Weekly Update 28 February

Weekly Update 28 February

LEAD STORY

EU: Over 130 CSOs call for a united effort to push due diligence legislation over the finish line after member states fail to endorse

ECCJ & 130+ CSOs; NOVA BHRE; Confederation of Employers of Ukraine; Ferrero & others; UN Special Rapporteur on Human Rights Defenders; Initiative Lieferkettengesetz; ALDI SüD & others?

The?organisations?called on the Belgian Presidency and member states?to?return to negotiations?and secure a majority without watering down?the Corporate Sustainability Due Diligence Directive (CSDDD) text?agreed during the trilogue.?The current setback, reportedly aggravated by a last-minute effort from France, is?despite European and global businesses and experts reiterating their strong support for the legislation. Last week, the President of the Confederation of Employers of Ukraine penned a letter to EU decision makers urging them to adopt the legislation. Likewise, following reports of Italy’s uncertain position in Council, Italian company Ferrero, in collaboration with industry counterparts including Mars and Mondelēz as well as NGOs, called upon the Italian Government to endorse the CSDDD. Adding to the chorus of UN calls on EU member states, UN Special Rapporteur on human rights defenders Mary Lawlor urged Italy to support the CSDDD, following a similar letter to German Chancellor Scholz.?

Companies and Global South groups have also appealed to the German Government as liberal coalition partner FDP continues to block approval of the CSDDD. Meanwhile, recent polling shows a majority of FDP voters are in favour of the directive.? Stay tuned via our website updates as the process continues in EU Council and Parliament.

See also; a cohort of businesses, trade unions & CSOs issued a joint call emphasising the need for clear and effective provisions on remediation measures in the EU Forced Labour Regulation.?

BHR IN CONFLICT-AFFECTED AREAS

ISRAEL/OCCUPIED PALESTINIAN TERRITORY

Human rights & climate concerns raised as banks underwrite USD635m bond issuance for oil firm linked to illegal West Bank settlements

The Ferret?

Lloyds and Natwest, headquartered in Edinburgh, face scrutiny from environmental and human rights activists for underwriting a GBP500m (approx. USD635m) bond issuance for North Sea oil firm Ithaca Energy - whose parent company Delek Group has ties to illegal Israeli settlements in the West Bank. In 2020 Delek Group was named on a UN list of companies whose activities in the West Bank ‘raised particular human rights concerns’. Delek reportedly owns petrol stations in West Bank settlements and has previously signed a multi-million-pound contract to provide fuel to the Israeli Ministry of Defence and the Israel Defence Forces.? Underwriting entails banks buying bonds from a company and then selling them to investors, while earning a fee for their services. Natwest claims the activity adhered to its sector policies and has published criteria for financing oil and gas companies which rules out funding firms linked to human rights violations. Delek Group,?Ithaca Energy?and?Lloyds?did not respond to journalists' requests for comment.?

Union representing over 3,000 workers at 11 Indian ports announces boycott of weapon shipments to Israel

The Independent, The New Arab?

Workers at 11 major Indian ports, represented by the Water Transport Workers Federation of India, are refusing to handle shipments containing weapons bound for Israel amid the Gaza conflict. The union, with over 3,500 members, announced its decision to boycott the handling of any vessel carrying arms or ammunition to Israel or any other country which could handle military equipment for ‘war in Palestine’.? See also: more than 200 labour unions in the US have formed the National Labor Network for Ceasefire to demand an immediate ceasefire in Gaza. Additional demands include the restoration of respect for human rights, release of hostages and unhindered access to humanitarian aid.?

Russia/Ukraine

Nepali mercenaries fighting for Russia in Ukraine claim unpaid wages & inadequate training after recruitment via TikTok

Al Jazeera?

The mercenaries were allegedly recruited via social media platform TikTok, which reportedly hosted videos promising wages of USD3,000 and Russian citizenship in exchange for fighting for the Russian army. Recruits claim they had ‘hardly any training’ before being deployed in dangerous conditions and received little to none of their wages. One recruit was reportedly charged USD9,000 by recruitment agents on TikTok for his travel and a tourist visa to Russia.? We invited TikTok to respond to the allegations. It said its internal review did not find any content promoting or facilitating the smuggling of Nepalis to Russia.?

US authorities issue advisory on risks emerging from doing business in Russia & Russia-Occupied territories of Ukraine

US Department of State, This Is Money?

