danish Institute for Human Rights is one noteworthy example. Therefore, many of the assertions in this paper will necessarily be theoretical until there are more examples in the public domain.3 II. SIMILARITIES TO ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENTS 10. Since environmental and social impact assessments (ESIAs) are relatively well established in business (albeit in a small number of industries), it is worth first highlighting those elements of ESIA methodology that HRIAs should include. The next section will describe the distinctiveness of HRIAs. 11. Like ESIAs, HRIAs should describe the proposed business activity, whether it is a new investment or a significant change such as expansion, changes in supply contracts, or a new policy (for example to do with local procurement or recruitment). HRIAs should consider the full business life cycle, for example from construction through closure for large infrastructure projects, or from new market entry for information and communications businesses. 12. HRIAs should catalogue the legal, regulatory and administrative standards to which the activity is subject. This should include the relevant national and local laws and regulations of the home and host countries; requirements of project financiers; and internal company policies. 13. HRIAs should describe human rights conditions in the area surrounding the business activity - the boundaries of which should be agreed through consultation and initial scoping - before significant activity begins. Engagement of human rights experts and local stakeholders is critical to this step. 2 See the Business and Human Rights Resource Centre, http://www.businesshumanrights.org/Gettingstarted/UNSpecialRepresentative. 3 See BP’s Tangguh project, http://www.bp.com/tangguh, and Shell’s work with the Danish Institute, http://www.shell.com/humanrights, “The Human Rights Compliance Tool”. See also the International Center for Corporate Accountability’s 2005 audit of Freeport in Indonesia, http://www.icca-corporateaccountability.org/.