GLOBAL - There are clear gaps on due diligence and grievance mechanisms at most companies in the extractive sector, according to research published by global fund manager Standard Life Investments (SLI).

The report - entitled 'Business and Human Rights' - reviews the implementation of the key aspects of professor John Ruggie's Guiding Principles for Business and Human Rights (GPs) in the extractives sector.

The key findings were:

Even at the largest extractive companies, which have a long history of reporting on social and environmental issues, reporting on human rights issues is often not indicative of actual practice. The human rights policies of the largest extractive companies demonstrate a high level of alignment with the requirements set out in the GPs. The biggest gaps between current company practice and the GP standards are on due diligence. None of the companies in the sample published information showing their practices on due diligence is aligned with all five of the requirements set out in the GPs. Taking into account additional information provided by companies in correspondence, only half have incorporated four out of five requirements. While more than three-quarters of companies have incorporated the grievance mechanisms specific in the GPs, only just over one-third does so regularly throughout their operations.


Julie McDowell, head of sustainable and responsible investment at SLI, said: "While the human rights policies of the largest extractive companies demonstrate a high level of alignment with the requirements set out in the GPs, there are clear gaps at most companies on due diligence and grievance mechanisms.

"Our findings support the conclusion that the GPs are much more than a consolidation of existing best practice. They constitute a new set of standards for corporate conduct that will require significant change to current practice.

"Because our study focused on the companies likely to have the highest standards, we expect that companies outside the extractive industries will face even bigger challenges in moving to align their procedures with the GPs."

Endorsed by the UN's Human Rights Council in June, the GPs have gained extensive support and constitute the first widespread, multi-stakeholder agreement on benchmarks for corporate conduct on human rights.

The full report can be found here.

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