Global corporate benchmarking group seeks inputs on corporate human rights standards

Sustainability benchmark setter World Benchmarking Alliance (WBA) is engaging in public consultations to update its Corporate Human Rights Benchmarks (CHRB) addressing the “social” component of ESG. WBA is a global multi-stakeholder alliance of private businesses, industry coalitions, government affiliates, civil society organizations, intergovernmental organizations, and academia working to align the world’s most influential businesses with achieving the UN Sustainability Goals.

WBA is seeking comments for its second consultation on the 2020 CHRB methodology. The 2020 CHRB methodology is the fifth in the series, and this iteration assessed human rights disclosures from 230 global companies. The assessment shows that many companies meet the fundamental expectations of the United Nations Guiding Principles on Business and Human Rights. They also suggest that many companies still have room to improve in demonstrating their commitments to human rights. The results highlight an apparent disconnect between commitments and processes on the one hand, and performance and results on the other. The public consultation benefits from company participation because feedback from the companies being assessed facilitates open dialogue, process ownership, and identification of realistic standards.

The 2020 CHRB methodology consultations focus on several industries: agriculture; apparel; extractives; information, communications, and technology (ICT); and automotive. The benchmarks assess human rights impacts from the production end of each industry’s value chain but not impacts related to how products and services are sold, distributed, used or consumed. The benchmarks also examine both direct and indirect business relationships, taking into account suppliers beyond the first contractual tier as well as those with formal and contractual relationships to the company.

The 2020 CHRB considers human rights impacts in key areas from each industry in focus:

• agricultural production and processing,
• apparel production and processing,
• extractives exploration, development, production, decommissioning and closure,
• ICT production and manufacturing, and
• automotive production and manufacturing.

Stakeholder engagement and consultation is important to identify industry specific human rights issues and address the “S” in ESG. WBA is thus encouraging companies and other stakeholders to make their voices heard in the process by providing feedback on the methodology. To submit a public comment by June 25, 2021, download the Excel spreadsheet on the WBA website and complete the relevant information fields according to the instructions provided. For additional information on this and related subjects, contact the authors or your usual DLA Piper relationship lawyer.