Addressing human rights: Key developments and tools - Tuesday, 8 June 2021
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Addressing human rights: Key developments and tools Tuesday, 8 June 2021
WELCOME & SETTING THE SCENE
09 :00 – 09:10 Frances Iris Lu, Head of Sustainability & ESG Services
KPMG Denmark
TOWARDS MANDATORY DUE DILIGENCE
09:10 – 09:20 Anders Planck-Hendriksen, Consultant, Sustainability & ESG Services
KPMG Denmark
UNDERSTANDING THE CURRENT HUMAN RIGHTS CONTEXT
Dr. Meg Brodie, Director, Human Rights & Social Impact Services
09:20 – 09:30 KPMG Banarra (Australia)
ADDRESSING HUMAN RIGHTS: TOOLS AND INSIGHTS
Jenna Hytti, Manager, Responsible Investment & Sustainability Services
09:30 – 09:45 KPMG Finland
Anders Planck-Hendriksen, Consultant, Sustainability & ESG Services
KPMG Denmark
Agenda
Q&A
09:45 – 10:00 Frances Iris Lu, Head of Sustainability & ESG Services
KPMG Denmark
Timeline
UN Secretary General The Guiding Principles for
The Universal
Kofi Annan appoints Business and Human Rights
Declaration of
Harvard professor was unanimously endorsed by
Human Rights
John Ruggie as the the UN Human Rights Council.
(UDHR) is a
UN Special The updated OECD
declaration adopted by
Representative for Guidelines for Multinational
the United Nations
Business and Human Enterprises was adopted by
General Assembly
Rights 42 adhering governments
1948 2000 2005 2007 2011 2015
Official launch of the UN
The United
Global Compact, a principle-
Nations Human
based framework for
Rights Council
businesses, covering human
is established Human Rights The UN
rights, labour, the environment
and anti-corruption Reporting and Sustainable
Assurance Development
Frameworks Goals (SDGs)
Initiative launches launches
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The UN Guiding Principles on Business and Human Rights
The unanimous endorsement of the Guiding Principles on Business and Human Rights by the UN Human Rights Council in 2011 represented a
watershed moment.
.
Three pillars of the UN Guiding Principles
PROTECT RESPECT R E M E DY
Corporate Victims
State
responsibility to access to
duty to protect
respect effective remedy
Stakeholder engagement is a critical part of any human
rights due diligence and integral to all parts of the process
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Increasing focus on (lack of) corporate human rights due diligence
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Towards mandatory due
diligence in the EU
Anders Planck-Hendriksen, KPMG Denmark
© 2021 KPMG P/S, a Danish limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Document Classification: KPMG Highly Confidential
National mandatory due diligence developments
United Norway
Kingdom
2015: The UK Modern Slavery Act 2021 (proposed): Draft
Transparency Act
The Germany
Netherlands
2019: The Dutch Child Labour 2021 (proposed): Draft German
Due Diligence Law Supply Chain Act adopted
2021 (proposed): Dutch Bill for
Responsible and Sustainable
International Business Conduct
Austria
2021 (proposed): Legislative
proposal on child and forced
France labour
2017: The French Duty of
Vigilance Law
Civil society action Government /
Adopted law
/ NGO campaigns parliamentary process
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The road towards EU-wide mandatory due diligence
JANUARY 2021
The EP Committee on Legal Affairs (JURI
Committee) adopted a legislative
initiative report including recommendations
APRIL 2020 to the Commission on mandatory corporate
due diligence and accountability.
The EU Commissioner for
Justice Didier Reynders
announced intentions to
introduce mandatory
environmental and human
rights due diligence, as part
of EU’s Sustainable Corporate
Governance initiative.
.
