General Secretariat
COUNCIL OF THE
DG C 2B - Security
EUROPEAN
UNION
LIMITE
Secretariat COHOM
Issue date:
12/042016
Meeting Doc.
024/16 REV 1
Originator
EEAS
Meeting date
N/A
Non Paper - Business and Human Rights: State of play
A. Introduction
1. Business has a positive impact on the social and economic development of modern societies
creating wealth and jobs, and contributing to the promotion of decent work and social
rights.However, in some cases, their operations can also have a negative impact on human
rights. The issue of violations and abuses of human rights derived from corporate behaviour
has attracted increased attention in many regions of the world. In particular in some
countries in Asia, Africa and Latin America there are reports of violations of civil and political,
economic, social and cultural rights including for instance attacks on labour rights, and rural
and indigenous communities facing land grabs and forced displacement. Human rights
defenders and civil society actors working in this area may be subject to harassment,
persecution and retaliation. The right to redress, and access to justice, is not sufficiently
guaranteed in most regions of the world.
2. Business and human rights and Human Rights Defenders form part of the Action Plan on
Human Rights and Democracy, 2015-2019. To address these issues comprehensively and
most effectively, the EU considers the “UN Guiding principles on Business and Human Rights
(UNGPs)”, endorsed unanimously by the Human Rights Council in its 2011 resolution 17/4 ,
as a key policy tool that, together with other international instruments greatly contributes to
the respect of human rights. The EU and its MS have taken steps to ensure their
implementation within the EU, and to disseminate the UNGPs and promote EU practices with
Partner Countries. At multilateral level the EU is supportive of the consensual track in the
Human Rights Council, i.e. resolution 17/4, most recently embodied in resolution 26/22
3. However, some countries have proposed the development of a legally-binding instrument to
regulate, in international human rights law, the activities of transnational corporations and
other business enterprises that have a transnational character in their operational activities.
This instrument would not apply to local businesses registered under relevant domestic law.
These countries believe that such an instrument would be more effective than the UNGPs, in
making international corporations accountable; a segment of civil society has supported this
approach in the belief that it will provide better access to remedy for victims of human rights
abuses. Ecuador and South Africa have taken the lead in bringing this issue to the Human
Rights Council including through Resolution 26/9 in June 2014 which established an Inter-
Governmental Working Group (IGWG) for the preparation of an international legally-binding
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instrument on Business and Human Rights. The IGWG met in July 2015 for its first one-week
session, chaired by the Permanent Representative of Ecuador. The EU opposed resolution
26/9 and only attended the first day of the IGWG, to explain its position, before absenting
itself.
4. Following up on a number of documents prepared for COHOM in previous months, this non-
paper provides the state of play of the EU work on both the implementation of the UNGPs
and the IGWG. It also focuses on some open issues for discussion.
B. Implementation of the UN Guiding Principles on Business and Human Rights (UNGPs)
5. As regards
EU Internal policy, in July 2015 the European Commission adopted a Staff
Working Document, providing a thorough analysis on the state of the UNGPs'
implementation at EU level (EU external action is also covered). Following the European
Commission's 2011 Strategy on Corporate Social responsibility (CSR), it continued to engage
with stakeholders in discussing measures that can facilitate the uptake of responsible
business practices of European firms.
6. Furthermore, the EU has enacted legislation and implemented EU social partners agreements
ensuring a level playing field for all businesses and ensuring access to protection and remedy
on a number of labour related human rights. All EU MS have ratified ILO core labour
standards and conventions, as well as other relevant human rights conventions. A Directive
on disclosure of non-financial information by certain large companies entered into force in
December 20141 and is being transposed by Member States into national legislation2. The
Commission will prepare guidelines on the methodology for reporting by December 2016
7. Several EU Member States have prepared or continued to prepare National Action Plans on
Business and Human Rights as well as Corporate Social Responsibility Strategies. By the end
of 2015 seven Member States had adopted a National Action Plan on Business and Human
Rights, while approximately 20 EU Member States have completed or are working towards
delivering their strategies on Corporate Social Responsibility.
8. As for
EU External action, in addition to commitments by the Parties to respect core labour
standards and Conventions as well as key Multilateral Environmental Agreements, all EU’s
recent Trade and Sustainable Development Chapters (TSD) in EU trade agreements contain
provisions on the promotion of internationally agreed principles and guidelines on
Corporate Social Responsibility, including the OECD Guidelines for Multinational Enterprises,
the UN Global Compact and the ILO Tripartite Declaration of Principles concerning
Multinational Enterprises and social policy.
9. The EU raised the issue of business and human rights with a range of third countries, both
during regular human rights dialogues and ad-hoc meetings. The EUSR for Human Rights
raised the issue as a key priority in his discussions with strategic partners, including South
1 2014/95/EU. This legislation requires large listed companies, as well as banks and insurance companies, with more than
500 employees to disclose in their management report relevant non-financial information, including on policies, principal
risks and outcomes relating to respect for human rights.
2 Deadline for transposition is 6 December 2016.
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Africa and Brazil, and with the African Union. In September 2015, the EU and Brazil organized
a dedicated Seminar, during which participants from EU institutions and MS, the Brazilian
administration, the UN, as well as Brazilian and European companies shared best practices.
10. As regards technical support, under the European Instrument for Democracy and Human
Rights (EIDHR), a capacity building programme to support National Human Rights Institutions
(NHRIs) started in 2015, with the aim to strengthen NHRI capacity in dealing inter alia with
violations of human rights in the context of business and human rights. In 2016, a global
EIDHR global call for proposals will be launched with a 5 million Euro lot devoted to
supporting civil society and social partners in implementing the UNGPs. Finally, the EU made
preparations for technical support to certain CELAC countries to prepare national Action
Plans on Business and Human Rights under the Partnership Instrument.
11. In Multilateral Fora, the EU takes part in efforts to promote a level playing field for
businesses, and foster sustainable global supply chains, including in the G7 framework3. In
the
UN Framework, the EU supports the activities of the UN Working Group on Business and
Human Rights, including the annual Forum on Business and Human Rights in Geneva. The EU
is also supportive of the Accountability and Remedy Project led by the UN OHCHR (some MS
also provided financial support). In this context, the OHCHR has prepared a draft guidance
aiming at addressing challenges that may prevent accountability and access to remedy in
cases of business involvement in human rights abuses, particularly in cases of severe abuses.
The guidance will be part of a High Commissioner report to be presented to HRC32 (June
2016) and is likely to be the basis for a resolution by the core group (Argentina, Ghana,
Norway, Russian Federation). The EU is also actively engaged in the work of the OECD,
together with the UN and the International Conference on the Great Lakes on enhancing and
promoting due diligence guidance for Responsible Supply Chains of Mineral from Conflict-
Affected and High-risk Areas4.
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C. The discussion on a legally binding instrument
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19. The next meeting of the IGWG is due to take place in October 2016. The Chairperson-
Rapporteur has not yet convened any meeting of regional coordinators to prepare for the
next session.
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