France

I. The State Obligation to Protect Human Rights [page 11]

France adheres to all the instruments that are part of the international business and human rights framework, and is present in all relevant forums (the United Nations–UN, the International Labour Organization–ILO, the Organisation for Economic Co-operation and Development–OECD, the European Union–EU, the Council of Europe, the International Organization for Standardization–ISO, etc.).

Proposals for Action No. 1 [page 16]

Actions Underway

• The French Government and French businesses are committed to addressing their actions’ adverse impacts on populations in regions in which they operate, in France and abroad, in accordance with the country’s obligation to provide protection under the ICESCR.
• As outlined in the UN Guiding Principles, France encourages embassies to be vigilant with respect to the human rights and environmental performances of French economic actors. In particular, the French Ministry of Foreign Affairs and International
• Development has sent the CSR guide to all diplomatic posts since 2015. Actions to be implemented
• Implement the UN Guiding Principles in the battle against climate change, following commitments made during COP 21.

Proposals for Action No. 2 [page 18]

Actions Underway

• France has transposed the European Directive on trade secrets into national law, allowing businesses to protect trade secrets while assuring the necessary transparency of business activities and conduct, and the protection of whistleblowers acting in the public interest.
• France’s General Secretariat for European Affairs will support this work and distribute relevant documentation to lead ministries, in order to guarantee inter-ministerial coordination on European issues and their assessment by European institutions.

The National Framework

9. The Protection of Human Rights and the Environment [pages 22-24]

Constitutional Guarantees

In addition to international treaties, which take precedence over national laws, some of these principles are guaranteed in constitutional documents, including the Declaration of Human and Civic Rights of 1789 (published in the preamble) and the Charter for the Environment of 2004.

The charter acknowledges a number of rights, including “the right to live in a balanced environment which shows due respect for health” (Article 1), the obligation for public policies to “promote sustainable development” and “reconcile the protection and enhancement of the environment with economic development and social progress” (Article 6), the right to “have access to information pertaining to the environment” and to “participate in the public decisiontaking process likely to affect the environment” (Article 7), as well as the principles of precaution and prevention in the environmental field.

These constitutional guarantees justify a number of standards that apply to consumer products. However, they can be challenged as a result of free trade agreements.

10. The Reinforcement of legislation

Recent public policies have led France to adopt new legislative measures supporting CSR.

For approximately ten years, French legislation has required all large companies to publish detailed information on their CSR policies. The 2001 Act on New Economic Regulations, otherwise known as the NRE Act, requires listed companies to disclose specific social and environmental information in their management reports. The Act of 12 July 2010, also referred to as the Grenelle II Act, reinforced transparency requirements in two ways:

o Under Article 224 of this act, the annual reports of asset management companies must mention the ways in which their investment policies take into account environmental, social and governance criteria.

o Under Article 225 of this act and the decree of 24 April 2012, companies must provide more detailed information, non-listed companies that exceed thresholds (for example, the threshold of 500 employees) must respect transparency obligations, 11 and independent third parties must check the information published.

Articles 70-IV and 173-IV of the Act on Energy Transition for Green Growth of 17 August 2015 extended reporting requirements by introducing the concept of the circular economy and asking companies to provide information on how the use of their goods and services affected climate change. An implementing decree was adopted in August 2016 to clarify these obligations.

France also played a key role in developing transparency obligations for companies at the European level. It was the main supporter of the draft directive on non-financial reporting obligations, published on 22 October 2014, which requires large European listed companies to publish reports on their social, environmental, human rights and corruption policies. France encouraged the European Commission to take an ambitious approach when adopting the guidelines discussed in the directive. The directive is currently in the final stages of being transposed into French law. This will reinforce existing non-financial reporting requirements for companies.

In the development field, the Act of 7 July 2014 on France’s strategy for development and international solidarity states that policy in this field must take into account “the social and environmental responsibility of public and private actors”. In addition, “France shall promote this requirement to partner countries and other donors”. Furthermore, “It shall also encourage businesses with their headquarters in France and with offices abroad to implement the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights”. Also under this act, “Companies shall implement risk management procedures to identify, prevent or mitigate social, health and environmental damage and human rights abuses that may arise as a result of their operations in partner countries”.

