Skip to content

Denmark

State Duty to Protect

2.3 Actions Taken

Companies that receive susbstantial support and services from State agencies [page 13]

“The Environmental & Social Due Diligence Policy of the Danish Export Credit Agency (EKF) states that EKF is committed to implementing the UN Guiding Principles on Businesses and Human Rights (GP 4).

Since 2007 Denmark has worked actively in the OECD to ensure that export credit agencies have a common approach for evaluating human and labour rights as well as the protection of the environment (GP 10). …

When Danida under the Ministry of Foreign Affairs signs contracts with companies, it is a requirement that companies live up to Danida’s anti-corruption policy and to the UN Global Compact. A description of the applicant’s approach to quality assurance and how it will comply with Danida’s anti-corruption code of conduct and the principles of the UN Global Compact during implementation are requested from pre-qualified tenderers and form part of the tender evaluation.”

Promoting shared understanding and international cooperation on UNGPs [page 15]

“Denmark continues to work actively to ensure consistency between the different policies in the OECD including in the area of export credits.”

Appendix 1, GP 2 continued

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 25]

“Denmark works to ensure that companies involved in Danish development cooperation respect human rights and act responsibly within the areas of workers’ rights, human rights, environment and anti-corruption within the framework of ILO conventions, UN Global Compact, the OECD guidelines for multinational enterprises and work towards implementing the UN Guiding Principles on Business and Human Rights.”

Initiatives taken or planned as a dedicated measure to implement the UNGPs (after the UN ratification of the Guiding Principles) [page 25]

“Together with other OECD members, Denmark has worked to ensure that project-related social and human rights impacts are included in the OECD Common Approaches, and also that relevant elements from the UNGPs and Human Rights become part of the way export credit agencies demonstrate due diligence. Furthermore, the revised Common Approaches now ensure policy coherence with the OECD Multinational Guidelines.”

Appendix 1, GP 4

State Duty to Protect [page 28]

“States should take additional steps to protect against human rights abuses by business enterprises that are owned or controlled by the State, or that receive substantial support and  services from State agencies such as export credit agencies and official investment insurance or guarantee agencies, including, where appropriate, by requiring human rights due diligence.”

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 28]

“In 2008 the state financing fund, Vækstfonden, has committed to adhere to the UN Principles for Responsible Investment (PRI). The Export Credit Agency (EKF), the Investment Fund for Developing Countries (IFU) and Investment Fund for Central and Eastern Europe) (IØ) has committed to join the UN Global Compact.

EKF’s Environmental & Social Due Diligence Policy states that EKF is committed to implementing the UN Guiding Principles on Businesses and Human Rights. EKF has also committed to the Equator Principles. These are binding international standards and frameworks for project funding. This ensures that private institutions and banks assess the environmental and social responsibility through a common set of guidelines. EKF works to promote the Equator Principles internationally, especially to institutions in the BRIC countries (Brazil, Russia, India and China). EKF uses International Finance Corporations (IFC) Performances Standards when rating a project which EKF participates in. The IFC Performances Standards mainly covers labor rights but human rights are also covered.

IFU’s overall objective is to promote sustainable economic growth, economic development and a more equitable distribution of income by co-financing private sector investment in developing countries. IFU’s investments in projects should contribute to job creation, good governance, respect for the environmental, higher social standards and community development. IFU has joined the UN Global Compact and is committed to promoting these principles in its investments. Furthermore, IFU’s CSR policy is based on UN, ILO and OECD international conventions and declarations. By promoting these, IFU wishes to contribute to the achievement of the UN 2015 Millennium Development Goals. When conducting due diligence IFU uses the Global Compact SelfAssessment tool, which contains a robust assessment of human rights conditions.

As part of the approval process, Danida Business Finance analyses potential human rights related risks including local legislation and policies and other CSR issues. Access to finance is based on buyer’s and exporter’s compliance with ILO principles on human and workers’ rights. When Danida signs contracts with companies, it is a requirement that companies live up to Danida’s anti-corruption policy and to the UN Global Compact. A description of the applicant’s approach to quality assurance and how it will comply with Danida’s anti-corruption code of conduct and the principles of the UN Global Compact during implementation are requested from pre-qualified tenderers and form part of the tender evaluation.”

Initiatives taken or planned as a dedicated measure to implement the UNGPs (after the UN ratification of the Guiding Principles) [page 28]

“The Danish Export Credit Agency (EKF) has a CSR policy which includes taking into account social, economic and environmental issues.

Companies involved in Danida Business Partnerships are required to integrate CSR strategically in their business operations and to demonstrate CSR due diligence in order to prevent and mitigate adverse impact of business activities.”

Appendix 1, GP 7

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 28]

“Danida Business Partnerships provides financial support for the implementation of CSR partnerships and CSR initiatives in a range of Denmark’s partner countries. As part of the approval process, Danida Business Finance analyses potential human rights related risks including local legislation and policies and other CSR issues. Access to finance is based on buyer’s and exporter’s compliance with ILO principles on human and workers’ rights.

Besides following the government regulations with respect to export promotion, trade policy and political imposed trade sanctions and export controls, the EKF has initiated the development of a model that provides an overview of the business risks that could potentially be related to human rights, labour rights, environment and climate in the countries where EKF is investing. EKF is screening the companies involved in the EKF’s transactions. There has not been any cases involving human rights issues.”

Scroll To Top