2023-10-19
ESG Investing: Greater transparency and accountability needed
ArticleCivic spaceSupply chains
Financial actors have an important role to play in enabling compliance with the UN Guiding Principles on Business and Human Rights (UNGPs). However, questions remain about how the integration of environmental, social and governance (ESG) approaches into investment decision-making drives sustainability and impacts rightsholders. To this end, Swedwatch recently submitted input on “Investors, ESG and Human Rights” to the UN Working Group on Business and Human Rights.
In its stocktaking exercise of the implementation of the UNGPs, the Working Group on Business and Human Rights (the Working Group) recognised the significant role of financial actors – as investors in and funders of businesses across industries – in supporting the implementation of the UNGPs.
With a growing demand for responsible investment, financial institutions are increasingly including an ESG approach in determining their decision-making on investments – ESG investing is expected to more than double by 2025. This heavy reliance on ESG is, according to the Working Group, a concern as there is a prevailing lack of understanding on how human rights issues should be reflected in ESG indicators and investment practices. Moreover, what is considered ESG can be highly subjective as there is little consensus around definition and scope.
In preparation of a report* aimed to provide practical guidelines to better align ESG approaches with the UNGPs, the Working Group submitted a call for input from relevant stakeholders.
Swedwatch‘s submission zooms in on responsibilities of ESG index and data providers and investors, and the importance of integrating conflict sensitivity in investment decision making.
Below is a summary of the key points. The full analysis and set of recommendations can be found in the submission document.
Important to enhance transparency and accountability of ESG service providers
Key concerns regarding shortcomings of ESG service providers, according to Swedwatch, include excessive reliance on corporate disclosure to assess companies’ due diligence practices, as well as excessive reliance on dialogue with companies when assessing impacts along with poor understanding of local contexts.
Given these concerns Swedwatch regrets that ESG service providers have for too long been allowed to operate in an unregulated market, and calls on regulators to critically evaluate the role of ESG service providers and their use by investors, aimed at enhancing transparency and accountability within the industry.
Investors need to recognise limitations of ESG ratings
While ESG ratings may give investors an indication of how a company manages environmental, social, and governance-related risks, in the absence of on-site visits and meaningful stakeholder engagement, they cannot be seen as a substitute for environmental and human rights due diligence or an appropriate tool to advise investors on their responsibilities to prevent, mitigate or remediate adverse impacts.
Heightened human rights due diligence critical in conflict affected areas
Drawing on Swedwatch’s work in high-conflict regions, we see it as critical that investors put pressure on companies to comply with heightened HRDD and conflict-sensitivity assessments throughout the project cycle. Investments in high-risk sectors such as agriculture, mining and renewable energy are of extra concern, as these may exacerbate land conflicts
* The report will be presented by the Working Group to the 56th session of the Human Rights Council in June 2024.
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Civic space
Supply chains
29 November, 2023
Nazma Akter talks to Swedwatch about her fight for women workers’ rights
Across the globe, courageous women human rights defenders are tirelessly working to create a world that is more equitable and just. They confront patriarchy, discrimination and inequality that have for centuries overshadowed the lives of many women and girls. One of these women is Nazma Akter, a well-known labor rights defender from Bangladesh. During a recent visit to Sweden, she talked to Swedwatch about her fight.
Nazma Akter started working in a factory in the garment sector when she was 11 years old. She is now the president of Sommilito Garment Sramik Federation, one of the biggest unions in Bangladesh, organizing women workers in the garment sector. She is also the founder of the Awaj foundation, promoting workers’ welfare.
"I have been fighting for workers’ rights and especially women workers’ rights in my country for 35 years. In Bangladesh, women activists face many challenges in our patriarchal society. When you work for women workers’ rights you fight against the state, the company and often your own family."
Sexual harassment and gender violence are some of the key issues for women workers in the garment sector according to Nazma Akter. Raising your voice often comes with a high price. Labour rights activists are often under threat and face many challenges. Many activists have been blacklisted, lost their jobs or faced legal charges.
"Women should be quiet and raising your voice make people think you are not decent. When I was 14 years and started organising, my neighborhood thought I was a sex worker, I was out early in the morning and late in the night. It was very challenging, they thought I was a “bad women” and didn’t know how to behave. It’s not an easy task. When you are also very poor there is also the class-issue, people can treat you badly without any consequences."
The garment sector mainly consists of women workers. In her meetings with companies Nazma Akter particularly highlights the challenges of women workers who often work far from home, such as lack of childcare, as well as the lack of living wages and lack of decent housing.
The poor living conditions and long working hours make women sick, and they need to retire very early because their bodies can’t take anymore.
