Luxembourg

Introduction (pg. 8)

… Regular contacts with, among others, the four national human rights institutions took place in the context [of drafting the NAP]:
the Ombudsman Comittee for the Rights of the Child expresses its opinion on draft laws and regulations on the rights of the child and proposes amendments; it reports on the situation of children and ensures the implementation of the Convention on the Rights of the Child and presents to the Government and the Chamber of Deputies an annual report on its activities and on the children’s rights situation in
Luxembourg. The Committee promotes the free expression of children and their active participation in issues that concern them; it examines situations in which the rights of the child are not respected and makes recommendations to remedy them. The Committee receives information, complaints and grievances from children and tries to mediate and give advice to ensure the best possible protection of children;

Part III – NAP

3. Government’s Response
3.2. A joint work program (pg.30)
In order to ensure a concrete follow-up that will allow a real measure of the commitment made by one another, it is proposed to organize training based on the UN Guiding Principles for the staff of signatory companies. To this end, a collaboration between the INDR and House of Training is encouraged in the second half of 2018. The participation of non-governmental actors can be envisaged for the development of specific training modules, for example on the topic … children’s rights …

Read more about Children’s rights

Part III – NAP

3. Government’s Response
3.2. A joint work program (pg.31)

Other measures:
Preparation of the implementation of the European regulation regarding conflict minerals in Luxembourg.

Part I – Rational Framework for the development, adoption and implementation of the NAP

2. National Context
2.2. Governmental program (pg.17)

The government has reaffirmed its commitment to the values of human rights in the governmental program adopted in 2013, and demonstrates its sense of responsibility in this area, particularly in its external initiatives:
“Luxembourg will continue to work for the prevention of conflicts, for the preservation and consolidation of peace and development, with the conviction that there is an intrinsic link between security and development which is a condition of stability and democracy around the world and that we will not be able to obtain lasting peace and security, nor development, without the respect of human rights. Luxembourg is constantly working in favour of fundamental rights, public freedoms and the promotion of the rule of law.”

Read more about Conflict-affected areas

Part III – NAP

3. Government’s Response (p.28)

A preliminary diagnosis allows for the identification of the potential risk for negative impacts on human rights that activities in the private sector may have … – including in the … building sector … partly because of their preponderance in the Luxembourg economy, the national and international character of their activities and the origin of their employees.

Read more about Construction sector

Part I – Rational Framework for the development, adoption and implementation of the NAP

1. International Context
1.1. United Nations (UN) (pg. 12)

The UN Global Compact supports businesses to carry out their activities in ways that are responsible by aligning their strategies and operations with the ten principles of human rights, labour, the environment and anti-corruption. The Global Compact is recognized as a major proponent of the UN Guiding Principles on Business and Human Rights. Luxembourg companies have adopted the ten principles enacted by the Global Compact. It should also be noted that in 2017 CSR Europe (The European Business Network for Corporate Social Responsibility) signed a Memorandum of Understanding with UN Global Compact. IMS Luxembourg (Inspiring More Sustainability) is the representative of CSR Europe in Luxembourg. The National Institute for Sustainable Development and Corporate Social Responsibility (INDR) and IMS are in the talks with the UN Global Compact to represent the local network.

1.2. European Union (pg. 13)

Directive 2014/95 /EU concerning the publication of non-financial information and information on diversity by certain large companies and groups dates from 22 October 2014. This text, transposed into national law by the law of 23 July 2016 concerning the disclosure of non-financial and information relating to diversity by certain large companies and groups, provides an obligation to report on the respect of human rights for companies with more than 500 employees, including listed companies, banks, insurance companies and other companies identified by national authorities as public-interest entities. The goal is to help investors, consumers and policymakers assess the non-financial performance of these companies and encourage them to develop a responsible business approach.

1.4. International Labour Organization (ILO) (pg. 14)

As of March 17, 2017, the ILO has revised the Tripartite Declaration of Principles on multinational enterprises and social policy. This text provides guidance to companies on how to contribute to the realization of decent work for all. The principles set out in the Declaration are recommended for the attention of governments, employers’ organizations and multinational enterprises, and directly references the UN Guiding Principles on Business and Human Rights and implementing the Terms of Reference “Protect, Respect, and Remedy.”

1.5. The Organisation for Economic Co-operation and Development (OECD) (pg. 14)

Responsible business conduct is an important aspect for a well-functioning space of trade and international investment. The establishment of a responsible business environment is in the interest of all stakeholders. It is in this context that Luxembourg, by adopting the OECD Declaration on Investment and Multinational Enterprises in 1976, also adhered to the OECD Guidelines for multinational companies, which were its corollary, and which for the first time instituted an international standard for responsible business for companies actively working internationally.

These Guiding Principles have since been adapted and developed five times, most recently at the OECD’s 50th Anniversary Ministerial Meeting, on May 25, 2011. On this occasion, the OECD Guidelines for Multinational Enterprises received a specific chapter on human rights, the wording of which was aligned on the United Nations Guiding Principles on Business and Human Rights. From a human rights perspective, the 2011 revision is a fundamental step and, by opening up its scope, has particularly widened the access to remedies since currently the complaints addressed to National Contact Points (NCP) in OECD Member States cover about a quarter of violations on human rights.

The OECD Guidelines represent a comprehensive and global framework for the responsible management of companies, which cover all aspects including, in addition to human rights, labour law, the environment, transparency, the fight against corruption, consumer interest, competition, taxation and intellectual property. The OECD Guidelines are still the only instrument for an international approach to corporate social responsibility involving a mechanism – the network National Contact Points (NCPs) – to ensure its
implementation.

1.6. Trade and Investment Agreements (pg. 16)

All trade and cooperation agreements with developing countries include a clause on human rights specifying that these rights constitute a fundamental aspect of relations with the EU, which has repeatedly imposed sanctions for human rights violations.

2. National Context
2.3. Foreign Policy Statement to the Chamber of Deputies (pg. 17)

… In general, the mission of the Ministry of Foreign and European Affairs states that “the Luxembourg diplomacy defends the values of … good governance and the rule of law… with a view to preserving and strengthening the framework of international law within which international relations develops.

Part II – Process of the NAP

1. Initiation
1.1. A formal engagement from the Government for a NAP (pg. 20)

… [The UN Guiding Principles] emphasize the steps that States must take to encourage businesses to respect human rights; they provide companies with a blueprint for managing the risk of negative impacts on human rights and offer the actors involved a set of benchmarks for assessing the respect of human rights by businesses. At the heart of the process is the concern to make companies aware of the guiding principles, to facilitate cooperation between the concerned actors and to propose a framework for assessing the implementation of the Guiding Principles. In this respect, it is important to emphasize that the Guiding Principles do not impose new legally binding obligations on companies.

Part III – NAP

1. Declaration of Engagement (pg. 26)

… the Government [of Luxembourg] recognizes the implementation of the UN Guiding Principles as the primary vector for preventing negative impacts on human rights from companies’ activities and, where appropriate, for accessing remedy in lieu of their consequences. As such, the Guiding Principles form the basis of this NAP.

In addition, the Government expects companies to fully respect human rights, and in particular:
– to prevent human rights violations as a result of their activities;
– to provide the necessary governance instruments for this purpose, in particular by introducing a due diligence system. Due diligence means the process that, as an integral part of their decision-making and risk management systems, enables businesses to identify and prevent the actual or potential negative impacts of their activities, as well as to report on how they approach this issue. The nature and the scope of a due diligence that is reasonable for a particular situation depends on factors such as the size of the company, the context in which its activities take place, the specific recommendations of the Guiding Principles and the seriousness of the negative impacts. When companies have a large number of suppliers, they are invited to identify the general areas in which the risk of negative impacts is most significant; then, from this risk assessment, to exercise due diligence as a matter of priority for certain suppliers;
– to redress any negative impacts of their activities on human rights.

The overall objective of this NAP is to strengthen the protection and promotion of human rights in the context of corporate policies, governance and economic activities. In this spirit, the NAP aims to raise awareness of the United Nations Guiding Principles on companies and human rights, to see them applied at company and value chain level and to monitor their implementation.

