Switzerland

4. Position of the Federal Council on the UN Guiding Principles on Business and Human Rights
4.3 The position and expectations of the Federal Council [page 8]:
Consultation with stakeholder groups (Guiding Principle 18): The use of instruments to consult affected stakeholder groups (e.g. vulnerable groups such as children). … Depending on the circumstances, business enterprises must also observe additional standards concerning particularly vulnerable population groups (cf. OECD Guidelines for Multinational Enterprises, Guideline 40). These include, for example, the Declaration of the Rights of Indigenous Peoples, and the international conventions protecting women, minorities, children, people with with disabilities and migrant workers and members of their families.

Guiding Principle 3 [page 18-21]
PI10 Initiative on respect for labour and human rights in value chains Among its economic cooperation programmes, the federal government also supports projects to protect children. These projects are run jointly with the ILO, governments, the private sector and unions, and are focused on compliance with fundamental labour standards, including measures to combat child and forced labour. The federal government also pursues a wide variety of activities to support the human rights aspects of sustainable value chains. The federal government will continue these activities, as set out in its Dispatch on International Cooperation 2017-2020.

PI14 Child protection in tourism
In collaboration with Austria and Germany, in 2012 Switzerland launched a tri-national campaign to combat the sexual exploitation of children in connection with tourism. Entitled nicht-wegsehen.ch (‘Don’t look away’), the campaign draws public attention to the sexual exploitation of children and minors in the context of the tourism industry

Read more about Children’s rights

5. National Action Plan on Business and Human Rights
5.7 Pillar 1: state duty to protect
5.7.4 Business respect for human rights in conflict-affected areas
Guiding Principle 7 [page 26-27]

Business enterprises operating in conflict-affected areas face a special set of human rights challenges. The federal government assists companies in conducting due diligence in conflict-affected and high-risk areas in a way that takes the local circumstances into account.” [paragraph 1, page 26].

PI22 Guidelines on human rights due diligence in conflict-affected and high-risk areas

Over the years, the federal government has supported the drafting of a number of guidelines addressing the situation in conflict-affected areas. These include the Guidance on Conflict Sensitive Business Practices or the extractive sector issued by International Alert, and the Red Flags initiative. Switzerland also provides financial support for the implementation of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. In addition, Switzerland is a member of the multi-stakeholder group managing the implementation, spread and continued development of the Guidance. It is aimed primarily at companies operating in conflict-affected or high-risk areas in the extraction and trading of commodities.

PI23 Advisory and support services provided by Swiss representations abroad

… A number of Swiss representations in conflict-affected areas have developed innovative initiatives based on the UNGP–largely on an ad-hoc basis – to promote social responsibility on the part of Swiss business enterprises. …

PI25 Regulations on transparency and due diligence concerning minerals from conflict-affected areas

The introduction of transparency regulations for minerals from conflict-affected areas is a policy instrument that a number of OECD states have either already adopted or are seriously considering. The Federal Council is tracking international developments towards transparency and due diligence concerning minerals from conflict-affected areas, especially in the EU, and is observing their impact on the Swiss economy. …

PI26 Economic Sanctions

… the Ordinance on the International Trade in Rough Diamonds of 29 November 2002, which was issued on the basis of the Embargo Act. The Ordinance enacts relevant provisions of the Kimberley Process, which addresses the trade in diamonds from conflict-affected areas …”

5.7.5 Policy coherence
Guiding Principle 8 [page 30]
PI31 Awareness-raising and training programmes within the federal government

The federal government offers a block course on business and human rights as part of annual human rights training for employees of the Federal Administration, and as part of general human rights training for future diplomats. It also offers targeted training to further the expertise of employees at Swiss representations abroad, especially in conflict-affected and high-risk regions.

Read more about Conflict-affected areas

The Swiss NAP makes no direct reference to the construction sector.

Read more about Construction sector

Section 5.7.3 The State-business nexus [page 22]:
PI17 Human rights due diligence by federal businesses and federal government-associated businesses

…Relations between government-associated enterprises and the Confederation are described in the federal government’s Corporate Governance Report. The Federal Council defines its strategic goals for related enterprises every four years. While these goals do not specifically contain criteria for business and human rights, the Federal Council expresses the expectation that related enterprises will pursue a sustainable corporate strategy to the best of their business ability. In 2017, the federal government will draw up a status report on the fulfillment of CSR in its own activities. This is to cover the federal government’s role as an employer, a purchaser, an investor and as an owner of federal government-associated companies (in accordance with the Federal Council’s CSR position paper, activity B.3.1). This interpretive framework should also highlight any need for action in the future, and where appropriate propose measures to the Federal Council.

Read more about Corporate law & corporate governance

5.6 Relation to the Federal Council Position Paper on CSR [page 12]

The CSR position paper addresses a very broad spectrum of issues of relevance to corporate social responsibility. These include working conditions (including health safeguards), human rights, the environment, preventing corruption, fair competition, consumer interests, tax and transparency.

Section 5.7.2 Operational principles: legislative and information policy measures [page 14-20]

As one of the objectives of government, and a binding duty on the State, respect for human rights is laid down in the Federal Constitution (FC). Article 54 FC lists the federal government’s foreign policy objectives. Of particular relevance in the context of business and human rights are the alleviation of poverty, respect for human rights, the promotion of democracy, the peaceful co-existence of peoples, and the conservation of natural resources. The fight against corruption also contributes to human rights, and to ensuring the rule of law…

PI13 Corporate sustainability reporting

The EU decided at the end of 2014 to introduce mandatory sustainability reporting. Member States have until the end of 2016 to put this obligation into effect. EU Directive 2014/95/EU determines that certain large undertakings and groups must publish non-financial information on respect for human rights, diversity, and combating corruption and bribery in connection with environmental, social and employee matters. …

Read more about Corruption

5. National Action Plan on Business and Human Rights
5.7 Pillar I: state duty to protect
5.7.2. Operation Principles: legislative and information policy measures
Guiding Principle 3 [pages 15-16]
PI4 Regulation of technologies for internet and mobile communication surveillance

Technologies for internet and mobile communication surveillance can be used for both civilian and military purposes, i.e. they are dual-use goods. They can be an element in state repression, for example, thereby exposing the business enterprises that manufacture or trade in them to an increased risk of becoming involved in human rights abuses. The export or brokerage of technologies for internet and mobile communication surveillance is governed by goods control legislation. On 13 May 2015, the Federal Council decided that a license to export or to broker such goods must be refused if there is reason to believe that the exported or brokered good will be used by the final recipient as a means of repression. The transfer of intellectual property, including expertise and the grant of rights, concerning technologies for internet and mobile communication surveillance was also made subject to license. The Federal Council regards the new legal foundation, and practice for granting export licenses, as appropriate to guarantee that human rights will be respected in connection with technologies for internet and mobile telecommunication surveillance. No further measures are planned

Read more about Data protection & privacy

The Swiss NAP does not make an explicit reference to Development Finance Institutions.

Read more about Development finance institutions

5. National Action Plan on Business and Human Rights
5.7 Pillar 1: state duty to protect
5.7.2 Operational principles: legislative and information policy measures Guiding Principle 3 [page 15]
PI4 Regulation of technologies for internet and mobile communication surveillance

Technologies for internet and mobile communication surveillance can be used for both civilian and military purposes, i.e. they are dual-use goods. They can be an element in state repression, for example, thereby exposing the business enterprises that manufacture or trade in them to an increased risk of becoming involved in human rights abuses. The export or brokerage of technologies for internet and mobile communication surveillance is governed by goods control legislation. (…) The transfer of intellectual property, including expertise and the grant of rights, concerning technologies for internet and mobile communication surveillance was also made subject to license.

Read more about Digital technology & electronics sector

5. National Action Plan on Business and Human Rights
5.6. Relation to the Federal Council position paper on CSR [page 12]

The federal government’s commitment to Corporate Social Responsibility (CSR) is set out in the Federal Council’s CSR position paper on corporate social and environmental responsibility. The CSR position paper addresses a very broad spectrum of issues of relevance to corporate social responsibility. These include working conditions (including health safeguards), human rights, the environment, preventing corruption, fair competition, consumer interests, tax and transparency. The present report and NAP in
fulfillment of postulate 12.3503 and the CSR position paper on corporate responsibility are therefore complementary and of equal status.

5.7 Pillar I: state duty to protect
5.7.2. Operation Principles: legislative and information policy measures Guiding Principle 3 [page 14]

As one of the objectives of government, and a binding duty on the State, respect for human rights is laid down in the Federal Constitution (FC)…Article 54 FC lists the federal government’s foreign policy objectives. Of particular relevance in the context of business and human rights are the alleviation of poverty, respect for human rights, the promotion of democracy, the peaceful co-existence of peoples, and the conservation of natural resources.

PI5 Regulation of the manufacture and import of renewable resources (biofuels) [page 16]

The Mineral Oil Tax Act provides that biofuels (biogas, bioethanol, biodiesel and vegetable and animal-based oils) will be wholly or partly exempted from mineral oil tax if they satisfy minimum environmental and social requirements. The criteria were toughened up further with the implementation of parliamentary initiative 09.499 Agrotreibstoffe. Indirekte Auswirkungen berücksichtigen [‘Agrofuels: considering the indirect impacts’]. In the future (cf. Art. 12b para. 3 MinOTA), the Federal Council will have the right to refuse the tax exemption if biofuels have been produced in a country which does not have food security. Furthermore, the area used for cultivating the resources used to produce biofuels must have been acquired lawfully, to prevent the displacement or dispossession of the local population.

PI12 Sustainability Standard Reports [pages 19-20]

In line with the Grüne Wirtschaft [‘Green Economy’] report (2016) and the Federal Council’s national action plan on corporate social responsibility, the federal government campaigns at both national and international levels for the promotion and harmonisation of corporate sustainability reporting. This also covers human rights. Switzerland is a member, among others, of the Group of Friends of Paragraph 47
(GoF47), which promotes sustainability reporting internationally. Within the GoF47, Switzerland works in particular with the Global Reporting Initiative (GRI) and the United Nations Environment Programme (UNEP).

PI13 Corporate sustainability reporting [page 20]

The Federal Council is closely monitoring developments with regard to the legally binding reporting of non-financial information in the EU. It is prepared to examine possible action, which would be as congruent as possible with international regulation, and intends to draw up a consultation draft on sustainability reporting that will be based on the EU instrument. Work will begin when more is known about the way in which EU Member States intend to implement the Directive. Swiss business enterprises are not obliged to report on sustainability issues. However, in line with the 2030 Agenda and its Sustainable Development Goals (SDGs), which were adopted by all UN Member States, and in particular to achieve SDG 12.6, companies are encouraged to introduce sustainable practices and to include sustainability information in their reporting. Accounting legislation requires all companies that are subject to an ordinary audit pursuant to Article 727 of the Swiss Code of Obligations (CO) to include a general assessment of risk in their management report. This also includes human rights risks, where these are present. Listed companies are also obliged by Article 53 of the SIX Swiss Exchange Listing Rules to report on human rights matters where these might affect the company’s share price. The Federal Council recommends incorporating the human rights risks which business enterprises identify in their due diligence processes, for example, in their sustainability reports.

Read more about Environment & climate change

The Swiss NAP does not make an explicit reference to Equality and Non-Discrimination.

Read more about Equality & non-discrimination

5. National Action Plan on Business and Human Rights
Section 5.7.3 The State-business nexus
Guiding Principle 4 [page 23]
PI18 Requirement that business enterprises covered by Swiss Export Risk Insurance (SERV) conduct human rights due diligence

The guidelines are intended, among other things, to improve protection against human rights abuses by business enterprises, and they are largely recognised as an international standard by export credit agencies and export insurance providers. (…)

Unlike many other export credit agencies, SERV does not grant any export credits themselves (known as direct lending), but instead offers only insurance and guarantees (known as pure cover).

Read more about Export credit

5. National Action Plan on Business and Human Rights
5.7 Pillar 1: state duty to protect
5.7.2 Operational principles: legislative and information policy measures [page 21]
PI15 Obligation to disclose payments to governments

Fulfilling Recommendation 8 of the Background Report on Commodities and postulate 13.3365 Mehr Transparenz im Schweizer Rohstoffsektor [‘Greater transparency in the Swiss commodities sector’], in May 2014 the Federal Council produced an interpretive framework for the commodities sector60. It subsequently integrated a transparency requirement compatible with EU provisions in its draft revision of company law in Switzerland. The Federal Council is proposing that listed and major companies in the extractive sector must disclose the payments they make to governments. The Dispatch on Amending the Code of Obligations (Company Law [including transparency provisions]) was adopted and referred to Parliament on 23 November 2016. The Federal Council will also continue to support international transparency standards, through vehicles such as the Extractive Industry Transparency Initiative (EITI).
…

5.7.4 Business respect for human rights in conflict-affected areas [page 26]
PI22 Guidelines on human rights due diligence in conflict-affected and high-risk areas

Over the years, the federal government has supported the drafting of a number of guidelines addressing the situation in conflict-affected areas. These include the Guidance on Conflict Sensitive Business Practice for the extractive sector issued by International Alert 75 , and the Red Flags initiative. …

Read more about Extractives sector

5. National Action Plan on Business and Human Rights
5.7 Pillar 1: state duty to protect
5.7.1 Fundamental principles and Guiding Principle 1: general duty to protect [page 13]
Guiding Principle 2: Business enterprises’ foreign operations

The Federal Council regards preventing human rights abuses by Swiss companies abroad, and ensuring access to effective remedy, as integral parts of its State duty to protect and its constitutional mandate to promote respect for human rights. This is particularly true with regard to the foreign activities of companies that are based in Switzerland.

However, in view of the political, legal and practical obstacles to the extraterritorial pursuit of policy and application and enforcement of law, the federal government is concentrating on domestic measures, the reach of which extends to partner States and the activities of business enterprises abroad. It also promotes international agreements and standards. As part of its international cooperation efforts, it supports States in the fulfilment of their duties under international law to protect.

Read more about Extraterritorial jurisdiction

4. Position of the Federal Council on the UN Guiding Principles on Business and Human Rights
4.2 The Swiss Context
Position of the Federal Council on the UN Guiding Principles on Business and Human Rights [page 6]:

Nowadays, increasing numbers of business enterprises are fulfilling their human rights responsibilities in a conscious way. Both business enterprises and civil society stakeholder groups are supporting and furthering respect for human rights with a wide range of programmes. Indeed, respect for human rights forms an integral part of many companies’ corporate social responsibility (CSR) activities.

A further example is the discussion paper on the implementation of the UN Guiding Principles on Business and Human Rights in the banking sector published by the Thun Group of Banks, a group of international full-service banks.

5. National Action Plan on Business and Human Rights
5.7 Pillar 1: state duty to protect
5.7.2 Operational principles: legislative and information policy measures Guiding Principle 3 [page 18]
PI18: Guidelines for business enterprises on implementing the UNGP

In the financial sector, SECO [State Secretariat for Economic Affairs] is supporting the OECD with the drafting of guidance on due diligence in this industry. Planned for the end of 2017, one of the objectives of the guidance is to support financial institutions in Switzerland to mitigate the negative impacts of their business activities on the environment on society around the world, including developing countries.

Read more about Finance & banking sector

5. National Action Plan on Business and Human Rights
5.7 Pillar 1: state duty to protect
5.7.2 Operational principles: legislative and information policy measures [pages 18-19]
PI10 Initiative on respect for labour and human rights in value chains

The federal government promotes the implementation of the fundamental conventions of the International Labour Organization (ILO) as part of economic development cooperation, and in cooperation with the ILO itself. In this context, it designed a project with the ILO to ensure that labour rights are implemented by business enterprises in developing countries. It supports the ILO and International Finance Corporation (IFC) Better Work programme for the clothing industry as well as the ILO’s SCORE (Sustaining Competitive and Responsible Enterprises) programme, which focuses on working conditions at SMEs. Among its economic cooperation programmes, the federal government also supports projects to protect children. These projects are run jointly with the ILO, governments, the private sector and unions, and are focused on compliance with fundamental labour standards, including measures to combat child and forced labour. The federal government also pursues a wide variety of activities to support the human rights aspects of sustainable value chains. The federal government will continue these activities, as set out in its Dispatch on International Cooperation 2017-2020.

Read more about Forced labour & modern slavery

4. Position of the Federal Council on the UN Guiding Principles on Business and Human Rights
4.2 The Swiss context [page 6]:

Economic freedom (Art. 27 Federal Constitution) and freedom of contract are key elements of the Swiss economic order. This economic system is set out in the Constitution and enhanced by elements such as further basic rights and social components (freedom of association and social partnership). Sound frameworks are therefore in place to permit the implementation of labour and human rights in Switzerland. Social partnership and the right to collective bargaining, specifically, are fundamental mechanisms ensuring that the country has good working conditions and a peaceful society

Read more about Freedom of association

4. Position and Expectations of the Federal Council [Paragraph 4, page 8]:

Depending on the circumstances, business enterprises must also observe additional standards concerning particularly vulnerable population groups (cf. OECD Guidelines for Multinational Enterprises, Guideline 40). These include, for example, the Declaration of the Rights of Indigenous Peoples, and the international conventions protecting women, minorities, children, people with disabilities and migrant workers and members of their families.
…

5. National Action Plan on Business and Human Rights
5.7 Pillar 1: state duty to protect
5.7.3 The State-business nexus
Guiding Principle 6 [page 25]
PI21 Human Rights Criteria in Public Procurement at Federal Level

Public procurement practices in Switzerland are governed by the Federal Act on Public Procurement (PPA, SR 172.056.1) and the related Ordinance. Article 8 para. 1 PPA states that the federal government awards contracts for goods and services in Switzerland on the following conditions: business enterprises must respect the usual health and safety regulations and working conditions at the location where the good or service is provided, and also ensure that men and women receive equal pay for equal work.

5.7.5 Policy coherence
Guiding Principle 10 [page 34]
PI39 Examination of business and human rights in other review procedures for international law

Switzerland will include business and human rights appropriately in its periodic reports on the implementation of international conventions, such as the Convention on the Rights of the Child, and the Convention on the Elimination of all Forms of Discrimination Against Women.

Read more about Gender & women’s rights

5. National Action Plan on Business and Human Rights
5.7 Pillar 1: state duty to protect
5.7.2 Operational Principles: Legislative and Information Policy Measures Guiding Principle 3 [page 13]

In meeting their duty to protect, States should:
… (c) Provide effective guidance to business enterprises on how to respect human rights throughout their operations
…

PI6 Clarify and communicate what the Federal Council expects of business enterprises [page 16]

Governments should provide business enterprises with guidance on action to respect human rights, by clearly defining and communicating their expectations. This was one of the primary demands made by the business sector during the consultation process” and PI18 [page 17]: “The federal government has supported the development of a variety of guidelines on business and human rights in recent years. Further to Recommendation 11 in the Federal Council’s Background Report on Commodities, the federal government is joining forces with NGOs and commodity trading firms to draw up guidelines for the implementation of the UNGP in commodities trading. Under the terms of the mandate, the guidance should include specific recommendations concerning human rights due diligence and reporting. (…) In the financial sector, SECO is supporting the OECD with the drafting of guidance on due diligence in this industry. Planned for the end of 2017, one of the objectives of the guidance is to support financial institutions in Switzerland to mitigate the negative impacts of their business activities on the environment on society around the world, including developing countries. The work is being supported by an advisory group of representatives of the federal government (SECO), industry (UBS), civil society (Public Eye [formerly the Berne Declaration]and the University of Zurich) In the agricultural and food sector, the Federal Office for Agriculture (FOAG) and the Swiss Agency for Development and Cooperation (SDC), as well as the Committee on World Food Security, the UN FAO and the OECD are supporting the formulation of Principles for Responsible Investment in Agriculture and Food Systems, as well as the OECD-FAO Guidance for Responsible Agricultural Supply Chains. Both instruments stress the important role that business has to play in responsible investment, and offer relevant guidance on action. Switzerland will also actively support their implementation.

5.7.4 Business respect for human rights in conflict-affected areas
PI22 Guidelines on human rights due diligence in conflict-affected and high-risk areas [page 26]

Over the years, the federal government has supported the drafting of a number of guidelines addressing the situation in conflict-affected areas. These include the Guidance on Conflict Sensitive Business Practice for the extractive sector issued by International Alert, and the Red Flags Initiative. Switzerland also provides financial support for the implementation of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.

