annual review indst 2024 public - Flipbook - Side 22
22
EOS
Social
Human rights
engagements in
high-risk regions
Since we outlined our engagement approach on human rights in high-risk regions in 2020,
we have seen new flashpoints erupt in Europe and the Middle East. Ellie Higgins and Ross
Teverson explain what we seek from companies.
A strong commitment to protecting human rights is crucial
for responsible business development and long-term
wealth creation. Without this, companies may lay
themselves open to legal and financial penalties,
operational disruption, and stakeholder backlash, harming
their social licence to operate and ability to deliver value
for their investors.
Certain geographies carry heightened human rights risks
and therefore require enhanced due diligence and
consideration from companies. EOS does not have a fixed
definition of high-risk regions, but we consider factors such
as the presence of conflict and the degree of legal
protection in place for workers.
In 2020, we outlined our engagement approach for human
rights in high-risk regions. Since then, we have seen the
invasion of Ukraine by Russia in 2022, and an escalation of
violence in and around Israel and the Middle East. Meanwhile,
the proportion of global land mass impacted by conflict has
increased by 65% since 2021.1
Our engagement remains apolitical and is guided by the
expectation that all companies should operate in alignment
with the UN Guiding Principles on Business and Human Rights
(UNGPs). We primarily ask that companies take the following
steps, with particular emphasis on vulnerable and
marginalised populations:
A Enhanced due diligence and monitoring: Companies
should conduct enhanced human rights due diligence
through human rights impact assessments to identify
salient human rights risks and their leverage to address
them, followed by monitoring of any changes to the
initial assessments.
1
Global conflict zones grow by two thirds since 2021, topping 6 million km
Ellie Higgins
Theme:
Human and Labour Rights
Ross Teverson
Theme co-lead:
Human and Labour Rights
A Stakeholder engagement: Companies should engage
with stakeholders impacted by their business operations
in order to understand the nature of their relevant human
rights impacts. They should then use their influence
appropriately to promote positive human rights outcomes.
A Governance: Companies should ensure they have
appropriate policies and oversight of all human rights
risks, and enhanced governance processes for higher risks.
Depending on the level of risk, this should involve the top
levels of management and the board in order to consider
the range of appropriate responses and actions.
A Action: Companies should consider the appropriateness of
changes to their way of business including operations, terms
of employment, products, services, and supply chain partners.
They should also consider their use of leverage with relevant
stakeholders to positively influence human rights outcomes.
If human rights abuses cannot be successfully avoided,
companies should weigh the merits of disengagement and
the likely effectiveness, with regard to the severity of the
abuse and any negative consequences of withdrawal.