Read more about Corporate law & corporate governance

Part I – Rational Framework for the development, adoption and implementation of the NAP

1. International Context
1.1. United Nations (UN) (pg. 12)

The UN Global Compact supports businesses to carry out their activities in ways that are responsible by aligning their strategies and operations with the ten principles of human rights, labour, the environment and anti-corruption. The Global Compact is recognized as a major proponent of the UN Guiding Principles on Business and Human Rights. Luxembourg companies have adopted the ten principles enacted by the Global Compact. It should also be noted that in 2017 CSR Europe (The European Business Network for Corporate Social Responsibility) signed a Memorandum of Understanding with UN Global
Compact. IMS Luxembourg (Inspiring More Sustainability) is the representative of CSR Europe in Luxembourg. The National Institute for Sustainable Development and Corporate Social Responsibility (INDR) and IMS are in the talks with the UN Global Compact to represent the local network.

1.5. The Organisation for Economic Co-operation and Development (OECD) (pg. 14)

… Luxembourg, by adopting the OECD Declaration on Investment and Multinational Enterprises in 1976, also adhered to the OECD Guidelines for multinational companies…

The OECD Guidelines represent a comprehensive and global framework for the responsible management of companies, which cover all aspects including, in addition to human rights… corruption…

Read more about Corruption

Introduction (pg. 8)

The National Data Protection Commission is another chosen interlocutor in the implementation of the NAP because of aspects of its mission concerning the fundamental rights and freedoms of individuals and the respect for privacy.

Part III – NAP

3. Government’s Response (p.28)

A preliminary diagnosis allows for the identification of the potential risk of negative impacts on human rights that activities in the private sector may have … – including in the information and communication technologies – including the field of artificial intelligence – data protection …

3.1. A dialogue with non-governmental actors (pg. 29)

Corporate Social Responsibility (CSR), to which a number of Luxembourg companies have already subscribed, as well as risk management and data protection are important entry points for initiating a dialogue with the private sector.

3.2. A joint work program (pg.31)

A structured dialogue to be organized by the Interministerial Committee between all the actors involved allows:
…
To note the level of existing corporate commitment, particularly through efforts in areas of … data protection

Read more about Data protection & privacy

Part III – NAP

3. Government’s Response (p.28)

A preliminary diagnosis allows for the identification of the potential risk of negative impacts on human rights that activities in the private sector may have, specifically in the financial sector …

…The Human Rights Guidance Tools developed by the UNEP Finance Initiative offers a risk analysis in terms of human rights in economic activities, and in particular the financial sector.

Read more about Development finance institutions

Part III – NAP

3. Government’s Response (p.28)

…A preliminary diagnosis allows for the identification of the potential risk of negative impacts on human rights that activities in the private sector may have … – including in the information and communication technologies – including the field of artificial intelligence – data protection …

Read more about Digital technology & electronics sector

Introduction (pg. 8)

…The Government, therefore, attaches particular importance to the implementation of the UN Agenda 2030 and, to that effect, presented a voluntary national report in July 2017 at the High Level Political Forum on Sustainable Development, which took place in New York. The role played by Luxembourg at COP21 of the United Nations Framework Convention on Climate Change in Paris in December 2015, its role as Chairperson-in-Office of the Council of Ministers of the European Union and through its high level participation in COP22 and 23 in Marrakesh and Bonn, documents the importance the government attaches to an effective fight against climate change in all aspects, including human rights. By reason, Luxembourg is a signatory of The Geneva Pledge on Human Rights in Climate Action.

Part I – Rational Framework for the development, adoption and implementation of the NAP

1. International Context
1.1. United Nations (UN) (pg. 12)

The UN Global Compact supports businesses to carry out their activities in ways that are responsible by aligning their strategies and operations with the ten principles of human rights, labour, the environment and anti-corruption. The Global Compact is recognized as a major proponent of the UN Guiding Principles on Business and Human Rights. Luxembourg companies have adopted the ten principles enacted by the Global Compact. It should also be noted that in 2017 CSR Europe (The European Business Network for Corporate Social Responsibility) signed a Memorandum of Understanding with UN Global Compact. IMS Luxembourg (Inspiring More Sustainability) is the representative of CSR Europe in Luxembourg. The National Institute for Sustainable Development and Corporate Social Responsibility (INDR) and IMS are in the talks with the UN Global Compact to represent the local network.

1.5. The Organisation for Economic Co-operation and Development (OECD) (pg. 14)

… Luxembourg, by adopting the OECD Declaration on Investment and Multinational Enterprises in 1976, also adhered to the OECD Guidelines for multinational companies, which were its corollary, and which for the first time instituted an international standard for responsible business for companies actively working internationally.

…The OECD Guidelines represent a comprehensive and global framework for the responsible management of companies, which cover all aspects including, in addition to human rights … the environment…. The OECD Guidelines are still the only instrument for an international approach to corporate social responsibility involving a mechanism – the network National Contact Points (NCPs) – to ensure its implementation.

2. National Context
2.2. Governmental Program (pg. 16)

In the governmental program adopted in 2013, the Government of Luxembourg reaffirmed its commitment to the values of human rights and demonstrates its sense of responsibility in this area, particularly in its external action:

“Our voice also bears the values we defend: freedom, peace, democracy, and sustainable development, the fight against poverty, exclusion and climate change as well as unfailing commitment to respect for human rights.”

… At the national level, the Government addresses the topic “Business and Human Rights”, on the bias of corporate social responsibility:

“The Government will ensure equitable access to public tenders. Call procedures will be analysed together with the appropriate professional circles and adapted as part of community provisions. The specifications will take into account innovation criteria, respect for the environment and CSR (Corporate Social Responsibility).”

Read more about Environment & climate change

Introduction (pg. 7)

Among the first signatories of the Universal Declaration of Human Rights, the Grand Duchy of Luxembourg is an open economy democracy where the rule of law reigns. The equality of all human rights are principles enshrined in the Constitution and the laws of the country.

… Regular contacts with, among others, the four national human rights institutions took place in the context [of drafting the NAP]:
…
the purpose of the Equal Treatment Center is to promote, analyze and monitor the equality of all persons without discrimination on the grounds of race or ethnic origin, sex, sexual orientation, religion or belief, disability and age;

Part I – Rational Framework for the development, adoption and implementation of the NAP

1. International Context
1.2. European Union (pg. 13)

Human dignity, freedom, democracy, equality, the rule of law and respect for human rights are values enshrined in the European Treaties.

Read more about Equality & non-discrimination

The Luxembourg NAP does not make an explicit reference to Export Credit.

Read more about Export credit

Part III – NAP

3. Government’s Response (p.28)

A preliminary diagnosis allows for the identification of the potential risk of negative impacts on human rights that activities in the private sector may have, specifically within … extractive industries …

3.2 A joint work program (pg.31)

…
Other measures:
…

1. Preparation for the implementation of the European regulation on conflict minerals
in Luxembourg;

Read more about Extractives sector

The Luxembourg NAP does not make an explicit reference to Extraterritorial jurisdiction.

Read more about Extraterritorial jurisdiction

Part III – NAP

3. Government’s Response (p.28)
A preliminary diagnosis allows for the identification of the potential risk of negative impacts on human rights that activities in the private sector may have, specifically in the financial sector …

…The Human Rights Guidance Tools developed by the UNEP Finance Initiative offers a risk analysis in terms of human rights in economic activities, and in particular the financial sector.

Read more about Finance & banking sector

Part III – NAP

3. Government’s Response
3.2. A joint work program (pg.30)

…An information, awareness and promotion campaign on the UN Guiding Principles provides companies with the elements to better understand the scope of their obligations and their expectations, as well as the opportunity that compliance with the UN Guiding ´Principles can be achieved in terms of risk management and competitiveness. Among other things, a special emphasis will be placed on labour exploitation…

…In order to ensure a concrete follow-up that will allow a real measure of the commitment made by one another, it is proposed to organize training based on the UN Guiding Principles for the staff of signatory companies. To this end, a collaboration between the INDR and House of Training is encouraged in the second half of 2018. The participation of non-governmental actors can be envisaged for the development of specific training modules, for example on the topic … prevention of forced labor and human trafficking in supply and production chains and services used …

Other measures:

4. Consider the ratification of the Protocol (P29) of 2014 to the ILO Convention against Forced Labor;

Read more about Forced labour & modern slavery

The Luxembourg NAP does not make an explicit reference to freedom of association.