Read more about Guidance to business

5. National Action Plan on Business and Human Rights
5.7 Pillar 1: state duty to protect
5.7.5 Policy coherence
Guiding Principle 8 [page 29]
PI28 Coherence between the various policies, strategies and action plans

… CSR and business and human rights are also mentioned in the goals of the 2030 Agenda, as well as in several federal government strategies. These include, for example, this present Action Plan, the Sustainable Development Strategy, the Dispatch on Switzerland’s International Cooperation, the Foreign Policy Report, the Foreign Economic Policy Report, the FDFA Human Rights Strategy 2016-2019, the Swiss Guidelines on the Protection of Human Rights Defenders and the National Action Plan to Fight Human
Trafficking. …

Read more about Human rights defenders & whistle-blowers

5.7 Pillar 1: state duty to protect
5.7.5 Policy coherence
Guiding Principle 9 [page 31]
PI33 regarding Consistency between free trade agreements and protection for human rights

The Federal Council continues to keep a close eye on international developments in human rights due diligence (referred to as impact assessments)

Read more about Human rights impact assessments

4. Position of the Federal Council on the UN Guiding Principles on Business and Human Rights
4.3 The positions and expectations of the Federal Council [pages 7-8]

The Federal Council will endeavor to support business enterprises and SMEs in particular, as they proceed with implementation, in order to keep the costs and administrative burden at a reasonable level. A number of different instruments are available depending on the business and nature of the enterprise:

Consultation with stakeholder groups (Guiding Principle 18): The use of instruments to consult affected stakeholder groups (e.g. vulnerable groups such as children).

Read more about Indigenous peoples

5. National Action Plan on Business and Human Rights
5.7 Pillar 1: state duty to protect
5.7.5 Policy Coherence
Guiding Principle 9 [page 30-31]
Guiding Principle 9 relates to economic agreements that the federal government enters into with other States or with business enterprises. Specifically, these include the WTO, bilateral investment treaties, free trade agreements and contracts for investment projects. (…) The Federal Council endeavours to ensure that protection for human rights is incorporated by means of consistency clauses into these contractual agreements, and that the contractual partners’ regulatory scope to fulfil their human rights obligations is
not restricted. It also runs targeted projects to foster respect for human rights among business enterprises in partner States.
…

PI34 Consistency Between Investment Protection Agreements and the Protection of Human Rights

It is also committed to the application to new IPAs of the UNCITRAL Rules on Transparency in Treaty-based Investor-State Arbitration, which came into effect on 1 April 2014.

Read more about Investment treaties & investor-state dispute settlements

5.7. Pillar 1: state duty to protect
5.7.1 Fundamental principles
Guiding Principle 2: Business enterprises’ foreign operations [page 13]

The Federal Council regards preventing human rights abuses by Swiss companies abroad, and ensuring access to effective remedy, as integral parts of its State duty to protect and its constitutional mandate to promote respect for human rights. This is particularly true with regard to the foreign activities of companies that are based in Switzerland.

However, in view of the political, legal and practical obstacles to the extraterritorial pursuit of policy and application and enforcement of law, the federal government is concentrating on domestic measures, the reach of which extends to partner States and the activities of business enterprises abroad. It also promotes international agreements and standards. As part of its international cooperation efforts, it supports States in the fulfilment of their duties under international law to protect.
…

5.8. Pillar 3: access to remedy
5.8.1 Fundamental principle
Guiding Principle 25 [page 36]

The Federal Council acknowledges its duty to grant access to remedy to those affected by human rights abuses committed on Swiss territory and/or under Swiss jurisdiction. It believes the principal means of doing this is via the well-functioning Swiss judicial system, along with alternative, non-judicial dispute-resolution mechanisms. The Federal Council also acknowledges its responsibility to facilitate access to Swiss grievance mechanisms where business enterprises based in Switzerland are involved in human rights abuses abroad, and those affected in the host country have no appropriate access to effective remedy. A smart mix of judicial and non-judicial mechanisms will be considered.
…

5.8.2 Operational Principles: State Judicial Mechanisms
Guiding Principle 26 [page 36-38]

The UNGP describe practical and procedural obstacles as court costs, lawyers’ fees, the lack of opportunity for representative proceedings, or a lack of resources, specialist knowledge and support on the part of public prosecutors. These barriers can make it difficult for those affected by human rights abuses to seek remedy via the channels provided for in law. In international cases additional issues concerning jurisdiction and applicable law may arise.

The Federal Council recognises the importance of effective domestic judicial mechanisms to punish offenders and grant remedy to victims of human rights abuses connected with business enterprises. The extra-territorial dimension of any judicial mechanisms must be examined here. The Federal Council therefore supports efforts to achieve a better understanding of the relevant frameworks in different countries, and encourages international processes. Under certain circumstances, it is possible under Swiss law for individuals who believe that their rights have been violated by Swiss companies to bring an action or to appeal before Swiss courts. The competence of these courts to hear such cases, as well as the applicable law, must be assessed individually with reference to the applicable legal basis.

Judicial competence must be reviewed first in international cases. Here, treaty law must be considered in addition to national law. The rules of jurisdiction will determine whether or not an action can actually be brought before a Swiss court. The question of what law should apply to the action arises only in the second phase. This law will determine whether or not a business enterprise bears any liability and, if so, according to what rules. Both questions must be examined independently.

For tort cases brought under private law in Switzerland against Swiss-based companies, the place of jurisdiction must always be stated as Switzerland (Art. 2 International Private Law Act (IPLA)101 and Art. 2 of the Lugano Convention 102). Action may even be brought in Switzerland against business enterprises based abroad, if the damage or loss (from a violation of human rights, for example) is realized or has had a direct impact in Switzerland, or was caused from a branch in Switzerland (Art. 129 IPLA, Art. 5 nos. 3 and 5 of the Lugano Convention). Art. 3 IPLA also provides for emergency Swiss jurisdiction if proceedings abroad are impossible or unreasonable. The condition here is that the case being brought has a sufficient association with Switzerland.

The success of any action, and especially the question whether or not a tort can be ascribed to a particular party, depends on the applicable law. In Swiss courts, this is determined for torts by Article 132 et seqq. IPLA. However, by virtue of the provisions on public policy (order public, Art. 17 and 18 IPLA), fundamental tenets of Swiss law – specifically human rights –apply irrespective of the law applicable to a given case. Under certain circumstances, a business enterprise may face criminal prosecution under the General Provisions of the Swiss Criminal Code, in addition to the natural persons who have committed the punishable act, and who are punishable first and foremost.

…

PI45 Evaluation of access to Swiss courts and of the removal of practical and procedural obstacles

In 2014, the federal government commissioned a study from the SCHR on jurisdiction in cases of infringements of human rights by transnational business enterprises. It is intended in part to set out the legal options, and any barriers to access to Swiss courts. The analysis concentrates on the ways in which those affected by human rights abuses committed by Swiss companies abroad can claim effective remedy before Swiss courts. The study will also create a basis on which to evaluate Switzerland in comparison with the international community, and to identify the options for any future measures.

In fulfilment of postulate 14.3663 Zugang zur Wiedergutmachung [‘Access to remedy’], submitted by the Council of States Foreign Affairs Committee, the Federal Council is also analysing which judicial and non-judicial measures are being put in place by other States to permit persons whose human rights have been violated by a company in a host state to seek remediation in that company’s home State. The SCHR and the Swiss Institute of Comparative Law are drawing up the study jointly. Work is scheduled to be completed by the end of 2016. Drawing on the study, by 2019 the Federal Council will then examine the implementation of possible measures in the Swiss context, with a view to the revision of the National Action Plan on Business and Human Rights.

As part of work in fulfilment of motion 14.4008 Anpassung der Zivilprozessordnung [‘Amendment of the Civil Procedure Code’] and postulate 14.3804 Zivilprozessordnung. Erste Erfahrungen und Verbesserungen [‘Civil Procedure Code. Initial experience and improvements’], the Federal Council is currently examining the law of civil procedure that has been in effect since 2011 in order to identify shortcomings and weaknesses. It will submit any proposed revisions to Parliament by the end of 2018 at the latest. The
situation with regard to legal costs, in particular, is to be investigated.

Furthermore, in fulfilment of motion 13.3931 Förderung und Ausbau der Instrumente der kollektiven Rechtsdurchsetzung [‘Furthering and extending class action instruments’], the Federal Council is also currently drawing up draft bills which will make it easier for a number of injured parties in low-value and mass claims to bring a class action. Individual aspects of the existing instruments are to be improved, and new instruments introduced.

PI46 Accountability and Remedy Project by the Office of the UN High Commissioner for Human Rights

Switzerland works within international bodies to ensure that court jurisdiction is coordinated, and access to remedy improved. It provides both content and financial support for the work being undertaken by the office of the UN High Commissioner for Human Rights in this area. The corresponding report to the UN Human Rights Council was completed in May 2016 in collaboration with stakeholder groups. It contains recommendations for member states. The next step for Switzerland will be to determine which OHCHR recommendations it is able to implement to improve access to remediation.
…

PI47 Rule of law in host states
Switzerland engages in political dialogue (cf. PI 34) and international development cooperation to support a variety of partner States which exhibit deficits in governance. This support aids them in establishing and strengthening the rule of law, so they are better able to fulfil their duty to protect. These programmes include public-private partnership projects, and will be continued on their existing scale.

Read more about Judicial remedy

5. National Action Plan on Business and Human Rights
5.7 Pillar I: state duty to protect
5.7.2. Operation Principles: legislative and information policy measures Guiding Principle 3 [page 16]
PI5 Regulation of the manufacture and import of renewable resources (biofuels)

The Mineral Oil Tax Act provides that biofuels (biogas, bioethanol, biodiesel and vegetable and animal-based oils) will be wholly or partly exempted from mineral oil tax if they satisfy minimum environmental and social requirements. The criteria were toughened up further with the implementation of parliamentary initiative 09.499 Agrotreibstoffe. Indirekte Auswirkungen berücksichtigen [‘Agrofuels: considering the indirect impacts’]. In the future (cf. Art. 12b para. 3 MinOTA), the Federal Council will have the right to refuse the tax exemption if biofuels have been produced in a country which does not have food security. Furthermore, the area used for cultivating the resources used to produce biofuels must have been acquired lawfully, to prevent the displacement or dispossession of the local population.

Read more about Land

5. National Action Plan on Business and Human Rights
5.3 Role of the State and of business enterprises [page 11]

The State duty to protect is supplemented by the corporate responsibility to respect human rights. With this in mind, Guiding Principles 11-24 and 28-31, which are aimed at business enterprises, are also important cornerstones of the federal government’s work to fulfil its State duty to protect. These Guiding Principles describe the scope of the corporate responsibility to respect human rights, specifically by conducting human rights due diligence as a core element of fulfilment.
…

5.7 Pillar 1: state duty to protect
5.7.2 Operational Principles; legislative and information policy measures Guiding Principle 3 [page 14-17]
PI1 Human rights due diligence

Swiss legislation does not make any provision for business enterprises having to conduct general, legally binding human rights due diligence. Potential regulation in this area would have to have a broad base of international support to avoid placing Switzerland at a disadvantage as a business location. The Federal Council supports due diligence on a voluntary basis, however.

In May 2014, in fulfilment of postulate 12.3980 from the National Council Foreign Affairs Committee, the Federal Council had a report drawn up to compare legally binding due diligence obligations in other countries. It also discussed options for Switzerland in an accompanying commentary. The report shows that no country makes any provision for a comprehensive duty to conduct human rights due diligence. In March 2015, the National Council rejected a motion from its Foreign Affairs Committee to introduce a binding obligation for business enterprises to conduct human rights due diligence.

A key concern for a number of stakeholders is the introduction of legally binding human rights due diligence. In April 2015, an alliance of 66 civil society organisations launched the Responsible Business Initiative, which would like to see a general human rights due diligence obligation enshrined in law. The popular initiative was submitted on 10 October 2016, and on 1 November 2016 the Federal Chancellery confirmed that it will go forward to a referendum.

PI8 Guidelines for business enterprises on implementing the UNGP

The federal government has supported the development of a variety of guidelines on business and human rights in recent years. Further to Recommendation 11 in the Federal Council’s Background Report on Commodities, the federal government is joining forces with NGOs and commodity trading.
…

5.7.3 The State-business nexus [page 22]
Guiding Principle 4

Guiding Principle 4 concerns the activities of business enterprises that are owned or controlled by the federal government (referred to below as federal government-associated businesses), or which receive considerable support and services from federal agencies. Given its direct influence on the activities of these companies, under the UNGP the federal government has a particular obligation to ensure that these federal government-associated businesses protect human rights, for example by conducting human rights due diligence. Where the acts of a business enterprise can be attributed to the federal government, abuses of human rights may entail a violation of Switzerland’s own international law obligations to respect human rights.

Further on, the NAP explains PI17 [page 22] regarding Human rights due diligence by federal businesses and federal government-associated businesses, PI18 [page 23] regarding Requirement that business enterprises covered by Swiss Export Risk Insurance (SERV) conduct human rights due diligence and PI19 [page 23] regarding Human rights due diligence by the authorities in public-private development partnerships, PI19 regarding Human rights due diligence by the authorities in public-private development partnerships and PI20 [page 24] regarding Human rights due diligence for private security service providers. The NAP makes a reference to human rights dues diligence also with regards to GP7 in the section devoted to Business respect for human rights conflict-affected areas [page 25].

5.7.5 Policy coherence
Guiding Principle 8 [page 28]
PI28 Coherence between the various policies, strategies and action plans

… The Federal Council incorporated the UNGP, as a key reference framework for State activities in the business and human rights sphere, into the Sustainable Development Strategy, which it endorsed as part of its legislative planning programme in early 2016. The Principles incorporated into the Strategy include recognition of the federal government’s duty to protect, as well as the responsibility of business enterprises to respect human rights – one of the means of doing so being the implementation of
human rights due diligence. …

Appendix 1 [page 44-45]:

– Support for and promotion of human rights due diligence by business Enterprises; Draft of guidance on human rights due diligence for international sporting events and commodities trading; implementation of the SDC Risk Assessment Guidelines for Partnerships with the Private Sector; Implementation of the Federal Act on Private Security Services provided Abroad; Support for the implementation of guidelines on human rights due diligence in conflict-affected and high-risk areas.

Read more about Mandatory human rights due diligence

4. Position of the Federal Council on the UN Guiding Principles on Business and Human Rights
4.3 The position and expectations of the Federal Council [pages 8-9]:

The corporate responsibility to respect human rights refers to internationally recognized human rights. These include the human rights and principles rooted in the UN’s Universal Declaration of Human Rights, the UN’s International Covenant on Civil and Political Rights, the UN’s International Covenant on Economic, Social and Cultural Rights, the principles of the basic rights laid down in the eight fundamental conventions of the International Labor Organization (ILO) and in the Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy. In addition to these instruments, the regional mechanisms instituted by the Council of Europe, and specifically the European Convention on Human Rights and its Additional Protocols are also important for Switzerland. Depending on the circumstances, business enterprises must also observe additional standards concerning particularly vulnerable population groups (cf. OECD Guidelines for Multinational Enterprises, Guideline 40). These include, for example, the Declaration of the Rights of Indigenous Peoples, and the international conventions protecting women, minorities, children, people with disabilities and migrant workers and members of their families.

Read more about Migrant workers

5. National Action Plan on Business and Human Rights
5.7 Pillar 1: state duty to protect
5.7.7 Policy coherence
Guiding Principle 8 [page 30]
PI32 National human rights institution

In 2010, the Federal Council and the SCHR embarked on a five-year pilot project with the remit to build capacity at all levels of the political system, in civil society and in business to fulfil Switzerland’s international human rights obligations, and to encourage public debate about human rights. One of the core areas covered by the SCHR is what it refers to as the ‘thematic cluster’ of Human Rights and Business. On 29 June 2016, the Federal Council decided to set up a national human rights institution. Its purpose is to further strengthen human rights in Switzerland, to support the authorities, civil society organisations and business enterprises in human rights matters, and to encourage exchange between the relevant actors. The FDJP and the FDFA have been commissioned to submit a consultation draft to the Federal Council by the end of June 2017. Under the UNGP, national human rights in situations play an important part in supporting States with the implementation of human rights.

Read more about National Human Rights Institutions/ Ombudspersons

5. National Action Plan on Business and Human Rights
5.7 Pillar 1: state duty to protect
5.7.2 Operational principles: legislative and information policy measures Guiding Principle 3 [page 20]
PI12 Sustainability reporting standards

Reporting on the action taken by a business enterprise to respect human rights is an important element of due diligence under Pillar 2 of the UNGP.

In line with the Grüne Wirtschaft [‘Green Economy’] report (2016) and the Federal Council’s national action plan on corporate social responsibility, the federal government campaigns at both national and international levels for the promotion and harmonisation of corporate sustainability reporting. This also covers human rights. Switzerland is a member, among others, of the Group of Friends of Paragraph 47 (GoF47), which promotes sustainability reporting internationally. Within the GoF47, Switzerland works in particular with the Global Reporting Initiative (GRI) and the United Nations Environment Programme (UNEP).

The Federal Council will continue its work within the GoF47. It also supports the drafting of sector specific guidance and practical examples.

PI13 Corporate Sustainability Reporting

The EU decided at the end of 2014 to introduce mandatory sustainability reporting. Member States have until the end of 2016 to put this obligation into effect. EU Directive 2014/95/EU determines that certain large undertakings and groups must publish non-financial information on respect for human rights, diversity, and combating corruption and bribery in connection with environmental, social and employee matters. According to the comply or explain principle, business enterprises must also disclose why they have not published certain information. The Federal Council is closely monitoring developments with regard to the legally binding reporting of non-financial information in the EU. It is prepared to examine possible action, which would be as congruent as possible with international regulation, and intends to draw up a consultation draft on sustainability reporting that will be based on the EU instrument. Work will begin when more is known about the way in which EU Member States intend to implement the Directive.

Swiss business enterprises are not obliged to report on sustainability issues. However, in line with the 2030 Agenda and its Sustainable Development Goals (SDGs), which were adopted by all UN Member States, and in particular to achieve SDG 12.6, companies are encouraged to introduce sustainable practices and to include sustainability information in their reporting.

Accounting legislation requires all companies that are subject to an ordinary audit pursuant to Article 727 of the Swiss Code of Obligations (CO) to include a general assessment of risk in their management report. This also includes human rights risks, where these are present. Listed companies are also obliged by Article 53 of the SIX Swiss Exchange Listing Rules to report on human rights matters where these might affect the company’s share price. The Federal Council recommends incorporating the human rights risks which business enterprises identify in their due diligence processes, for example, in their sustainability reports.

Read more about Non-financial reporting

5. National Action Plan on Business and Human Rights
5.8 Pillar 3: access to remedy
5.8.1 Fundamental principle
Guiding Principle 1: general duty to protect [page 12-13]

The Federal Council acknowledges its duty to grant access to remedy to those affected by human rights abuses committed on Swiss territory and/or under Swiss jurisdiction. It believes the principal means of doing this is via the well-functioning Swiss judicial system, along with alternative, non-judicial dispute-resolution mechanisms. The Federal Council also acknowledges its responsibility to facilitate access to Swiss grievance mechanisms where business enterprises based in Switzerland are involved in human rights abuses abroad, and those affected in the host country have no appropriate access to effective remedy. A smart mix of judicial and non-judicial mechanisms will be considered.
…

5.8.3 Operational principles: state non-judicial grievance mechanisms
Guiding Principle 27 [page 39]

State non-judicial grievance frameworks can be an important factor in gaining remedy for human rights abuses. They enable the parties to identify solutions through dialogue, without what are often lengthy and costly court proceedings. The federal government will employ the following policy instruments (PI) to implement Guiding Principle 27:

PI48 National Contact Point for the OECD Guidelines for Multinational Enterprises (NCP)

The states signatory to the OECD Guidelines for Multinational Enterprises are obliged to set up a non-judicial grievance mechanism in the form of an NCP. Submissions may be made to the NCP where multinational enterprises based in one of the signatory states are accused of failing to comply with the OECD Guidelines, which since their 2011 update also include a chapter on human rights.

