Company led Human Rights Impact Assessments (HRIAs)

How should they be carried out?

To assess the quality of HRIA, Oxfam developed a Human Rights Impact Assessment Framework clarifying the  key criteria (both process and content) needed to ensure the HRIA is robust. The framework also provides guidance and best practices. The key criteria cover the following categories: 

  • The research team: Experience, skills and qualities
  • Scope of the HRIA: Representativeness and relevance of the selected target (choice of suppliers, commodity, country)
  • Meaningfulness of engagement: The how – data collection and conditions under which engagement is carried out; The who; and The what 
  • Strength of the human rights analytical framework
  • Robustness of the assessment of the company’s human rights impacts 
  • Appropriateness of the recommendations 
  • Include a time-bound action plan

Given the commitments to conduct HRIAs made by several retailers in the food sector (including several in the seafood sector), Oxfam undertook an analysis of the HRIAs and published a report, Towards Meaningful Human Rights Impact Assessments, identifying best practice efforts and points of improvements based on the HRIA Assessment Framework.   The key recommendations include:

  • Focus on high-risk suppliers where salient risks have been identified. HRIAs should be primarily focused on the risks for rightsholders in terms of saliency and severity of (potential) rights violations. 
  • Invest in internal engagement to enhance effectiveness, including the engagement of higher management and buying departments, as well as other relevant internal stakeholders, particularly those involved in implementing mitigation measures.
  • HRIAs should not start from a pre-selected list of relevant rights or salient issues but take a broad approach to identifying all risks to internationally recognized human rights.
  • Conduct meaningful engagement with rightsholders. This should involve the people directly affected by the company’s activities, be timely and ongoing, inclusive and gender sensitive, and use the most appropriate approaches given specific contexts. 
  • Address root causes and the company’s own contribution to impacts, including purchasing practices. This includes structural drivers of human rights abuses and the company’s impact on those drivers.
  • Embed the creation of timebound action plan in the HRIA process. Rather than decoupling the two processes, taking action should be a core purpose of the HRIA and therefore integrated into the process, including by drawing on expertise from the research team and engaged stakeholders. 
  • Be transparent about the HRIA and the action plan. Companies should publish HRIAs and action plans (while protecting the anonymity of rightsholders) and actively share and socialize findings and planned actions with stakeholders.

Why businesses should carry out HRIAs

As mandatory HREDD legislation becomes more prevalent, there are increasingly legal reasons to carry out HRIAs. However, there are additionally clear benefits to businesses as well. As Oxfam notes, ‘By documenting the identified impacts and corresponding actions taken to address them, an HRIA enhances businesses’ accountability. It provides a transparent record of the steps taken to mitigate adverse effects and demonstrates the company’s commitment to respecting human rights. HRIAs also encourage the formation of partnerships between businesses and other stakeholders to develop joint actions to address cumulative impacts or legacy issues that require collective efforts. The knowledge and insights gained from the assessment can also inform and improve HREDD processes, purchasing practices and other activities.’ 

Specific benefits to businesses include:

    • Transparency and early detection of impacts reduce risk, and increase a company’s capacity to prevent human rights violations
    • The costs of conducting HRIA and ensuring deep engagement with different stakeholders are low compared to the significant costs that companies bear when their operations violate human rights; these include operational, reputational, and legal risks.
    • In depth engagement helps decrease the risks of conflicts.
    • It helps to identify potential hotspots that might not have been on their radar previously.
    • Implementing HRDD measures such as HRIAs reduces longterm risk to companies and shareholders. 
    • Operations that respect human rights increase brand value and enhance company image.
  • Engaging rightsholders in an HRIA process can identify efficiencies.

Different approaches to HRIAs

HRIAs can be commissioned by companies interested in looking into their own supply chains. But they can also be implemented by other actors interested in understanding the impact of a company’s operations and wanting to have a greater involvement in the process. Community-led HRIAs (COBHRAs)put rights holders in the driver’s seat, emphasizing the human rights concerns of local communities rather than starting from the company’s perspective. In a COBHRA, communities identify the human rights risks and impacts they consider the most important, engage the different stakeholders involved including the company and governments, analyze the information collected, and compile the findings and key recommendations in a report to share with governments and companies

A recent briefing paper by Oxfam …

No matter who conducts the HRIA, if implemented correctly, the process should offer a thorough assessment of all internationally recognized human rights (and not a limited set of pre-selected ones). It must ensure that rights holder engagement isn’t a tick box exercise, but rather that it is included in all steps of the process, from the identification of issues to the identification of solutions, ensuring that the process actively empowers rights holders. HRIAs don’t focus on a descriptive analysis of human rights abuses at a specific moment, but they offer a deeper look  to understand the root causes of abuses, such as buyer procurement practice. They are focused on moving from analysis to action emphasizing the need to include a time-bound action plan. Finally, as transparency is a key human rights principle, HRIAs must  be published to allow stakeholders and rights holders to understand the human rights risks and impacts as well as steps taken to address them, contributing to a greater accountability of companies.

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