Read more about Freedom of association

Introduction (pg. 7)

Among the first signatories of the Universal Declaration of Human Rights, the Grand Duchy of Luxembourg is an open economy democracy where the rule of law reigns. The equality of all human rights are principles enshrined in the Constitution and the laws of the country.

… Regular contacts with, among others, the four national human rights institutions took place in the context [of drafting the NAP]:

The purpose of the Equal Treatment Center is to promote, analyze and monitor the equality of all persons without discrimination on the grounds … sex…

Read more about Gender & women’s rights

Part I – Rational Framework for the development, adoption and implementation of the NAP

1. International Context
1.1. United Nations (UN) (pg. 12)

…The UN Global Compact supports businesses to carry out their activities in ways that are responsible by aligning their strategies and operations with the ten principles of human rights, labour, the environment and anti-corruption. The Global Compact is recognized as a major proponent of the UN Guiding Principles on Business and Human Rights. Luxembourg companies have adopted the ten principles enacted by the Global Compact. It should also be noted that in 2017 CSR Europe (The European Business
Network for Corporate Social Responsibility) signed a Memorandum of Understanding with UN Global Compact. IMS Luxembourg (Inspiring More Sustainability) is the representative of CSR Europe in Luxembourg. The National Institute for Sustainable Development and Corporate Social Responsibility (INDR) and IMS are in the talks with the UN Global Compact to represent the local network.

1.2. European Union (pg. 13)

… The European Commission has published an introductory guide to human rights for SMEs, based on the UN Guiding Principles on Business and Human Rights. This guide makes companies aware of the main international principles in this area and supports them in their implementation.

1.4. International Labour Organization (ILO) (pg. 14)

…As of March 17, 2017, the ILO has revised the Tripartite Declaration of Principles on multinational enterprises and social policy. This text provides guidance to companies on how to contribute to the realization of decent work for all. The principles set out in the Declaration are recommended for the attention of governments, employers’ organizations and multinational enterprises, and directly references the UN Guiding Principles on Business and Human Rights and implementing the Terms of Reference “Protect, Respect, and Remedy.”…

1.5. The Organisation for Economic Co-operation and Development (OECD) (pg. 14)

Responsible business conduct is an important aspect for a well-functioning space of trade and international investment. The establishment of a responsible business environment is in the interest of all stakeholders. It is in this context that Luxembourg, by adopting the OECD Declaration on Investment and Multinational Enterprises in 1976, also adhered to the OECD Guidelines for multinational companies, which were its corollary, and which for the first time instituted an international standard for responsible business for companies actively working internationally.

These Guiding Principles have since been adapted and developed five times, most recently at the OECD’s 50th Anniversary Ministerial Meeting, on May 25, 2011. On this occasion, the OECD Guidelines for Multinational Enterprises received a specific chapter on human rights, the wording of which was aligned on the United Nations Guiding Principles on Business and Human Rights. From a human rights perspective, the 2011 revision is a fundamental step and, by opening up its scope, has particularly widened the access to remedies since currently the complaints addressed to National Contact Points (NCP) in OECD Member States cover about a quarter of violations on human rights.

Part II – Process of the NAP

1. Initiation
1.3. A joint work program (pg. 21)

The joint work program includes:
…

• an information, awareness and promotion campaign on the UN Guiding Principles that provides companies with the elements to better understand the scope of their obligations and their expectations, as well as the opportunity to realize the benefit of the guiding principles in terms of risk management and competitiveness,

• the organization of training based on the UN Guiding Principles for the staff of signatory companies, taking into account the training cycle in CSR, open to all companies, organized by the INDR in collaboration with the House of Training.

Part III – NAP

1. Declaration of Engagement (pg. 26)

…In addition, the Government expects companies to fully respect human rights, and in particular: …

to provide the necessary governance instruments for this purpose, in particular by introducing a due diligence system. Due diligence means the process that, as an integral part of their decision-making and risk management systems, enables businesses to identify and prevent the actual or potential negative impacts of their activities, as well as to report on how they approach this issue. The nature and the scope of a due diligence that is reasonable for a particular situation depends on factors such as the size of the company, the context in which its activities take place, the specific recommendations of the Guiding Principles and the seriousness of the negative impacts. When companies have a large number of suppliers, they are invited to identify the general areas in which the risk of negative impacts is most significant; then, from this risk assessment, to exercise due diligence as a matter of priority for certain suppliers;

The overall objective of this NAP is to strengthen the protection and promotion of human rights in the context of corporate policies, governance and economic activities. In this spirit, the NAP aims to raise awareness of the United Nations Guiding Principles on companies and human rights, to see them applied at company and value chain level and to monitor their implementation.

3. Government’s Response (pg. 28)

The Human Rights Guidance Tools developed by the UNEP Finance Initiative offers a human rights risk analysis by sector of economic activity, including the financial sector. This tool can be used to structure the dialogue with private sector actors and their sectoral professional organizations…

…In order to ensure a concrete follow-up that will allow a real measure of the commitment made by one another, it is proposed to organize training based on the UN Guiding Principles for the staff of signatory companies. To this end, a collaboration between the INDR and House of Training is encouraged in the second half of 2018. The participation of non-governmental actors may be considered for the development of specific training modules, for example on the theme of “Business and children’s rights”,
the prevention of forced labour and human trafficking in supply and production chains and services used or “Business and Human Rights” offered by CSR-Europe through IMS-Luxembourg. (pg. 30)

Read more about Guidance to business

The Luxembourg NAP does not make an explicit reference to health and social care.

Read more about Health and social care

Part I – Rational Framework for the development, adoption and implementation of
the NAP

1. International Context
1.3. European Council (pg. 14)

… On the basis of the 2011 UN Guiding Principles on Business and Human Rights, the Committee of Ministers of the Council of Europe adopted Recommendation CM / Rec (2016) on human rights and businesses. This instrument offers more targeted recommendations to help Member States prevent and correct human rights abuses by businesses and focuses on measures to encourage business to respect human rights particularly vulnerable groups … including human rights defenders.

Read more about Human rights defenders & whistle-blowers

Part III – NAP

3. Government’s Response (pg. 28)

…Regarding companies’ level of commitment, it is interesting to take note of a study on corporate social responsibility that the international consulting firm KPMG published in 2017. For the first time this study also analyzed the extent to which human rights were perceived as a business issue in the 4,900 largest companies in 49 different countries (including Luxembourg) and in 250 largest companies in the world. According to the study’s statistics, Luxembourg is among the countries in which companies produce reports on their social responsibility at a lower rate than the world average. While this average is 72 per cent, in Luxembourg only 59 per cent of companies submit CSR reports. It can be concluded that, in Luxembourg, human rights are still perceived as not important to business. Therefore, if the Guiding Principles are to be implemented in Luxembourg and if companies must implement relevant domestic policies and rules on respect for human rights, as well as effective governance to implement them and means to address potential negative human rights impacts of their activities, then an effort of information, promotion and awareness on the part of the government, in the context of the NAP, seems useful and necessary.

Read more about Human rights impact assessments

Part I – Rational Framework for the development, adoption and implementation of
the NAP

1. International Context
1.3. European Council (pg. 14)

… On the basis of the 2011 UN Guiding Principles on Business and Human Rights, the Committee of Ministers of the Council of Europe adopted Recommendation CM / Rec (2016) on human rights and businesses. This instrument offers more targeted recommendations to help Member States prevent and correct human rights abuses by businesses and focuses on measures to encourage business to respect human rights particularly vulnerable groups … including indigenous people…

Read more about Indigenous Peoples

Part I – Rational Framework for the development, adoption and implementation of the NAP

1. International Context
1.6. Trade and investment agreements (pg. 16)

…All trade and cooperation agreements with developing countries include a clause on human rights stating that these rights constitute a fundamental aspect of relations with the EU who has repeatedly imposed sanctions for human rights violations.