The Swiss NCP forms part of SECO, but involves the relevant federal agencies in handling submissions, and receives advice on its strategic orientation and the application of the OECD Guidelines from the multi-stakeholder NCP Advisory Board.

The Federal Council regards the current practice of the Swiss NCP as appropriate and will continue to Operate it in its current form.

PI49 Dispute resolution support from representations abroad

In recent years, certain representations abroad have helped companies and persons affected by human rights abuses to resolve their conflicts at the negotiating table. They have done so on an ad-hoc basis, but the federal government plans during the current reporting period to examine the possibility of Swiss representations abroad providing greater and more systematic support in resolving disputes.”

5.8.4 Operational principles: non-state grievance mechanisms
Guiding Principle 31 [page 41]:

The Federal Council supports the effectiveness criteria described in Guiding Principle 31, and will endeavour to pursue all of its action to promote non-judicial and non-governmental grievance mechanisms in accordance with them. It is not planning any separate activities.

Read more about Non-judicial grievance mechanisms

5. National Action Plan on Business and Human Rights
5.7 Pillar 1: state duty to protect
Section 5.7.3 The State-business nexus
Guiding Principle 4 [page 24]
PI19 Human rights due diligence by the authorities in public-private development partnerships

The SDC [Swiss Agency for Development and Cooperation] also ensures that it does not enter into any public-private development partnerships with business enterprises which refuse to work with the National Contact Point for the OECD Guidelines for Multinational Enterprises.
…

5.8 Pillar 3: access to remedy
5.8.3 Operational principles: state non-judicial grievance mechanisms
Guiding Principle 27 [page 39]
P148 National Contact Point for the OECD Guidelines for Multinational Enterprises (NCP)

The states signatory to the OECD Guidelines for Multinational Enterprises are obliged to set up a non-judicial grievance mechanism in the form of an NCP. Submissions may be made to the NCP where multinational enterprises based in one of the signatory states are accused of failing to comply with the OECD Guidelines, which since their 2011 update also include a chapter on human rights.

The Swiss NCP forms part of SECO, but involves the relevant federal agencies in handling submissions, and receives advice on its strategic orientation and the application of the OECD Guidelines from the multi-stakeholder NCP Advisory Board.

The Federal Council regards the current practice of the Swiss NCP as appropriate and will continue to operate it in its current form.

Read more about OECD National Contact Points

The Swiss NAP does not make an explicit reference to Persons with Disabilities.

Read more about Persons with disabilities

5. National Action Plan on Business and Human Rights
5.7 Pillar 1: state duty to protect
5.7.5 Policy coherence, GP8, PI27: Implementation, review and update of the national action plan on business and human rights
Guiding Principle 8 [page 39]
PI28: Coherence between the various policies, strategies and action plans

Economic, social, environmental, development and human rights policies are all interrelated elements of a policy to promote sustainable development. The Federal Council attaches great importance to coherence between these policies. The issue of corporate social responsibility (CSR) is dealt with in the position paper and action plan of the Federal Council on corporate responsibility for society and the environment. CSR and business and human rights are also mentioned in the goals of the 2030 Agenda, as well as in several federal government strategies. These include, for example, this Present Action Plan, the Sustainable Development Strategy, the Dispatch on Switzerland’s International Cooperation, the Foreign Policy Report, the Foreign Economic Policy Report, the FDFA Human Rights Strategy 2016-2019, the Swiss Guidelines on the Protection of Human Rights Defenders and the National Action Plan to Fight Human Trafficking. Consistent policies on business and human rights are ensured by incorporating the UNGP into these strategies. The Federal Council incorporated the UNGP, as a key reference framework for State activities in the business and human rights sphere, into the Sustainable Development Strategy, which it endorsed as part of its legislative planning programme in early 2016. The Principles incorporated into the Strategy include recognition of the federal government’s duty to protect, as well as the responsibility of business enterprises to respect human rights –one of the means of doing so being the implementation of human rights due diligence.

Read more about Policy coherence

5. National Action Plan on Business and Human Rights
5.7 Pillar 1: state duty to protect
5.7.3 The State-business nexus
Guiding Principle 6 [page 25]
PI21 Human rights criteria in public procurement at federal level

Public procurement practices in Switzerland are governed by the Federal Act on Public Procurement (PPA, SR 172.056.1) and the related Ordinance Article 8 para. 1 PPA states that the federal government awards contracts for goods and services in Switzerland on the following conditions: business enterprises must respect the usual health and safety regulations and working conditions at the location where the good or service is provided, and also ensure that men and women receive equal pay for equal work. Furthermore, procurement processes that are not subject to WTO requirements must take into account the training places offered by competing Swiss bidders which have submitted bids of equal value. Where goods and services are provided abroad, providers must comply at a minimum with the eight core conventions of the International Labour Organization (ILO).

The federal government’s public procurement legislation is currently in revision in response to the changes made to the WTO Agreement on Government Procurement (GPA) in 2012. Sustainability aspects (economic, environmental and social) are now to be codified in law, rather than being governed at ordinance level, as is currently the case (Art. 2a draft PPA).

The federal government’s purchasing offices ensure sustainable procurement practices while awarding contracts according to the principles of equal treatment, transparency, competition and the economic use of public funds. The Federal Procurement Conference addressed the consideration of social and environmental factors in detail in its recommendation on sustainable procurement. It recommends applying sustainability criteria in procurement procedures. Sustainability factors may be included as award
criteria. A tool for country-specific risk assessment permits an evaluation of the credibility of independent declarations.

Furthermore, the Sustainable Procurement monitoring programme was introduced as part of the federal government’s procurement audit in 2013.

The federal government is also looking into creating a national platform for sustainable public procurement. The aim of this platform would be to promote sustainable public procurement and ensure an exchange of information on this issue between the different levels of government.

The Federal Council attaches great importance to sustainable procurement practices and will continue its current activities in this field during the reporting period.

Read more about Public procurement

5. National Action Plan on Business and Human Rights
5.7 Pillar 1: state duty to protect
5.7.2 Operational Principles: legislative and information policy measures Guiding Principle 3 [page 15-19]
PI2 Regulation of Private Security Providers

The business context of private security service providers exposes them to an increased risk of becoming involved in human rights abuses. In September 2013, Parliament thus passed the Federal Act on Private Security Services provided Abroad. (…) The Act prohibits security firms based in Switzerland from participating directly in hostilities in an armed conflict abroad, and forbids activities that support the commission of serious violations of human rights. It also contains reporting requirements for companies wishing to provide private security services abroad, and obliges Swiss-based providers to accede to the International Code of Conduct for Private Security Service Providers. The Federal Council regards the Federal Act on Private Security Services provided abroad as an appropriate means of ensuring respect for human rights in connection with the activities of private security service providers.
…

PI11 Multi-stakeholder initiatives in the Business And Human Rights Field [page 19]

Switzerland is engaged and involved in multi-stakeholder initiatives in the business and human rights field. For example, it was a co-initiator of the International Code of Conduct for Private Security Service Providers (ICoC). It is also playing a key role in the development of an independent mechanism to manage and verify compliance with the Code on the part of business enterprises.

In the next two years, the controlling and governance mechanism for the International Code of Conduct for Private Security Service Providers (ICoCA) will implement certification and verification processes and will deal with complaints that have been received about member firms. Switzerland participates in the work of the Board of Directors of the ICoCA, and provides financial support to its secretariat. The initiative helps to implement the Federal Act on Private Security Services provided Abroad.

Switzerland is also a member of the ‘Voluntary Principles on Security and Human Rights’ (VP) initiative, and is involved in developing and enhancing the scheme. Within the framework of the VP, it promotes better and more transparent accountability for participants, and also contributed to the revision of reporting criteria. To raise awareness among Swiss companies from the mining and oil sector, as well as other interested business enterprises, Switzerland will be holding a workshop on the VP and on security and human rights in 2017.
…

Guiding Principle 5 [page 24]
PI20 Human Rights Due Diligence for Private Security Service Providers

The federal government uses a variety of services from private security service providers –for example to guard Swiss representations abroad. It is therefore obliged to check whether or not the firms that it engages fulfil their human rights responsibilities.

Article 31 para. 1 b of the Federal Act on Private Security Services provided Abroad states that, in a complex environment, the federal authorities may consider only those firms which are members of the ICoCA. Since the ICoCA requires that firms abide by human rights standards, this is equivalent to demanding due diligence.

As a general rule, the federal government does not engage any security firms that are not members of the ICoCA to work in complex environments. It advocates that security firms should join the ICoCA, especially in regions in which there are still few, if any, member companies.
…

5.8 Pillar 3: access to remedy
5.8.4 Operational principles: non-state grievance mechanisms
Guiding Principle 30 [page 40]
PI50 Grievance mechanism under the International Code of Conduct (ICoC) and the other multi-stakeholder initiatives

The International Code of Conduct for Private Security Service Providers stipulates an innovative grievance mechanism by which to punish violations by business enterprises. Claims may be made by employees or by third parties106. Similar contact points for affected parties are under discussion in other multi-stakeholder initiatives.

Switzerland provided significant content and financial support for the introduction of the ICoC grievance mechanism. It also makes a substantial financial contribution to the International Code of Conduct Association, which is responsible for implementing the grievance mechanism.

Switzerland will continue to offer political and financial support for the implementation of the ICoC, and thus also its grievance mechanism. Furthermore, through its membership of other multi-stakeholder initiatives it will promote the introduction of further such mechanisms.

Read more about Security sector

4. Position of the Federal Council on the UN Guiding Principles on Business and Human Rights
4.2 The Swiss context [page 6-7]

Many Swiss companies are currently having to tackle a large number of challenges simultaneously: securing their competitiveness on the international markets, against the backdrop of the strong franc and the implementation of Corporate Tax Reform III and the Mass Immigration Initiative, investing in new technologies and human resources, and creating decent, well-qualified jobs in Switzerland and the wider world. With this in mind, the Federal Council can support SMEs in fulfilling their corporate human rights
responsibility (cf. PI6 in Section 5.7.2), and ensure that the administrative and financial burdens are not excessive.
…

4.3 The position and expectations of the Federal Council [page 7]:

Attention should be paid to the specific circumstances of and options open to SMEs. The Federal Council will endeavour to support business enterprises and SMEs in particular, as they proceed with implementation, in order to keep the costs and administrative burden at a reasonable level.
…

5. National Action Plan on Business and Human Rights
5.5 Corporate responsibility [page 12]:

In view of their limited human and specialist resources, SMEs often face particular challenges in assessing and dealing with possible human rights risks. To ensure that measures are implementable, the NAP therefore pays particular attention to the needs of SMEs, with the aim of maintaining their scope for action. Unnecessary administrative burdens and costs, in particular, should be avoided.
…

5.7.2 Operational principles: legislative and information policy measures
Guiding Principle 3 [page 16-18]
PI6 Clarify and communicate what the Federal Council expects of business enterprises

The federal government will carry out awareness raising programmes (e.g. website, workshops, publications) geared specifically to the needs of SMEs, and will help to raise consciousness about the issue of business and human rights with information events and materials. Part of the aim of these programmes is to step up federal government efforts to communicate its expectations to business enterprises.
…

PI10 Initiative on respect for labour and human rights in value chains

The federal government promotes the implementation of the fundamental conventions of the International Labour Organization (ILO) as part of economic development cooperation, and in cooperation with the ILO itself. In this context, it designed a project with the ILO to ensure that labour rights are implemented by business enterprises in developing countries. It supports the ILO and International Finance Corporation (IFC) Better Work programme for the clothing industry as well as the ILO’s SCORE (Sustaining Competitive and Responsible Enterprises) programme, which focuses on working
conditions at SMEs.

Read more about Small & medium-sized enterprises

5. National Action Plan on Business and Human Rights
5.7 Pillar I: state duty to protect
5.7.3 The State-business nexus
Guiding Principle 4 [pages 22-24]

Guiding Principle 4 concerns the activities of business enterprises that are owned or controlled by the federal government (referred to below as federal government-associated businesses), or which receive considerable support and services from federal agencies. Given its direct influence on the activities of these companies, under the UNGP the federal government has a particular obligation to ensure that these federal government-associated businesses protect human rights, for example by conducting human rights due diligence. Where the acts of a business enterprise can be attributed to the federal government, abuses of human rights may entail a violation of Switzerland’s own international law obligations to respect human rights.

The Federal Council acknowledges its particular responsibility to ensure that federal government associated businesses respect human rights. Federal government-associated businesses should serve as examples of good practice. The Federal Council regards its expectations towards these enterprises as the benchmark that is mentioned in section 4.3 of the Federal Council report in fulfillment of postulate 12.3503 Eine Ruggie Strategie für die Schweiz [‘A Ruggie Strategy for Switzerland’].

The federal government will employ the following policy instruments (PI) to implement Guiding Principle 4:

PI 17 Human rights due diligence by federal businesses and federal government-associated businesses

Relations between government-associated enterprises and the Confederation are described in the federal government’s Corporate Governance Report64. The Federal Council defines its strategic goals for related enterprises every four years. While these goals do not specifically contain criteria for business and human rights, the Federal Council expresses the expectation that related enterprises will pursue a sustainable
corporate strategy to the best of their business ability.

In 2017, the federal government will draw up a status report on the fulfillment of CSR in its own activities. This is to cover the federal government’s role as an employer, a purchaser, an investor and as an owner of federal government-associated companies (in accordance with the Federal Council’s CSR position paper, activity B.3.1). This interpretive framework should also highlight any need for action in the future, and where appropriate propose measures to the Federal Council.

PI8 Requirement that business enterprises covered by Swiss Export Risk Insurance (SERV) conduct human rights due diligence

The sustainability guidelines that have existed since 2003 are regularly updated and enhanced by the OECD. Switzerland is also part of this process. The guidelines are intended, among other things, to improve protection against human rights abuses by business enterprises, and they are largely recognised as an international standard by export credit agencies and export insurance providers.

Swiss Export Risk Insurance (SERV) attaches great importance to sustainability and thus also to human rights. The SERV Act and SERV Ordinance have undergone a partial revision, with the changes entering into force as of 1 January 2016. The latest change to the Ordinance expressly set out the insurance applicant’s duty to provide information on human rights66. Unlike many other export credit agencies, SERV does not grant any export credits themselves (known as direct lending), but instead offers only insurance and guarantees (known as pure cover). SERV does not grant cover, neither can it accept any liability in the event of a claim, if the project being supplied or financed by the policyholder does not meet international human rights standards. The revised Ordinance entered into force at the beginning of 2016. In cases of elevated risk, SERV will require applicants to conduct human rights due diligence in the sense of the UNGP and the expectations towards companies that are described in Section 4.3. When deciding whether or not to grant cover, SERV also factors in the findings of investigations made by the National Contact Point for the OECD Guidelines for Multinational Enterprises.

PI19 Human rights due diligence by the authorities in public-private development partnerships

In March 2015, the SDC published guidelines for assessing the risks of partnerships with the private sector. They factor in impacts on human and labour rights, government structures and the environment. The guidelines propose a three-stage due diligence process: first a brief analysis by the SDC, followed by a detailed external analysis, and finally dialogue with the partner. The SDC will not work with partners that have repeatedly been involved in human rights abuses and that cannot make a convincing case that they have substantially reduced human rights-related risks.

In implementing the new guidelines for assessing the risks of public-private partnerships, the SDC works with external partners, which conduct the detailed risk analysis. The SDC also ensures that it does not enter into any public-private development partnerships with business enterprises, which refuse to work with the National Contact Point for the OECD Guidelines for Multinational Enterprises.

Read more about State Owned Enterprises/ Public Private Partnerships

5. National Action Plan on Business and Human Rights
5.7 Pillar 1: state duty to protect
5.7.2 Operational Principles: Legislative and Information Policy Measures Guiding Principle 3 [page 18]
PI8 Guidelines for business enterprises on implementing the UNGP

In the agricultural and food sector, the Federal Office for Agriculture (FOAG) and the Swiss Agency for Development and Cooperation (SDC), as well as the Committee on World Food Security, the UN FAO and the OECD are supporting the formulation of Principles for Responsible Investment in Agriculture and Food Systems, as well as the OECD-FAO Guidance for Responsible Agricultural Supply Chains. Both instruments stress the important role that business has to play in responsible investment, and offer relevant guidance on action. Switzerland will also actively support their Implementation.
…

5.7.4 Business Respect for Human Rights in Conflict-Affected Areas
Guiding Principle 7 [page 26]
PI22 Guidelines on human rights due diligence in conflict-affected and high-risk areas

Over the years, the federal government has supported the drafting of a number of guidelines addressing the situation in conflict-affected areas. These include the Guidance on Conflict Sensitive Business Practice for the extractive sector issued by International Alert and the Red Flags initiative. Switzerland also provides financial support for the implementation of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. In addition, Switzerland is a member of the multi-stakeholder group managing the implementation, spread and continued development of the Guidance. It is aimed primarily at companies operating in conflict-affected or high-risk areas in the extraction and trading of commodities.

Read more about Supply chains

4. Position of the Federal Council on the Guiding Principles on Business and Human Rights
4.2 The Swiss context [page 6]:

Many Swiss companies are currently having to tackle a large number of challenges simultaneously: securing their competitiveness on the international markets, against the backdrop of the strong franc and the implementation of Corporate Tax Reform III and the Mass Immigration Initiative, investing in new technologies and human resources, and creating decent, well-qualified jobs in Switzerland and the wider world.
…

5. National Action Plan on Business and Human Rights
5.6 Relation to the Federal Council position paper on CSR [page 12]:

These include working conditions (including health safeguards), human rights, the environment, preventing corruption, fair competition, consumer interests, tax and transparency. The present report and NAP in fulfilment of postulate 12.3503 and the CSR position paper on corporate responsibility are therefore complementary and of equal status.
…

5.7 Pillar 1: state duty to protect
5.7.2 Operational Principles: legislative and information policy measures
Guiding Principle 3 [page 16]
PI5 Regulation of the manufacture and Import of Renewable Resources (biofuels)

The Mineral Oil Tax Act provides that biofuels (biogas, bioethanol, biodiesel and vegetable and animal-based oils) will be wholly or partly exempted from mineral oil tax if they satisfy minimum environmental and social requirements. Under the Mineral Oil Tax Ordinance, the minimum requirements for socially acceptable production conditions are fulfilled if, in the cultivation of the resources and production of fuels, business enterprises comply with the social legislation applicable at the production location, but
at a minimum with the fundamental conventions of the ILO. he criteria were toughened up further with the implementation of parliamentary initiative 09.499 Agrotreibstoffe. Indirekte Auswirkungen berücksichtigen [‘Agrofuels: considering the indirect impacts’]. In the future (cf. Art. 12b para. 3 MinOTA), the Federal Council will have the right to refuse the tax exemption if biofuels have been produced in a country which does not have food security. Furthermore, the area used for cultivating the resources used to produce biofuels must have been acquired lawfully, to prevent the displacement or dispossession of the local population. Should biofuels which do not fulfil the criteria for tax relief enter circulation in large quantities in Switzerland in the future, the Federal Council may make them subject to an authorization requirement.

Read more about Taxation

5. National Action Plan on Business and Human Rights
5.6. Relation to the Federal Council position paper on CSR [page 12]

The federal government’s commitment to Corporate Social Responsibility (CSR) is set out in the Federal Council’s CSR position paper on corporate social and environmental responsibility31. The CSR position paper addresses a very broad spectrum of issues of relevance to corporate social responsibility. These include working conditions (including health safeguards), human rights, the environment, preventing corruption, fair competition, consumer interests, tax and transparency. The present report and NAP in fulfillment of postulate 12.3503 and the CSR position paper on corporate responsibility are therefore complementary and of equal status.

5.7 Pillar 1: state duty to protect
5.7.2. Operation Principles: legislative and information policy measures
Guiding Principle 3 [page 20]
PI13 Corporate sustainability reporting

The Federal Council is closely monitoring developments with regard to the legally binding reporting of non-financial information in the EU. It is prepared to examine possible action, which would be as congruent as possible with international regulation, and intends to draw up a consultation draft on sustainability reporting that will be based on the EU instrument. Work will begin when more is known about the way in which EU Member States intend to implement the Directive. Swiss business enterprises are not obliged to report on sustainability issues. However, in line with the 2030 Agenda and its Sustainable Development Goals (SDGs), which were adopted by all UN Member States, and in particular to achieve SDG 12.6, companies are encouraged to introduce sustainable practices and to include sustainability information in their reporting.

