Getting the human rights impact

assessment rightReana Rossouw

Next Generation Consultants

Case Study: BHP Billiton

Compliance Assessment• Country Risk• Legal and organisational

Frameworks

Impact/Risk Assessment

• Stakeholder Engagement• Community Relations

Projects Impact Assessment

Outcomes• Impact (Low, Medium, High)• Risk (Low, Medium, High)• Recommendations: Human

Rights Management Plan

The Process

Country Risk Assessment

• Global• Local (South Africa)• Industry specific

Compliance Assessment

• Institutional Frameworks

• Self Assessment Tools regarding internal management functions and specific human rights practices

Impact/Risk Assessment

• Internal and External Stakeholders views, perceptions and awareness

Tests

• Violation• Infringement• Failure to Respect• Respect• Enhancement/

Improvement

Outcomes

• Recommendation for Enhancement / Improvement

• Human Rights Management Plan

The Outcome

Specific Assessment Aspects

Geographic Assessment Industry AssessmentCountry Risk AssessmentHuman Rights Aspect

Case studies/Examples:

Right to housing

A mine relocates people from their homes and land. The resettlement process occurs without adequate consultation and results in poorer housing conditions post-relocation.Population influx resulting from a mining project drives up the price of local housing, forcing poorer members of a community to move into substandard dwellings.

Right to health

A mining operation exposes local communities to hazardous materials.Influx of construction workers contributes to the spread of STIs (sexually transmitted infections) in the local community.Population influx from a mining project places pressure on existing local health facilities and negatively impacts local access to services.

Right to education

A mine development causes the relocation or destruction of a local school, or entails resettlement of communities to a location without adequate educational facilities.Local teachers seek higher paying jobs in mining and local schools are left under staffed.

Right to an adequate standard of living

Mining activities restrict or prevent people’s access to land used for subsistence livelihoods, affecting their food security.Disruption of natural water flows means that people are no longer able to irrigate crops or grow enough food for their needs.Artisanal small-scale mining is prohibited by a company or government affecting local traditional livelihoods.

Right to participate in cultural life

Mining activities lead to the destruction or loss of access to a significant cultural heritage.Mining operations significantly impede traditional or cultural ways of living.Unplanned in-migration leads to the decline of important cultural heritage practices.

Right to security of person

Public or private security personnel use excessive force while evicting illegal small-scale miners from the site or in breaking up community protests.Unplanned in-migration leads to law and order issues in the community.Influx of contract workers causes an increase in crime and risk of violence against women and children.

Right to freedom of opinion and expression

Government representatives and/or security forces present at company-held consultation meetings inhibit free expression by the communityA company discourages local media from publishing an unfavourable article regarding mining impacts.Contractor security forces quell a peaceful community protest.

Right to non-discrimination

A company only consults with male decision-makers in the community, excluding women and youth.A company only hires non-Indigenous men locally for labour positions and excludes local women and Indigenous people from employment opportunities.

Right to potable water and sanitation

Mining activities pollute a stream which local people rely on for drinking water.Mining impacts an aquifer, causing community wells used for drinking water to run dry.

Right to work including right to safe working conditions

Contractors do not pay their local workers in line with prevailing local economic conditions.Suppliers providing products such as food do not ensure safe working conditions for their employees in community-based enterprises.

Company Compliance Assessment

Company PolicyGlobal and Local Company Commitment• BHP Billiton respect and promotes fundamental human rights

and the value of cultural heritage. BHP Billiton is committed to operating in accordance with the following voluntary standards:

• UN Declaration of Human Rights• The United Nations Global Compact• The Voluntary Principles on Security and Human Rights• International Finance Corporation Performance Standard 5:

Land Acquisition and Involuntary Resettlement• International Council for Metals and Mining (ICMM)• GRI Reporting Guidelines including Sector Supplements

80 international Human Rights Instruments

Mining and Metals Sector Industry Standards

ICMM requirementsGRI G4 reporting

requirementsGRI Mining and

Metals reporting Sector Supplement

Employment Practices

Community Impact

Supply Chain

Management

Company Policy

Company Procedures

Company Performance

Human Rights Compliance Assessment Process

FindingsStandard ComplianceUnited Nations Global Compact Limited ComplianceUnited Nations Declaration on Human Rights CompliantICMM LimitedGRI LimitedVoluntary Principles on Security and Human Rights LimitedIFC Standard 5: Land Acquisition and Voluntary Settlement Compliant

Impact and Risk AssessmentInternal and External Stakeholder Perceptions

Human Rights (Society) Detailed ScoringQuestion Rating

BHPBMSA makes you feel proud to have them in your community 3.10

BHPBMSA assists with the fight against HIV/AIDS 3.10

BHPBMSA does not discriminate in any way 2.89

BHPBMSA complies with laws and legislation in South Africa 2.86

BHPBMSA is an ethical/honest company 2.84

BHPBMSA does not have forced and compulsory labour / child labour practices 2.84

BHPBMSA allows freedom of association and collective bargaining 2.74

BHPBMSA ensures that its associates and business partners are not involved in any practices that could be constituted as unfair, corrupt, unethical or in breach of human rights aspects

2.52

BHPBMSA involves the local community in all aspects affecting them 2.49

BHPBMSA does not engage in corruption, extortion and bribery 2.43

BHPBMSA honours the land, passage, and usage rights of local or indigenous peoples on company-controlled land

2.39

Overall Rating 2.75

Summary of Findings

•Risk - Medium•Impact - Medium

Human Rights Country Risk Assessment

•Risk - High•Impact - High

Human Rights Compliance Assessment

•Risk - Low•Impact - Low

Human Rights Risk Assessment - Internal Stakeholders

•Risk - Medium •Impact - Medium

Human Rights Impact Assessment - External Stakeholders

Human Rights Management Plan

Benchmark• Global Companies• Industry Specific Companies

GAP AnalysisManagement of human rights at BHP Billiton Manganese South Africa

Resources

Resources Appointment of dedicated resources to assume responsibility for developing a local Human Rights Strategy and Policy (aligned to the global BHP Billiton Policy).

Training The development of a training and awareness campaign aimed at educating internal stakeholders (management, employees, contractors, security personnel) on aspects of human rights.

Awareness The development of an awareness, educational and compliance campaign aimed at external stakeholders (suppliers, business partners, unions, community members) on aspects of human rights.

Management

Processes Development of internal processes and systems to implement and monitor human rights practices across the business, operations and functions.

Alignment Ensure the alignment of local human rights management practice to international, country, industry standards, guidelines and frameworks.

Monitoring Monitor the grievance and complaints’ mechanisms to ensure effective management of human rights risks and impacts.

Communication

Communication Regularly communicate with both internal and external stakeholders regarding the progress, impacts and risks pertaining to human rights aspects – integrate feedback into existing stakeholder forums – aimed at both internal and external stakeholders.

Reporting Measure, evaluate, assess progress of human rights aspects across the business (locally) and integrate with global reporting processes.

Integrate and Align

Ensure that human rights aspects are included in all company relationships and processes across operational functions – and monitor performance across the supply and value chain.

Reana Rossouwrrossouw@nextgeneration.co.za

• Thank You• Questions

• Please note this presentation is part of a larger body of knowledge and research. • For more information regarding this

case study and other please see our website @ www.nextgeneration.co.za