Read more about Investment treaties & investor-state dispute settlements

Part I – Rational Framework for the development, adoption and implementation of the NAP

1. International Context
1.1. United Nations (pg. 12)

…Under their terms of reference, “Protect, Respect and Remedy,” the 31 United Nations Guiding Principles on Business and Human Rights:

c. Underline the need for appropriate and effective remedies – judicial and non-judicial – for human rights violations at both State and enterprise levels (Guiding Principles 25- 31).

Part II – Process of the NAP

1. Initiation
1.1. A formal engagement from the Government for a NAP (pg. 20)

… In this respect, it is important to emphasize that the UN Guiding Principles on Business and Human Rights do not impose new legally binding obligations for companies. The Government reserves the right to consider the full range of authorized prevention and remediation measures, including … judicial proceedings.

Part III – NAP

1. Declaration of Engagement (pg. 26)

… the Government [of Luxembourg] recognizes the implementation of the UN Guiding Principles as the primary vector for preventing negative impacts on human rights from companies’ activities and, where appropriate, for accessing remedy in lieu of their consequences. As such, the Guiding Principles form the basis of this NAP.

Read more about Judicial remedy

The Luxembourg NAP does not make an explicit reference to land.

Read more about Land

Part III – NAP

1. Declaration of Engagement (pg. 26)

… In addition, the Government expects companies to fully respect human rights in general, and in particular to:

Provide the necessary governance tools for this purpose, including the introduction of a due diligence system. Due diligence refers to the process that, as an integral part of their decision-making and risk management systems, enables companies to identify, prevent, and mitigate the actual or potential negative impacts of their activities, as well as to report on how they approach this issue. The nature and extent of a due diligence that is appropriate to a particular situation depends on factors such as the size of the business, the context in which it operates, the specific recommendations of the UN Guiding Principles and the severity of the adverse impacts. When companies have a large number of suppliers, they are asked to identify the general areas in which the risk of negative impact is most significant and, based on this risk assessment, to exercise due diligence as a matter of priority with respect to certain suppliers;…

Part III – NAP

1. Government’s Response
3.2. A joint work program

…Other measures: (pg. 31)

2. Implementation of due diligence pilot projects in enterprises in which the state is the
principal shareholder;…

Read more about Mandatory human rights due diligence

The Luxembourg NAP does not make an explicit reference to migrant workers.

Read more about Migrant workers

Introduction (pg. 8)

… Regular contacts with, among others, the four national human rights institutions took place in the context [of drafting the NAP]:

• The Advisory Commission on Human Rights (Commission consultative des Droits de l’Homme – CCDH) is responsible for the promotion and protection of human rights in the Grand Duchy of Luxembourg. As part of its operations, the CCDH provides the government with independent advice, studies, opinions and recommendations, either at the request of the government or on its own initiative, on all matters of general importance concerning human rights in the territory of Luxembourg. It advises the government on the preparation of reports to be submitted by Luxembourg to regional and international human rights bodies. The CCDH addresses itself directly or through any organ of press, especially to make public its opinions and recommendations and to maintain a dialog with all the institutions and national and international organs of defense of human rights;
• The purpose of the Equal Treatment Center is to promote, analyze and monitor the equality of all persons without discrimination on the grounds of race or ethnic origin, sex, sexual orientation, religion or belief, disability and age;
• The Ombudsman Comittee for the Rights of the Child expresses its opinion on draft laws and regulations on the rights of the child and proposes amendments; it reports on the situation of children and ensures the implementation of the Convention on the Rights of the Child and presents to the Government and the Chamber of Deputies an annual report on its activities and on the children’s rights situation in Luxembourg. The Committee promotes the free expression of children and their active participation in issues that concern them; it examines situations in which the rights of the child are not respected and makes recommendations to remedy them. The Committee receives information, complaints and grievances from children and tries to mediate and give advice to ensure the best possible protection of children;
• The Ombudsman receives complaints relating to the functioning of state and municipal administrations, as well as public establishments under the jurisdiction of the State and municipalities. He is responsible for ensuring the external control of places of detention.

Part I – Rational Framework for the development, adoption and implementation of the NAP

2. National Context
2.4 Government Council (pg. 17)

…In general, the [Interdepartmental Committee on Human Rights] is responsible for ensuring the implementation of Luxembourg’s human rights obligations by the various actors concerned, in consultation with national human rights institutions and civil society.

Read more about National Human Rights Institutions/ Ombudspersons

Part I – Rational Framework for the development, adoption and implementation of the NAP

1. International Context
1.2. European Union (pg. 13)

The Directive 2014/95/EU on disclosure of non-financial and diversity information by certain large undertakings and groups was adopted in 22 October 2014. The directive, transposed into national legislation by the law of 23 July 2016,7 imposes an obligation on certain companies identified by national authorities as “public interest entities” exceeding an average number of 500 employees during the financial year, including listed companies, banks, insurance companies and other companies, to include information in their annual management report with respect to human rights. The goal is to help investors, consumers and policymakers to assess the non-financial performance of these companies and encourage them to develop responsible business conduct.

Part III – NAP

1. Declaration of Commitment (pg. 26)

The Government expects companies to fully respect human rights in general, and in particular to:

• prevent human rights violations as a result of their activities;
• adopt the necessary policy instruments for this purpose, in particular by introducing a due diligence process. In this context, due diligence refers to the process that enables companies, as an integral part of their decision-making and risk management mechanisms, to identify, prevent and mitigate potential human rights impacts of their activities, as well as to report on how they address this issue. The nature and scope of reasonable and adequate due diligence in specific situations depends on factors such as the size of the business enterprise, the context of its operations, the specific recommendations of the Guiding Principles and the scope of the negative impact. When business enterprises have a large number of suppliers, they are asked to identify the general areas where the risk of adverse human rights impact is most significant and to prioritize risk assessment for human rights due diligence with regard to such suppliers;

3. Government’s Response (pg. 28)

… Regarding the level of corporate commitment, it is interesting to take note of a study on corporate social responsibility that the international consulting firm KPMG published in 2017.15 For the first time, this study analysed the extent to which human rights were perceived as a business issue in the 4,900 largest companies in 49 different countries (including Luxembourg) and in the 250 largest companies in the world. According to the findings, Luxembourg is among the countries in which companies produce reports on their social responsibility at a lower rate than the world average. While this average is 72 per cent, in Luxembourg only 59 per cent of companies submit CSR reports. Accordingly, it can be concluded that, in Luxembourg, human rights are still perceived as insufficiently important as a business issue. Therefore, an effort of information, promotion and awareness raising through the NAP by the government, appears useful and necessary for the implementation of the UN Guiding Principles, and to ensure that businesses develop their internal rules and regulations to respect human rights, and means for implementation and follow-up to address potential adverse human rights impacts.

Read more about Non-financial reporting

Part I – Rational Framework for the development, adoption and implementation of
the NAP

1. International Context
1.1. United Nations (pg. 12)

…Under their terms of reference, “Protect, Respect and Remedy,” the 31 United Nations Guiding Principles on Business and Human Rights:

c. Underline the need for appropriate and effective remedies – judicial and non-judicial – for human rights violations at both State and enterprise levels (Guiding Principles 25- 31).

1.5. The Organisation for Economic Co-operation and Development (OECD) (pg. 14)

… The UN Guiding Principles have since been adapted and developed five times, most recently at the OECD’s 50th Anniversary Ministerial Meeting, on May 25, 2011. On this occasion, the OECD Guidelines for Multinational Enterprises received a specific chapter on human rights, the wording of which was aligned on the United Nations Guiding Principles on Business and Human Rights. From a human rights perspective, the 2011 revision is a fundamental step and, by opening up its scope, has particularly widened the access to remedies since currently the complaints addressed to National Contact Points
(NCP) in OECD Member States cover about a quarter of violations on human rights…

… The key role of National Contact Points (NCPs) was emphasized by Ministers at the 2017 OECD Council Meeting and was reiterated at their 2018 Meeting. The G20 in July 2017 also referred to the NCP Mechanism of the OECD as a platform for non-judicial resolution of conflicts. NCPs network is currently the only government mechanism for out-of-court conflict resolution. It provides stakeholders with a platform to address grievances arising during operations carried out by companies in or from Member States. The impact and influence of this instrument goes even further if we consider that the big companies of the industrialized countries, most of them member states of the OECD, have considerable power over non-Member States through the increasingly global network of supply chains and outsourcing and, therefore, have the ability to impose their standards. It is therefore essential, as part of a process such as the PAN, to measure its full scope and the precursory role.