Accounting legislation requires all companies that are subject to an ordinary audit pursuant to Article 727 of the Swiss Code of Obligations (CO) to include a general assessment of risk in their management report. This also includes human rights risks, where these are present. Listed companies are also obliged by Article 53 of the SIX Swiss Exchange Listing Rules to report on human rights matters where these might affect the company’s share price. The Federal Council recommends incorporating the human rights risks which business enterprises identify in their due diligence processes, for example, in their sustainability reports.

5.7.5 Policy coherence
Guiding Principle 8 [pages 28-29]
PI28 Coherence between the various policies, strategies and action plans

Economic, social, environmental, development and human rights policies are all interrelated elements of a policy to promote sustainable development. The Federal Council attaches great importance to coherence between these policies. The issue of corporate social responsibility (CSR) is dealt with in the position paper and action plan of the Federal Council on corporate responsibility for society and the environment. CSR and business and human rights are also mentioned in the goals of the 2030 Agenda, as well as in several federal government strategies. These include, for example, this present Action Plan, the Sustainable Development Strategy, the Dispatch on Switzerland’s International Cooperation, the Foreign Policy Report86, the Foreign Economic Policy Report, the FDFA Human Rights Strategy 2016-201988, the Swiss Guidelines on the Protection of Human Rights Defenders89 and the National Action Plan to Fight Human Trafficking. Consistent policies on business and human rights are ensured by incorporating the UNGP into these strategies. The Federal Council incorporated the UNGP, as a key reference framework for State activities in the business and human rights sphere, into the Sustainable Development Strategy, which it endorsed as part of its legislative planning programme in early 2016. The Principles incorporated into the Strategy include recognition of the federal government’s duty to protect, as well as the responsibility of business enterprises to respect human rights.

Read more about The 2030 Agenda for Sustainable Development

5. National Action Plan on Business and Human Rights [page 9]:

The Federal Council regards the implementation of the UNGP as an ongoing process which must adapt to shifting challenges, and will also make a key contribution to preventing any conflicts of objectives between Switzerland’s human rights and foreign trade policies – or to resolving them.
…

5.7 Pillar 1: state duty to protect
5.7.2 Operational principles: legislative and information policy measures
Guiding Principle 3 [page 15]
PI13 Regulation of war material section the NAP refers to trade

Business enterprises which manufacture or trade in war material are exposed to an increased risk of becoming involved in human rights abuses by third parties. International standards on the regulation and control of international trade in conventional weapons were laid down in the international Arms Trade Treaty (ATT). It was adopted by the UN General Assembly in April 2013 and entered into force on 24 December 2014. Switzerland ratified the Treaty on 30 January 2015. (…) The Federal Council regards the present legal foundation and practice for granting export licences as appropriate to guarantee that Swiss business enterprises that manufacture or trade in war material will respect human rights.
…

5.7.5 Policy coherence
Guiding Principle 9 [page 31]
PI33 Consistency between free trade agreements and protection for human rights

The primary aim of free trade agreements is to foster bilateral economic relations, and to improve the economic capacity of the contracting States’ national economies. When negotiating free trade agreements (and investment protection agreements, see below), Switzerland, in the interests of policy coherence supports the inclusion of clauses requiring consistency with human rights, labour and environmental standards. One of the functions of such clauses is to underline the parties’ obligation to comply with the applicable multilateral environmental agreements and International Labour Organization conventions, and to implement them effectively. At the same time, they reference international instruments to protect human rights, and the principles of responsible corporate governance. A further clause in Swiss free trade agreements provides that they may not compromise or challenge existing international law –and therefore also human rights –obligations. When negotiating human rights, labour and environmental law aspects, the competent federal agencies are consulted in the same way as with all other questions. Free trade agreements, and thus also aspects of relevance to human rights, are monitored via consultation mechanisms, specifically joint committees.

Read more about Trade

4. Position of the Federal Council on the UN Guiding Principles on Business and Human Rights
4.3 The position and expectations of the Federal Council [page 8]:

Depending on the circumstances, business enterprises must also observe additional standards concerning particularly vulnerable population groups (cf. OECD Guidelines for Multinational Enterprises, Guideline 40). These include, for example, the Declaration of the Rights of Indigenous Peoples, and the international conventions protecting women, minorities, children, people with disabilities and migrant workers and members of their families.

Read more about Workers’ rights

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2.2 Pillar 2: the corporate responsibility to respect human rights

… as part of the UN Global Impact, a number of Swiss companies … seek to abolish child labour….

2.2.1 Foundational principles

Guiding Principles 11 to 15

The responsibility of business enterprises to respect human rights refers to internationally recognised human rights. … Depending on the circumstances, business enterprises must also observe additional standards concerning particularly vulnerable population groups, including agreements protecting … children …

Guiding Principles 16 to 21

Measure 27: Promote efforts to end all forms of child exploitation in supply chains

The exploitation of children includes child labour, forced labour, sexual exploitation and child trafficking. The federal government works with civil society and the private sector to develop tools and organise events to raise awareness among businesses about the exploitation of children in all its forms.

The federal government will establish partnerships with the private sector and civil society to advance Goal 8.7 of the 2030 Agenda for Sustainable Development: end child labour in all its forms by 2025, eradicate forced labour, and end modern slavery and human trafficking by 2030. It will also evaluate its participation in Global Alliance 8.7, which aims to strengthen international cooperation, coordination and assistance through appropriate multi-stakeholder partnerships.

The federal government also takes action to prevent the exploitation of children in travel and tourism. The ‘Don’t look away’ initiative seeks to raise public awareness of the problem. Tourists and travellers who suspect cases of child sexual exploitation can go to the website, fill out the online report form and send it directly to the Federal Office of Police (fedpol). Increasing numbers of European countries are now joining the campaign. As part of its membership of ECPAT International, which works to end all forms of child sexual exploitation, the federal government launched the ‘Don’t look away’ campaign (ne-detournez-pas-le-regard.ch), regularly attends meetings organised by the network and contributes to discussions.

In accordance with the Federal Council decision of 14 August 2019, the FDJP is mandated to examine the introduction of a mandatory due diligence in the area of “child labour”. In the meantime, on 18 December 2019, the Council of States adopted a regulation on this issue as part of the preparation of an indirect counter-proposal to the popular initiative for responsible businesses. The National Council has not yet commented on this. The Federal Council is of the opinion that it should await the end of the parliamentary debates.

2.2 Pillar 2: the corporate responsibility to respect human rights

2.2.2 Operational principles: human rights due diligence 

Measure 29: Public-private partnerships to promote respect for human rights in the value chain

…the federal government, together with the ILO, supports the Better Work programme for the textile industry and the Sustaining Competitive and Responsible Enterprises (SCORE) programme to support SMEs in creating decent working conditions. These projects … are focused on compliance with fundamental labour standards, including measures to combat child and forced labour. The tools developed by these programmes are shared with the private sector.

Read more about Children’s rights

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2.1 Pillar 1: state duty to protect

Guiding Principles 1 to 3

2.1.2 Operational principles: legislative and information policy measures

Measure 2: Security and human rights

The federal government should ensure that business enterprises which are subject to the Federal Act on Private Security Services Provided Abroad (PSSA) meet their human rights obligations. The PSSA prohibits security firms based in Switzerland from participating directly in hostilities in the context of an armed conflict, and from engaging in activities that could facilitate human rights abuses.

Switzerland and the ICRC [International Committee of the Red Cross] were the driving force behind the Montreux Document on private military and security companies.17 The purpose of the intergovernmental document is to promote respect for international humanitarian law and human rights by private military and security companies (PMSCs) operating in situations of armed conflict.

Measure 7: Reduction in human rights risks associated with gold extraction and trading

Switzerland will continue to support the implementation of OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas and other relevant guidelines. As recommended in the above report, it will explore the possibility of granting the Central Office for Precious Metals Control wider responsibilities, including with respect to transparency on the provenance of gold imported to Switzerland.

2.1.4 Business respect for human rights in conflict-affected areas

Guiding Principle 7

Given the heightened risk of human rights abuses in conflict-affected areas, States should help ensure that business enterprises operating in those contexts are not involved in such abuses or lead State entities to commit human rights violations. The federal government expects companies operating in conflict-affected and high-risk areas to conduct due diligence in a way that takes local circumstances into account. This requires the adoption of a conflict-sensitive approach based on human rights and observance of the ‘do no harm’ principle (consideration of problems intrinsic to fragile contexts).

Measure 13: Guidelines on human rights due diligence in conflict-affected and high-risk areas

Guidelines on human rights due diligence in conflict-affected and high-risk areas have been drawn up at international level and adopted by various OECD members. The Federal Council works at international level to advance the development, promotion and implementation of global standards. Switzerland also supports the implementation of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. It is also a member of the multi-stakeholder group that manages the implementation, dissemination and continued development of these guidelines. The OECD Due Diligence Guidance is aimed primarily at companies involved in the extraction and trading of commodities in conflict-affected and high-risk areas, but it also applies to manufacturers of products containing minerals which operate in the downstream value chain and are required to exercise due diligence.

In addition, the federal government supports a project led by the UN Working Group on Business and Human Rights that aims to clarify the practical steps that companies, investors and States should take to prevent and combat business-related human rights abuses in conflict, post-conflict and fragile contexts.

The EU adopted Regulation 2017/821 of 17 May 2017 laying down supply chain due diligence obligations for Union importers of tin, tantalum and tungsten, their ores, and gold originating from conflict-affected and high-risk areas. The relevant provisions will take effect on 1 January 2021. In accordance with the Federal Council decision of 14 August 2019, the FDJP is mandated to examine the introduction of a mandatory due diligence in the area of “minerals from conflict areas”. In the meantime, on 18 December 2019, the Council of States adopted a regulation on this issue as part of the preparation of an indirect counter-proposal to the popular initiative for responsible businesses. The National Council has not yet commented on this. The Federal Council is of the opinion that it should await the end of the parliamentary debates.

Measure 14: Advisory and support services provided by Swiss representations abroad

Swiss representations abroad are well placed to raise awareness of human rights issues among businesses and provide country-specific advice. A number of representations in conflict-affected areas have developed innovative initiatives based on the UN Guiding Principles – largely on an ad hoc basis –to promote respect for human rights by Swiss business enterprises. The federal government will involve Switzerland’s representations abroad more closely in its efforts to raise awareness of and provide support for the implementation of human rights by business enterprises. Such efforts may include training and awareness-raising for embassy staff, encouraging the sharing of experiences between representations and with the relevant federal agencies in Bern. …

Measure 21: Support for UN bodies in charge of promoting the UN Guiding Principles

The federal government will continue to lend political and financial support to the UN Working Group, the Office of the UN High Commissioner for Human Rights and the annual UN Forum on Business and Human Rights in Geneva. It will work with these bodies on several projects that: …

– clarify the practical steps that States, business enterprises and investors should take to prevent and combat business-related human rights abuses in conflict and post-conflict situations;

Read more about Conflict-affected areas

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2.2 Pillar 2: the corporate responsibility to respect human rights

2.2.2 Operational principles: human rights due diligence

Guiding Principles 16 to 21

Measure 29: Public-private partnerships to promote respect for human rights in the value chain

The federal government supports a project to promote human rights due diligence with a view to preventing the exploitation of Syrian refugees and migrant workers in neighbouring countries (Turkey, Lebanon, Jordan). The aim is to strengthen the contribution that business enterprises make to providing decent work opportunities and combatting exploitation in the textile, agricultural and construction sectors in these countries.

Read more about Construction sector

The Swiss NAP does not make an explicit reference to Corporate law and corporate governance

Read more about Corporate law & corporate governance

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2.2 Pillar 2: the corporate responsibility to respect human rights

The growing interdependence of businesses resulting from their involvement in global value chains has pushed issues such as working conditions, human rights, corruption and the environment to the top of the political and social agenda.

Guiding Principles 1 to 3

Measure 5: Multi-stakeholder initiatives on business and human rights

The federal government also backs multi-stakeholder initiatives that focus on human rights issues in sectors such as textiles, cocoa and gold. As these initiatives cover other subjects such as corruption and the environment, they are dealt with in Measure 10 of the 2020–23 CSR [Corporate Social Responsibility] Action Plan.

Read more about Corruption

The Swiss NAP does not make an explicit reference to Data Protection and Privacy.

Read more about Data protection & privacy

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2.1 Pillar 1: state duty to protect

2.1.3 The State-business nexus

Guiding Principles 4 to 5

Measure 11: Human rights due diligence by public-private development partnerships

As laid down in the Code of Conduct for Contractual Partners of the FDFA [Federal Department of Foreign Affairs], respect for human rights and gender equality are two of the values which should be promoted in the interests of Switzerland. All individuals, companies or other entities that work with the FDFA are required to contribute to the promotion of these values and to act in accordance with them, and with the legal order. The Code of Conduct outlines the attitude and behaviour that the FDFA expects from its contractual partners (suppliers of goods and services, consultants, contractors, organisations responsible for implementing projects and/or recipients of contributions, etc.) in Switzerland as well as abroad. The Code of Conduct is binding and forms an integral part of all agreements between the FDFA and its partners.

The Swiss Agency for Development and Cooperation (SDC) Risk Assessment for Partnerships with the Private Sector takes into account the impact that these partnerships could have on human and employment rights, government structures and the environment. Consequently, the federal government will not work with partners which have repeatedly been involved in human rights abuses or cannot provide cogent evidence that they have substantially reduced their exposure to human rights risks.

For the purpose of implementing these guidelines, the federal government may work with external providers in carrying out a detailed risk assessment if this can reasonably be required for the partnership in question. The federal government also ensures that it does not enter into any public-private development partnerships with business enterprises which refuse to cooperate with the National Contact Point for the OECD Guidelines for Multinational Enterprises.31

The federal government is currently working with other donors on a risk management model for public-private development projects. The outcome of this process, which takes place within the framework of the Private Sector Engagement Working Group of the Donor Committee for Enterprise Development (DCED), could necessitate amendments to the SDC Risk Assessment for Partnerships with the Private Sector.

2.1.5 Policy coherence

Guiding Principle 10

Measure 19: Promotion of respect for human rights and labour standards within financial institutions

As a general rule, an evaluation of the environmental and social risks is integral to the process of approving any project or programme conducted as part of Swiss economic cooperation. The aim is to ensure that any investments Switzerland makes fully comply with applicable legislation and rules, including international human rights standards.

Investments by the Swiss Investment Fund for Emerging Markets (SIFEM) are subject to full due diligence with regard to its environmental, social (including working conditions) and governance (ESG) responsibilities. The relevant human rights standards are applied in all ESG risk assessments. This means that the risks of human rights abuses are always taken into account in the investment decision-making process. SIFEM partners (fund managers) are required to submit an annual or half-yearly report detailing their ESG activities and any major ESG accidents and incidents. This information makes it possible to improve the monitoring of human rights issues from the initial situation assessment and right through the investment cycle.

As part of its involvement in international financial institutions, Switzerland actively promotes the systematic reinforcement of ESG standards. It supports the strictest transparency standards and helps to mitigate the potential adverse human rights impacts of projects by strengthening the independent inspection committees that handle project-related complaints lodged by the communities concerned. By creating frameworks and exemplary programmes, financial institutions can advance the promotion of ESG standards, respect for human rights at international level and a shared understanding of problems.

Read more about Development finance institutions

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2.1 Pillar 1: state duty to protect

2.1.2 Operational principles: legislative and information policy measures

Guiding Principles 1 to 3

Measure 1: Rules on the export of war material and technologies for internet surveillance

The export or brokerage of technologies for internet and mobile communication surveillance is governed by the Ordonnance sur l’exportation et le courtage de biens destinés à la surveillance d’Internet et des communications mobiles (Ordinance on the export and brokerage of technologies for internet and mobile communications surveillance). A licence to export or to broker such goods must be refused if there is reason to believe that the exported or brokered good will be used by the final recipient as a means of repression.

Guiding Principle 10

Measure 21: Support for UN bodies in charge of promoting the UN Guiding Principles

The federal government will continue to lend political and financial support to the UN Working Group, the Office of the UN High Commissioner for Human Rights and the annual UN Forum on Business and Human Rights in Geneva. It will work with these bodies on several projects that:

– establish authoritative guidelines on the application of UN Guiding Principles to fundamental issues in connection with the development, use and governance of digital technologies;

Read more about Digital technology & electronics sector

Read more about Energy sector

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2.1 Pillar 1: state duty to protect

2.1.3 The State-business nexus

Guiding Principles 4 to 5

Measure 11: Human rights due diligence by public-private development partnerships

The Swiss Agency for Development and Cooperation (SDC) Risk Assessment for Partnerships with the Private Sector takes into account the impact that these partnerships could have on human and employment rights, government structures and the environment. Consequently, the federal government will not work with partners which have repeatedly been involved in human rights abuses or cannot provide cogent evidence that they have substantially reduced their exposure to human rights risks.

Guiding Principle 6

Measure 12: Criteria under the core ILO conventions in public procurement at federal level

The Public Procurement Act is currently being revised in line with changes to the WTO Agreement on Government Procurement (GPA) 2012. The PPA (as amended) will include all three pillars of sustainability – economic, environmental and social. Accordingly, the principle of sustainable public procurement will govern the interpretation and implementation of the PPA and the PPO. In its recommendations on sustainable procurement, the Federal Procurement Conference specifically calls for social, environmental and economic factors to be taken into account, including the human rights criteria covered by the core ILO conventions. It also recommends that sustainability criteria be reflected in award procedures.

2.1.5 Policy coherence

Guiding Principle 10

Measure 19: Promotion of respect for human rights and labour standards within financial institutions

As a general rule, an evaluation of the environmental and social risks is integral to the process of approving any project or programme conducted as part of Swiss economic cooperation. The aim is to ensure that any investments Switzerland makes fully comply with applicable legislation and rules, including international human rights standards.

Investments by the Swiss Investment Fund for Emerging Markets (SIFEM) are subject to full due diligence with regard to its environmental, social (including working conditions) and governance (ESG) responsibilities. The relevant human rights standards are applied in all ESG risk assessments. This means that the risks of human rights abuses are always taken into account in the investment decision-making process.

2.2 Pillar 2: the corporate responsibility to respect human rights

2.2.2 Operational principles: human rights due diligence 

Measure 30: Guides and tools to implement the UN Guiding Principles

Most business enterprises use certification and private labels (e.g. UTZ, Fairtrade, and amfori/BSCI) as a means of ensuring compliance with social and environmental standards along the entire value chain. The federal government intends to help businesses identify which certifications meet the human rights due diligence standards under the UN Guiding Principles.

Read more about Environment & climate change

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2.1 Pillar 1: state duty to protect

2.1.3 The State-business nexus

Guiding Principles 4 to 5

Measure 11: Human rights due diligence by public-private development partnerships

As laid down in the Code of Conduct for Contractual Partners of the FDFA [Federal Department of Foreign Affairs], respect for human rights and gender equality are two of the values which should be promoted in the interests of Switzerland. All individuals, companies or other entities that work with the FDFA are required to contribute to the promotion of these values and to act in accordance with them, and with the legal order.

2.2 Pillar 2: the corporate responsibility to respect human rights

a number of Swiss companies …play an active part in eliminating all forms of professional and employment discrimination.

2.2.2 Operational principles: human rights due diligence

Guiding Principles 16 to 21

Measure 28: Promotion of gender equality

The Federal Council recognises the importance of addressing the disproportionate impact that business activities can have on women and girls.

The private sector is fundamental to advancing gender equality and women’s rights. In December 2018, parliament passed an amendment to the Gender Equality Act49 which adds pay equity to companies’ mandatory due diligence obligations. The revised legislation also requires public and private sector employers with at least 100 employees to conduct regular equal pay analyses. This new requirement will take effect on 1 July 2020. An independent body reviews the findings and the employer must inform the workforce of its conclusions. Companies which are found to have an equal pay policy are exempt from further assessment. The new provisions, which will take effect on 1 July 2020 for a period of 12 years, will be evaluated nine years after they come into force.