MARCH 2021
The European Parliament adopted the
JURI report, calling for regulation that
obliges companies, including financial
institutions, to assess and address
human rights, environmental and
J U LY - O C T O B E R 2 0 2 0 governance risks and impacts
The European Commission launched a public consultation throughout their value chains.
on the Sustainable Corporate Governance initiative. The
consultation was complemented by two studies on
directors’ duties and supply chain due diligence requirements.
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Exploring the draft Directive
Advantages of EU-
wide due diligence
legislation
1. Levelling the playing field
among companies
operating in the EU
2. Bringing legal certainty
and clarity
3. Establishing effective
enforcement and sanction
mechanisms
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Understanding the current
human rights context
Dr. Meg Brodie, KPMG Banarra (AUS)
© 2021 KPMG P/S, a Danish limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Document Classification: KPMG Highly ConfidentialWhere are we now
Slavery in the supply chain
Xinjian Province and Uyghur slave labour
Cultural heritage
Juukan Gorge
7 trends in
business and 83 major brands
human rights implicated in report
on forced labour of
ethnic minorities
from Xinjiang
Discrimination and diversity Black Lives Matter
assigned to factories
across provinces ‘…the death of George Floyd really has changed the way the
corporate world views diversity…’
‘Calls for firms to improve
Decarbonisation
“Just Transition”
Climate change
The rights of future generations
diversity and equality in
the workplace gathered
pace in 2020 - a seismic
year.’
Business and conflict Technology and AI
Trust and design
Myanmar Coup
© 2021 KPMG P/S, a Danish limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Document Classification: KPMG Highly ConfidentialAddressing human rights:
Tools & insights
Jenna Hytti, KPMG Finland
Anders Planck-Hendriksen, KPMG Denmark
© 2021 KPMG P/S, a Danish limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Document Classification: KPMG Highly ConfidentialClient cases
• Suppliers & Sustainability
related Risk Rating
• Plan for successively
developing human rights
management
© 2021 KPMG P/S, a Danish limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
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Document Classification: KPMG Highly Confidential1: Suppliers & Sustainability related Risk Rating
Client’s need for Supplier Prisonization based on Sustainability Risks Business risks
KPMG’s work Environment
& Climate Social
Supplier Code of
Country Purchase Category Conduct
Risk Profiles Risk Profiles alignment Sectoral risks
Categories and
sub-categories
Sustainability Risk Rate for all
Suppliers Salient risks
Risk rate
descriptions
© 2021 KPMG P/S, a Danish limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Document Classification: KPMG Highly Confidential 142: Plan for successively developing human rights management
The plan The plan was
The starting included concrete supported with
point was client’s steps on how to Current Status
current resources Analysis tool, which
reach the ultimate
available and helped the Client to
outcome from dedicate resources to
access to Client’s starting Human Rights Work
information point. Development
KPMG
developed the plan of the plan
to successively included interactive
enable an workshops with key The envisioned
increasing ambition persons from ultimate outcome:
level. Client’s project Client has a
team systematic risk-
based human rights
management plan
in place.
© 2021 KPMG P/S, a Danish limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
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Document Classification: KPMG Highly ConfidentialPlan for successively developing human rights management
Management and Responsible
governance Activities Target
person
Responsible
Policies and processes Target
person
Supply chain & supplier Responsible
assessments
Target
person
Monitoring, auditing & Responsible
tracking performance
Target
person
Responsible
Remediation & grievance
mechanisms
Target person
Training & awareness
Responsible
raising in the supply Target
chain person
Communication, Responsible
reporting
Target
person
© 2021 KPMG P/S, a Danish limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
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Document Classification: KPMG Highly ConfidentialPlan for successively developing human management
KPMG’s work forms a basis for you to develop Human Rights work
RESPONSIBLE
ACTION SUPPLIER ASSESSMENT TARGET
PERSON / UNIT
- Do we look at human rights risks as stand-alone process
or integrated into other supply chain risk management
process?
- Do we have an overall picture about human rights risks in
Identification of risks our supply chain?
- Do we have a plan and process in place how to
prevent risks?
