Posts Tagged ‘bank’

2020 UN Annual Forum on Business and Human Rights: hopefully not business as usual

November 17, 2020

Monday 16 November the UN Annual Forum on Business and Human Rights kicked off — with high-level business commitments to prevent human rights violations in their operations, to prepare for next year’s ten-year anniversary of the UN Guiding Principles on Business and Human Rights and to realise the ambition to “build back better.”

Richard Howitt of Supply Chain  is providing daily updates on the UN Human Rights Forum 2020. [see also: https://humanrightsdefenders.blog/2015/11/19/business-and-human-rights-where-to-go-in-the-un/]

The opening of the Forum gave a sobering assessment of how the COVID crisis has reversed business and human rights gains. UN High Commissioner for Human Rights Michelle Bachelet said that COVID restrictions were being exploited to suppress rights and to silence dissent. She pointed out that supply chains had suffered most, with female workers disproportionately affected. 

UNICEF’s Sanjay Wijesekerg said decades of progress on child labour and child marriage were being lost. He was one of a number of speakers throughout the day calling on governments to use their financial leverage during the crisis to enforce respect for business and human rights. 

In a special session on lessons from the pandemic, Tony Khaw — Director of Corporate Social Responsibility for semi-conductor producer NXP — explained how they had been able to help foreign migrant workers, always the most vulnerable in the company’s workforce across 26 countries, who were unable to return home because of travel restrictions; and Shubha Sekhar, Director of Human Rights: Eurasia & North Africa for The Coca-Cola Company, described how human rights specialists had been embedded in the company’s crisis-management teams.

Both companies found the advantage that comes from the fact that “due diligence” meant they had already established highly developed relations with suppliers, which had enormous benefits to both companies and to the supply chain when the crisis hit. Small businesses and jobs were saved, but security of supply remained protected. 

Corey Klemmer, Director of Engagement at impact investor Domini, said investors also saw how companies with strong human rights records had been shown to be more resilient. The business case for human rights respect clearly exists in bad times, as well as good.

However, a second theme running throughout the day was what UN Global Compact Executive Director Sanda Ojiambo called a “growing disconnect” between companies adopting human rights policies and taking action to implement them.

The fourth Corporate Human Rights Benchmark annual report — launched today at the Forum — finds the most improvement this year has been in public commitments to respect human rights by business, but that a large number of companies had failed to record improvement during the year; and still, 79 of the 230 companies assessed scored zero for human rights due diligence.

The day’s closing CEO panel put this down to an issue of leadership. 

UN Working Group Chair Anita Ramasastry said the leading companies were the ones “where the CEO can speak easily about the Guiding Principles and not just having a company human rights statement. It means employees, investors, stakeholders and consumers really notice.”

Meanwhile, for anyone afraid that cross-industry collaboration between companies on broader societal issues might impinge on their competitiveness, the best answer came from Michele Thatcher, SVP and Chief Counsel at PepsiCo, who said: “We even found ourselves at Coca Cola headquarters in Atlanta, talking human rights.”

Another key finding in the Human Rights Benchmark report was in a study of automotive companies, which finds almost no correlation between companies who rate well on climate action and those who do so on human rights. The two appear to be treated entirely separately by the industry — it’s as if the term “climate justice” had never been invented. 

The case to link the two was made by former Irish President Mary Robinson, who used the Forum to appeal to companies to work directly with human rights defenders at the local level — “as they understand the link between the environment, development and rights.”

A positive sign that the linkage is being better understood came from the World Business Council on Sustainable Development’s Filipo Veglio, who explained how the organisation has now changed its membership criteria to require a commitment to human rights, too.

What links the two major themes to emerge from the day — whether COVID or climate — is the need for companies to take steps to assist vulnerable people in supply chains, and to ensure their needs are taken into account in the change processes in which business is engaged. 

Richard Howitt will be providing daily updates on the UN Human Rights Forum 2020.

In the meantime on 11 November 2020 the Business ad Human Rights Resource Centre published:”The dirty side of development finance

…Human rights abuses and lack of meaningful consultation are a common feature of many of the so-called “development projects”. Human rights defenders, civil society and local communities all over the world have been denouncing the inherent, structural problems of the current development model for years. Yet, banks keep burying their head under the sand, failing to recognise these problems and to address them…

When the Inter-American Development bank and other financiers began talking about building three hydroelectric dams along the Pojom and Negro rivers, the word ‘development’ became the smokescreen for giving freeway to corporations. The pristine hills of Ixquisis, where local indigenous communities of Mayan descent had been living for centuries, were plundered, polluted and militarized…

