A/HRC/40/48
(and elsewhere in the document) were changed to “alleged victims”, so as to ensure
impartiality.
35.
With respect to article 2, delegations debated the appropriate scope of the instrument,
in particular with regard to the multiple references to “business activities of transnational
character”. Several delegations and organizations reaffirmed their positions that the future
instrument should apply to all companies without distinction, including national and Stateowned companies. Others contested that view, arguing that transnational corporations
escaped regulation, and therefore should be the focus of the instrument. One delegation
suggested that the matter could be resolved by focusing on the transnational nature of the
activity rather than the nature of the business. Some delegations and many NGOs argued that
the future instrument should establish direct obligations for transnational corporations and
that the establishment of such obligations should be reflected in the instrument’s statement
of purpose.
36.
Several delegations called for greater precision in the wording of article 2. At least
one delegation expressed the view that the provision in which human rights violations “in the
context of” business activities were referred to was too vague for courts to apply. There was
some concern about the use of the word “violations” in article 2 (1) (b), as some delegations
and a business organization said that the term “abuses” – or “violations and abuses” – was
more appropriate. It was also unclear what rights were covered in that provision. While
several delegations welcomed the reference to international cooperation in 2 (1) (c), they
wondered whether the draft was too comprehensive and suggested stating that one purpose
of the instrument was to further international cooperation in matters relating to business
activities.
37.
Some delegations also suggested adding more to article 2 by including specific
references to the Guiding Principles; the universal, indivisible, interdependent and
interrelated nature of human rights; and the aims of bolstering domestic systems outlining
international standards. Some NGOs requested an explicit reference to the primacy of human
rights over trade and investment agreements.
38.
While many delegations and NGOs signalled their appreciation of article 8 and its
focus on victims, several delegations suggested abridging the article since much of it
reiterated accepted norms of international law, and one suggested removing it altogether. In
addition to calls to remove particular provisions (specifically article 8 (9–13)), there were
calls to use language that was more accurate and more typical of a legal instrument.
39.
With respect to article 8 (1), some delegations asked for more clarity regarding the
definition of terms (e.g., “satisfaction”) and the entities that would be subject to the
obligations in the article. Several delegations and a business organization voiced concern
about the reference to “environmental remediation and ecological restoration” in article 8 (1)
(b), noting that the terms were undefined, beyond the scope of the Guiding Principles and not
within the remit of the working group.
40.
Concern was also expressed about article 8 (2), since it could be read as authorizing
extraterritorial jurisdiction (any discussion of which, in the view of those expressing concern,
should be confined to article 5). One delegation requested that references to claims of groups
be removed, as class actions were not permitted in the legal system of the State on behalf of
which the representative of the delegation was speaking.
41.
The representatives of two delegations criticized article 8 (3) for being too general
and going beyond the intended scope of the future instrument.
42.
Several NGOs stressed the importance of keeping article 8 (4), as it would have
practical benefits for victims.
43.
At least one delegation voiced concern about the vague terminology used in article 8
(5) (c), asking, in particular, what constituted “unnecessary” formalities, costs or delays. In
its view, such vague terminology would lead to inconsistent application from one State to
another and could render the provision meaningless. Two delegations raised strong
objections to the clause in article 8 (5) (d) that provided that “in no case” would victims be
required to reimburse the legal expenses of other parties to a claim. In their view, cost shifting
was sometimes reasonable and necessary to prevent frivolous lawsuits; thus, unjustified
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