Serious legal, financial?and reputational risks were highlighted, including?the potential to incur civil and criminal penalties as a result of economic sanctions imposed on Russia by the US and others; the risk of being implicated in Russia’s military activities, war crimes, and human rights abuses; and risks posed by repressive Russian laws. Businesses, individuals?and financial institutions were encouraged to conduct heightened due diligence. A coalition of CSOs has issued a statement welcoming the advisory and calling for swift action from the G7 and allied governments to issue similar guidance.?

See also; British MPs have urged American multinational confectionery company Mondelez, owner of Cadbury, to withdraw from Russia, criticising its continued business amid?the war on Ukraine. Mondelez’s Russian business contributed 2.8% of its global revenues in 2023, down from 4% in 2022. A spokesperson for the company said that abandoning operations would impact the food supply of civilians and financial stability of employees and farmers.?

INTERNATIONAL

Recruitment agencies in Poland allegedly using exploitative practices target Filipino migrant workers via?Meta & TikTok

Al Jazeera?

Filipino migrant workers in Hong Kong, the Philippines and Qatar allegedly paid fees of up to USD5,000 to a recruitment agent for jobs advertised on Meta and TikTok?in Polish factories which never materialised. Some reported verbal intimidation from recruitment agents. Al Jazeera said?it monitored the social media accounts of several recruiters on Facebook and TikTok and saw a pattern of accounts being shut down only to return under a different name. ? We invited Meta and TikTok to respond to the allegations. Both said they are investing in?technology to detect content related to human exploitation. ?

Investors managing USD1.2t demand enhanced environmental & social due diligence in EV nickel supply chains

Rainforest Foundation Norway?

In a first of its kind, 29 investors managing USD1.2t in assets have signed a joint statement calling on companies to improve their environmental and social due diligence in nickel supply chains for the?electric vehicle (EV) industry. The statement was initiated by the Dutch Association of Investors for Sustainable Development and Rainforest Foundation Norway. Investors are calling on automakers and EV battery manufacturers to introduce requirements for the free, prior?and informed consent?of Indigenous Peoples and local communities in mining operations, and time-bound commitments to deforestation-free nickel supply chains, among other things.?

AFRICA

Kenya: Del Monte accused of bribing witnesses to cover up alleged killing of locals by company guards?

The Elephant, The Guardian, the Bureau of Investigative Journalism?

The men’s bodies were recovered from a river on a Del Monte plantation in December after allegedly entering the plantation to steal pineapples. Witnesses claim the men were beaten and incapacitated by guards, before being thrown in the river. An investigation by the Guardian and the Bureau of Investigative Journalism said representatives of Del Monte Kenya made attempts to bribe witnesses - offering jobs and money to those willing to make statements the men drowned running away from a botched raid. A company spokesperson told journalists, ‘We do not bribe. We do not instruct our guards to beat.’?

Uganda: Govt. suspends land allocation to Terra Agri Solutions following displacement concerns

Monitor??

Uganda’s Lands Minister has ordered the suspension of a process to secure at least 5,750 acres of land for Terra Agri Solutions to establish a farm in Agago district, due to concerns about potential land-grabbing. Locals reportedly complained that the projects investors,?Terra Agri Solutions?and Operation Wealth Creation had not engaged with rightful landowners and clan leaders.?

AMERICAS

USA: Chicago sues major oil companies & lobbying group over climate 'deception'

The Guardian, DeSmog?

Chicago has joined the list of US cities and states suing fossil fuel companies for allegedly deceiving the public about the climate crisis. The suit targets major oil companies bp, Chevron, ConocoPhillips, ExxonMobil, Phillips 66 and Shell. Chicago is additionally accusing the defendants of contributing to climate devastation throughout the city. The suit also names the nation’s largest oil and gas lobbying group, the American Petroleum Institute, as a defendant for allegedly working with oil companies to promote climate disinformation.? The American Petroleum Institute described the lawsuits as ‘meritless’, while Shell and Phillips 66 said climate change should not be addressed in court. Other oil companies did not immediately respond to requests for comment. ?

See also; climate advocacy groups Greenpeace Italy and ReCommon have launched Italy’s first climate change lawsuit against Italian oil giant Eni. The case is examining whether the company knowingly contributed to climate change, assessing its responsibility for past and future damages, and investigating potential associated human rights violations.

Brazil: Over 100 organisations publish open letter condemning Belo Sun's lawsuit against farmers, HRDs?& researchers?