In Armenia, for the past two years, local residents have been protesting against the development of the Amulsar gold mine. Built near the touristic spa town of Jermuk by the international mining company Lidyan, the mine would pose a threat to the environment and livelihoods of the local people. As the company plans to use cyanide to leach gold concentrate, the precious water sources in the area are in danger…

In Kenya, the Sengwer indigenous communities in the Embobut forest have been facing forced evictions, loss of livelihood and violent attacks because of a conservation project approved in the name of “sustainable development”…

In Nepal, the European Investment Bank (EIB) is funding a 220 kV transmission line project in the Lamjung district, failing to respect the right of the local indigenous communities to free, prior and informed consent. Project documents were primarily provided in English and, even in those rare cases where consultations took place, communities could not participate meaningfully and negotiate compensation rates…

https://sustainablebrands.com/read/supply-chain/un-forum-on-business-and-human-rights-day-1-the-most-vulnerable-are-always-in-your-supply-chain

https://www.business-humanrights.org/en/latest-news/development-finance-linked-to-human-rights-abuses-worldwide/

https://www.ohchr.org/EN/Issues/Business/Forum/Pages/2020ForumBHR.aspx

UNEP FI: Tool for associating UN and financial sector

August 29, 2020

The United Nations Environment Programme Finance Initiative (UNEP FI) was established in 1992 as a platform associating the United Nations and the financial sector globally. The need for this unique partnership arose from the growing recognition of the links between finance and environmental, social and governance (ESG) challenges, and the role financial institutions could play for a more sustainable world.

UNEP FI works closely with 230 members from the banking, investment and insurance sectors, who have signed the UNEP FI Statement of Commitment. The membership is made up of public and private financial institutions from around the world, and is balanced between developed and developing countries. They recognize sustainability as part of a collective responsibility and support approaches to anticipate and prevent potential negative impacts on the environment and society.

UNEP FI Social Issues

UNEP FI is committed to exploring the intricacies between social issues, human rights and financial sector practices. UNEP FI aims to de-mystify the language and jargon surrounding the social agenda, and clarify how social issues relate to the activities of finance institutions.

The main objectives of the work stream include:

  • To develop and maintain an understanding of human rights and social issues and how they apply to financial institutions worldwide, so that financial sector professionals are equipped to make responsible decisions.
  • To produce internationally applicable guidance for finance sector organizations on identifying and addressing social issues relevant to their businesses, highlighting relevant international laws, standards and initiatives, and examples of best practice.

The UNEP FI Human Rights Guidance Tool for the Financial Sector is designed as an online signposting tool providing information on human rights risks for financial institutions.

Included in the tool finance practitioners will find:

  • background information on human rights and how they relate to finance
  • relevant international laws, standards and initiatives
  • key questions to assist in assessing human rights risks and impacts
  • issues relating to different industry sectors
  • key human rights topics
  • links to other relevant resources

The tool focuses specifically on human rights issues relevant to the assessment of business relationships and transactions. Links are also provided within each of the sector briefings to the broader environmental and social risk guidance provided by UNEP FI. Together these form part of the growing array of tools and guidance available to financial institutions to enhance their understanding of human rights risks.

This tool provides a framework for finance sector professionals to:

  • identify potential human rights risk in lending operations
  • assess the materiality of the human right risk
  • identify possible risk mitigants.

Financial institutions will want to use the tool to assess the human rights issues in their own business and its supply chain. They will also find it useful in reviewing other aspects of financial services provision, in addition to lending policies and practices. Whilst the tool is mainly addressed to lending managers, human rights are important in relation to all financial sector activity, so others will also find much of interest and relevance in it.

The Human Rights Guidance Tool has been fully revised in 2014. The tool was originally launched in 2007 and updated in 2011.


Table of Contents

Introduction

Key Issues and Questions

Human Rights Issues by Sector

Human Rights Issues by Topic

Resources

About this tool

 

https://www.unepfi.org/humanrightstoolkit/credits.php

Rare: involvement by a UK bank in the Write for Rights campaign

December 9, 2019

The Co-operative Bank   Picture: Rui Vieira/PA Wire
The Co-operative Bank Picture: Rui Vieira/PA Wire
Ed Horner of York Press reports that the YORK branch of a nationwide bank is supporting the annual Write for Rights campaign. The Co-Operative Bank is encouraging colleagues and customers to write letters of support for people facing injustice, here in the UK and around the world. Helen Naylor, branch manager in York, will be running an awareness event. The branch has chosen to highlight three issues to support, climate change, migrant women and young trans-people in the UK. There will also be a representative from the local Amnesty International group to support customers. The event will take place on December 10 from 10am-2pm at the Co-Operative Bank York branch in Feasegate. See also: https://humanrightsdefenders.blog/2019/11/18/amnestys-write-for-rights-campaign-2019-launched-today-focuses-on-youth-activists/