The federal government provides a free equal pay self-test tool, Logib, which allows companies with fewer than 50 employees to check for instances of wage inequality in their workforce.

Read more about Equality & non-discrimination

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2.1 Pillar 1: state duty to protect

2.1.3 The State-business nexus

Guiding Principles 4 to 5

Measure 10: Human rights due diligence by business enterprises covered by Swiss Export Risk Insurance (SERV) and supported by Switzerland Global Enterprise (S-GE)

The OECD Recommendation of the Council on Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence is constantly being updated and developed. Switzerland contributes to this process. The guidelines are intended, among other things, to provide greater protection against business-related human rights abuses, and they are widely recognised as constituting an international standard by export credit agencies and export risk insurance providers.

The SERV Ordinance (as amended) expressly requires insurance applicants to disclose human rights-related information. Unlike many other export credit agencies, SERV does not grant export credits, i.e. engage in direct lending, but solely provides insurance and guarantees, i.e. pure cover. SERV does not provide cover or accept liability in respect of claims relating to projects that do not meet international human rights standards because of the insured party’s activities.

Switzerland Global Enterprise (S-GE) works on behalf of the federal government and the Swiss cantons to promote exports and attract companies to Switzerland. It helps companies exploit new international markets, thus promoting Switzerland’s as a business location. S-GE has a Code of Conduct28 which is intended to ensure that its staff are not implicated in human rights abuses by Swiss companies. If S-GE determines that a company has committed a human rights abuse, it will decline the mandate in question.

Read more about Export credit

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2.1 Pillar 1: state duty to protect

2.1.2 Operational principles: legislative and information policy measures

Guiding Principles 1 to 3

Measure 2: Security and human rights

Switzerland is a member of the Voluntary Principles on Security and Human Rights initiative and contributes to its development. This initiative is targeted at companies in the extractive sector and offers them guidance on maintaining the safety and security of their operations within a framework that ensures respect for human rights, especially when private and/or public security providers are also involved. It is also committed to the application of the Voluntary Principles in the field and works to expand membership of the initiative.

Measure 7: Reduction in human rights risks associated with gold extraction and trading

At the end of 2018, the Federal Council adopted a report setting out a range of measures designed to improve the traceability of gold imported to Switzerland, strengthen multi-stakeholder dialogue and expand development cooperation on responsible gold production.

The measures aim to improve the collection and publication of information on the sources of gold imported in Switzerland, and increase transparency not only regarding the risk assessments conducted by the industry but also regarding its human rights due diligence. The federal government will take steps to promote best practices and examine the possible use of blockchain technologies to improve traceability in the gold industry.

Switzerland will continue to support the implementation of OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas and other relevant guidelines. As recommended in the above report, it will explore the possibility of granting the Central Office for Precious Metals Control wider responsibilities, including with respect to transparency on the provenance of gold imported to Switzerland.

Measure 13: Guidelines on human rights due diligence in conflict-affected and high-risk areas

…. Switzerland also supports the implementation of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. It is also a member of the multi-stakeholder group that manages the implementation, dissemination and continued development of these guidelines. The OECD Due Diligence Guidance is aimed primarily at companies involved in the extraction and trading of commodities in conflict-affected and high-risk areas, but it also applies to manufacturers of products containing minerals which operate in the downstream value chain and are required to exercise due diligence.

In addition, the federal government supports a project led by the UN Working Group on Business and Human Rights that aims to clarify the practical steps that companies, investors and States should take to prevent and combat business-related human rights abuses in conflict, post-conflict and fragile contexts The EU adopted Regulation 2017/821 of 17 May 2017 laying down supply chain due diligence obligations for Union importers of tin, tantalum and tungsten, their ores, and gold originating from conflict-affected and high-risk areas. The relevant provisions will take effect on 1 January 2021. In accordance with the Federal Council decision of 14 August 2019, the FDJP is mandated to examine the introduction of a mandatory due diligence in the area of “minerals from conflict areas”. In the meantime, on 18 December 2019, the Council of States adopted a regulation on this issue as part of the preparation of an indirect counter-proposal to the popular initiative for responsible businesses. The National Council has not yet commented on this. The Federal Council is of the opinion that it should await the end of the parliamentary debates.

Read more about Extractives sector

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2.3 Pillar 3: access to remedy

2.3.1 Foundational principle

Guiding Principle 25

The Federal Council also acknowledges its responsibility to facilitate access to Swiss grievance mechanisms where business enterprises based in Switzerland are involved in human rights abuses abroad, and those affected in the host state have no appropriate access to effective remedy. In such instances, due consideration must be given to a smart mix of judicial and non-judicial mechanisms.

2.3.2 Operational principles: state judicial mechanisms

Guiding Principle 26

Domestic judicial mechanisms (the courts) may be used to determine matters involving business-related human rights abuses. The federal government intends to ensure the effectiveness of these mechanisms by devising measures to reduce legal, practical and other hurdles that could prevent those affected from gaining access to remedy. These measures should pay particular attention to the additional obstacles that women may face.

In this context, it is necessary to consider the extra-territorial dimension of any judicial mechanisms. The Federal Council therefore supports efforts to achieve a better understanding of the relevant frameworks in different countries, and encourages international processes. Under certain circumstances, it is possible under Swiss law for individuals who believe that their rights have been violated by Swiss companies to bring an action or appeal before Swiss courts. Whether Swiss courts have jurisdiction to hear and determine such cases and the governing law must be assessed on a case-by-case basis with reference to applicable legal provisions.

Read more about Extraterritorial jurisdiction

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2.1 Pillar 1: state duty to protect

2.1.5 Policy coherence

Guiding Principle 10

Measure 19: Promotion of respect for human rights and labour standards within financial institutions

As part of its involvement in international financial institutions, Switzerland actively promotes the systematic reinforcement of ESG standards. It supports the strictest transparency standards and helps to mitigate the potential adverse human rights impacts of projects by strengthening the independent inspection committees that handle project-related complaints lodged by the communities concerned. By creating frameworks and exemplary programmes, financial institutions can advance the promotion of ESG standards, respect for human rights at international level and a shared understanding of problems.

Read more about Finance & banking sector

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

Read more about Fisheries and aquaculture sectors

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2.2 Pillar 2: the corporate responsibility to respect human rights

As part of the UN Global Impact, a number of Swiss companies …are involved in efforts to eliminate all forms of forced and compulsory labour; they seek to abolish child labour…

2.2.2 Operational principles: human rights due diligence

Guiding Principles 16 to 21

Measure 27: Promote efforts to end all forms of child exploitation in supply chains

The exploitation of children includes child labour, forced labour, sexual exploitation and child trafficking. The federal government works with civil society and the private sector to develop tools and organise events to raise awareness among businesses about the exploitation of children in all its forms.

The federal government will establish partnerships with the private sector and civil society to advance Goal 8.7 of the 2030 Agenda for Sustainable Development: end child labour in all its forms by 2025, eradicate forced labour, and end modern slavery and human trafficking by 2030.

Measure 29: Public-private partnerships to promote respect for human rights in the value chain

To promote the implementation of labour rights and human rights by business enterprises, the federal government, together with the ILO, supports the Better Work programme for the textile industry and the Sustaining Competitive and Responsible Enterprises (SCORE) programme to support SMEs in creating decent working conditions. These projects are jointly run by the ILO, governments, the private sector and unions, and are focused on compliance with fundamental labour standards, including measures to combat child and forced labour.

Read more about Forced labour & modern slavery

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2.2 Pillar 2: the corporate responsibility to respect human rights

… as part of the UN Global Impact, a number of Swiss companies have voiced their commitment to respecting the freedom of association and recognise the right to collective bargaining in countries where these rights are limited or not recognised …

Read more about Freedom of association

2.1 Pillar 1: State duty to protect

2.1.2 Operational principles: legislative and information policy measures

Measure 5 Multi-stakeholder initiatives on business and human rights

The federal government backs multi-stakeholder initiatives that focus on human rights issues in sectors such as textiles, cocoa and gold. As these initiatives cover other subjects such as corruption and the environment, they are dealt with in Measure 10 of the 2020–23 CSR Action Plan. – Page 11

2.2.2 Operational principles: human rights due diligence

Measure 29 Public-private partnerships to promote respect for human rights in the value chain

To promote the implementation of labour rights and human rights by business enterprises, the federal government, together with the ILO, supports the Better Work programme for the textile industry and the Sustaining Competitive and Responsible Enterprises (SCORE) programme to support SMEs in creating decent working conditions. These projects are jointly run by the ILO, governments, the private sector and unions, and are focused on compliance with fundamental labour standards, including measures to combat child and forced labour. The tools developed by these programmes are shared with the private sector.

The federal government supports a project to promote human rights due diligence with a view to preventing the exploitation of Syrian refugees and migrant workers in neighbouring countries (Turkey, Lebanon, Jordan). The aim is to strengthen the contribution that business enterprises make to providing decent work opportunities and combatting exploitation in the textile, agricultural and construction sectors in these countries. – Page 26

The OECD has also produced a series of guidelines for companies that contain practical recommendations on the adoption of due diligence along their value chains. In May 2018, it published guidance for companies of all sizes that are exposed to risks in their value chains, irrespective of the sector within which they operate. Other guidelines are aimed at specific sectors such as the agricultural, financial and textile sectors. – Page 27

Read more about Garment, Textile and Footwear Sector

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2.1 Pillar 1: state duty to protect

2.1.3 The State-business nexus

Guiding Principles 4 to 5

Measure 11: Human rights due diligence by public-private development partnerships

As laid down in the Code of Conduct for Contractual Partners of the FDFA [Federal Department of Foreign Affairs], respect for human rights and gender equality are two of the values which should be promoted in the interests of Switzerland. All individuals, companies or other entities that work with the FDFA are required to contribute to the promotion of these values and to act in accordance with them, and with the legal order.

2.2.1 Foundational principles

Guiding Principles 11 to 15

The responsibility of business enterprises to respect human rights refers to internationally recognised human rights. … Depending on the circumstances, business enterprises must also observe additional standards concerning particularly vulnerable population groups, including agreements protecting … women …

2.2.2 Operational principles: human rights due diligence

Measure 21: Support for UN bodies in charge of promoting the UN Guiding Principles

The federal government will continue to lend political and financial support to the UN Working Group, the Office of the UN High Commissioner for Human Rights and the annual UN Forum on Business and Human Rights in Geneva. It will work with these bodies on several projects that:

– take account of gender issues in the implementation of UN Guiding Principles;

Measure 28: Promotion of gender equality

The Federal Council recognises the importance of addressing the disproportionate impact that business activities can have on women and girls.

The private sector is fundamental to advancing gender equality and women’s rights. In December 2018, parliament passed an amendment to the Gender Equality Act which adds pay equity to companies’ mandatory due diligence obligations. The revised legislation also requires public and private sector employers with at least 100 employees to conduct regular equal pay analyses. This new requirement will take effect on 1 July 2020. An independent body reviews the findings and the employer must inform the workforce of its conclusions. Companies which are found to have an equal pay policy are exempt from further assessment. The new provisions, which will take effect on 1 July 2020 for a period of 12 years, will be evaluated nine years after they come into force.

The federal government provides a free equal pay self-test tool, Logib, which allows companies with fewer than 50 employees to check for instances of wage inequality in their workforce.

2.3.2 Operational principles: state judicial mechanisms

Guiding Principle 26

Domestic judicial mechanisms (the courts) may be used to determine matters involving business-related human rights abuses. The federal government intends to ensure the effectiveness of these mechanisms by devising measures to reduce legal, practical and other hurdles that could prevent those affected from gaining access to remedy. These measures should pay particular attention to the additional obstacles that women may face.

Measure 32: Rule of law and access to justice in host states

The federal government contributes to the strengthening of the rule of law and the promotion of human rights in host States. It engages in political dialogue and international development cooperation programmes in the field of good governance and access to justice. The federal government aims to ensure that communities have access to a fair, transparent and functioning judicial system where they can bring claims and hold the relevant authorities to account. Within this framework, particular attention is given to women and the additional obstacles they can face with regard to access to justice in general and, more specifically, in relation to business-related human rights abuses.

Read more about Gender & women’s rights

2 National Action Plan on Business and Human Rights 2020-23

2.1 Pillar 1: state duty to protect

Guiding Principles 1 to 3 

2.1.2 Operational principles: legislative and information policy measures

Measure 2: Security and human rights

Switzerland is a member of the Voluntary Principles on Security and Human Rights initiative and contributes to its development. This initiative is targeted at companies in the extractive sector and offers them guidance on maintaining the safety and security of their operations within a framework that ensures respect for human rights, especially when private and/or public security providers are also involved. Switzerland is an active member of the Steering Committee and assumes the chair on a rotating basis. It is also committed to the application of the Voluntary Principles in the field and works to expand membership of the initiative.

Measure 3: Promotion of UN Guiding Principles

The Federal Council will develop a business and human rights communications strategy  that promotes the UN Guiding Principles and sets out in clear terms what it expects from companies and management in this regard.

– awareness-raising efforts (incl. a website, workshops, webinars, presentations, publications);

– a platform for dialogue and the sharing of best practices (see Measure 26 below);

– communication with Swiss representations abroad;

– communication with the general public through articles, newspaper columns, company profiles, expert analyses and interviews;

– participation in forums for dialogue, particularly on commodities, alongside representatives from the cantons, the private sector, NGOs and the research community.

Measure 4: Geneva Center for Business and Human Rights

The Geneva Center for Business and Human Rights was established in 2019. Its mission is to educate future business leaders on human rights issues, provide a focus for rapidly changing political and trade discussions on the subject, and bolster Geneva’s status as the human rights capital. The centre, which will benefit from federal government support, carries out research on the human rights challenges faced by the corporate sector and fosters collaboration between academia and industry to gain new insights and advance existing knowledge on the subject.

 Measure 6: Business enterprises and human rights defenders

Companies should take on board the concerns of stakeholders, including human rights defenders, who may be affected by their activities. They also should not obstruct the legitimate and peaceful work of HRDs. Business enterprises can contribute to protecting human rights defenders by raising the matter with the authorities. As part of its State duty to protect, Switzerland supports the work of HRDs and is committed to ensuring that they are protected against unfair treatment, threats and violence, including abuses committed by private companies. The FDFA’s guidelines on human rights defenders are intended to raise awareness among Swiss representations abroad about their role and the resources available to them.

Measure 7: Reduction in human rights risks associated with gold extraction and trading

Switzerland will continue to support the implementation of OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas and other relevant guidelines. As recommended in the above report, it will explore the possibility of granting the Central Office for Precious Metals Control wider responsibilities, including with respect to transparency on the provenance of gold imported to Switzerland.

Measure 8: Human rights in tourism

The federal government supports the Roundtable on Human Rights in Tourism assessment of human rights impacts along the tourism value chain. This project, which will initially focus on Thailand, adopts a multi-stakeholder approach and seeks to develop practical guidelines for the tourism industry as a whole.

2.1.3 The State-business nexus

Guiding Principles 4 to 5

Given the federal government’s direct influence on the activities of federal government-associated businesses, it has a particular obligation to ensure that these companies respect human rights, for example by conducting human rights due diligence. It also expects federal government-associated businesses to have in place human rights best practices.

Measure 9: Human rights due diligence by federal government-associated businesses

The Federal Council defines its strategic goals for federal government-associated businesses every four years and expects these companies to pursue a sustainable corporate strategy to the best of their business ability. As regards the protection of human rights, a number of these businesses already exercise due diligence and document these efforts in their reporting.

To advance the implementation of UN Guiding Principles by federal government-associated businesses, interdepartmental coordination must be stepped up. Failure by these entities to meet international standards on human rights due diligence could pose a reputational risk to the federal government. The Federal Council therefore intends to assist federal government-associated businesses in playing a lead role by raising awareness of human rights due diligence and promoting the exchange of best practices, particularly with regard to risk management, monitoring and public reporting. This optional measure is geared primarily towards federal government-associated businesses which work with suppliers and business partners abroad.

The federal government may also run optional training sessions on UN Guiding Principles and human rights due diligence for the members of boards of directors and senior management of federal government-associated businesses.

Guiding Principle 6

The federal government is committed to ensuring that the value chains of goods purchased by the public sector are free of human rights abuses. It promotes respect for human rights by business enterprises with which they conduct commercial transactions.

Measure 13: Guidelines on human rights due diligence in conflict-affected and high-risk areas

Guidelines on human rights due diligence in conflict-affected and high-risk areas have been drawn up at international level and adopted by various OECD members. The Federal Council works at international level to advance the development, promotion and implementation of global standards. Switzerland also supports the implementation of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. It is also a member of the multi-stakeholder group that manages the implementation, dissemination and continued development of these guidelines. The OECD Due Diligence Guidance is aimed primarily at companies involved in the extraction and trading of commodities in conflict-affected and high-risk areas, but it also applies to manufacturers of products containing minerals which operate in the downstream value chain and are required to exercise due diligence.

In addition, the federal government supports a project led by the UN Working Group on Business and Human Rights that aims to clarify the practical steps that companies, investors and States should take to prevent and combat business-related human rights abuses in conflict, post-conflict and fragile contexts.

The EU adopted Regulation 2017/821 of 17 May 2017 laying down supply chain due diligence obligations for Union importers of tin, tantalum and tungsten, their ores, and gold originating from conflict-affected and high-risk areas. The relevant provisions will take effect on 1 January 2021. In accordance with the Federal Council decision of 14 August 2019, the FDJP is mandated to examine the introduction of a mandatory due diligence in the area of “minerals from conflict areas”. In the meantime, on 18 December 2019, the Council of States adopted a regulation on this issue as part of the preparation of an indirect counter-proposal to the popular initiative for responsible businesses. The National Council has not yet commented on this. The Federal Council is of the opinion that it should await the end of the parliamentary debates.

2.1.5 Policy coherence

Guiding Principle 10

Measure 22: Commitments by Switzerland to the UN Guiding Principles at multilateral level

Within the ILO, Switzerland supports the follow-up to the 2016 ILO Resolution on the UN Guiding Principles and global supply chains. It also comments on violations of fundamental rights at work committed by other ILO member states. In 2019, Switzerland declared that it was in favour of adopting the ‘ILO Centenary Declaration for the Future of Work’ which puts workers’ rights and the needs, aspirations and rights of all people at the heart of economic, social and environmental policies. The federal government also promotes the recommendations of the ILO’s Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy. These activities are part of efforts to promote the NAP and provide business enterprises with guidance on compliance with labour standards.

2.2 Pillar 2: the corporate responsibility to respect human rights

In promoting the UN Guiding Principles at national and international levels, the federal government seeks to create the right framework conditions for business enterprises to implement the principles, and to support them during this process. By respecting human rights, Swiss companies can consolidate their international standing over the long term as responsible and competitive players. The Federal Council therefore helps companies to meet their human rights responsibilities.

2.2.2 Operational principles: human rights due diligence

Guiding Principles 16 to 21

Measure 24: Support for industry initiatives

The federal government will step up cooperation with industry initiatives, associations and chambers of commerce which promote the UN Guiding Principles, and support action taken by businesses to uphold human rights. This will involve identifying initiatives and actors which have the potential to substantially further the implementation of the UN Guiding Principles by businesses. Priority will be given to initiatives that contribute to due diligence training for business enterprises or that are developing practical and effective human rights tools for SMEs. All tools developed as part of initiatives supported and recognised under the NAP will be made available to the businesses online.

Measure 25: Promotion of ILO Helpdesk for Business

The ILO Helpdesk for Business is a valuable resource for company managers and workers seeking information on how to better align their business operations with international labour standards and build good industrial relations. The ILO Helpdesk provides information in response to specific questions and has a website featuring ILO tools and business-specific resources. Specific queries on applying international labour standards in company operations can be sent by email directly to the ILO. Employers’ organisations and individual companies can also use the free and confidential service provided by the ILO Helpdesk for Business. The responses are prepared by an ILO expert team based on the various ILO standards, strategy documents and tools.

Measure 26: Promotion of best practices

The federal government intends to hold a Swiss Business and Human Rights Forum as part of its efforts to encourage and promote human rights best practices among businesses. The forum will provide stakeholders with a platform to discuss trends and challenges in implementing the UN Guiding Principles and foster dialogue and cooperation, particularly on the operational challenges faced by certain sectors. The forum will also help identify best practices for SMEs. In addition to these activities, the federal government will explore the option of creating a Swiss Business and Human Rights Award for business enterprises that have made an outstanding contribution to protecting human rights.

