December 04 2006
by Briefing staffBusinesses should use human rights impact assessments as a standard tool and be obliged to report on their non-financial impacts on society, according to an influential group of faith-based institutional investors. Writing to John Ruggie, the United Nations special representative on business and human rights, fifty members of the Interfaith Center for Corporate Responsibility said that HRIAs are essential to minimise risks across a whole range of issues and industries.
The ICCR represents 275 faith-based institutional investors including denominations, religious communities, pension funds, healthcare corporations, foundations and dioceses with combined portfolios worth an estimated $100bn.
"Human rights impact assessments enable a company to identify, understand, and evaluate the impact of its operations or projects on communities and other stakeholders, at each stage of its development and operation, and as a result minimise potential human rights abuses," the ICCR said in the October 10 letter. "We strongly encourage that your final report recommends that HRIAs become a standard tool and process across the full range of industries – based on international human rights norms and developed in dialogue with appropriate stakeholders." While broadly supportive of the Global Reporting Initiative as the "leading sustainability reporting format", the ICCR said it recognised its limitations as a voluntary reporting model. "There is a clear need for some form of mandatory reporting in this area in order to establish a level playing field where all companies report basic, baseline data on their human rights performance." The ICCR called for another meeting with Ruggie to discuss their concerns, following a previous meeting on May 11 2006.
Contact; ICCR 001 212 870 2295 www.iccr.org
The UN Global Compact on October 2 announced that it has removed 335 companies from its global list of participants because they missed two consecutive annual deadlines to submit a communication on progress. “This is an important step in our drive towards enhanced quality,” said Mark Moody-Stuart, chairman of Anglo-American and chair of the foundation for the Global Compact. "While the Global Compact is a purely voluntary initiative, it is important to protect the investment that seriously committed companies and other stakeholders have made." All companies participating in the Compact are expected to submit an annual report describing the ways in which they are implementing the ten principles. Prior to being labeled "inactive", companies that have failed to submit a COP for a specified period of time are listed as "non-communicating" on the Global Compact website.
Contact; Jeff Senne 001 917 367 8006 www.unglobalcompact.org