Luxembourg – due diligence
Part II: Specific objectives of the National Action Plan 2020-2022
1. The state duty to protect human rights
(…)
1.2. Implement pilot projects on due diligence in companies with majority state ownership
Context
As a follow-up to NAP 1, it is important that the State continues to set a good example, including by implementing pilot projects on due diligence in majority-owned enterprises. Indeed, under the UN Guiding Principles, States should “take stronger measures to protect companies owned or controlled by them, … including, where appropriate, by requiring the exercise of human rights due diligence”.
The experiences of these pilot projects can be shared by appropriate means.
| Objectively verifiable indicators | – Benchmark: NAP 1 and National Baseline Assessment (NBA) [Etude de base]
– Contacts made by the political level – Follow-up by the administrative level – Reactions from the business community |
| Verification sources | × Letters, e-mails and minutes of meetings
× Discussions and decisions at internal governance level × Annual reports × Signings of the National Pact [Pacte National] |
| Expected results | × Presentation of the National Pact to the companies
× Increase in: § Formal commitments to apply the UNGPs § Due diligence processes in place § Remedies in place § Centralisation of documentary resources for economic actors × Serve as good practice for other companies, including those in which the state has a minority stake |
| Implementation timeline | × 1st phase: first semester 2020
× 2nd phase: duration of NAP 2 |
| Means of implementation | × Means of the ministries concerned
× Internal resources of the companies concerned × Under the direction of: MAEE (Ministry of Foreign and European Affairs) |
1.6. Study on the possibility of legislating a duty of care
Context
Following the government’s commitment in the coalition agreement to “study the possibility of legislating on a duty of care for companies domiciled in Luxembourg”, the conclusions of the baseline study, the positions expressed by various actors within the working group on the need to introduce a binding duty of care for companies domiciled in Luxembourg, and recent legislative developments in other EU Member States, the possibility of the legislative option at national level is being studied, among others, at the level of the Working Group on Business and Human Rights [GT « Entreprises et droits de l’Homme »].
| Objectively verifiable indicators | × Benchmark: NAP 1, National Baseline Assessment (NBA) [Etude de base], CCDH’s (Commission consultative des Droits de l’Homme) Position Paper, position paper of l’Initiative pour un devoir de vigilance, position of the UEL (Union des Entrepises Luxembourgeoises)
× A number of meetings for discussing the issue |
| Verification sources | × Study on the possibility of legislating a duty of care
× Work of the Working Group on Business and Human Rights [GT « Entreprises et droits de l’Homme »] × Eventually, the work of an inter-ministerial sub-group |
| Expected results | × Definition of the scope and content of the study
× Analysis of legislative initiatives abroad, at the European and at the UN level × Assessment of the pros and cons and opportunities and limitations of a legislative approach × Analysis of the existing legislation × Analysis of the possible impact of legislation on the respect of human rights in the economic activities of companies × Level playing field for companies |
| Implementation timeline | 2020 |
| Means of implementation | × MAEE (Ministry of Foreign and European Affairs) / Ministry of Justice
× CCDH (Commission consultative des Droits de l’Homme) × l’Initiative pour un devoir de vigilance (Inititative for the duty of care) × Working Group on Business and Human Rights [GT « Entreprises et droits de l’Homme »] × External experts |
1.7. Follow up on the commitment to introduce a duty of care at a European level
Context
Following the Government’s commitment in the coalition agreement that “Luxembourg will support European initiatives to strengthen the social and environmental responsibility of transnational companies in the management of their supply chains and will commit itself at European level to binding and effective legislation”, the conclusions of the baseline study, the positions expressed by different actors within the working group on the need to introduce a binding duty of care for companies, recent legislative developments in other EU Member States and initiatives at the level of the European Parliament, a follow-up of the initiatives taken by Luxembourg in favour of European legislation on duty of care will be carried out in the framework of the National Action Plan.
