Human Rights Due Diligence & Assessment
Addressing human rights issues
Systain provides a pragmatic and modulized approach to human rights due diligence: from defining a due diligence roadmap over assessing human rights risk to adapting risk management systems.
To respect human rights is part of being a responsible business and safeguarding reputation and relationships
Increasing pressure arises from new legislation and international standards regarding business and human rights (e.g. UK Modern Slavery Act, UN Guiding Principles on Business and Human Rights)
Businesses need to identify and address human rights issues that are caused or contributed to by their operations and activities
Stakeholders and investors demand appropriate risk management and transparency
Human Rights Due Diligence & Assessment
We offer solutions to adress human rights tailored to your business context in a systematic and practical way. The corporate human rights risk assessment is the core of our approach enabling businesses to define an adequate human rights strategy and adapting existing risk management systems. Six modules pave the way for a comprehensive human rights due diligence process.
1. Set the stage: Human rights approach
Define a corporate human rights framework appropriate to your organisation and industry
Starting point of Systain’s human rights due diligence process is achieving a common understanding and corporate buy-in. In workshops with all relevant stakeholders, the scope and depth of your human rights approach are defined. Furthermore, a customised roadmap, an implementation plan for corporate human rights due diligence, is jointly developed.
Final result: Human rights strategy including a human rights due diligence roadmap
2. Pinpoint exposures: Corporate Human Rights Risk Assessment
Tap Systain’s tools and methods to determine human rights risk exposure areas
The core of the human rights due diligence process is the human rights risk assessment, as it allows to identify salient human rights risks across the value chain. Systain’s corporate human rights risk assessment combines both quantitative & qualitative methods. By using estell Human Rights Metrics transparency about the supply chain is created and general risks of adverse impacts on human rights across the supply chain are disclosed. In addition specific risks of adverse impacts on human rights inherent in the business web of influence are identified in a Business Context Analysis. In workshops the identified human rights risks are then prioritized through the business lens considering also reputational risks, business drivers and the sphere of influence.
Final result: Prioritized corporate human rights risks
3. Gain depth: Human Rights Impact Assessment
Use more in-depth analyses to determine actual adverse impacts on human rights for special topics
Some business activities (e.g. investment or construction sites, new market entry) or high risk areas require a more in-depth analysis of the impacts. Through on-site assessments, including stakeholder engagement, a thorough human rights impact assessment determines potential and actual impacts caused or contributed to by the company’s operations and activities. It takes into consideration (among others) specific contextual factors, affected right holders, regulations, stakeholder expectations. Finally, measures are defined to mitigate potential and remediate actual adverse impacts on human rights.
Final result: Deeper structural insights into potential and actual adverse human rights impacts
4. Handle risks: Risk management system
Address impacts and manage risks
To prevent or mitigate the identified human rights risks effective measures need to be developed and integrated into existing management systems and processes. Based on the outcomes of the corporate human rights risk assessment, existing management tools, policies and procedures are evaluated regarding their robustness and compliance. Improvement potential to integrate identified human rights risks are derived.
The effective implementation further requires communication and training not only inside the organisation but also in the supply chain.
Final result: Existing management systems or new ones are established to incorporate the respect for human rights in the business conduct
5. Listen to complaints: Establish grievance mechanism
Establish effective grievance mechanisms to address actual adverse human rights impacts
The provision of effective grievance mechanisms and remediation processes is an integral part of the human rights due diligence process. Rahter than concentrating on internal stakholders, a re-evaluation of the current grievance mechanism takes also right holders into the perspective. Businesses will be guided to establish effective communication channels and corresponding policies and processes, which allow affected right holders to raise complaints or concerns. Accordingly, appropriate measures to act upon raised concerns and complaints need to be developed and implemented.
Final result: Appropriate grievance mechanisms and remediation processes
6. Disclose information: Human rights reporting
Disclose relevant information on human rights and demonstrate accountability
Transparency about the business human rights strategy can help strengthen stakeholder relationships and build wider trust. Next to the provision of an human rights policy statement, a communication strategy suitable to the business context will be developed. It will be assessed if a stand-alone human rights report or an integrated reporting is more suitable to disclose all relevant information on the company’s commitment, risk assessment results and activities.
Final result: Human rights communication strategy