"This needs to change so we get more of a power balance between workers and employers. Accountability and transparency in global supply chains need to increase. Better purchasing practices, freedom of association, collective bargaining and improved working and living conditions are some thing companies need to ensure."
During her visit in Sweden Nazma Akter has met with Swedish companies, the Ministry of Foreign Affairs and Swedish civil society. Business coalitions like Ethical Trading Initative (ETI), amfori and ACT, where many European brands including Lindex, Kappahl and H&M, are members, have expressed their support for a living wage and to union demands to strengthen collective bargaining.
However, even if several brands have expressed support to living wages through their membership in associations, most of them – H&M included – have remained hesitant to publicly support trade unions demands to increase the minimum wage to 23,000 taka.
The past weeks in Bangladesh have been marked by demonstrations as workers have protested against the minimum wage which was set at 12500 taka. Brutal violence and threats by police and factory owners have been reported. Thousands of people have been arrested during the protests and several people has died.
When you work for women workers’ rights you fight against the state, the company and often your own family.
Nazma Akter taking part in recent demonstrations for a raised minimum wage for textile workers in the ready-made garment sector in Bangladesh. Workers demand an increase from the current monthly minimum wage of 8,000 taka, to at least 23,000 taka (roughly 198 Euros).
+46 (0)70 741 03 70ami@swedwatch....
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Civic space
15 November, 2023
The crucial role of civil society at COP28
The crucial role of civil society in COP28
The choice of host nation has sparked a debate concerning civil society participation at COP28. But is only through civil society’s participation that the stories of those impacted by climate change and human rights abuses can be heard, and ultimately play a role in shaping the negotiations.
As the world grapples with war, the urgent need to address climate change remains. This year's United Nations Climate Change Conference of the Parties (COP28) will take place in Dubai, United Arab Emirates (UAE), from November 30 to December 12, amidst criticism about the host nation's environmental policies and poor human rights record.
Given these concerns, some question whether civil society and non-delegates should attend. Swedwatch, however, will participate, recognising the importance of civil society engagement in climate discussions. We are also sharing our UNFCCC accreditation with other rights holders organizations, such as Impact Kenya and Climate Watch Thailand. Climate negotiations are as much about international commitments to emissions reductions as a venue where civil society and rights holders can address critical climate change issues. Swedwatch believes that inclusive decision-making and broad participation are essential for achieving climate justice and upholding human rights, as also recognized in the Paris Agreement and as pointed out by over 70 countries at the United Nations Human Rights Council.
While opportunities to engage with local government and local environmental and human rights groups are undoubtedly limited, in situations where the host country has been criticised for its environmental and human rights record, civil society groups can be a voice to ensure that topics such as the respect for human rights, inclusive participation, and climate justice are present at COP28. It is through civil society’s participation that the stories of those impacted by climate change and human rights abuses can be heard on an international stage, and ultimately subsequently influence the negotiations.
Civil society participation at COP28 is important also given the widely reported presence of fossil fuel industry interests at previous COPs. If civil society and climate activists were not present, this would leave delegate representing fossil fuels interest more access and leverage over negotiators.
Aiming for a more meaningful civil society participation – compared to COP27 in Sharm el-Sheikh, where civic participation was severely hampered by poor logistics, excessive costs – Swedwatch has also during 2023, jointly with other member organisations in CONCORD, engaged with the Swedish climate delegation to take action for inclusive decision-making and broad participation (see position paper in the side bar).
Participating at COP28 does not imply support for the government of the host country or its policies. Swedwatch is very clear with its expectations on UAE to honor its role as the host of COP28 and impartially lead negotiations, including on commitments to fossil fuel phase-out. Swedwatch also demands the host nation to uphold human rights and provide an enabling environment free of intimidation, harassment, arbitrary surveillance, and reprisal for civil society actors during COP28, and beyond.
Swedwatch at COP28
Official side event about the need for climate finance for communities in fragile and conflict-affected states, and safeguards needed to ensure climate efforts are carried with respect of human rights. Join the conversation at UN Climate Change’s YouTube channel on 4 December, 16:45 (CET+3).
As a part of the thematic day on Peace, Swedwatch will engage in and put forward policy recommendations on climate and peace. December 3.
Panel talk at the Nordic pavilion about the need to phase out fossil fuels from export finance. December 4, 09:30 (CET+3).
Roundtable dialogue at the UN Climate Change Capacity Building Hub about human rights-based approach to biodiversity conservation. December 9, 16:00 (CET+3).Joint statement by civil society
Ahead of COP28, Swedwatch and other civil society organisations, through CONCORD Sweden, call on Sweden and the EU to take action on four central areas, including inclusive decision-making and broad participation.
Contact+46 (0)72 201 35 68davide@swedwatch....