Measure 30: Guides and tools to implement the UN Guiding Principles

Most business enterprises use certification and private labels (e.g. UTZ, Fairtrade, and amfori/BSCI) as a means of ensuring compliance with social and environmental standards along the entire value chain. The federal government intends to help businesses identify which certifications meet the human rights due diligence standards under the UN Guiding Principles.

In response to Recommendation 11 of the Background Report on Commodities, the Swiss government worked with a multi-stakeholder group (cantons, civil society and the private sector) to draw up a best practice guide for the commodity sector. ‘The Commodity Sector – Guidance on Implementing the UN Guiding Principles on Business and Human Rights’, which was published in November 2018, provides companies working in this sector with practical advice on exercising due diligence along their value chains. Measures, including awareness-raising events and practical workshops, will be put in place to disseminate and promote its application.

The OECD has also produced a series of guidelines for companies that contain practical recommendations on the adoption of due diligence along their value chains. In May 2018, it published guidance for companies of all sizes that are exposed to risks in their value chains, irrespective of the sector within which they operate. Other guidelines are aimed at specific sectors such as the agricultural, financial and textile sectors.

Many international guides and tools are already available. The federal government will explore the possibility of translating some of these into the national languages to enable them to be adapted and implemented in Switzerland. The complex nature of these guides means that some companies, especially SMEs, may find it difficult to put them into practice. Easy-to-use online interactive tools could provide a starting point for SMEs. The Swiss government will develop instruments that enable SMEs to carry out risk assessments and identify measures. They also could provide the basis for an assessment of the action needed to improve human rights due diligence.

Read more about Guidance to business

1 Introduction

1.5 Policy, strategy and action plan coherence

A clean, healthy and sustainable environment is integral to the full enjoyment of human rights. Pollution, for example, can have an adverse impact on health and well-being, which is a violation of the rights laid down in human rights conventions. While the ‘Green Economy’ report explicitly addresses the economy–environment link7, the CSR Action Plan sets out cross-cutting thematic instruments rather than focusing specifically on this issue. [page 6]

Read more about Health and social care

2 National Action Plan on Business and Human Rights 2020-23

2.1 Pillar 1: state duty to protect

2.1.2 Operational principles: legislative and information policy measures

Measure 6: Business enterprises and human rights defenders

Companies should take on board the concerns of stakeholders, including human rights defenders [HRDs], who may be affected by their activities. They also should not obstruct the legitimate and peaceful work of HRDs. Business enterprises can contribute to protecting human rights defenders by raising the matter with the authorities. As part of its State duty to protect, Switzerland supports the work of HRDs and is committed to ensuring that they are protected against unfair treatment, threats and violence, including abuses committed by private companies. The FDFA’s [Federal Department of Foreign Affairs] guidelines on human rights defenders are intended to raise awareness among Swiss representations abroad about their role and the resources available to them.

Read more about Human rights defenders & whistle-blowers

2 National Action Plan on Business and Human Rights 2020-23

2.1 Pillar 1: state duty to protect

Guiding Principles 1 to 3

2.1.2 Operational principles: legislative and information policy measures

Measure 8: Human rights in tourism

The federal government supports the Roundtable on Human Rights in Tourism assessment of human rights impacts along the tourism value chain. This project, which will initially focus on Thailand, adopts a multi-stakeholder approach and seeks to develop practical guidelines for the tourism industry as a whole.

Measure 11: Human rights due diligence by public-private development partnerships

The Swiss Agency for Development and Cooperation (SDC) Risk Assessment for Partnerships with the Private Sector takes into account the impact that these partnerships could have on human and employment rights, government structures and the environment. Consequently, the federal government will not work with partners which have repeatedly been involved in human rights abuses or cannot provide cogent evidence that they have substantially reduced their exposure to human rights risks.

The federal government is currently working with other donors on a risk management model for public-private development projects. The outcome of this process, which takes place within the framework of the Private Sector Engagement Working Group of the Donor Committee for Enterprise Development (DCED), could necessitate amendments to the SDC Risk Assessment for Partnerships with the Private Sector.

2.1.5 Policy coherence

Guiding Principle 10

Measure 20: Promotion of the UN Guiding Principles in consultations, human rights dialogue and bilateral projects

The federal government systematically profiles ‘business and human rights’ in political consultations and human rights dialogue conducted with partner States. When preparing consultations and dialogue meetings, the FDFA consults with different federal agencies as well as other interest groups such as the private sector and civil society.

The federal government also promotes the UN Guiding Principles in supporting specific bilateral projects. It also engages in political dialogue and strategic partnerships with the governments of host States to discuss circumstances where regulations, policies, or other action on the part of the host State make it difficult for Swiss business enterprises to respect human rights.

3 Implementing, monitoring and reviewing the NAP

The FDFA [Federal Department of Foreign Affairs] and the EAER [Federal Department of Economic Affairs, Education and Research will base its evaluation of NAP implementation on the performance indicators assigned to each measure. All policy instruments include clear objectives as well as performance indicators to gauge the progress the federal government has made on implementation and improve the transparency of the outcomes. The federal government will also explore the possibility of conducting an impact assessment at some point in the future. At the end of the legislative period, the FDFA and the EAER will publish a short joint status report.

Read more about Human rights impact assessments

2 National Action Plan on Business and Human Rights 2020-23

2.2 Pillar 2: the corporate responsibility to respect human rights

2.2.1 Foundational principles

Guiding Principles 11 to 15

…. The responsibility of business enterprises to respect human rights refers to internationally recognised human rights. … Depending on the circumstances, business enterprises must also observe additional standards concerning particularly vulnerable population groups, including agreements protecting … indigenous people …

Read more about Indigenous peoples

2 National Action Plan on Business and Human Rights 2020-23

2.1 Pillar 1: state duty to protect

2.1.5 Policy coherence

Guiding Principle 9

The federal government enters into economic agreements with other States or with business enterprises. They include bilateral investment promotion and protection agreements, free trade agreements and agreements governing investment projects. The federal government should ensure that these agreements provide sufficient domestic policy scope to fulfil the human rights obligations of both Switzerland and the contracting partner.

Guiding Principle 10

Measure 19: Promotion of respect for human rights and labour standards within financial institutions

Investments by the Swiss Investment Fund for Emerging Markets (SIFEM) are subject to full due diligence with regard to its environmental, social (including working conditions) and governance (ESG) responsibilities. The relevant human rights standards are applied in all ESG risk assessments. This means that the risks of human rights abuses are always taken into account in the investment decision-making process. SIFEM partners (fund managers) are required to submit an annual or half-yearly report detailing their ESG activities and any major ESG accidents and incidents. This information makes it possible to improve the monitoring of human rights issues from the initial situation assessment and right through the investment cycle.

As part of its involvement in international financial institutions, Switzerland actively promotes the systematic reinforcement of ESG standards. It supports the strictest transparency standards and helps to mitigate the potential adverse human rights impacts of projects by strengthening the independent inspection committees that handle project-related complaints lodged by the communities concerned. By creating frameworks and exemplary programmes, financial institutions can advance the promotion of ESG standards, respect for human rights at international level and a shared understanding of problems.

Read more about Investment treaties & investor-state dispute settlements

2 National Action Plan on Business and Human Rights 2020-23

2.1 Pillar 1: state duty to protect

2.1.5 Policy coherence

Guiding Principle 10

Measure 21: Support for UN bodies in charge of promoting the UN Guiding Principles

The federal government will continue to lend political and financial support to the UN Working Group, the Office of the UN High Commissioner for Human Rights and the annual UN Forum on Business and Human Rights in Geneva. It will work with these bodies on several projects that:

– improve access to remediation mechanisms for those affected by business-related human rights abuses.

Measure 22: Commitments by Switzerland to the UN Guiding Principles at multilateral level

Switzerland actively contributed to the drafting of the Recommendation42 on business and human rights adopted by the Committee of Ministers of the Council of Europe on 2 March 2016. In implementing the NAP, Switzerland is implementing the Committee of Ministers Recommendation. It also supports Council of Europe efforts to improve access to remedy for those affected by human rights abuses, as well as to its online business and human rights platform.

2.3 Pillar 3: access to remedy

Many business enterprises have introduced mechanisms that enable their employees and/or business partners to share their concerns about possible human rights abuses and bring claims. Dealing with such claims internally, for example through mediation, often produces satisfactory outcomes for all affected parties. When a constructive solution cannot be found, the State must provide non-judicial and judicial mechanisms which give those affected by human rights abuses access to effective remedy.

2.3.1 Foundational principle

Guiding Principle 25

The Federal Council recognises the need to provide access to remedy for those affected by human rights abuses committed on Swiss territory and/or under Swiss jurisdiction. It believes the principal means of doing this is via the well-functioning Swiss judicial system, along with alternative, non-judicial dispute resolution mechanisms.

The Federal Council also acknowledges its responsibility to facilitate access to Swiss grievance mechanisms where business enterprises based in Switzerland are involved in human rights abuses abroad, and those affected in the host state have no appropriate access to effective remedy. In such instances, due consideration must be given to a smart mix of judicial and non-judicial mechanisms.

2.3.2 Operational principles: state judicial mechanisms

Guiding Principle 26

Domestic judicial mechanisms (the courts) may be used to determine matters involving business-related human rights abuses. The federal government intends to ensure the effectiveness of these mechanisms by devising measures to reduce legal, practical and other hurdles that could prevent those affected from gaining access to remedy. These measures should pay particular attention to the additional obstacles that women may face.

In this context, it is necessary to consider the extra-territorial dimension of any judicial mechanisms. The Federal Council therefore supports efforts to achieve a better understanding of the relevant frameworks in different countries, and encourages international processes. Under certain circumstances, it is possible under Swiss law for individuals who believe that their rights have been violated by Swiss companies to bring an action or appeal before Swiss courts. Whether Swiss courts have jurisdiction to hear and determine such cases and the governing law must be assessed on a case-by-case basis with reference to applicable legal provisions.

The Federal Council addressed all these issues in a report and acknowledges that the mechanisms available in Switzerland are, by international standards, sufficiently well-developed. The report also identified areas where improvements could be made. The Federal Council subsequently decided on additional measures to improve access to remedy in Switzerland for individuals who have suffered human rights abuses committed by a business enterprise based in another country.

Measure 31: Promoting the option of collective redress

The Federal Council intends to make selective amendments to the Civil Procedure Code (CPC) to improve its applicability. These will focus on removing obstacles to legal redress such as fees and the risks associated with legal costs, strengthening collective redress mechanisms and simplifying the coordination of procedures.

In the process of revising the CPC, the federal government drafted amendments to the provisions governing costs with a view to extending the scope of the conciliation procedure. New rules on group actions and establishing a group settlement mechanism will close a gap in the available legal protection by facilitating class actions in respect of mass and dispersed damage claims. These amendments and new articles bring the draft bill in line with Business and Human Rights Recommendations 39 and 42 of the Committee of Ministers of the Council of Europe of 2 March 2016. They also meet the expectations of the UN, as expressed in Guiding Principle 26.

Read more about Judicial remedy

The Swiss NAP does not make an explicit reference to Land.

Read more about Land

2 National Action Plan on Business and Human Rights 2020-23

2.1 Pillar 1: state duty to protect

2.1.2 Operational principles: legislative and information policy measures

Swiss legislation does not require companies to carry out human rights due diligence. In response to the popular initiative ‘Responsible Business – Protecting Human Rights and the Environment’, the Federal Council proposed submitting it to the people (referendum), without a counter-proposal. It advised voters to reject the initiative, explaining that it prefers a coordinated approach at the international level and the use of existing instruments, specifically the national action plans on the subjects covered by the popular initiative

2.1.3 The State-business nexus

Guiding Principle 10

Measure 9: Human rights due diligence by federal government-associated businesses

The Federal Council defines its strategic goals for federal government-associated businesses every four years and expects these companies to pursue a sustainable corporate strategy to the best of their business ability. As regards the protection of human rights, a number of these businesses already exercise due diligence and document these efforts in their reporting.

To advance the implementation of UN Guiding Principles by federal government-associated businesses, interdepartmental coordination must be stepped up. Failure by these entities to meet international standards on human rights due diligence could pose a reputational risk to the federal government. The Federal Council therefore intends to assist federal government-associated businesses in playing a lead role by raising awareness of human rights due diligence and promoting the exchange of best practices, particularly with regard to risk management, monitoring and public reporting. This optional measure is geared primarily towards federal government-associated businesses which work with suppliers and business partners abroad.

The federal government may also run optional training sessions on UN Guiding Principles and human rights due diligence for the members of boards of directors and senior management of federal government-associated businesses.

Measure 10: Human rights due diligence by business enterprises covered by Swiss Export Risk Insurance (SERV) and supported by Switzerland Global Enterprise (S-GE)

The OECD Recommendation of the Council on Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence is constantly being updated and developed. Switzerland contributes to this process. The guidelines are intended, among other things, to provide greater protection against business-related human rights abuses, and they are widely recognised as constituting an international standard by export credit agencies and export risk insurance providers.

The SERV Ordinance (as amended) expressly requires insurance applicants to disclose human rights-related information. Unlike many other export credit agencies, SERV does not grant export credits, i.e. engage in direct lending, but solely provides insurance and guarantees, i.e. pure cover. SERV does not provide cover or accept liability in respect of claims relating to projects that do not meet international human rights standards because of the insured party’s activities.

Switzerland Global Enterprise (S-GE) works on behalf of the federal government and the Swiss cantons to promote exports and attract companies to Switzerland. It helps companies exploit new international markets, thus promoting Switzerland’s as a business location. S-GE has a Code of Conduct which is intended to ensure that its staff are not implicated in human rights abuses by Swiss companies. If S-GE determines that a company has committed a human rights abuse, it will decline the mandate in question.

Measure 11: Human rights due diligence by public-private development partnerships

As laid down in the Code of Conduct for Contractual Partners of the FDFA [Federal Department of Foreign Affairs], respect for human rights and gender equality are two of the values which should be promoted in the interests of Switzerland. All individuals, companies or other entities that work with the FDFA are required to contribute to the promotion of these values and to act in accordance with them, and with the legal order. The Code of Conduct outlines the attitude and behaviour that the FDFA expects from its contractual partners (suppliers of goods and services, consultants, contractors, organisations responsible for implementing projects and/or recipients of contributions, etc.) in Switzerland as well as abroad. The Code of Conduct is binding and forms an integral part of all agreements between the FDFA and its partners.

The Swiss Agency for Development and Cooperation (SDC) Risk Assessment for Partnerships with the Private Sector takes into account the impact that these partnerships could have on human and employment rights, government structures and the environment. Consequently, the federal government will not work with partners which have repeatedly been involved in human rights abuses or cannot provide cogent evidence that they have substantially reduced their exposure to human rights risks.

The federal government is currently working with other donors on a risk management model for public-private development projects. The outcome of this process, which takes place within the framework of the Private Sector Engagement Working Group of the Donor Committee for Enterprise Development (DCED), could necessitate amendments to the SDC Risk Assessment for Partnerships with the Private Sector.

2.1.4 Business respect for human rights in conflict-affected areas

Guiding Principle 7

Given the heightened risk of human rights abuses in conflict-affected areas, States should help ensure that business enterprises operating in those contexts are not involved in such abuses or lead State entities to commit human rights violations. The federal government expects companies operating in conflict-affected and high-risk areas to conduct due diligence in a way that takes local circumstances into account. This requires the adoption of a conflict-sensitive approach based on human rights and observance of the ‘do no harm’ principle (consideration of problems intrinsic to fragile contexts).

Measure 13: Guidelines on human rights due diligence in conflict-affected and high-risk areas

Guidelines on human rights due diligence in conflict-affected and high-risk areas have been drawn up at international level and adopted by various OECD members. The Federal Council works at international level to advance the development, promotion and implementation of global standards. Switzerland also supports the implementation of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.33 It is also a member of the multi-stakeholder group that manages the implementation, dissemination and continued development of these guidelines. The OECD Due Diligence Guidance is aimed primarily at companies involved in the extraction and trading of commodities in conflict-affected and high-risk areas, but it also applies to manufacturers of products containing minerals which operate in the downstream value chain and are required to exercise due diligence.

In addition, the federal government supports a project led by the UN Working Group on Business and Human Rights that aims to clarify the practical steps that companies, investors and States should take to prevent and combat business-related human rights abuses in conflict, post-conflict and fragile contexts The EU adopted Regulation 2017/821 of 17 May 2017 laying down supply chain due diligence obligations for Union importers of tin, tantalum and tungsten, their ores, and gold originating from conflict-affected and high-risk areas. The relevant provisions will take effect on 1 January 2021. In accordance with the Federal Council decision of 14 August 2019, the FDJP is mandated to examine the introduction of a mandatory due diligence in the area of “minerals from conflict areas”. In the meantime, on 18 December 2019, the Council of States adopted a regulation on this issue as part of the preparation of an indirect counter-proposal to the popular initiative for responsible businesses. The National Council has not yet commented on this. The Federal Council is of the opinion that it should await the end of the parliamentary debates.

2.1.5 Policy coherence

Guiding Principle 10

Measure 19: Promotion of respect for human rights and labour standards within financial institutions

Investments by the Swiss Investment Fund for Emerging Markets (SIFEM) are subject to full due diligence with regard to its environmental, social (including working conditions) and governance (ESG) responsibilities. The relevant human rights standards are applied in all ESG risk assessments. This means that the risks of human rights abuses are always taken into account in the investment decision-making process. SIFEM partners (fund managers) are required to submit an annual or half-yearly report detailing their ESG activities and any major ESG accidents and incidents. This information makes it possible to improve the monitoring of human rights issues from the initial situation assessment and right through the investment cycle.

2.2 Pillar 2: the corporate responsibility to respect human rights

2.2.1 Foundational principles

Guiding Principles 11 to 15

Business activities generate investment, jobs and economic growth, but they can sometimes have undesirable side-effects too. The Federal Council expects companies to exercise human rights due diligence.

Under the UN Guiding Principles, respecting human rights is a general standard of conduct that all business enterprises are expected to meet wherever they operate. It exists independently of States’ abilities and/or willingness to fulfil their human rights obligations. The responsibility of business enterprises to respect human rights refers to internationally recognised human rights

2.2.2 Operational principles: human rights due diligence

Guiding Principles 16 to 21

Pillar 2 of the UN Guiding Principles focuses on human rights due diligence. This process should include (1) identifying risks and possible and actual impacts, (2) taking measures to mitigate risks, (3) verifying effectiveness of these measures, and (4) reporting on the action taken and the risks identified. This is the most important mechanism for preventing human rights abuses. Business enterprises must seek ways to prevent or mitigate adverse human rights impacts which are directly linked to their business operations, products or services, even if they have not contributed to these impacts.

Measure 23: Evaluation of implementation of the UN Guiding Principles by business enterprises

The federal government aims to review the progress made by companies in implementing the UN Guiding Principles and, in particular, in respect of human rights due diligence. This external evaluation will be carried out in tandem with the review of the implementation of the OECD Due Diligence Guidance provided for in Measure 16 of the 2020–23 CSR Action Plan. These evaluations, which will also consider action taken by umbrella organisations and trade associations, should generate a clearer picture of the challenges posed by the implementation of the UN Guiding Principles.

Measure 24: Support for industry initiatives

Umbrella organisations and industry associations contribute to the development of industry initiatives. As well as playing a major role in raising awareness and furthering the implementation of human rights due diligence among business enterprises, initiatives led by umbrella organisations and industry associations can provide practical responses to the specific challenges faced by particular sectors. Companies operating in the same sector tend to encounter similar problems but do not have the financial resources or expertise to tackle them single-handedly. Participation in industry initiatives can help companies, especially SMEs, to widen their sphere of influence.

Measure 29: Public-private partnerships to promote respect for human rights in the value chain

The federal government supports a project to promote human rights due diligence with a view to preventing the exploitation of Syrian refugees and migrant workers in neighbouring countries (Turkey, Lebanon, Jordan). The aim is to strengthen the contribution that business enterprises make to providing decent work opportunities and combatting exploitation in the textile, agricultural and construction sectors in these countries.