- Do we have a plan and process in place how to act if
risks are realized? How are victims compensated?
Identification of
opportunities
- Have we performed human rights risk mapping and risk
identification?
Perform risk & impact - in our countries of operation?
assessment (scope: - In our group companies?
supply chain) and - In supply chain?
prioritize risks and - Have we assessed human rights impacts (in the areas
impacts where most risks were identified)?
- Have we recognized most vulnerable groups?
© 2021 KPMG P/S, a Danish limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Document Classification: KPMG Highly ConfidentialPlan for successively developing human rights management
Q1 XXXX Q2 XXXX
Project Phase Jan Feb Mar Apr May June
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
KEY ACTIVITY
WORKSTREAM KEY ACTIVITY
KEY ACTIVITY
KEY ACTIVITY
WORKSTREAM KEY ACTIVITY
KEY ACTIVITY
KEY ACTIVITY
WORKSTREAM KEY ACTIVITY
KEY ACTIVITY
KEY ACTIVITY
WORKSTREAM KEY ACTIVITY
KEY ACTIVITY
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Document Classification: KPMG Highly ConfidentialHuman rights risks: a rights holders-centric approach
E X A M P L E S OF HUMAN RIGHTS RISKS THAT THE PRIVATE SECTOR FACES
Suppliers using forced labor Employees or customers
Local communities being
(modern slavery) or facing discrimination
Risks to people lead to displaced by projects
child labor by race, gender, sexuality
risks to the business
The language of corporate
responsibility around human
rights today focuses first on Workers and communities
Factories and industrial sites
risks to people rather than Security guards using being denied the
providing unsafe working
risks to the business. excessive force opportunity to raise
conditions
grievances
This people-centric approach
can be challenging to
integrate into existing ERM
systems.
People’s health being
Workers being denied
damaged through Workers being
rights such as freedom
accidents and pollution underpaid
of association
© 2021 KPMG P/S, a Danish limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
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Document Classification: KPMG Highly ConfidentialAssessing human rights risk
KPMG DKs HRRA METHODOLOGY
1. IDENTIFICATION OF RIGHTS 3. RISK MAPPING &
1 2 3 PRIORITIZATION 4
Identify relevant human rights The HRRA tool generates a
in scope for short-listing The risk map based on the
HRRA Tool IDENTIFICATION
compiles a list of SCENARIO salience of the identified
SEVERITY / SALIENCE RISK MAPPING &
recognized human rights from
OF RIGHTS IDENTIFICATION human rights risks, as well
ASSESSMENT PRIORITIZATION
IFC, UDHR, ICCPR, ICESCR as an overview of the most
and ILO Core Conventions. salient human rights risks.
2. SCENARIO IDENTIFICATION 4. SALIENCE ASSESSMENT
Identify potential scenarios Risks are comprised of
where human rights are likely likelihood and
to be adversely impacted by potential impact.
using methods such as industry Potential scenarios are
guides, international guidelines assessed on criteria
review, peer review, such as scale, scope,
stakeholder interviews, country reversibility and
reports, etc. involvement.
© 2021 KPMG P/S, a Danish limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
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Document Classification: KPMG Highly ConfidentialThank you
C O N TA C T
Frances Iris Lu Anders Planck-Hendriksen
Head of Sustainability & ESG Services Consultant, Sustainability & ESG Services
KPMG Denmark KPMG Denmark
+45 5215 0399 +45 6055 7939
franceslu@kpmg.com aphendriksen@kpmg.com
Jenna Hytti Dr. Meg Brodie
Manager, Responsible Investment & Director, Human Rights & Social Impact
Sustainability Services Services
KPMG Finland KPMG Banarra (Australia)
+358 50 372 3633 +61 2 9335 7304
jenna.hytti@kpmg.fi megbrodie@kpmg.com.au
© 2021 KPMG P/S, a Danish limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
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