Read more about Non-judicial grievance mechanisms

Part I – Rational Framework for the development, adoption and implementation of the NAP

International Context

1.5. The Organisation for Economic Co-operation and Development (OECD) (pg. 14)

…From a human rights perspective, the 2011 revision is a fundamental step and, by opening up its scope, has particularly widened the access to remedies since currently the complaints addressed to National Contact Points (NCP) in OECD Member States cover about a quarter of violations on human rights.

The OECD Guidelines represent a comprehensive and global framework for the responsible management of companies, which cover all aspects including, in addition to human rights, labour law, the environment, transparency, the fight against corruption, consumer interest, competition, taxation and intellectual property. The OECD Guidelines are still the only instrument for an international approach to corporate social responsibility involving a mechanism – the NCPs network – to ensure its implementation.

The NCPs were established in 1984 and were strengthened in the revision of the Guidelines in 2000; since that date, their terms of reference have been clarified and expanded, and they have been accompanied by the establishment of a Code of Operation and Procedure (Procedural Guidance) to promote its effectiveness. The key role of NCPs was emphasized by Ministers at the 2017 OECD Council Meeting and was reiterated at their 2018 Meeting. The G20, in July 2017, also referred to the NCP Mechanism of the OECD as a platform for non-judicial resolution of conflicts. The NCP network is currently the only government mechanism for out-of-court conflict resolution. It provides stakeholders with a platform to address grievances arising during operations carried out by companies in or from Member States. The impact and influence of this instrument goes even further if we consider that the big companies of the industrialized countries, most of them member states of the OECD, have considerable power over non-Member States through the increasingly global network of supply chains and outsourcing and, therefore, have the ability to impose their standards. It is therefore essential, as part of a process such as the PAN, to measure its full scope and the precursory role.

The Luxembourg NCP for the implementation of the OECD Guiding Principles was, at its creation, an entity coordinated by the secretariat of the Economic Committee under the supervision of the Ministry of the Economy. As such, it could be assimilated to a structure tripartite to bring together trade union representatives, employers’ representatives as well as members of the government administration. In early 2018, the Luxembourg NCP has reviewed other NCPs and, in particular, relied on best practices to codify its rules of procedure and functioning, which have been officially published on its website, as well as an ad-hoc form in order to submit a complaint under the best conditions. A similar exercise is under way with regard to the structure of the Luxembourg NCP. The latter, however, must remain neutral and independent when informing and soliciting third parties and organizations on an ad hoc basis. The Luxembourg NCP can also rely on the contribution of other departments concerned more particularly by complaints relating to non-compliance Guiding Principles since it is expected to deal with complaints with the assistance of a interdepartmental support program involving the Ministry of Finance, the Ministry of Labor and the Ministry of Foreign and European Affairs.

In concrete terms, the Luxembourg NCP carries out the following tasks with a view to promote and implement the Guiding Principles:

• management of the internet page of the Luxembourg NCP;
• securing and handling of complaints (“specific instances”) submitted to the NCP;
• responding to inquiries from the public and domestic businesses;
• participation, support and initiatives to promote events and publications in Guiding
  Principles to the Public and National Enterprises;
• consultation, sharing and exchange of good practices with other NCPs as well as the Secretariat of the OECD;
• drafting the annual report to the OECD Investment Committee

Read more about OECD National Contact Points

Introduction (pg. 7)

… Regular contacts with, among others, the four national human rights institutions took place in the context [of drafting the NAP]:

The purpose of the Equal Treatment Center is to promote, analyze and monitor the equality of all persons without discrimination on the grounds of … disability…

Read more about Persons with disabilities

Part I – Rational Framework for the development, adoption and implementation of the NAP

2. National Context
2.4. Government Council (pg. 17)

On May 8, 2015, the Government Council gave the go-ahead for the establishment of an Interministerial Committee on Human Rights, in order to improve inter-ministerial cooperation and coordination on human rights issues, as well as to strengthen the coherence between Luxembourg’s internal and external human rights policies.

Part III – NAP

2. Context (pg. 27)

In this spirit, the NAP is complementary to the strategies and policies in place in Luxembourg, such as the Luxembourg National Sustainable Development Plan, which calls for better coordination of planning and consultation processes between Ministries in order to achieve integration of economic, social and ecological interests by taking into account national and international contexts, frameworks and conventions, including human rights.

Read more about Policy coherence

The Luxembourg NAP does not make an explicit reference to privatisation.

Read more about Privatisation

Part III – NAP

3. Government’s Response
3.2. A joint work program (pg.31)

Other measures:

5. Awareness of contracting authorities on human rights in their public procurement procedures.

Read more about Public procurement

Part I – Rational Framework for the development, adoption and implementation of the NAP

2. National Context
2.2. Governmental program (pg.17)

The government has reaffirmed its commitment to the values of human rights in the governmental program adopted in 2013, and demonstrates its sense of responsibility in this area, particularly in its external initiatives:

…

“Luxembourg will continue to work for the prevention of conflicts, for the preservation and consolidation of peace and development, with the conviction that there is an intrinsic link between security and development which is a condition of stability and democracy around the world and that we will not be able to obtain lasting peace and security, nor development, without the respect of human rights. Luxembourg is constantly working in favour of fundamental rights, public freedoms and the promotion of the rule of law.”

2.3 Foreign Policy Statement to the Chamber of Deputies (pg. 17)

… In general, the mission of the Ministry of Foreign and European Affairs states that “Luxembourg diplomacy defends the values of freedom, peace and security, democracy and human rights, good governance and the rule of law , solidarity and sustainable development, with a constant concern to preserve and strengthen the framework of international law in which international relations evolve.”

Read more about Security sector

Part I – Rational Framework for the development, adoption and implementation of the NAP

1. International Context
1.2. European Union (pg. 13)

… The European Commission has published an introductory guide to human rights for small and medium enterprises (SMEs), based on the UN Guiding Principles on Business and Human Rights. This guide makes companies aware of the main international principles in this area and supports them in their implementation.

Read more about Small & medium-sized enterprises

Part III – NAP

3. Government’s Response
3.1. A dialogue with non-governmental actors (pg. 29)

The proposed method of working to ensure the effective implementation of the Guiding Principles together with non-governmental actors builds on the guidance issued by the United Nations Working Group on Business and Human Rights. Dialogue with all public and non-governmental actors is organized and coordinated by the Interministerial Committee for Human Rights, under the direction of the Ministry of Foreign and European Affairs. The proposed working method also takes into account the specificities of Luxembourg and is characterized by its inclusive, multi-stakeholder and multidisciplinary approach. It is inspired by the model of a public-private partnership and is based on purely voluntary participation. Participants share the above general objective, but act according to their own individual and/or institutional reasons and motivations.

Read more about State Owned Enterprises/ Public Private Partnerships

Introduction (pg. 9)

… The NAP is designed to complement the efforts of the Luxembourg Government towards the achievement of the SDGs by providing businesses with the information and means to enable them to respect human rights internally and throughout their economic value chains…

Part I – Rational Framework for the development, adoption and implementation of the NAP

1. International Context
1.2. European Union (pg. 13)

In its conclusions of 20 June 2016, the EU Council of Ministers emphasized “the important role that business should play in helping to achieve the Sustainable Development Goals (SDGs) and in implementing the Agenda 2030. The Council also notes that “respect for human rights in business and its consideration in business activities and value chains and supply chains are essential for sustainable development and the achievement of the SDGs”.