Mining Watch?

The Canadian mining company faces criticism for filing a criminal lawsuit against more than 30 individuals, mostly small-scale farmers, in an alleged attempt to ‘silence environmental and human rights defenders’. The lawsuit followed a series of protests against the Volta Grande gold mine in the Amazon. Critics question Belo Sun’s acquisition of public land demarcated for agrarian reform, and claim the project - the largest open-pit gold mine in Brazil - poses a threat to the region’s biodiversity and to local Xingu communities, whose consent was reportedly not sought by Belo Sun. We invited Belo Sun to respond to the original allegation, it did.?

ASIA & PACIFIC

Malaysia: 93 Bangladeshi workers promised jobs by Ricoler Construction left without work or adequate accommodation

Business Today?

Ricoler Construction promised non-existent jobs to 93 Bangladeshi workers in Cheras, Malaysia, before allegedly abandoning them without employment or proper accommodation, an investigation by the Human Resources Ministry and Home Ministry found. The ministers said the employers failed to uphold?basic welfare standards for the workers, and announced legal actions under various labour and anti-trafficking laws. If convicted, the perpetrator could face fines of up to RM50,000 (approx. USD 8,000) for each offence. Ricoler Construction has reportedly been blacklisted from making new applications to employ?foreign workers.

China: BASF to divest from joint ventures in Xinjiang over human rights allegations, while Volkswagen reportedly considering future in?region

South China Morning Post,?Reuters???

German chemical giant BASF has announced plans to divest from 2 joint ventures in China’s Xinjiang Uygur autonomous region, following reports that its business partners were involved in human rights abuses. The move followed the release of an investigation alleging BASF's joint venture partner, Xinjiang Markor Chemical Industry, accompanied Chinese officials on visits to Uygur employees' homes. Rights groups criticise the visits as part of a state campaign to spy on Uygurs. In response to the reports, 30 lawmakers penned a letter urging BASF to promptly withdraw from the region. BASF said the divestment is ‘subject to negotiations and required approvals of the relevant authorities’.

See also; car manufacturer?Volkswagen is reportedly engaged in discussions with joint venture partner SAIC over its presence in Xinjiang, following allegations of forced labour involvement in the construction of a test track. The discussions occur after several thousand vehicles were impounded by customs officials at US ports because a Chinese subcomponent allegedly breached anti-forced labour laws. A spokesperson for?Volkswagen?said that they are considering different scenarios.?SAIC?did not immediately respond to a journalists'?request for comment.

S. Korea: 150 complaints filed with Philippine?Govt. by migrants hired under seasonal worker programme since 2022

GMA Network???

The programme allows short-term employment of foreign agricultural workers to address labour shortages during peak seasons. Complaints include fee charging, wage deductions, and recruitment brokers charging exorbitant fees. Additionally, there were recorded cases of physical abuse.

EUROPE & CENTRAL ASIA

France: Prosecutors recommend Lafarge face trial for terrorism financing in Syria

Le Monde, AFP?

France's anti-terror prosecution unit (PNAT) said the French industrial company and 9 former managers should face trial over payments of nearly EUR13m (USD14.2m) made in 2013 and 2014 to middlemen to sustain its Syrian cement factory - payments which reportedly ended up in the hands of terrorist groups including the Islamic State. ? A PNAT filing reportedly said?Lafarge either intended the funds for terrorism or was aware of their use for such acts. Lafarge claims?it had no responsibility over where the money ended up. ?

UK: 2 NGOs file lawsuit against London Metal Exchange for allowing trade of Indonesian metal allegedly linked to polluting local rivers

Reuters

Global Legal Action Network (GLAN) and London Mining Network (LMN) have initiated legal action against the London Metal Exchange (LME) for allowing the sale on its platform of metal produced in Indonesia which?they allege is polluting local rivers used by Indigenous communities. The case alleges mining waste is being dumped from the Grasberg copper mine in West Papua, operated by US-listed Freeport McMoRan. GLAN and the LMN said?copper derived from Grasberg and traded on the LME is ‘criminal property’ as it is produced in circumstances which?would breach British criminal law if it was to occur in Britain. Freeport is not the target of the legal action.?

The LME is in the process of suspending or delisting 10% of its metals brands until their producers provide it with responsible sourcing information. A spokesperson for LME said the legal claim is ‘misconceived’. Freeport claims its tailings disposal in Indonesia is reliable and safe.?