Measure 30: Guides and tools to implement the UN Guiding Principles

Most business enterprises use certification and private labels (e.g. UTZ, Fairtrade, and amfori/BSCI) as a means of ensuring compliance with social and environmental standards along the entire value chain. The federal government intends to help businesses identify which certifications meet the human rights due diligence standards under the UN Guiding Principles.

In response to Recommendation 11 of the Background Report on Commodities, the Swiss government worked with a multi-stakeholder group (cantons, civil society and the private sector) to draw up a best practice guide for the commodity sector. ‘The Commodity Sector – Guidance on Implementing the UN Guiding Principles on Business and Human Rights’, which was published in November 2018, provides companies working in this sector with practical advice on exercising due diligence along their value chains. Measures, including awareness-raising events and practical workshops, will be put in place to disseminate and promote its application.

The OECD has also produced a series of guidelines for companies that contain practical recommendations on the adoption of due diligence along their value chains. In May 2018, it published guidance for companies of all sizes that are exposed to risks in their value chains, irrespective of the sector within which they operate. Other guidelines are aimed at specific sectors such as the agricultural, financial and textile sectors.

Many international guides and tools are already available. The federal government will explore the possibility of translating some of these into the national languages to enable them to be adapted and implemented in Switzerland. The complex nature of these guides means that some companies, especially SMEs, may find it difficult to put them into practice. Easy-to-use online interactive tools could provide a starting point for SMEs. The Swiss government will develop instruments that enable SMEs to carry out risk assessments and identify measures. They also could provide the basis for an assessment of the action needed to improve human rights due diligence.

Read more about Mandatory human rights due diligence

2 National Action Plan on Business and Human Rights 2020-23

2.2 Pillar 2: the corporate responsibility to respect human rights

2.2.2 Operational principles: human rights due diligence

Guiding Principles 16 to 21

Measure 29: Public-private partnerships to promote respect for human rights in the value chain

The federal government supports a project to promote human rights due diligence with a view to preventing the exploitation of Syrian refugees and migrant workers in neighbouring countries (Turkey, Lebanon, Jordan). The aim is to strengthen the contribution that business enterprises make to providing decent work opportunities and combatting exploitation in the textile, agricultural and construction sectors in these countries.

Read more about Migrant workers

2 National Action Plan on Business and Human Rights 2020-23

2.1 Pillar 1: state duty to protect

2.1.5 Policy coherence

Guiding Principle 8

Measure 17: National human rights institution

With the Swiss Competence Centre for Human Rights (SCMR), a successful pilot project for a national human rights institution (NHRI) has been running since 2011. A core topic of the SCMR is human rights and business.

This pilot project will be replaced by a permanent, legally established institution. The Federal Council approved the corresponding bill on 13 December 2019, parliamentary consultation will begin in 2020. The NHRI will strengthen the protection and promotion of human rights in Switzerland. Its independence enables it to cooperate with authorities at all levels of government, but also with non-governmental organisations, the private sector, research and international organisations and to support their human rights activities. Its tasks include information and documentation, research, consultancy, human rights education and awareness-raising, promotion of dialogue and cooperation, and international exchange. In addition to domestic human rights issues, its mandate also includes questions relating to the implementation of international human rights obligations in Switzerland.

Read more about National Human Rights Institutions/ Ombudspersons

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2.1 Pillar 1: state duty to protect

2.1.2 Operational principles: legislative and information policy measures

Swiss legislation does not require companies to carry out human rights due diligence. In response to the popular initiative ‘Responsible Business – Protecting Human Rights and the Environment’, the Federal Council proposed submitting it to the people (referendum), without a counter-proposal. It advised voters to reject the initiative, explaining that it prefers a coordinated approach at the international level and the use of existing instruments, specifically the national action plans on the subjects covered by the popular initiative (NAP on Business and Human Rights, Corporate Social Responsibility (CSR) Action Plan and the ‘Green Economy’ report). On 14 June 2018, the National Council tabled an indirect counter-proposal, which is still being debated in parliament. The Federal Council is monitoring the debates, as well as international developments, emerging legislative trends on corporate human rights due diligence and the implementation of the UN Guiding Principles by businesses. Of particular interest are legislative changes in the EU regarding the mandatory reporting of non-financial information.

2.1.5 Policy coherence

Guiding Principle 10

Measure 19: Promotion of respect for human rights and labour standards within financial institutions

Investments by the Swiss Investment Fund for Emerging Markets (SIFEM) are subject to full due diligence with regard to its environmental, social (including working conditions) and governance (ESG) responsibilities. The relevant human rights standards are applied in all ESG risk assessments. This means that the risks of human rights abuses are always taken into account in the investment decision-making process. SIFEM partners (fund managers) are required to submit an annual or half-yearly report detailing their ESG activities and any major ESG accidents and incidents. This information makes it possible to improve the monitoring of human rights issues from the initial situation assessment and right through the investment cycle.

Read more about Non-financial reporting

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2.1 Pillar 1: state duty to protect

2.1.2 Operational principles: legislative and information policy measures

Guiding Principles 1 to 3

Measure 2: Security and human rights

Switzerland also helped to establish the International Code of Conduct Association, which requires private security providers to uphold human rights standards. The ICoC Association has a grievance procedure to address claims brought by employees or third parties regarding human rights abuses by companies. It has also produced guidance for private security providers on setting up complaints-handling schemes within their organisation, as well as guidelines on preventing sexual exploitation and abuse.

2.1.5 Policy coherence

Guiding Principle 8

Measure 17: National human rights institution

With the Swiss Competence Centre for Human Rights (SCMR), a successful pilot project for a national human rights institution (NHRI) has been running since 2011. A core topic of the SCMR is human rights and business.

This pilot project will be replaced by a permanent, legally established institution. The Federal Council approved the corresponding bill on 13 December 2019, parliamentary consultation will begin in 2020. The NHRI will strengthen the protection and promotion of human rights in Switzerland. Its independence enables it to cooperate with authorities at all levels of government, but also with non-governmental organisations, the private sector, research and international organisations and to support their human rights activities. Its tasks include information and documentation, research, consultancy, human rights education and awareness-raising, promotion of dialogue and cooperation, and international exchange. In addition to domestic human rights issues, its mandate also includes questions relating to the implementation of international human rights obligations in Switzerland.

Guiding Principle 10

Measure 21: Support for UN bodies in charge of promoting the UN Guiding Principles

The federal government will continue to lend political and financial support to the UN Working Group, the Office of the UN High Commissioner for Human Rights and the annual UN Forum on Business and Human Rights in Geneva. It will work with these bodies on several projects that:

– improve access to remediation mechanisms for those affected by business-related human rights abuses.

Measure 22: Commitments by Switzerland to the UN Guiding Principles at multilateral level

Switzerland actively contributed to the drafting of the Recommendation 42 on business and human rights adopted by the Committee of Ministers of the Council of Europe on 2 March 2016. In implementing the NAP, Switzerland is implementing the Committee of Ministers Recommendation. It also supports Council of Europe efforts to improve access to remedy for those affected by human rights abuses, as well as to its online business and human rights platform.

2.3 Pillar 3: access to remedy

Many business enterprises have introduced mechanisms that enable their employees and/or business partners to share their concerns about possible human rights abuses and bring claims. Dealing with such claims internally, for example through mediation, often produces satisfactory outcomes for all affected parties. When a constructive solution cannot be found, the State must provide non-judicial and judicial mechanisms which give those affected by human rights abuses access to effective remedy.

2.3.1 Foundational principle

Guiding Principle 25

The Federal Council recognises the need to provide access to remedy for those affected by human rights abuses committed on Swiss territory and/or under Swiss jurisdiction. It believes the principal means of doing this is via the well-functioning Swiss judicial system, along with alternative, non-judicial dispute resolution mechanisms.

The Federal Council also acknowledges its responsibility to facilitate access to Swiss grievance mechanisms where business enterprises based in Switzerland are involved in human rights abuses abroad, and those affected in the host state have no appropriate access to effective remedy. In such instances, due consideration must be given to a smart mix of judicial and non-judicial mechanisms.

Measure 31: Promoting the option of collective redress

The Federal Council intends to make selective amendments to the Civil Procedure Code (CPC) to improve its applicability. These will focus on removing obstacles to legal redress such as fees and the risks associated with legal costs, strengthening collective redress mechanisms and simplifying the coordination of procedures.

In the process of revising the CPC, the federal government drafted amendments to the provisions governing costs with a view to extending the scope of the conciliation procedure. New rules on group actions and establishing a group settlement mechanism will close a gap in the available legal protection by facilitating class actions in respect of mass and dispersed damage claims. These amendments and new articles bring the draft bill in line with Business and Human Rights Recommendations 39 and 42 of the Committee of Ministers of the Council of Europe of 2 March 2016. They also meet the expectations of the UN, as expressed in Guiding Principle 26.

2.3.3 Operational principles: state non-judicial grievance mechanisms

Guiding Principle 27

State non-judicial grievance frameworks can be an important factor in ensuring access to remedy for business-related human rights abuses. They often enable the parties to resolve differences through dialogue, therefore avoiding lengthy and costly court proceedings.

Measure 33: Visibility of non-judicial grievance mechanisms

Switzerland already has several state and non-state non-judicial grievance mechanisms in place, such as the National Contact Point for the OECD Guidelines for Multinational Enterprises and ombudsman services. However, the role they play and the work they carry out are not well known. The Federal Council wishes to increase the visibility of non-judicial individual and collective redress mechanisms. Measures will include the provision of information resources and other tools developed as part of the NAP (website: www.nap-bhr.admin.ch; brochures etc.), as well as activities to promote these mechanisms.

Measure 34: National Contact Point for the OECD Guidelines for Multinational Enterprises

The OECD Guidelines for Multinational Enterprises include a chapter on human rights. The 48 signatories to the OECD guidelines are required to set up a non-judicial grievance mechanism in the form of a National Contact Point (NCP) to receive and handle complaints regarding the application of the OECD Guidelines. They also serve as an important non-judicial grievance mechanism for business-related human rights abuses.

Measure 5 of the 2020–23 CSR Action Plan deals with the NCP in detail. As well as providing a mediation platform, the NCP should clearly position itself as a point of contact for the prevention of problems in connection with responsible business conduct (e.g. by having a social media presence and participating in stakeholder events).

2.3.4 Operational principles: non-state grievance mechanisms

Guiding Principles 28 to 31

Swiss business enterprises, especially those with considerable exposure to human rights risks, should have in place appropriate grievance mechanisms to facilitate access to remedy for those affected by abuses. To ensure their effectiveness, these mechanisms must be legitimate, accessible, predictable, fair, transparent and in compliance with Swiss law and constitute a source of learning for all stakeholders. The Federal Council considers the promotion of grievance mechanisms through multi-stakeholder initiatives as an important means of guaranteeing access to remedy.

Measure 35 Grievance mechanisms as part of multi-stakeholder initiatives

The UN Guiding Principles underline the importance of multi-stakeholder initiatives and processes led by business associations which are designed to facilitate access to remedy. The judicial authorities and professional legal practitioner associations are not currently represented in such initiatives. In order to improve access to remedy as stipulated in the UN Guiding Principles, the federal government will explore the option of involving these groups in multi-stakeholder initiatives in the field of business and human rights. This could take the form of dialogue within existing multi-stakeholder initiatives. Participants would include representatives from industry, public law enforcement bodies and NGOs, and other key actors such as lawyers and mediators.

Read more about Non-judicial grievance mechanisms

2 National Action Plan on Business and Human Rights 2020-23

2.1 Pillar 1: state duty to protect

2.1.3 The State-business nexus

Guiding Principles 4 to 5

Measure 11: Human rights due diligence by public-private development partnerships

The federal government also ensures that it does not enter into any public-private development partnerships with business enterprises which refuse to cooperate with the National Contact Point for the OECD Guidelines for Multinational Enterprises

2.3 Pillar 3: access to remedy

2.3.3 Operational principles: state non-judicial grievance mechanisms

Guiding Principle 27

Measure 33: Visibility of non-judicial grievance mechanisms

Switzerland already has several state and non-state non-judicial grievance mechanisms in place, such as the National Contact Point for the OECD Guidelines for Multinational Enterprises and ombudsman services. However, the role they play and the work they carry out are not well known. The Federal Council wishes to increase the visibility of non-judicial individual and collective redress mechanisms.

Measure 34: National Contact Point for the OECD Guidelines for Multinational Enterprises

The OECD Guidelines for Multinational Enterprises include a chapter on human rights. The 48 signatories to the OECD guidelines are required to set up a non-judicial grievance mechanism in the form of a National Contact Point (NCP) to receive and handle complaints regarding the application of the OECD Guidelines. They also serve as an important non-judicial grievance mechanism for business-related human rights abuses.

Measure 5 of the 2020–23 CSR Action Plan deals with the NCP in detail. As well as providing a mediation platform, the NCP should clearly position itself as a point of contact for the prevention of problems in connection with responsible business conduct (e.g. by having a social media presence and participating in stakeholder events).

Read more about OECD National Contact Points

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2.2 Pillar 2: the corporate responsibility to respect human rights

2.2.1 Foundational principles

Guiding Principles 11 to 15

The responsibility of business enterprises to respect human rights refers to internationally recognised human rights. … Depending on the circumstances, business enterprises must also observe additional standards concerning particularly vulnerable population groups, including agreements protecting … people with disabilities … does not make an explicit reference to Persons with Disabilities.

Read more about Persons with disabilities

2 National Action Plan on Business and Human Rights 2020-23

2.1 Pillar 1: state duty to protect

Guiding Principles 1 to 3

2.1.2 Operational principles: legislative and information policy measures

Swiss legislation does not require companies to carry out human rights due diligence. In response to the popular initiative ‘Responsible Business – Protecting Human Rights and the Environment’, the Federal Council proposed submitting it to the people (referendum), without a counter-proposal. It advised voters to reject the initiative, explaining that it prefers a coordinated approach at the international level and the use of existing instruments, specifically the national action plans on the subjects covered by the popular initiative (NAP on Business and Human Rights, Corporate Social Responsibility (CSR) Action Plan and the ‘Green Economy’ report). On 14 June 2018, the National Council tabled an indirect counter-proposal, which is still being debated in parliament. The Federal Council is monitoring the debates, as well as international developments, emerging legislative trends on corporate human rights due diligence and the implementation of the UN Guiding Principles by businesses. Of particular interest are legislative changes in the EU regarding the mandatory reporting of non-financial information. Measure 13 of the 2020–23 CSR Action Plan provides for the development of a consultation draft on sustainability reporting based on the EU directive.

Measure 3: Promotion of UN Guiding Principles

The Federal Council will develop a business and human rights communications strategy18 that promotes the UN Guiding Principles and sets out in clear terms what it expects from companies and management in this regard. The strategy will comprise:

– awareness-raising efforts (incl. a website, workshops, webinars, presentations, publications);

– a platform for dialogue and the sharing of best practices (see Measure 26 below);

– communication with Swiss representations abroad;

– communication with the general public through articles, newspaper columns, company profiles, expert analyses and interviews;

– participation in forums for dialogue, particularly on commodities, alongside representatives from the cantons, the private sector, NGOs and the research community.

This communication strategy aims to raise awareness and advance the implementation of the UN Guiding Principles by the Federal Administration (policy coherence), the business community and the general public.

 Measure 5: Multi-stakeholder initiatives on business and human rights

Many multi-stakeholder initiatives on business and human rights are already under way. The federal government plays an active and major part in several of them, such as the ICoC Association and the Voluntary Principles on Security and Human Rights.

The federal government works with international sports bodies based in Switzerland (including the International Olympic Committee), with sponsors, NGOs, international organisations and other governments to implement the UN Guiding Principles in the context of major sporting events and in sport generally. It also launched a multi-stakeholder dialogue which culminated, in 2018, in the creation of the Centre for Sport and Human Rights. The mission of the Geneva-based centre is to prevent, mitigate and ensure effective remedies for sports-related human rights abuses. The FDFA will support this initiative in coordination with the Federal Office of Sport.

The federal government also backs multi-stakeholder initiatives that focus on human rights issues in sectors such as textiles, cocoa and gold. As these initiatives cover other subjects such as corruption and the environment, they are dealt with in Measure 10 of the 2020–23 CSR Action Plan.

2.1.5 Policy coherence

Guiding Principle 8

Under Guiding Principle 8 the federal authorities and other public bodies must, in fulfilling their respective mandates, be aware of the State’s human rights obligations, and to support such obligations by way of relevant information and training.

Measure 16: Interdepartmental cooperation

As laid down in the 2020–23 CSR Action Plan, the federal government has created an interdepartmental working group on corporate social responsibility. Members are drawn from the federal offices involved in national CSR action plans and strategies. The group meets regularly to discuss and coordinate their CSR-related activities. It also investigates conflicts of interest and structures policy debate with a view to ensuring that the UN Guiding Principles are implemented consistently across the Federal Administration.

The federal government has also established an International Human Rights Policy Core Group (KIM). It functions as an interdepartmental information exchange platform and its members are drawn from the federal offices in charge of international human rights conventions. The group also receives regular briefings on NAP-related activities.

The Interdepartmental Platform on Commodities identifies and promotes synergies between sectoral policies and monitors national and international developments in the commodities sector.

The outcomes of this interdepartmental cooperation are also reflected in the consistent position which the representatives of all Departments adopt during bilateral consultations with other States, in multilateral bodies and in their public statements.

Guiding Principle 9

Measure 18: Consistency between trade agreements and protection of human rights

The primary aim of free trade agreements is to foster bilateral trade relations and increase the economic competitiveness of contracting states. In negotiating free trade agreements (and investment promotion and protection agreements; see below), Switzerland is committed to ensuring that provisions to achieve consistency between trade and sustainable development are included. These serve to underline the parties’ obligation to comply with the applicable multilateral environmental agreements and ILO conventions, and to implement them effectively. They also refer to international instruments to protect human rights, and the principles of responsible corporate governance. Swiss free trade agreements also contain provisions stipulating that the agreement should not impede or compromise existing obligations under international law, including in respect of human rights. Free trade agreements are monitored by joint committees. Civil society contributes to the preparatory work for joint committee meetings, specifically through the WTO/FTA liaison group. The Federal Council continues to monitor and conduct impact assessments regarding international developments on human rights due diligence in trade agreements.

In the interests of policy coherence, Switzerland also advocates the inclusion of consistency provisions when negotiating investment protection agreements (IPAs). The federal government drafted provisions to achieve greater consistency between IPAs and sustainable development objectives (e.g. provisions setting out the right to regulate; references to human rights and corporate social responsibility in the recitals to IPAs). These provisions underline the importance of interpreting and applying these agreements in a manner that is consistent with other international commitments undertaken by Switzerland and its partner countries, including those on human rights protection.

2.3.2 Operational principles: state judicial mechanisms

Guiding Principle 26

Measure 31: Promoting the option of collective redress

In the process of revising the CPC [Civil Procedure Code], the federal government drafted amendments to the provisions governing costs with a view to extending the scope of the conciliation procedure. New rules on group actions and establishing a group settlement mechanism will close a gap in the available legal protection by facilitating class actions in respect of mass and dispersed damage claims. These amendments and new articles bring the draft bill in line with Business and Human Rights Recommendations 39 and 42 of the Committee of Ministers of the Council of Europe of 2 March 2016.54 They also meet the expectations of the UN, as expressed in Guiding Principle 26.

Read more about Policy coherence

2 National Action Plan on Business and Human Rights 2020-23

2.1 Pillar 1: state duty to protect

2.1.3 The State-business nexus

Guiding Principles 4 to 5

Given the federal government’s direct influence on the activities of federal government-associated businesses, it has a particular obligation to ensure that these companies respect human rights, for example by conducting human rights due diligence. It also expects federal government-associated businesses to have in place human rights best practices.

Measure 9: Human rights due diligence by federal government-associated businesses

The Federal Council defines its strategic goals for federal government-associated businesses every four years and expects these companies to pursue a sustainable corporate strategy to the best of their business ability. As regards the protection of human rights, a number of these businesses already exercise due diligence and document these efforts in their reporting.

