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Principle 3

Respect human rights and the interests, cultures, customs and
values of employees and communities affected by our activities.

Performance expectations

Summary of consultation feedback

PE3.1

Support the UN Guiding Principles on Business and Human Rights by developing a policy commitment to respect human rights, undertaking human rights due diligence and providing for or cooperating in processes to enable the remediation of adverse human rights impacts that members have caused or contributed to.

Some consultees suggested strengthening the language since ‘the word ‘support’ is weak’ and consider alternatives such as ‘implement’ or ‘commit to’.

PE3.2

Avoid the involuntary physical or economic displacement of families and communities. Where this is not possible apply the mitigation hierarchy and implement actions or remedies that address residual adverse effects.

Some consultees suggested strengthening wording from ‘avoid’ to ‘prevent’ or that it is ‘never acceptable’. It was perceived that addressing residual adverse impacts was ‘vague’ and required more clarity. The PE should also commit to leaving projectaffected communities better off (in line with IFC’s Performance Standard 5).

Note: PE 3.2 is one of seven PEs that fell below expectations for >25% of respondents.

PE3.3

Implement, based on risk, a human rights and security approach consistent with the Voluntary Principles on Security and Human Rights.

Some consultees requested further clarification or removal of ‘based on risk’ to extend the implementation of the Voluntary Principles ‘across all company operations’.

PE3.4

Respect the rights of workers by: not employing child or forced labour; avoiding human trafficking; not assigning hazardous/dangerous work to those under 18; eliminating harassment and discrimination; respecting freedom of association and collective bargaining; and providing a mechanism to address workers grievances.

Some consultees suggested the wording should say elimination of child labour and forced labour. The focus on human trafficking should also apply to the supply chain. Other considered that ‘it may be worth adjusting the 18-year threshold’.

PE3.5

Remunerate employees with wages that equal or exceed legal requirements or represent a competitive wage within that job market (whichever is higher), and by assigning regular and overtime working hours within legally required limits.

Some consultees requested making reference to a ‘living wage’ and to specify the maximum number of working hours.

PE3.6

Respect the rights, interests, aspirations, culture and natural resource-based livelihoods of Indigenous Peoples in project design, development and operation; apply the mitigation hierarchy to address adverse impacts; and deliver sustainable benefits for Indigenous Peoples.

Some consultees suggested that this PE should extend to all communities. Some concern was expressed over the use of the mitigation hierarchy in a social context which should be clarified.

PE3.7

Work to obtain the free, prior and informed consent of Indigenous Peoples where significant adverse impacts are likely to occur, as a result of relocation, disturbance of lands and territories or of critical cultural heritage, and capture the outcomes of engagement and consent processes in agreements.

Some consultees requested that FPIC ‘must’ always be obtained rather than the current wording of ‘work to’ obtain. Some consultees were concerned that ‘significant adverse impacts’ narrows the scope of FPIC and that it should be regardless of impact. Others suggested FPIC should be broadened to all projectaffected communities.

Note: PE 3.7 is one of seven PEs that fell below expectations for >25% of respondents.

PE3.8

Implement policies and practices to respect the rights and interests of women and support diversity in the workplace.

Some consultees suggested this should be strengthened, especially in relation to disclosure and addressing the gender pay
gap. Some suggested a need for clarification as to whether the PE extends to all women or just workers.

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