1.5. The Organisation for Economic Co-operation and Development (OECD) (pg. 14)

Indeed, the NCP network is currently the only government mechanism for out-of-court conflict resolution. It provides stakeholders with a platform to address grievances arising during operations carried out by companies in or from Member States. The impact and influence of this instrument goes even further if we consider that the big companies of the industrialized countries, most of them member states of the OECD, have considerable power over non-Member States through the increasingly global network of supply chains and outsourcing and, therefore, have the ability to impose their standards. It is therefore essential, as part of a process such as the NAP, to measure its full scope and the precursory role.

Part III – NAP

1. Declaration of Engagement (pg. 26)

…The overall objective of this NAP is to strengthen the protection and promotion of human rights in the context of corporate policies, governance and economic activities. With this in mind, the NAP aims to raise awareness of the UN Guiding Principles on Business and Human Rights, to see them applied at company and value chain levels and to verify their implementation.

3. Government’s Response

3.2. A joint work program (pg.30)

…In order to ensure a concrete follow-up that will allow a real measure of the commitment made by one another, it is proposed to organize training based on the UN Guiding Principles for the staff of signatory companies. To this end, a collaboration between the INDR and House of Training is encouraged in the second half of 2018. The participation of non-governmental actors can be envisaged for the development of specific training modules, for example on the topic … prevention of forced labor and human trafficking in supply chains…

Read more about Supply chains

The Luxembourg NAP does not make an explicit reference to taxation.

Read more about Taxation

Introduction (pg. 8)

…The Government, therefore, attaches particular importance to the implementation of the UN Agenda 2030 and, to that effect, presented a voluntary national report in July 2017 at the High Level Political Forum on Sustainable Development, which took place in New York. The role played by Luxembourg at COP21 of the United Nations Framework Convention on Climate Change in Paris in December 2015, its role as Chairperson-in-Office of the Council of Ministers of the European Union and through its high level participation in COP22 and 23 in Marrakesh and Bonn, documents the importance the government attaches to an effective fight against climate change in all aspects, including human rights. By reason, Luxembourg is a signatory of The Geneva Pledge on Human Rights in Climate Action…

… Given the important role that business is expected to play in the implementation of the Sustainable Development Goals (SDGs), adopted by the Heads of State and Government in September 2015 at the UN in New York, as well as in the Implementation of the Guiding Principles on Business and Human Rights, the NAP is designed to complement the efforts of the Luxembourg Government to achieve the SDGs by providing businesses with the information and means to enable them to respect human rights internally and throughout their value chains… (pg. 9)

Part I – Rational Framework for the development, adoption and implementation of the NAP

1. International Context
1.2. European Union (pg. 13)

In its conclusions of 20 June 2016, the EU Council of Ministers emphasized “the important role that business should play in helping to achieve the Sustainable Development Goals (SDGs) and in implementing the Agenda 2030. The Council also notes that “respect for human rights in business and its consideration in business activities and value chains and supply chains are essential for sustainable development and the achievement of the SDGs”.

2. National Context
2.1. Constitution

…In addition, the notion of sustainable development is implicitly enshrined in Article 11bis of the Constitution. This is important because of the link that the United Nations and the European Union make between respect for human rights and sustainable development, as well as the role that business has to play in implementing the Sustainable Development Goals (SDG).

2.2. Governmental Program (pg. 16)

In the governmental program adopted in 2013, the Government of Luxembourg reaffirmed its commitment to the values of human rights and demonstrates its sense of responsibility in this area, particularly in its external action:

“Our voice also bears the values we defend: … sustainable development… and climate change as well as unfailing commitment to respect human rights.”

2.3. Foreign Policy Statement to the Chamber of Deputies (pg. 17)

… In general, the mission of the Ministry of Foreign and European Affairs states that “Luxembourg diplomacy defends the which international relations evolve” values of … sustainable development, with a constant concern to preserve and strengthen the framework of international law in which international relations evolve.”

Part III – PAN

2. Context (pg. 27)

…In this spirit, the NAP is complementary to the strategies and policies in place in Luxembourg, such as the Luxembourg National Sustainable Development Plan, which calls for better coordination of planning and consultation processes between Ministries in order to achieve integration of economic, social and ecological interests by taking into account national and international contexts, frameworks and conventions, including human rights.

Read more about The 2030 Agenda for Sustainable Development

Part III National Action Plan for the Implementation of the United Nations Guiding Principles on Business and Human Rights

3. Government Response [Page 28]

A preliminary observation allows for the identification of potential adverse human rights risks of certain commercial activities. This has been most notable in … the hotel and catering sector, partly because of their general predominance in the Luxembourg economy, the national and international nature of their activities and the origin and number of their employees.

Read more about Tourism sector

Part I – Rational Framework for the development, adoption and implementation of the NAP

1. International Context
1.5. The Organisation for Economic Co-operation and Development (OECD) (pg. 14)

…Responsible business conduct is an important aspect for a well-functioning space of trade and international investment. The establishment of a responsible business environment is in the interest of all stakeholders. It is in this context that Luxembourg, by adopting the OECD Declaration on Investment and Multinational Enterprises in 1976, also adhered to the OECD Guidelines for multinational companies, which were its corollary, and which for the first time instituted an international standard for responsible business for companies actively working internationally…

…In concrete terms, the Luxembourg NCP carries out the following tasks in particular with a view to promoting and implementing the Guiding Principles:

…

drafting of the annual report to the OECD Investment Committee.

1.6. Trade and Investment Agreements (pg. 16)

All trade and cooperation agreements with developing countries include a clause on human rights specifying that these rights constitute a fundamental aspect of relations with the EU, which has repeatedly imposed sanctions for human rights violations.

Read more about Trade

Part I – Rational Framework for the development, adoption and implementation of the NAP

1. International Context
1.3. European Council (pg. 14)

… On the basis of the 2011 UN Guiding Principles on Business and Human Rights, the Committee of Ministers of the Council of Europe adopted Recommendation CM / Rec (2016) on human rights and businesses. This instrument offers more targeted recommendations to help Member States prevent and correct human rights abuses by businesses and focuses on measures to encourage business to respect human rights, particularly vulnerable groups … including workers…

1.4. International Labour Organization (ILO) (pg. 14)

On 17 March 2017, the ILO revised the Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy. This text provides guidance to businesses on how to contribute to the achievement of decent work for all. The principles contained in the Declaration are recommended for the attention of governments, employers ‘and workers’ organizations in host and hosting countries and multinational enterprises, and make direct reference to the United Nations Guiding Principles on Business and Human Rights and the implementation of the Terms of Reference: “Protect, Respect and
Remedy”.

Read more about Workers’ rights

‘Luxembourg’s NAP does not explicitly address this issue’

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.

Read more about Children’s rights

Part II: Specific objectives of the National Action Plan 2020-2022

1. The state duty to protect human rights

(…)

1.10. Preparation of the implementation in Luxembourg of the EU regulation on conflict minerals

Context

The legislative challenge in 2020 is to create a regulatory framework to implement the EU Conflict Minerals Regulation. Indeed, the regulation on minerals from conflict zones will enter into force on January 1st 2021. It will be essential to involve the various stakeholders (business and civil society), and in particular those represented in the Business and Human Rights Working Group, in the reflection on the implementation of the Regulation. In this context, it should also be recalled that the government was invited by a motion of the Chamber of Deputies, in the context of the vote on the Public Procurement Act in April 2018, “to ensure that public procurement in the future incorporates the due diligence criterion at the level of metals affected by Regulation (EU) 2017/821 of the European Parliament and of the Council of 17 May 2017 (tantalum, tin, tungsten, gold).”

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.

Read more about Conflict-affected areas

‘Luxembourg’s NAP does not explicitly address this issue’

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.

Read more about Construction sector

‘Luxembourg’s NAP does not explicitly address this issue’

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.

Read more about Corporate law & corporate governance

‘Luxembourg’s NAP does not explicitly address this issue’

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.

Read more about Corruption

Part II: Specific objectives of the National Action Plan 2020-2022

1. The state duty to protect human rights

(…)

1.15. Protection of human rights in business in the context of new information and communication technologies (ICT), including artificial intelligence (AI)

Context

One of the risk sectors recognised in the NAP2 is the new information and communication technologies, including artificial intelligence. This sector is developing very rapidly worldwide in the context of increasing digitalisation.