The Act of 10 July 2014 on unfair social competition was adopted to transpose into national law the European Directive on the posting of workers, which seeks to fight illegal labour practices and fraud in this field. Not only does the act create due diligence obligations, it also provides for joint liability (over and above the requirements in the European Directive) whenever posted workers are used (it establishes the liability of project owners and principals with respect to their subcontractors and co-contractors).

The Act of 21 July 2014 defined the scope of the social and solidarity economy (SSE) for the first time. The notion of an SSE enterprise now covers traditional actors (nonprofit organizations, mutual societies, cooperatives, and foundations) as well as new forms of social enterprise (commercial companies which pursue socially useful goals and decide to adopt SSE principles). Under this definition, the SSE represents 10% of GDP and 2.3 million employees. After the Rana Plaza tragedy, France wished to give consumers the ability to check manufacturing conditions for goods sold in France by distributers, manufacturers and producers. Article 93 of the SSE Act, which discusses transparency obligations with respect to the social conditions of a product’s manufacture, entered into force on 1 August 2014.

Article 13 of the SSE Act seeks to ensure that more public purchases are made from socially responsible businesses (many of which are part of the SSE) and that better use is made of social clauses in procurement contracts. It states that, if a maximum annual procurement amount is exceeded, contracting authorities must adopt schemes promoting socially responsible purchases. This article came into force on 1 February 2015 (Decree of 28 January 2015)

• Article 11 of the SSE Act creates a “socially useful solidarity-based enterprise” accreditation which is awarded to businesses with high social standards so they can attract private financing from socially minded investors, particularly solidarity-based employee savings. This article came into force in the first quarter of 2015 after the Conseil d’Etat (Council of State) issued a decree to this effect.

An act on a duty of vigilance for parent companies and outsourcing companies was promulgated on 27 March 2017. Under this act, companies that employ more than 5,000 employees in France, or more than 10,000 employees in France and abroad, must draft and implement due diligence plans. Plans must set out reasonable measures to identify risks and prevent serious abuse of human rights, fundamental freedoms, health, personal safety and the environment, arising as a result of the operations of the company, of companies under its direct or indirect control, or of subcontractors and suppliers with which it has well-established commercial relationships.

12. The French Platform for Promoting Global Action on Corporate Social Responsibility [pages 26-27]

In a letter dated 24 July 2012, 16 organisations representing employers, employees and civil society asked the French Prime Minister to set up a national platform to support dialogue and consultation between different actors in French society with an interest in CSR (including representatives of businesses, employees, non-profit organisations, NGOs and multi-stakeholder structures) and public authorities (including representatives of central administration, parliament and local government). Its main goal was to prepare a response to the European Commission’s request that Member States establish “their own plans or national lists of priority actions to promote CSR in support of the Europe 2020 strategy”.

The Prime Minister agreed to this request and created the French platform for promoting global action on CSR on 17 June 2013.15.

The French platform for promoting global action on CSR is a multi-stakeholder consultation body that is composed of five main groups: economic organiaations, trade unions, CSR researchers and developers, public institutions and civil society.

Proposal for Action No.4

Actions Underway

• The State and local government are committed to promoting and respecting the UN Guiding Principles in all of their activities—as lawmakers, employers and producers.
• France is implementing the act on the corporate duty of vigilance.

Actions to be implemented

• Give government services the financial and material resources required to monitor the enforcement of the UN Guiding Principles.
• Encourage the centralisation of documentary resources for economic actors so they are more easily accessible by creating, for example, a digital platform for business and human rights.

14. Reinforce risks analysis and information [pages 29-36]

The State must be exemplary and apply all international framework texts on CSR, especially in the human rights field. To do so, it conducts activities providing information and training on the implementation of all major international CSR texts.

On 8 July 2002, France ratified the Aarhus Convention on Access to Information, Public Participation in Decision-Making and Access to Justice in Environmental Matters. This convention seeks to ensure that everyone is able to receive information, participate in decision-making and access justice in the environmental field. As stated in the preamble, “adequate protection of the environment is essential to human well-being and the enjoyment of basic human rights(…). The National CSR platform issued recommendations to: “Involve the State in efforts to inform, be exemplary and monitor the implementation of the main international framework texts on CSR, especially in the human rights field: – Conduct activities providing information and training on the implementation of all major CSR texts; – Include CSR in graduate studies and continuing education; – Ensure that businesses are aware of and comply with these texts.”

