Switzerland
5. National Action Plan on Business and Human Rights
5.7 Pillar 1: state duty to protect
5.7.4 Business respect for human rights in conflict-affected areas [page 26]
Guiding Principle 7
Business enterprises operating in conflict-affected areas face a special set of human rights challenges. The federal government assists companies in conducting due diligence in conflict-affected and high-risk areas in a way that takes the local circumstances into account.
The federal government will employ the following policy instruments (PI) to implement Guiding Principle 7:
PI22 Guidelines on human rights due diligence in conflict-affected and high-risk areas
Over the years, the federal government has supported the drafting of a number of guidelines addressing the situation in conflict-affected areas. These include the Guidance on Conflict Sensitive Business Practice for the extractive sector issued by International Alert75, and the Red Flags initiative76. Switzerland also provides financial support for the implementation of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas77. In addition, Switzerland is a member of the multi-stakeholder group managing the implementation, spread and continued development of the Guidance. It is aimed primarily at companies operating in conflict-affected or high-risk areas in the extraction and trading of commodities.
PI23 Advisory and support services provided by Swiss representations abroad
Representations abroad have enormous potential to raise awareness of human rights issues in the corporate sector and to offer country-specific advice. A number of Swiss representations in conflict-affected areas have developed innovative initiatives based on the UNGP – largely on an ad-hoc basis – to promote social responsibility on the part of Swiss business enterprises78. The federal government will involve Switzerland’s representations abroad more closely in its efforts to raise awareness of and provide support for respect for human rights among business enterprises. Among other measures, this will involve training and awareness-raising for embassy staff, better experience-sharing between representations and with the relevant federal agencies in Bern, and more active communication about the representations’ activities.
PI24 Restriction of public services in the event of gross human rights abuses
In the latest change to its ordinance, Swiss Export Risk Insurance (SERV) explicitly included the obligation for insurance applicants to provide information on human rights. SERV does not grant cover, neither can it accept any liability in the event of a claim, if the project being supplied or financed by the policyholder violates international human rights standards.
Switzerland Global Enterprise (S-GE) has a code of conduct79 aimed at S-GE staff which is intended to ensure that international human rights are respected and staff avoid being complicit in any way in their violation. Should S-GE determine that customers are in breach of the relevant laws or regulations, or are committing human rights abuses, it will refuse mandates or withdraw from existing ones.
PI 25 Regulations on transparency and due diligence concerning minerals from conflict-affected areas
The introduction of transparency regulations for minerals from conflict-affected areas is a policy instrument that a number of OECD states have either already adopted or are seriously considering. The Federal Council is tracking international developments towards transparency and due diligence concerning minerals from conflict-affected areas, especially in the EU, and is observing their impact on the Swiss economy. If the EU were to introduce a certification system and/or disclosure obligations for companies, the Federal Council will consider putting forward appropriate proposals for a Swiss solution congruent with EU action.
PI26 Economic sanctions
The Federal Act on the Implementation of International Sanctions80 forms the basis on which Switzerland is able to adopt non-military sanctions imposed by the UN, the OSCE and Switzerland’s major trading partners in the interests of compliance with international law and respect for human rights. The Embargo Act itself does not contain any specific sanctions, but rather provides a legal framework that authorises the Federal Council to issue ordinances on the imposition of sanctions.
For example, the Ordinance on the International Trade in Rough Diamonds of 29 November 200281, which was issued on the basis of the Embargo Act, implements in Switzerland the provisions of the Kimberley Process, which addresses the trade in diamonds from conflict-affected areas.
The Federal Council regards the legal framework for the imposition of sanctions as sufficient. It continuously monitors the decisions of the UN, OSCE and key trading partners, and decides on a case-by-case basis on appropriate action.