A/HRC/32/45 tool that evaluates performance in relation to key indicators related to corporate social responsibility, including impact and risk assessments of sustainability issues. 71. The State could also use independent review and audit mechanisms to review corporate social responsibility or human rights performance. In Sweden and Chile, the State appoints auditors to review the fulfilment of corporate social responsibility goals by the board and the chief executive officer of the company. E. Capacity-building 72. Capacity-building can play an important role in helping State-owned enterprises fulfil State requirements on human rights. States should promote awareness-raising and training for members of the boards and management of companies on relevant international standards. States should also promote the sharing of experience among companies on best practices and challenges with regard to human rights. For instance, in its National Action Plan on Business and Human Rights, the Swedish Government commits to increasing knowledge about the Guiding Principles, due diligence and redress mechanisms in Stateowned enterprises through a series of workshops. 73. States should encourage the participation of State-owned enterprises in relevant multi-stakeholder and multilateral initiatives related to responsible business conduct and human rights. In Brazil for instance, 25 State-owned enterprises are taking part in a business and human rights initiative launched by the National Secretariat for the Promotion and Defence of Human Rights. At the global level, just under 250 State-owned enterprises are members of the United Nations Global Compact.43 Given the number of State-owned enterprises that are active in the extractive and energy sectors, they should be encouraged to join the Voluntary Principles on Security and Human Rights.44 F. Requirements of human rights due diligence 74. According to guiding principle 4, States should, “where appropriate”, require that State-owned enterprises conduct human rights due diligence. State-owned enterprises are also subject to the corporate responsibility to respect (pillar II of the Guiding Principles), which includes conducting due diligence. 75. The requirement for State-owned enterprises to implement a full due diligence cycle is not yet common practice. However, several States require State-owned enterprises to conduct human rights due diligence in line with the Guiding Principles in a general manner.45 The sector-specific Chinese Due Diligence Guidelines for Responsible Mineral Supply Chains require enterprises to “observe the Guiding Principles on Business and Human Rights during the entire life-cycle of the mining project”, including operations abroad.46 43 44 45 46 Available at www.unglobalcompact.org. Only two State-owned enterprises are currently participating. Available at www.voluntaryprinciples.org/ See for example, the Chilean Principles on Corporate Governance, the Danish National Action Plan and the Norwegian Ownership Policy. See China Chamber of Commerce of Metals, Minerals and Chemical Importers and Exporters, “Due Diligence Guidelines for Responsible Mineral Supply Chains”, p. 8. While the Chamber is a business association, it includes a large number of State-owned enterprises. The Guidelines were developed 17

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