In his report to the UN General Assembly in 2018, Mr David Kaye, UN Special Rapporteur on the promotion and protection of the right to freedom of opinion and expression, analysed the topic of artificial intelligence (AI) in more detail. Within this framework, each State is obliged to uphold human rights, including the right to freedom of opinion, freedom of expression and access to information, the right to privacy, the obligation of non-discrimination and the right to an effective remedy.

In Europe, the General Data Protection Regulation (GDPR) has been the main legal instrument regulating the collection and use of data since its introduction in 2018. In Luxembourg, the supervisory authority is the Data Protection National Commission (CNPD) [Commission nationale pour la protection des données].

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.

Read more about Data protection & privacy

Part II: Specific objectives of the National Action Plan 2020-2022

1. The state duty to protect human rights

(…)

1.8 Promotion of the United Nations Guiding Principles on Business and Human Rights in international fora and in international relations, including international economic relations and relations with Luxembourg’s cooperation partner countries

Context

Luxembourg supports initiatives at European and international level to ensure that human rights are respected in companies.

During the first phase of implementation of NAP 1, useful contacts were made with the representatives of the Ministry of Economy and the MAEE (Ministry of Foreign and European Affairs) which are competent in the field. The aim is to build on this initial exchange and to develop more concrete actions.

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.

Read more about Development finance institutions

Part II: Specific objectives of the National Action Plan 2020-2022

1. The state duty to protect human rights

(…)

1.15. Protection of human rights in business in the context of new information and communication technologies (ICT), including artificial intelligence (AI)

Context

One of the risk sectors recognised in the NAP2 is the new information and communication technologies, including artificial intelligence. This sector is developing very rapidly worldwide in the context of increasing digitalisation.

In his report to the UN General Assembly in 2018, Mr David Kaye, UN Special Rapporteur on the promotion and protection of the right to freedom of opinion and expression, analysed the topic of artificial intelligence (AI) in more detail. Within this framework, each State is obliged to uphold human rights, including the right to freedom of opinion, freedom of expression and access to information, the right to privacy, the obligation of non-discrimination and the right to an effective remedy.

In Europe, the General Data Protection Regulation (GDPR) has been the main legal instrument regulating the collection and use of data since its introduction in 2018. In Luxembourg, the supervisory authority is the Data Protection National Commission (CNPD) [Commission nationale pour la protection des données].

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.

Read more about Digital technology & electronics sector

Read more about Energy sector

Part II: Specific objectives of the National Action Plan 2020-2022

1. The state duty to protect human rights

(…)

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.

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.

Read more about Environment & climate change

Part II: Specific objectives of the National Action Plan 2020-2022

1. The state duty to protect human rights

(…)

1.15 Protection of human rights in business in the context of new information and communication technologies (ICT), including artificial intelligence (AI)

Context

(…)

In his report to the UN General Assembly in 2018, Mr David Kaye, UN Special Rapporteur on the promotion and protection of the right to freedom of opinion and expression, analysed the topic of artificial intelligence (AI) in more detail. Within this framework, each State is obliged to uphold human rights, including the right to freedom of opinion, freedom of expression and access to information, the right to privacy, the and the right to an effective remedy.

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.

Read more about Equality & non-discrimination

‘Luxembourg’s NAP does not explicitly address this issue’

Read more about Export credit

Part II: Specific objectives of the National Action Plan 2020-2022

1. The state duty to protect human rights

(…)

 1.8 Preparation of the implementation in Luxembourg of the EU regulation on conflict minerals

Context

The legislative challenge in 2020 is to create a regulatory framework to implement the EU Conflict Minerals Regulation. Indeed, the regulation on minerals from conflict zones will enter into force on January 1st 2021. It will be essential to involve the various stakeholders (business and civil society), and in particular those represented in the Business and Human Rights Working Group, in the reflection on the implementation of the Regulation. In this context, it should also be recalled that the government was invited by a motion of the Chamber of Deputies, in the context of the vote on the Public Procurement Act in April 2018, “to ensure that public procurement in the future incorporates the due diligence criterion at the level of metals affected by Regulation (EU) 2017/821 of the European Parliament and of the Council of 17 May 2017 (tantalum, tin, tungsten, gold).”

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.

Read more about Extractives sector

‘Luxembourg’s NAP does not explicitly address this issue’

Read more about Extraterritorial jurisdiction

‘Luxembourg’s NAP does not explicitly address this issue’

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.

Read more about Finance & banking sector

The Luxembourg NAP does not make a direct or explicit reference to the Fisheries and Aquaculture sectors.

Read more about Fisheries and aquaculture sectors

Part II: Specific objectives of the National Action Plan 2020-2022

1. The state duty to protect human rights

(…)

 1.9. Consider ratification of the 2014 Protocol (P29) to the ILO Forced Labour Convention

Context 

The Protocol provides for access to appropriate and effective remedies and redress mechanisms, such as compensation for victims. It also strengthens international cooperation in the fight against forced or compulsory labour. The protocol emphasises the role of employers and workers in the fight against forced labour.

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.

Read more about Forced labour & modern slavery

‘Luxembourg’s NAP does not explicitly address this issue’

Read more about Freedom of association

Part I: NAP 2020 to 2022 Strategic Goal

A second, more operational National Action Plan

The economic sectors particularly exposed to the risk of human rights violations were identified, among others, on the basis of the national baseline assessment carried out by the expert from the University of Luxembourg. In particular, the study revealed a certain potential risk of negative impact of economic activities on human rights in the financial sector, the service sector, the information and communication technology sector (including the field of artificial intelligence and data protection), the hotel and restaurant sector, the textile sector, the agro-business sector, the extractive sector, the logistics sector (including all aspects of land, air and sea transport) and the construction sector. – page 17

Read more about Garment, Textile and Footwear Sector

‘Luxembourg’s NAP does not explicitly address this issue’

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.

Read more about Gender & women’s rights

Part II: Specific objectives of the National Action Plan 2020-2022

1. The state duty to protect human rights

(…)

1.3. Training on “Business and Human Rights” matters for jurists

Context

The legal professions are important potential multipliers for informing and raising awareness on the topic of “Business and Human Rights”. The very positive experience of the cooperation with the Luxembourg Bar in preparation for and during the 2019 Annual Congress of the Union Internationale des Avocats (UIA) in Luxembourg and the central place reserved on this occasion for the topic “Business and Human Rights” constitute a solid basis for future collaboration in this field.

2. The corporate responsibility to respect human rights

(…)

2.3. Awareness raising and training of companies on “Business and Human Rights”

Context

In order to be able to implement the UN Guiding Principles in their organisations and throughout their value chains, and to recognise the benefits of respecting human rights, companies need to be aware of what is expected of them and the means and opportunities available.

2.4. 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.

3. The need to define remedies for victims of human rights abuses

(…)

3.3. Mapping of judicial and non-judicial, public and private remedies for human rights violations

Context

This includes, among other things and beyond judicial remedies, taking stock of non-judicial public and corporate remedies, strengthening OECD-NCP relations with civil society and providing appropriate training on available remedies to corporate human rights focal points.

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.

Read more about Guidance to business

‘Luxembourg’s NAP does not explicitly address this issue’

Read more about Health and social care

Part II: Specific objectives of the National Action Plan 2020-2022

(…)

3.The need to define remedies for victims of human rights abuses

3.4. Supporting the transposition of the EU whistle-blower directive

Context

On 15 November 2019, the EU Whistle-blowers Directive came into force, introducing an obligation for employers across Europe, in both the private and public sectors, to protect individuals who make a report in a work-related context. States have two years to transpose it into national law. This legislation can contribute to the establishment of effective complaint mechanisms within companies and it will be essential to involve the different stakeholders in the reflection in the transposition process.

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.

Read more about Human rights defenders & whistle-blowers

‘Luxembourg’s NAP does not explicitly address this issue’

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.

Read more about Human rights impact assessments

‘Luxembourg’s NAP does not explicitly address this issue’

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.

Read more about Indigenous Peoples

‘Luxembourg’s NAP does not explicitly address this issue’

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.