To this end, regular reports will be made by the Ministry to the working group on the initiatives taken in favour of a duty of care at European level and on the progress of the work.
| Objectively verifiable indicators | × Benchmark: Coalition agreement |
| Verification sources | × Report from the MAEE (Ministry of Foreign and European Affairs)
× Follow-up in the Working Group on Business and Human Rights [GT « Entreprises et droits de l’Homme »] |
| Expected results | Regular information of the working group members, sharing of published official documents and proposal of the working group to the Ministry |
| Implementation timeline | Duration of NAP 2 |
| Means of implementation | × MAEE (Ministry of Foreign and European Affairs) |
1.9. Introduce human rights due diligence as advocated by the Guiding Principles into public-private partnership arrangements
Context
The public-private partnership mechanisms in place, particularly at the level of development cooperation, provide opportunities to promote the implementation of the UN Guiding Principles on Business and Human Rights.
| Objectively verifiable indicators | × Benchmark: NAP 1
× National Baseline Assessment (NBA) [Etude de base] × Evaluation from the “Business Partnership Facility” |
| Verification sources | × Letters, e-mails and minutes of meetings
× Discussions and decisions at internal governance level × Annual reports × Signings of the National Pact [Pacte National] |
| Expected results | Increase in:
× formal commitments to apply the UNGPs × due diligence processes in place
|
| Implementation timeline | Duration of NAP 2 |
| Means of implementation | × Working Group on Business and Human Rights [GT « Entreprises et droits de l’Homme »]
× Competent ministries × Directorate for Cooperation and Humanitarian Action |
1.14. Create human rights due diligence training
Context
At the conference organised in June 2019 by the Ministry of Foreign and European Affairs and the University of Luxembourg, with the participation of high-level international experts, it was emphasised that awareness and concern for the UN Guiding Principles on Business and Human Rights must start with the training of future economic decision makers. Efforts to raise awareness and provide training in secondary and university education on the subject of “business and human rights” promise to increase knowledge of the importance of the subject.
| Objectively verifiable indicators | × Content of university courses in law and economics |
| Verification sources | × University of Luxembourg, Faculty of Law, Economics and Finance
|
| Expected results | × Modules on the UN Guiding Principles and due diligence are integrated into existing training (e.g. in the context of a Master in Management)
× Coherence of training content |
| Implementation timeline | Duration of NAP 2 |
| Means of implementation | × University of Luxembourg
× MAEE (Ministry of Foreign and European Affairs), MENJE (Ministry of Justice) × House of Training × Employers’ chamber [Chambre des salariés] × NGO |
2. The corporate responsibility to respect human rights
2.2. Finalisation and implementation of the National Business and Human Rights Pact
Context
The National Business and Human Rights Pact is one of the concrete flagship actions of NAP 1. A sub-working group has put a lot of effort into the implementation of the National Pact.
Further effort is needed to finalise the process of assessing the annual reports that participating companies are required to submit on the implementation of the Guidelines in their organisations and throughout their economic value chains.
| Objectively verifiable indicators | × Benchmark: NAP 1, National Baseline Assessment (NBA) [Etude de base]
× Text of the National Pact on Business and Human Rights × Review of the effectiveness of the instrument in 2022 |
| Verification sources | × MAEE (Ministry of Foreign and European Affairs)
× UEL [Union des Entreprises Luxembourgeoises] / INDR [Institut National pour le Développement durat et la Responsabilité sociale des entreprises] × Initiative for the duty of care [Initiative pour un devoir de vigilance] |
| Expected results | × Critical mass of companies subscribing to the National Pact
× Annual reports on the implementation of the Guidelines submitted to the Business and Human Rights Working Group × Evaluation of annual reports × Recommendations to companies |
| Implementation timeline | – 1st phase:
▪ Operational website ▪ Communication campaign ▪ Prospecting ▪ Launch – 2nd phase: (as soon as possible) signing of the National Pact – 3rd phase: 2020, training and implementation of due diligence processes in companies – 4th phase: (March 2021) submission of first annual reports – 5th phase: (between March and July 2021) evaluation of the first annual reports |
| Means of implementation | – MAEE (Ministry of Foreign and European Affairs)
– Ministry of Economy – UEL [Union des Entreprises Luxembourgeoises] / INDR [Institut National pour le Développement durat et la Responsabilité sociale des entreprises] – Companies – IMS – Business and Human Rights Working Group – External Consultant |
The 2020-22 NAP states the second edition of the National Action Plan complements the first NAP. Additional information about the first NAP can be found here.