Netherlands: Brazilian families affected by Braskem salt mine quakes seek justice in?Dutch court

France24?

Plaintiffs include families from Maceio, Brazil, affected by earthquakes attributed to salt mining by petrochemical giant Braskem. The quakes in 2018 caused cracks in streets and buildings, displacing tens of thousands of people. Braskem, with European operations in Rotterdam, claims to have offered financial compensation, psychological support?and aid?totalling BRL3.93b (approx. USD790m). The company argues that as a settlement was already agreed in Brazil, the Dutch case is unnecessary. Lawyers for the families argue the compensation programme falls short.?

MIDDLE EAST & NORTH AFRICA

Saudi Arabia: Amazon pays USD1.9m to more than 700 subcontracted migrant workers subject to abusive working conditions

The Guardian, Amnesty International

The payment comes in the wake of investigations which uncovered?alleged abuses of migrants who worked at the online retail giant’s warehouses in Saudi Arabia. The workers, subcontracted through?third-party labour suppliers Al-Mutairi and Basmah, believed they would be employed directly by Amazon but faced deception and mistreatment upon arrival in Saudi Arabia. An Amnesty International?report revealed workers were housed in inhumane accommodation, were underpaid,?faced?excessive surveillance?and were denied sick pay. We invited Amazon to respond to the allegations. It said it worked closely with its third-party vendor to agree a compliance plan which?addresses these violations.?Al-Mutairi and Basmah did not respond to Amnesty's request for comment.?

See also; the European Parliament has?reportedly?banned Amazon lobbyists from its premises allegedly?due to multiple instances where the retail giant refused to attend meetings with the Parliament’s employment?committee to discuss the conditions of Amazon workers. An Amazon spokesperson expressed disappointment at the decision and said the company hopes to engage constructively with policymakers.?

Türkiye: Alleged negligence led to toxic goldmine landslide which has trapped 9 workers & caused?severe environmental concerns

Duvar English, Reuters, AP News, ABC News, The Guardian?

Workers at the site allege they warned Anagold Mining of the risk of collapse 2 days prior to the disaster, after noticing the crack that reportedly caused the landslide. Previous warnings were reportedly also ignored, with Türkiye’s Energy and Natural Resources Ministry allegedly removing a fault line running under the ??pler Gold Mine from its official 2023 fault map. Search and rescue efforts for the 9 trapped workers are reportedly impeded by the presence of cyanide and other toxic chemicals at the site, with concerns these chemicals could leak from the site. This would have?severe implications for soil and the nearby Euphrates River.? A public investigation has been launched, with several employees of Anagold and parent company SSR Mining detained. Anagold said in a statement it is prioritising the health and safety of its employees and contractors. SSR Mining said operations have been suspended. ??

Qatar: Over 1 year on from FIFA World Cup final ‘severe abuse’ of workers continues, incl. low wages, long hours & poor accommodation?

AP

Over a year since the 2022 FIFA?Men's World Cup concluded in Qatar, Amnesty International reports ongoing ‘severe abuse’ of migrant workers, including an inability to change jobs, low wages, long hours?and poor accommodation. FIFA claims the World Cup was an ‘important catalyst’ for reforms. While Qatar did implement some labour reforms coinciding with the tournament, Amnesty claims they are weakly enforced, with worker exploitation still occurring on a significant scale.

Company Responses

Company Non-Responses

Rejoinders

ANNOUNCEMENTS

CRMA: EU Raw Materials Coalition publishes civil society implementation guidelines Special Rapporteur on Environmental Defenders releases paper about State repression of civil disobedience

OTHER BHRRC NEWSLETTERS

Actualización Semanal 15 De Febrero De 2024 |?México: defensor condenado a prisión | Chile: empresa reclama revertir multa ambiental | Brasil: fiscalía pide anular contrato de mina

Actualités Mensuelles - Février 2024 : Sénégal: Les coupures d'internet devant la Cour de Justice de la CEDEAO

Chinese Responsible Investment Overseas Newsletter Issue 29:?China's 4th Universal Periodic Review at the UN: Business & human rights & extraterritorial obligations? ?

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Linda van Goor

Regulatory Communication - Connect Translate Empower

9 个月

Please don't give up. The German industry's voice was clearly published last Tuesday, there must be a way to get the German positive vote: https://sustainable-finance-beirat.de/wp-content/uploads/2024/02/SFB_Stellungnahme_CSDDD_2024022_Abstimmung_final.pdf

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