 Proposal for Action No. 6

Actions to be implemented

• Complete comparative country risk and industry risk analyses.
• Hold collective discussions on risk analysis.
• Look into creating a database combining embassy information and information from other sources (business circles, international organisations, trade unions, NGOs, etc.)
• Produce and distribute an educational document summarising and comparing the main international texts by allocating sufficient resources, particularly to the main public websites concerned.
• Continue to distribute the information brochure and raise awareness among embassies.
• Provide training, particularly to staff of the State and local government, on human rights and environmental obligations for businesses (in business schools, engineering schools, the judiciary, etc.).

 Proposal for Action No.7

All economic sectors:

– Reinforce due diligence, particularly in sectors and countries at risk of human rights abuses. – Encourage French businesses to develop and implement due diligence plans on the basis of their size. – Capitalise on the observations in the French NCP’s report on the textile and garment sector and begin promoting and adapting these recommendations so they can be enforced in all sectors.

Agriculture and Food Sector

Actions Underway

• Partner States are encouraged to apply the Voluntary Guidelines on the Responsible Governance of Tenure of Land (VGGT) and the Principles for Responsible Investment in Agriculture and Food Systems (RAI). – Recommendations in the Guide to Ex-Ante Analysis of Agricultural Investment Projects that Affect Land and Property Rights are being integrated into the AFD’s due diligence procedures in the land, social and environmental fields.

 Actions to be Implemented

• Ensure the VGGT and RAI are respected by French economic actors abroad. Training on the implementation of these principles and directives will be offered to government employees (in embassies and economic services) and agencies.

The textile and garment sector

Actions Underway

• France is continuing to raise awareness of the NCP report issued on 2 December 2013, and monitor the implementation of its recommendations in the French textile, garment and distribution sectors.
• France is helping to finalise the OECD Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Sector.
• France is promoting the mutualisation of audits by outsourcing companies through the working group created by the Ministry of Labour and relevant actors in cooperation with ILO, in connection with initiatives currently being examined by the OECD and European Commission.
• France is determining whether to support the “Vision Zero Fund” following the G7’s Leaders’ Declaration at Elmau.

The extractive sector

Actions Underway

• France has launched an ambitious process to become an EITI country.
• France raises awareness among French businesses of their due diligence obligations with respect to mineral supply chains as set out in relevant regulatory initiatives (the OECD Due Diligence Guidance, the EU Conflict Minerals Regulation and national law on due diligence).

The financial sector

Actions Underway

• France promotes, at the national and European levels, investment policies that incorporate due diligence and highlight the principles and practices of institutional investors.
• France promotes initiatives and commitments by the financial sector, particularly those based on the Equator Principles and the Thun Group.
• France is examining whether to extend environmental, social and governance reporting requirements for institutional investors in Europe to cover human rights.

II. Businesses’ Responsibility to Respect Human Rights

Proposal for Action No.8 [pages 38-45]

Actions Underway

• France is reinforcing training for employees on issues related to business and human rights.
• The French Ministry of Foreign Affairs and International Development issues advice for businesses operating in conflict zones and/or high-risk areas.

Actions to be implemented

• Monitor the implementation of legislation requiring some companies to disclose due diligence plans addressing subsidiary and subcontractor risks at each level of the supply chain, and, if necessary, take measures to enforce this legislation.
• Help achieve the Sustainable Development Goals.
• Reinforce human rights requirements in purchasing criteria.
• Promote social dialogue and employee expression as tools to reinforce respect for human rights at all levels of the supply chain.

1. Chapters and Codes of Conduct

Charters and codes of conduct are voluntary initiatives that create legitimate expectations among stakeholders. Company charters aim to: − Set down and disclose the company’s commitments to human rights;

– Explain expectations to employees, subsidiaries and subcontractors.

The following points are key to their implementation:

− They must send a clear and strong message from the highest level of the business;

− They must enable businesses to respect internationally recognized human rights and make commitments appropriate to their size and activity;

− They must cover relationships with commercial partners and not be limited to “direct” activities.

Existing tools:

− The Guide on How to Develop a Human Rights Policy, published by the UN Global Compact, which contains recommendations for businesses on developing and implementing human rights policies (https://www.unglobalcompact.org/library/22);

− Examples of human rights commitments by international businesses, collected by the Business and Human Rights Resource Centre (https://businesshumanrights.org/en/company-policysteps);

− The charter for French businesses working in Africa, which was adopted at the AfricaFrance Summit in 2010;

− The Human Rights Reporting and Assurance Frameworks Initiative (RAFI);

− The Fibre Citoyenne initiative, aimed at businesses in the textile-garment sector, by the NGO Yamana.

