Luxembourg – State Owned Enterprises

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)

 

1.9. 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

 

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.