Article
13 October, 2023
Upcoming webinar on sustainable public procurement
On November 24, Swedwatch, EEB and ClientEarth hold a joint webinar on sustainable public procurement. Issues highlighted include barriers to sustainable public procurement practices, as experienced by contracting authorities, and limitations and possibilities of the legal landscape in the EU and across member states.
When: November 24 2023, 10:00-12:00 CET, online
Tentative agenda:
Welcome remarks – ClientEarth, EEB and Swedwatch
Different perspectives of challenges to achieving sustainable public procurement:
Stockholm case study: Stockholm Regional Council, Linda Scott Jakobsson
Barcelona case study: City of Barcelona, Carla Canal Rosich
The Future of EU Public Procurement Law: What Needs to Change for Sustainability? Prof. dr. Willem Janssen, Utrecht University/Groningen University
Reserve your spot!
Contacts:
Logistics and registration: Alessia Biasioli, alessia.biasioli@eeb.org
Subject matter: Sofia Käll, sofia@swedwatch.org...
Article
Civic space
10 October, 2023
Calling on companies sourcing bananas from Ecuador to act
After death threats against three women human rights defenders in Ecuador protecting the rights of banana workers, Swedwatch together with over 40 other civil society organisations call on companies sourcing from Ecuador to reach out to suppliers and take necessary steps to ensure the case is investigated.
Three women human rights defenders working as coordinators of the Ecuadorian trade union ASTAC (Asociación Sindical de Trabajadores Agrícolas y Campesinos) have received death threats related to their work. The undersigned civil society organisations call on companies sourcing bananas from Ecuador to act. They must reach out to suppliers and push relevant actors to ensure the case is investigated and perpetrators held accountable, as well as step up their efforts to support human rights defenders at risk and adopt zero tolerance policies against attacks.
On the 4th of October 2023, Maricela Guzmán, Diana Montoya and Miriam Ternoz from ASTAC received identical Whatsapp messages in which the senders threatened to kill them. The message included detailed information about the defenders’ family members and addresses. The three women were demanded to henceforth refrain from defending workers' rights and not to interfere with the interests of banana companies.
ASTAC has worked to improve labour rights, health and safety issues and environmental impacts related to the banana sector for more than a decade. Already in 2018, death threats were received by ASTAC's coordinator, Jorge Acosta, who also has faced judicial threats. The latest threats are another example of violation of the rights of human rights defenders and workers in the country which has become increasingly violent in the past years.
Against this backdrop we, the undersigned organisations representing civil society, urge companies sourcing bananas from Ecuador, in line with the UN Guiding Principles of Business and Human Rights, the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct, the UN Declaration on Human Rights Defenders and the International Labour Organisation Conventions 87 and 98, to:
Take effective steps to help ensure the security of ASTAC staff and members including by condemning the actions and reaching out to state actors in Ecuador and other relevant parties to urge that the case is promptly investigated and the perpetrators prosecuted.
Reach out to suppliers and relevant business associations and include a zero-tolerance principle to any kind of involvement in attacks against defenders in relevant business relations, contracts and agreements.
Conduct continuous human rights due diligence including assessment of the situation of civic freedoms and human rights and environmental defenders and engaging in meaningful consultation with human rights defenders.
The persons named in the article have requested to have their names published.
Signatories:
Acción Ecológica de Ecuador
ActionAid France
African Law Foundation (AFRILAW)
Benet Mosop Indigenous Community Association
Both ENDS
Business & Human Rights Resource Centre
Center for Human Rights and the Environment
Center for International Environmental Law
Christian Partners Development Agency
Environmental Defender Law Center
Fair Action
La Federación de Comunidades nativas de Ucayali y afluentes (FECONAU)
Federación por la Autodeterminación de los Pueblos Indígenas (FAPI)
Friends with Environment in Development
Front Line Defenders
Global Witness
Green Advocates International
Indigenous Peoples Rights International
International Federation for Human Rights (FIDH), within the framework of the Observatory for the Protection of Human Rights Defenders
International Service for Human Rights
Instituto Sindical de Cooperación al Desarrollo
Jamaa Resource Initiatives, Kenya
La Federación de Comunidades Nativas de Ucayali y Afluentes
MISEREOR
OECD Watch
Open Briefing
Oxfam Germany
Oyu Tolgoi Watch
Peace Point Development Foundation
Polish Institute for Human Rights and Business
Project on Organizing, Development, Education, and Research (PODER)
ProPurús
Protection International
STAR Kampuchea
SÜDWIND
Swedwatch
The Lawyers' Association for Human Rights of Nepalese Indigenous Peoples
The Marginalised Mirror
The Sierra Leone Land Alliance
Unión General de Trabajadores de España
World Organisation Against Torture (OMCT), within the framework of the Observatory for the Protection of Human Rights Defend...