Read more about Investment treaties & investor-state dispute settlements

Part II: Specific objectives of the National Action Plan 2020-2022

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3. The need to define remedies for victims of human rights abuses

3.1. Mapping of judicial and non-judicial, public and private remedies for human rights violations

Context

This includes, among other things and beyond judicial remedies, taking stock of non-judicial public and corporate remedies, strengthening OECD-NCP relations with civil society and providing appropriate training on available remedies to corporate human rights focal points.

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.

Read more about Judicial remedy

‘Luxembourg’s NAP does not explicitly address this issue’

Read more about Land

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.

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 »].

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.

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.

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.

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.

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.

Read more about Mandatory human rights due diligence

‘Luxembourg’s NAP does not explicitly address this issue’

Read more about Migrant workers

Part II: Specific objectives of the National Action Plan 2020-2022

1. The state duty to protect human rights

(…)

1.5. Strengthening the coherence of human rights policies through cross-references in the texts and on the respective websites of the different National Action Plans (NAPs) with a human rights connotation

Context

In implementing its international human rights commitments, and in particular when submitting implementation reports to the United Nations treaty bodies, Luxembourg is regularly called upon to formulate sectoral national action plans. Cross-referencing between the NAP “Business and Human Rights” [PAN « Entreprises et droits de l’Homme »] and the other sectoral NAPs should contribute to greater policy coherence. The publication of these different NAPs on the internet can contribute to a better understanding of the issues at stake in public opinion.

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.

Read more about National Human Rights Institutions/ Ombudspersons

‘Luxembourg’s NAP does not explicitly address this issue’

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.

Read more about Non-financial reporting

Part II: Specific objectives of the National Action Plan 2020-2022

(…)

3. The need to define remedies for victims of human rights abuses

3.1. Mapping of judicial and non-judicial, public and private remedies for human rights violations

Context

This includes, among other things and beyond judicial remedies, taking stock of non-judicial public and corporate remedies, strengthening OECD-NCP relations with civil society and providing appropriate training on available remedies to corporate human rights focal points.

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.

Read more about Non-judicial grievance mechanisms

Part II: Specific objectives of the National Action Plan 2020-2022

1. The state duty to protect human rights

(…)

1.13. Strengthening links between the Business and Human Rights WG and the National Contact Point (NCP) for the implementation of the OECD Guidelines for Multinational Enterprises

Context

The commentary on the Guidelines’ implementation procedures for multinational enterprises indicates that NCPs may, inter alia, set up advisory, monitoring or support bodies etc. to assist them in their tasks (para. 11).

The advisory body can accompany and even advise the NCP on how to solve problems and take decisions. Such advisory bodies already exist in some countries that have established an NCP.

In the light of the baseline study, the NCP could consider the establishment of an advisory body and the modalities of its involvement.

In addition, Luxembourg has requested to be subject to the Peer Review of National Contact Points, coordinated by the OECD, by 2022.

(…)

3. The need to define remedies for victims of human rights abuses

3.1. Mapping of judicial and non-judicial, public and private remedies for human rights violations

Context

This includes, among other things and beyond judicial remedies, taking stock of non-judicial public and corporate remedies, strengthening OECD-NCP relations with civil society and providing appropriate training on available remedies to corporate human rights focal points.

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.

Read more about OECD National Contact Points

‘Luxembourg’s NAP does not explicitly address this issue’

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.

Read more about Persons with disabilities

Part II: Specific objectives of the National Action Plan 2020-2022

1. The state duty to protect human rights

(…)

1.5. Strengthening the coherence of human rights policies through cross-references in the texts and on the respective websites of the different National Action Plans (NAPs) with a human rights connotation

Context

In implementing its international human rights commitments, and in particular when submitting implementation reports to the United Nations treaty bodies, Luxembourg is regularly called upon to formulate sectoral national action plans. Cross-referencing between the NAP “Business and Human Rights” [PAN « Entreprises et droits de l’Homme »] and the other sectoral NAPs should contribute to greater policy coherence. The publication of these different NAPs on the internet can contribute to a better understanding of the issues at stake in public opinion.

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.

Read more about Policy coherence

‘Luxembourg’s NAP does not explicitly address this issue’

Read more about Privatisation

Part II: Specific objectives of the National Action Plan 2020-2022

1. The state duty to protect human rights

(…)

1.5. Increase the consideration of the UN Guiding Principles on Business and Human Rights by contracting authorities in their public procurement procedures

Context

The UN Guiding Principles on Business and Human Rights pay particular attention to the role of the state when acting as a business actor. Guiding Principle 6 states that “States should promote respect for human rights by enterprises with which they do business”.

Several studies (e.g. OECD, DIHR) show that actors responsible for public procurement lack technical knowledge on the integration of “business and human rights” standards such as the UN Guiding Principles on Business and Human Rights or the OECD Guidelines for Multinational Enterprises. According to the OECD, “the changing perception of the real cost of a product or service in relation to the potential environmental and social impacts requires a change in the culture of traditionally risk-averse public procurement officials. This means that in order to effectively integrate these standards into public procurement, in addition to the technical knowledge and skills required to manage the procurement process, government officials, as well as government auditors, should be trained to understand human rights considerations and their potential application to the technical stages of procurement.

Furthermore, according to the baseline study, there is no explicit guidance on human rights and the UN Guiding Principles in the general public procurement framework, which may mean that public purchasers are not sufficiently aware of the potential risks to human rights. According to this study “clear guidance should be provided to public purchasers on business, human rights and the UN Guiding Principles”.

Public procurement is governed by European guidelines for European bidders and for bidders from countries that are party to the WTO Agreement on Government Procurement (GPA). For countries outside the GPA, discussions are currently taking place under the International Procurement Instrument (IPI).

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1.10. Preparation of the implementation in Luxembourg of the EU regulation on conflict minerals

Context

The legislative challenge in 2020 is to create a regulatory framework to implement the EU Conflict Minerals Regulation. Indeed, the regulation on minerals from conflict zones will enter into force on January 1st 2021. It will be essential to involve the various stakeholders (business and civil society), and in particular those represented in the Business and Human Rights Working Group, in the reflection on the implementation of the Regulation. In this context, it should also be recalled that the government was invited by a motion of the Chamber of Deputies, in the context of the vote on the Public Procurement Act in April 2018, “to ensure that public procurement in the future incorporates the due diligence criterion at the level of metals affected by Regulation (EU) 2017/821 of the European Parliament and of the Council of 17 May 2017 (tantalum, tin, tungsten, gold).”

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.

Read more about Public procurement

‘Luxembourg’s NAP does not explicitly address this issue’

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.

Read more about Security sector

‘Luxembourg’s NAP does not explicitly address this issue’

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.

Read more about Small & medium-sized 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.

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.

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.

Read more about State Owned Enterprises/ Public Private Partnerships

Part II: Specific objectives of the National Action Plan 2020-2022

1. The state duty to protect human rights

(…)

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.

2. The corporate responsibility to respect human rights

2.1. Awareness raising and training of companies on “Business and Human Rights”

Context

In order to be able to implement the UN Guiding Principles in their organisations and throughout their value chains, and to recognise the benefits of respecting human rights, companies need to be aware of what is expected of them and the means and opportunities available.

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.

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.

Read more about Supply chains

‘Luxembourg’s NAP does not explicitly address this issue’

Read more about Taxation

‘Luxembourg’s NAP does not explicitly address this issue’

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.

Read more about The 2030 Agenda for Sustainable Development

‘Luxembourg’s NAP does not explicitly address this issue’

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.

Read more about Tourism sector

‘Luxembourg’s NAP does not explicitly address this issue’

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.

Read more about Trade

Part II: Specific objectives of the National Action Plan 2020-2022

1. The state duty to protect human rights

(…)

1.11. Consider ratification of the 2014 Protocol (P29) to the ILO Forced Labour Convention

Context

The Protocol provides for access to appropriate and effective remedies and redress mechanisms, such as compensation for victims. It also strengthens international cooperation in the fight against forced or compulsory labour. The protocol emphasises the role of employers and workers in the fight against forced labour.

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.

Read more about Workers’ rights