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Advisory Council Meeting Implementing Human Rights Due

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Advisory Council Meeting Implementing Human Rights Due Implementing Human Rights Due Diligence in times of changing expectations Advisory01 October Council 2020Meeting 23.09.2020 Introduction - Welcome words and presentations Introduction Prof. Dorothée Baumann-Pauly Crispin Conroy Davide Fiedler Sarah Dekkiche DIRECTOR REPRESENTATIVE DIRECTOR GENEVA MANAGER SOCIAL IMPACT ADVISOR GCBHR International Chamber of Commerce WBCSD GCBHR Adrienne Williams Frank Seier Yann Wyss HEAD OF CORPORATE RESPONSIBILITY HEAD OF HUMAN RIGHTS SENIOR MANAGER SOCIAL & ABB Novartis ENVIRONMENTAL AFFAIRS Nestlé Context - National and international frameworks From soft to hard law (extracts) UNGPs UN SDGs OCDE Guidelines OCDE RBC Guiding Principles for Internat. MNEs (rev.) CH Commodity NAPs in making: UK, NL FI, DK LIT, SE, NO, Soft law Soft Trading Sector India, Pakistan, Japan, Indonesia, Columbia FR, BE, SE, Guidance Malaysia, Mongolia, Ukraine, Kenya, CH, DE, IT, PO, CZE, Uganda, Liberia, Morocco, Mexico, (NAPs) 2010 USA National National Chile , , 2015 GA Thai KOR 2020 Peru, Argentina UK Modern FR Duty of Australia CH UK Bribery Act UK Companies Act (amend) Slavery Act Vigilance Law Modern Responsible Slavery Act Business US Todd- Initiative Frank Act India CSR Law HK Modern Slavery Bill Government commitment: National California Germany, Finland, Italy, Lux. Transparency and Supply NL Child Policy statements: Chain Act Labour Act Sweden, Spain, Belgium, Denmark, UK Hard law EU Non- EU Conflict EU financial Minerals Human Rights EU Reporting Regulation And Directive Environmental Due Diligence Developments at EU level • January 2020: EU Commission study on due diligence requirements through the supply chain • April 2020: EU Commissioner for Justice, Didier Reynders, commits to introduce a legislative initiative as of 2021 on mandatory human rights due diligence • May 2020: EU commissioner for Trade, Phil Hogan, commits to work on the legislative proposal together with Commissioner Reynders • July 2020: Germany takes the six-months Presidency of the European Council and announces its support to human rights due diligence EU legislation. • July 2020: EC published the inception impact assessment to regulate corporate due diligence and directors’ duties. Roadmap open for feedback until 8 October 2020. • September 2020: Joint statement by 26 companies and business associations calling for EU-wide, cross-sectoral mandatory human rights and environmental due diligence • September 2020: European Parliament’s Committee on Legal Affairs publishes a draft report, with recommendations to the Commission on corporate due diligence and corporate accountability The Swiss RBI in perspective UNGPs EU Directive (draft) Swiss RBI Scope Company • All (application varies with • All (except micro-enterprises) • All (except low-risk SMEs) complexity, size, risk, nature of business) Business • Own activities • Own activities • Own activities relationship • Operations, product or • Business relationships • Controlled companies services by business partners Rights • Human Rights • Human Rights • Human Rights • Environment • Environment • Governance Obligation HRDD • Carry out HRDD (risk-based • Carry out HRDD (risk-based • Carry out HRDD (risk-based approach) approach) approach) • Applies to full supply chain (controlled • Based on 3 scenario: cause, • Applies to full supply chain companies, business relationships) contribute, linked to Liability • No liability • Penalties (Member States shall • Civil liability for operations + controlled • Guidance for remedy introduce penalties for non- companies (except prove that the compliance that are “effective, company took all due care or that the proportionate and dissuasive” damage would have occurred even if all • Possible civil liability due care had been taken). Discussion - Implementing Human Rights Due Diligence Q & A Closing remark.
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