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SOCIAL IMPACT

3

Enhancing Compliance with the United Nations Guiding Principles on Business and Human Rights (UNGPs)

Background

‍Our client, a pioneer in the implementation of the United Nations Guiding Principles on Business and Human Rights (UNGPs), sought to reinforce its ability both to quantify and enhance the quality of its assessment of human rights risks across the company. The goal was to strengthen human rights due diligence in key areas of significant risk.

Description

Over the course of a year, we conducted a comprehensive due diligence exercise that encompassed a range of activities designed to meet our client's objectives:

  • Mapping of existing due diligence processes We mapped the existing due diligence processes related to salient risks. These risks encompassed employees, security, community engagement, business relationships, and health, safety, and environment concerns.
  • Review and analysis of due diligence processes We reviewed and analysed the mapped due diligence processes through the lens of the UNGPs and regulatory requirements in the operating jurisdictions of the client. This evaluation provided a clear understanding of the alignment of our client's practices with international standards.
  • Assessment of information flows At a macro-level, we assessed the flow of information regarding human rights due diligence processes into both Operational Risk Management and Enterprise Risk Management functions. This evaluation helped identify areas for improvement and optimisation.
  • In-depth analysis of key functions To delve deeper into the specifics, we conducted an in-depth examination of the company's Marketing, Joint Ventures, and Mergers & Acquisitions activities. This served to: (a) evaluate the company's exposure to human rights risks at a functional level, (b) map out human rights due diligence processes in relation to key functions, and (c) to assess the alignment of these function-level due diligence processes with UNGPs and regulatory requirements.
  • Recommendations and guidance Based on our findings, we provided our client with a set of granular recommendations for refining their existing human rights due diligence processes.

Outcome

The result of this year-long project was the creation of a comprehensive and highly detailed map of the company's human rights due diligence processes in relation to salient risks. This map served as a valuable tool for our client, enabling them to develop an action plan to address any identified shortcomings. Ultimately, our work generated a comprehensive understanding of the company's human rights risk profile, facilitating a more proactive and effective approach to human rights due diligence.