2. Training and Information for Businesses

All staff members must be made aware of CSR. Because CSR involves protecting, developing and enhancing an organization’s human capital, it is dependent on training. Training is central to sustainable development, enabling people to adapt their skills to economic, professional and societal changes. Training efforts must also target appropriate populations.

Thanks to the implementation of innovative partnerships between the public, private and nonprofit sectors, regional movements are providing information, raising awareness, offering training and supporting actions to defend and promote human rights. Regional business networks are also committed to human rights, women’s rights and the rights of newcomers, workers, vulnerable populations, etc. These networks, which support multi-stakeholder dialogue and operations, develop tools and initiatives adapted to the needs of businesses (micro, small, medium and large enterprises) using cooperative approaches.

Proposal for Action No. 9

Actions Underway

• Training efforts are being continued, especially in the fields of purchasing, employee representatives, etc.
• Measures may be examined with businesses to encourage adherence to rules on the products authorised for sale and consumption in countries that have ratified the UN Guiding Principles.

Existing tools and responsible practices:

– Entreprises pour les Droits de l’Homme (Businesses for Human Rights – EDH) is a non-profit organization bringing together 12 French businesses working in various sectors. It has developed an e-learning tool and one-day training programme on business and human rights for employees (http://e-dh.org/fr/formation.php);

– The Global Business Initiative on Human Rights (GBI) is a platform bringing together 18 businesses from various sectors operating in 190 countries. It organizes learning workshops where businesses can share knowledge on human rights issues: good practices, tools, challenges, etc. (http://www.global-business-initiative.org); − Some businesses include human rights modules in sustainable development training programmes for directors. Others offer specific training to purchasers, human resources staff, legal staff, etc.

3. Risk Analysis and Impact Assessment

Businesses must understand the type and scope of adverse human rights impacts (both real and potential) caused directly or indirectly by their operations, particularly in their business relationships. This enables them to identify measures to prevent, remedy and mitigate these impacts. Practically speaking, businesses analyse their human rights risks by:

– Using external risk analysis tools (see below), which may or may not be adaptable;

– Identifying human rights issues that are specific to their operations or sector;

– Carrying out country risk assessments by compiling the available external data;

– Carrying out background checks and audits on suppliers and other stakeholders.

Many tools are available to help businesses analyse risks and assess the impact of their operations. If necessary, they can also call on employers’ organizations and other appropriate stakeholders.

Proposal for Action No.9

Actions Underway

The following points are key to the implementation of risk management measures:

• Impact assessments must be completed for new operations, projects, commercial relationships, countries, etc.;
• Human rights risks must be regularly evaluated for all of the business’s operations, and action plans implemented for the risks identified;
• Issues specific to the operation, country and commercial relationships must be addressed.

Actions to be implemented

• Promote the completion and publication of voluntary impact assessments, ensuring that all appropriate stakeholders are included (if necessary, through the free, prior and informed consultation of populations), particularly rights holders for companies that are not required to complete project-specific impact assessments, and ensure these assessments are monitored.

Existing tools and responsible practices:

Self-assessment tools: The Global Assessment Tool (2010), produced by the Global Compact, and the Human Rights Compliance Assessment 2.0 (2010), produced by the Danish Institute for Human Rights, can be used to check whether business practices comply with the UN Global Compact and the UN Guiding Principles on Business and Human Rights. Country risk assessment tools: Data on national legislation, treaty ratification and existing practices in countries can be found on the following websites:

 The Human Rights and Business Country Guide website: http://hrbcountryguide.org;

 The websites of international organizations:

The UN: (www.ohchr.org/EN/Countries/pages/HumanRightsintheWorld.aspx);

ILO: (www.ilo.org/dyn/natlex/natlex_browse.home?p_lang=en);

 The United States Department of State (www.state.gov/j/drl/rls/hrrpt/) for annual country reports on human rights practices;

 The Maplecroft website (paying subscribers only) for country-specific human rights risk indexes and ratings (www.maplecroft.com).

