A/HRC/44/44 may reinforce profit-driven corporate governance and cannot by themselves match the direct solidarity action required in the climate change field. In brief, these market approaches may supplement, but ought not replace, deeper reforms to corporate governance. 38. Finally, there are major gaps in international solidarity in this area arising from the transnational nature of corporations. As in other areas of human rights, in the case of climate change, the presumption that State jurisdiction to regulate corporations is territorially defined is incongruent with de facto corporate practices that are transnational. 91 For example, in jurisdictions where fossil fuel producers are required to disclose and reduce emissions, companies may not be required to account for the higher emissions of end-users who will burn exported fossil fuels. Corporations registered in a home State may not be required to disclose and limit emissions produced by a subsidiary in a host State with less stringent regulations. Furthermore, corporations may not be held to account for carbon embedded in their products from supply chain partners. 39. There are developments under way that might begin to address many of the gaps identified in this section. For example, some jurisdictions may put a price on carbon embedded in imported goods.92 Countries are working towards the elaboration of a binding treaty to regulate the activities of transnational corporations and other business enterprises under international human rights law. 93 In 2019, the Business Roundtable acknowledged deficits in corporate governance with members declaring that they would move from shareholder primacy to a commitment to all stakeholders, including protecting the environment. 94 New requirements for corporate governance are also being tested; one country has mandated a social and ethics committee for designated companies. 95 These measures are promising either because they may improve international cooperation or recognize binding corporate duties. C. The equity and adequacy of climate finance and technologies 40. Financial and technological support for the poorest and most vulnerable States and peoples is necessary to stay within the global carbon budget, in part because it tackles the incapacity of those who cannot act, despite their best efforts. It also reflects a commitment to justice across international borders, given that many of the poorest countries have contributed shockingly little to the globe’s cumulative emissions, not to mention the people living in extreme poverty within these countries. Furthermore, international finance and technology transfers are a primary means of assisting developing countries with adaptation. These forms of support thus draw on longstanding debates about the legacies of colonialism in the climate change field, and can contribute to securing an equitable future through international solidarity. 96 Past efforts to establish a new international economic order similarly proposed to redistribute finance and technologies between industrialized and postcolonial nations aligned with international solidarity. 97 When climate change rose to international attention, these proposals were reinterpreted to enable cooperation on this new global issue and were enshrined as duties to support developing countries in implementing 91 92 93 94 95 96 97 14 See Karen Morrow and Holly Cullen, “Defragmenting transnational business responsibility”, in The Cambridge Handbook of Corporate Law, Corporate Governance and Sustainably, Beate Sjåfjell and Christopher M. Bruner, eds. (2019). See Michael Mehling and others, “Designing border carbon adjustments for enhanced climate action”, American Journal of International Law, vol. 113, No. 3 (2019). Human Rights Council resolution 26/9. See www.businessroundtable.org/business-roundtable-redefines-the-purpose-of-a-corporation-topromote-an-economy-that-serves-all-americans. South Africa, Companies Act (2008), sect. 72. See Lavanya Rajamani, Differential Treatment in International Environmental Law (Oxford, Oxford University Press, 2006). See the Charter of Economic Rights and Duties of States.

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