Practical tools addressing specific issues:

 The Business and Human Rights Resource Centre (www.businesshumanrights.org) is an online library with connections to a wide range of working documents and conceptual tools published by businesses, NGOs, governments, sector-specific initiatives and institutions. Many tools have been sorted by issue, country, sector or company policy/steps (policy, impact assessment, training, reporting, etc.).

 ILO has created a business helpdesk providing questions and answers, resources and tools on issues connected with workers’ rights: discrimination, freedom of association, collective bargaining, wages and benefits, occupational safety and health, forced labour, child labour, etc. It also offers free and confidential assistance for company directors and workers (http://www.ilo.org/empent/areas/businesshelpdesk/lang–en/index.htm).

The Human Rights and Business Dilemmas Forum helps businesses understand and resolve the human rights dilemmas they face, particularly in emerging countries. For each dilemma, it outlines the relevant international standards, risks for businesses, case studies, practical suggestions and available resources (http://human-rights.unglobalcompact.org).

At the European level:

– The website of the Ministry of Foreign Affairs − Assistance offered by the European Instrument for Democracy and Human Rights (EIDHR)

– The European Commission’s working document dated 14 July 2015 on the creation of business practice guides

– The European Commission’s guides for three economic activities: employment and recruitment agencies; oil and gas; and information and communications technologies

− The CSR Compass (2005), a self-assessment tool supporting CSR policies for Danish businesses, with a special focus on SMEs and businesses with an international presence –

Tools produced by the Danish Institute for Human Rights: the Human Rights Compliance Assessment (HRCA), the HRCA Quick Check (a free and more concise version of the HRCA), the China Business and Sustainability Check, etc. − The Business Anti-Corruption Portal for recruitment agencies, oil and gas industries and ICT

At the sector level:

– Distribution: Initiative Clause Sociale (Social Clause Initiative – ICS)

− Electronics: Electronic Industry Citizenship Coalition (EICC)

– Chemicals: Together for Sustainability

− Finance: Equator Principles for Financial Institutions (EPFI)

Oil and gas: the Business and Human Rights Project by the International Petroleum Industry Environmental Conservation Association (IPIECA)

− Telecommunications: Industry Dialogue

Proposal for Action No.11

Actions Underway

• France encourages the generalisation and reinforcement of international framework agreements that include human rights criteria, measures to regularly monitor their implementation and ex-post evaluation mechanisms

Proposal for Action No.12

Actions Underway

• France ensures staff representative bodies have sufficient operating resources to defend human right

6. Reporting

Businesses must monitor the human rights measures they adopt and disclose on their initiatives in this field.

Under European Directive 2014/95/EU, human rights will become one of the pillars of CSR. This position will be reflected in French reporting requirements when the directive is transposed into national law. It should be noted that human rights reporting is already a requirement under the regulatory provisions of the Commercial Code. Decree 2012-557 of 24 April 2012 on the social and environmental transparency obligations of businesses places human rights on an equal footing with other issues.

Proposal for Action No. 13

Actions Underway

• France is continuing to implement monitoring indicators and communicate with external stakeholders on business commitments and enforcement under the UN Guiding Principles on Business and Human Rights.

Actions to be implemented

• Implement provisions to help transpose the European Directive on non-financial reporting into French law.
• The performance of measures adopted by businesses to respect and communicate on human rights can be monitored in the following ways:

− By using existing global and sector-specific indicators or new company-specific indicators, and by formalizing internal annual reporting systems for the actions implemented;

– By including points to be checked in existing internal supervisory mechanisms;

− By monitoring and addressing human rights incidents;

− By issuing annual reports that can be viewed by the public.

Existing tools and responsible practices:

– Businesses publish information on their human rights initiatives and operations on the Business and Human Rights Resource Centre website (www.businesshumanrights.org).

– The Global Reporting Initiative (GRI) has published G4 guidelines for sustainability reporting (https://www.globalreporting.org/information/g4/Pages/default.aspx).

− Shift and Mazars have developed the UN Guiding Principles Reporting Framework for companies to report on human rights (http://www.ungpreporting.org/).

− The Danish Institute for Human Rights has developed a set of 1,000 Human Rights Indicators for Business (HRIB), enabling businesses and stakeholders to evaluate their human rights policies, procedures and practices (http://businesshumanrights.org/en/platform-for-human-rights-indicators-for-business-hrib).