To advance the implementation of UN Guiding Principles by federal government-associated businesses, interdepartmental coordination must be stepped up. Failure by these entities to meet international standards on human rights due diligence could pose a reputational risk to the federal government. The Federal Council therefore intends to assist federal government-associated businesses in playing a lead role by raising awareness of human rights due diligence and promoting the exchange of best practices, particularly with regard to risk management, monitoring and public reporting. This optional measure is geared primarily towards federal government-associated businesses which work with suppliers and business partners abroad.

The federal government may also run optional training sessions on UN Guiding Principles and human rights due diligence for the members of boards of directors and senior management of federal government-associated businesses.

Read more about Privatisation

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2.1 Pillar 1: state duty to protect

2.1.3 The State-business nexus

Guiding Principles 4 to 5

Given the federal government’s direct influence on the activities of federal government-associated businesses, it has a particular obligation to ensure that these companies respect human rights, for example by conducting human rights due diligence. It also expects federal government-associated businesses to have in place human rights best practices.

Measure 9: Human rights due diligence by federal government-associated businesses

The Federal Council defines its strategic goals for federal government-associated businesses every four years and expects these companies to pursue a sustainable corporate strategy to the best of their business ability. As regards the protection of human rights, a number of these businesses already exercise due diligence and document these efforts in their reporting.

To advance the implementation of UN Guiding Principles by federal government-associated businesses, interdepartmental coordination must be stepped up. Failure by these entities to meet international standards on human rights due diligence could pose a reputational risk to the federal government. The Federal Council therefore intends to assist federal government-associated businesses in playing a lead role by raising awareness of human rights due diligence and promoting the exchange of best practices, particularly with regard to risk management, monitoring and public reporting. This optional measure is geared primarily towards federal government-associated businesses which work with suppliers and business partners abroad.

The federal government may also run optional training sessions on UN Guiding Principles and human rights due diligence for the members of boards of directors and senior management of federal government-associated businesses.

Guiding Principle 6

The federal government is committed to ensuring that the value chains of goods purchased by the public sector are free of human rights abuses. It promotes respect for human rights by business enterprises with which they conduct commercial transactions.

Measure 12: Criteria under the core ILO conventions in public procurement at federal level

The Federal Council attaches great importance to sustainable public procurement practices. Public procurement practices in Switzerland are governed by the Federal Act on Public Procurement (PPA) and the Ordinance on Public Procurement (PPO). The PPA stipulates that the federal government must, as a minimum, monitor compliance with the core ILO conventions where goods and services are to be supplied abroad. The contracting authority may require bidders to comply with other core international labour standards, provide proof of compliance, and agree to audits.

The Public Procurement Act is currently being revised in line with changes to the WTO Agreement on Government Procurement (GPA) 2012. The PPA (as amended) will include all three pillars of sustainability – economic, environmental and social. Accordingly, the principle of sustainable public procurement will govern the interpretation and implementation of the PPA and the PPO. In its recommendations on sustainable procurement, the Federal Procurement Conference specifically calls for social, environmental and economic factors to be taken into account, including the human rights criteria covered by the core ILO conventions. It also recommends that sustainability criteria be reflected in award procedures.

The federal government will also explore the option of creating a national platform to promote sustainable public procurement practices and facilitate information-sharing between the different levels of government.

Read more about Public procurement

2 National Action Plan on Business and Human Rights 2020-23

2.1 Pillar 1: state duty to protect

Guiding Principles 1 to 3

2.1.2 Operational principles: legislative and information policy measures

Measure 1: Rules on the export of war material and technologies for internet surveillance

The manufacture, brokerage, export and transit of war material for recipients abroad will be authorised if this is not contrary to international law, international obligations and the principles of Swiss foreign policy. The decision on whether or not to issue authorisation for a foreign transaction must abide by the criteria laid down in the War Material Ordinance. Among the domestic factors that inform this decision is whether the country of destination respects human rights. If the country of destination violates human rights in a systematic and serious manner, it is imperative that the export licence be denied. However, authorisation might still be granted in exceptional cases if there is a low risk that the exported war material will be used to commit serious violations of human rights.

Technologies for internet and mobile communication surveillance (goods, technology and software) can be used for both civilian and military purposes, i.e. they are dual-use goods. As such, they can be an element in state repression, thereby exposing the business enterprises that manufacture or trade in them to an increased risk of becoming involved in human rights abuses. The export or brokerage of technologies for internet and mobile communication surveillance is governed by the Ordonnance sur l’exportation et le courtage de biens destinés à la surveillance d’Internet et des communications mobiles (Ordinance on the export and brokerage of technologies for internet and mobile communications surveillance). A licence to export or to broker such goods must be refused if there is reason to believe that the exported or brokered good will be used by the final recipient as a means of repression.

Measure 2: Security and human rights

Private security service providers are at increased risk of becoming involved in human rights abuses. The federal government should ensure that business enterprises which are subject to the Federal Act on Private Security Services Provided Abroad (PSSA) meet their human rights obligations. The PSSA prohibits security firms based in Switzerland from participating directly in hostilities in the context of an armed conflict, and from engaging in activities that could facilitate human rights abuses. In addition, it requires Swiss-based providers to become signatories to the International Code of Conduct for Private Security Providers (ICoC). Switzerland also helped to establish the International Code of Conduct Association, which requires private security providers to uphold human rights standards. The ICoC Association has a grievance procedure to address claims brought by employees or third parties regarding human rights abuses by companies. It has also produced guidance for private security providers on setting up complaints-handling schemes within their organisation, as well as guidelines on preventing sexual exploitation and abuse. Other multi-stakeholder initiatives are exploring similar mechanisms for victims of business-related human rights abuses.

Switzerland and the ICRC were the driving force behind the Montreux Document on private military and security companies. The purpose of the intergovernmental document is to promote respect for international humanitarian law and human rights by private military and security companies (PMSCs) operating in situations of armed conflict.

Switzerland is a member of the Voluntary Principles on Security and Human Rights initiative and contributes to its development. This initiative is targeted at companies in the extractive sector and offers them guidance on maintaining the safety and security of their operations within a framework that ensures respect for human rights, especially when private and/or public security providers are also involved. Switzerland is an active member of the Steering Committee and assumes the chair on a rotating basis. It is also committed to the application of the Voluntary Principles in the field and works to expand membership of the initiative.

Measure 5: Multi-stakeholder initiatives on business and human rights

Many multi-stakeholder initiatives on business and human rights are already under way. The federal government plays an active and major part in several of them, such as the ICoC Association and the Voluntary Principles on Security and Human Rights.

Read more about Security sector

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2.2 Pillar 2: the corporate responsibility to respect human rights

2.2.1 Foundational principles

Guiding Principles 11 to 15

SMEs [Small and medium enterprises] are particularly important in Switzerland because they are a major part of the country’s economic fabric. Given their limited human resources and expertise on human rights, the management of potential human rights risks can pose a significant challenge for SMEs. Despite their good practices, they generally lack systemic responses to human rights-related issues. The concepts developed by international bodies like the OECD and UN must be presented in a way that takes into account the limited resources available to SMEs and the business environment in which they operate. SMEs are therefore encouraged to use the support measures provided by the federal government and umbrella associations.

Measure 24: Support for industry initiatives

The federal government will step up cooperation with industry initiatives, associations and chambers of commerce which promote the UN Guiding Principles, and support action taken by businesses to uphold human rights.48 This will involve identifying initiatives and actors which have the potential to substantially further the implementation of the UN Guiding Principles by businesses. Priority will be given to initiatives that contribute to due diligence training for business enterprises or that are developing practical and effective human rights tools for SMEs. All tools developed as part of initiatives supported and recognised under the NAP will be made available to the businesses online.

Measure 26: Promotion of best practices

The federal government intends to hold a Swiss Business and Human Rights Forum as part of its efforts to encourage and promote human rights best practices among businesses. The forum will provide stakeholders with a platform to discuss trends and challenges in implementing the UN Guiding Principles and foster dialogue and cooperation, particularly on the operational challenges faced by certain sectors. The forum will also help identify best practices for SMEs.

Measure 29: Public-private partnerships to promote respect for human rights in the value chain

To promote the implementation of labour rights and human rights by business enterprises, the federal government, together with the ILO, supports the Better Work programme for the textile industry and the Sustaining Competitive and Responsible Enterprises (SCORE) programme to support SMEs in creating decent working conditions. These projects are jointly run by the ILO, governments, the private sector and unions, and are focused on compliance with fundamental labour standards, including measures to combat child and forced labour. The tools developed by these programmes are shared with the private sector

Measure 30: Guides and tools to implement the UN Guiding Principles

Federal government will explore the possibility of translating some of these into the national languages to enable them to be adapted and implemented in Switzerland. The complex nature of these guides means that some companies, especially SMEs, may find it difficult to put them into practice. Easy-to-use online interactive tools could provide a starting point for SMEs. The Swiss government will develop instruments that enable SMEs to carry out risk assessments and identify measures. They also could provide the basis for an assessment of the action needed to improve human rights due diligence.

Read more about Small & medium-sized enterprises

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2.1 Pillar 1: state duty to protect

2.1.3 The State-business nexus

Guiding Principles 4 to 5

Given the federal government’s direct influence on the activities of federal government-associated businesses, it has a particular obligation to ensure that these companies respect human rights, for example by conducting human rights due diligence. It also expects federal government-associated businesses to have in place human rights best practices.

Measure 9: Human rights due diligence by federal government-associated businesses

The Federal Council defines its strategic goals for federal government-associated businesses every four years and expects these companies to pursue a sustainable corporate strategy to the best of their business ability. As regards the protection of human rights, a number of these businesses already exercise due diligence and document these efforts in their reporting.

To advance the implementation of UN Guiding Principles by federal government-associated businesses, interdepartmental coordination must be stepped up. Failure by these entities to meet international standards on human rights due diligence could pose a reputational risk to the federal government. The Federal Council therefore intends to assist federal government-associated businesses in playing a lead role by raising awareness of human rights due diligence and promoting the exchange of best practices, particularly with regard to risk management, monitoring and public reporting. This optional measure is geared primarily towards federal government-associated businesses which work with suppliers and business partners abroad.

The federal government may also run optional training sessions on UN Guiding Principles and human rights due diligence for the members of boards of directors and senior management of federal government-associated businesses.

2.2 Pillar 2: the corporate responsibility to respect human rights

2.2.2 Operational principles: human rights due diligence 

Measure 29: Public-private partnerships to promote respect for human rights in the value chain

To promote the implementation of labour rights and human rights by business enterprises, the federal government, together with the ILO, supports the Better Work programme for the textile industry and the Sustaining Competitive and Responsible Enterprises (SCORE) programme to support SMEs in creating decent working conditions. These projects are jointly run by the ILO, governments, the private sector and unions, and are focused on compliance with fundamental labour standards, including measures to combat child and forced labour. The tools developed by these programmes are shared with the private sector.

The federal government supports a project to promote human rights due diligence with a view to preventing the exploitation of Syrian refugees and migrant workers in neighbouring countries (Turkey, Lebanon, Jordan). The aim is to strengthen the contribution that business enterprises make to providing decent work opportunities and combatting exploitation in the textile, agricultural and construction sectors in these countries.

As part of its foreign policy efforts, Switzerland establishes public-private partnerships to promote measures aimed at combatting human trafficking.

Read more about State Owned Enterprises/ Public Private Partnerships

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2.1 Pillar 1: state duty to protect

Guiding Principles 1 to 3

2.1.2 Operational principles: legislative and information policy measures

Measure 7: Reduction in human rights risks associated with gold extraction and trading

Switzerland will continue to support the implementation of OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas and other relevant guidelines. As recommended in the above report, it will explore the possibility of granting the Central Office for Precious Metals Control wider responsibilities, including with respect to transparency on the provenance of gold imported to Switzerland.

Measure 8: Human rights in tourism

The tourism sector is a major driver of the Swiss economy. However, tourism can have adverse impacts on human rights. For example, local communities may be forced to vacate an area to make way for new hotels, workers may suffer human rights abuses, and children may be exploited and fall victim to sex tourism (cf. Measure 27 below).

The federal government supports the Roundtable on Human Rights in Tourism assessment of human rights impacts along the tourism value chain. This project, which will initially focus on Thailand, adopts a multi-stakeholder approach and seeks to develop practical guidelines for the tourism industry as a whole.

2.1.3 The State-business nexus

Guiding Principle 6

The federal government is committed to ensuring that the value chains of goods purchased by the public sector are free of human rights abuses. It promotes respect for human rights by business enterprises with which they conduct commercial transactions.

Measure 12: Criteria under the core ILO conventions in public procurement at federal level

The Federal Council attaches great importance to sustainable public procurement practices. Public procurement practices in Switzerland are governed by the Federal Act on Public Procurement (PPA) and the Ordinance on Public Procurement (PPO). The PPA stipulates that the federal government must, as a minimum, monitor compliance with the core ILO conventions where goods and services are to be supplied abroad. The contracting authority may require bidders to comply with other core international labour standards, provide proof of compliance, and agree to audits.

The Public Procurement Act is currently being revised in line with changes to the WTO Agreement on Government Procurement (GPA) 2012. The PPA (as amended) will include all three pillars of sustainability – economic, environmental and social. Accordingly, the principle of sustainable public procurement will govern the interpretation and implementation of the PPA and the PPO. In its recommendations on sustainable procurement, the Federal Procurement Conference specifically calls for social, environmental and economic factors to be taken into account, including the human rights criteria covered by the core ILO conventions. It also recommends that sustainability criteria be reflected in award procedures.

The federal government will also explore the option of creating a national platform to promote sustainable public procurement practices and facilitate information-sharing between the different levels of government.

2.1.5 Policy coherence

Measure 22: Commitments by Switzerland to the UN Guiding Principles at multilateral level

Within the ILO, Switzerland supports the follow-up to the 2016 ILO Resolution on the UN Guiding Principles and global supply chains

2.2 Pillar 2: the corporate responsibility to respect human rights

2.2.2 Operational principles: human rights due diligence 

Measure 29: Public-private partnerships to promote respect for human rights in the value chain

To promote the implementation of labour rights and human rights by business enterprises, the federal government, together with the ILO, supports the Better Work programme for the textile industry and the Sustaining Competitive and Responsible Enterprises (SCORE) programme to support SMEs in creating decent working conditions. These projects are jointly run by the ILO, governments, the private sector and unions, and are focused on compliance with fundamental labour standards, including measures to combat child and forced labour. The tools developed by these programmes are shared with the private sector.

The federal government supports a project to promote human rights due diligence with a view to preventing the exploitation of Syrian refugees and migrant workers in neighbouring countries (Turkey, Lebanon, Jordan). The aim is to strengthen the contribution that business enterprises make to providing decent work opportunities and combatting exploitation in the textile, agricultural and construction sectors in these countries.

As part of its foreign policy efforts, Switzerland establishes public-private partnerships to promote measures aimed at combatting human trafficking.

Measure 30: Guides and tools to implement the UN Guiding Principles

Most business enterprises use certification and private labels (e.g. UTZ, Fairtrade, and amfori/BSCI) as a means of ensuring compliance with social and environmental standards along the entire value chain. The federal government intends to help businesses identify which certifications meet the human rights due diligence standards under the UN Guiding Principles.

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The Swiss NAP does not make an explicit reference to Taxation.

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1 Introduction

1.5 Policy, strategy and action plan coherence

The NAP assists Switzerland in its efforts to achieve the goals set out in the 2030 Agenda for Sustainable Development, specifically Goal 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all; Goal 12: Ensure sustainable consumption and production patterns; and Goal 16: Promote peaceful and inclusive societies for sustainable development. The NAP also contributes to the broader efforts to implement the federal Sustainable Development Strategy 2030. The UN Guiding Principles provide the main framework for activities in the business and human rights sphere.

2 National Action Plan on Business and Human Rights 2020-23

2.1 Pillar 1: state duty to protect

2.1.5 Policy coherence

Guiding Principle 9

Measure 18: Consistency between trade agreements and protection of human rights

In the interests of policy coherence, Switzerland also advocates the inclusion of consistency provisions when negotiating investment protection agreements (IPAs). The federal government drafted provisions to achieve greater consistency between IPAs and sustainable development objectives (e.g. provisions setting out the right to regulate; references to human rights and corporate social responsibility in the recitals to IPAs). These provisions underline the importance of interpreting and applying these agreements in a manner that is consistent with other international commitments undertaken by Switzerland and its partner countries, including those on human rights protection.

2.2 Pillar 2: the corporate responsibility to respect human rights

2.2.2 Operational principles: human rights due diligence

Guiding Principles 16 to 21

Measure 27: Promote efforts to end all forms of child exploitation in supply chains

The federal government will establish partnerships with the private sector and civil society to advance Goal 8.7 of the 2030 Agenda for Sustainable Development: end child labour in all its forms by 2025, eradicate forced labour, and end modern slavery and human trafficking by 2030. It will also evaluate its participation in Global Alliance 8.7, which aims to strengthen international cooperation, coordination and assistance through appropriate multi-stakeholder partnerships.

Read more about The 2030 Agenda for Sustainable Development

2 National Action Plan on Business and Human Rights 2020-23

2.1 Pillar 1: state duty to protect

Guiding Principles 1 to 3

2.1.2 Operational principles: legislative and information policy measures

Measure 8 Human rights in tourism
The tourism sector is a major driver of the Swiss economy. However, tourism can have adverse impacts on human rights. For example, local communities may be forced to vacate an area to make way for new hotels, workers may suffer human rights abuses, and children may be exploited and fall victim to sex tourism (cf. Measure 27 below).
The federal government supports the Roundtable on Human Rights in Tourism assessment of human rights impacts along the tourism value chain. This project, which will initially focus on Thailand, adopts a multi-stakeholder approach and seeks to develop practical guidelines for the tourism industry as a whole.
The World Tourism Organization (UNWTO) plays a key part in implementing the UN Guiding Principles in the tourism sector. For example, it has developed and adopted a Global Code of Ethics for Tourism, which acknowledges respect for human rights as a fundamental principle.22 As a member of the UNWTO, the federal government is committed to actively promoting implementation of the UN Guiding Principles by the tourism industry.

2.2 Pillar 2: the corporate responsibility to respect human rights

2.2.2 Operational principles: human rights due diligence

Guiding Principles 16 to 21

Measure 27 Promote efforts to end all forms of child exploitation in supply chains

The federal government also takes action to prevent the exploitation of children in travel and tourism. The ‘Don’t look away’ initiative seeks to raise public awareness of the problem. Tourists and travellers who suspect cases of child sexual exploitation can go to the website, fill out the online report form and send it directly to the Federal Office of Police (fedpol). Increasing numbers of European countries are now joining the campaign. As part of its membership of ECPAT International, which works to end all forms of child sexual exploitation, the federal government launched the ‘Don’t look away’ campaign (ne-detournez-pas-le-regard.ch), regularly attends meetings organised by the network and contributes to discussions.

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2 National Action Plan on Business and Human Rights 2020-23

2.1 Pillar 1: state duty to protect

2.1.2 Operational principles: legislative and information policy measures

Measure 1: Rules on the export of war material and technologies for internet surveillance

The manufacture, brokerage, export and transit of war material for recipients abroad will be authorised if this is not contrary to international law, international obligations and the principles of Swiss foreign policy. The decision on whether or not to issue authorisation for a foreign transaction must abide by the criteria laid down in the War Material Ordinance. Among the domestic factors that inform this decision is whether the country of destination respects human rights. If the country of destination violates human rights in a systematic and serious manner, it is imperative that the export licence be denied. However, authorisation might still be granted in exceptional cases if there is a low risk that the exported war material will be used to commit serious violations of human rights.

Technologies for internet and mobile communication surveillance (goods, technology and software) can be used for both civilian and military purposes, i.e. they are dual-use goods. As such, they can be an element in state repression, thereby exposing the business enterprises that manufacture or trade in them to an increased risk of becoming involved in human rights abuses. The export or brokerage of technologies for internet and mobile communication surveillance is governed by the Ordonnance sur l’exportation et le courtage de biens destinés à la surveillance d’Internet et des communications mobiles (Ordinance on the export and brokerage of technologies for internet and mobile communications surveillance).15 A licence to export or to broker such goods must be refused if there is reason to believe that the exported or brokered good will be used by the final recipient as a means of repression.

Measure 7: Reduction in human rights risks associated with gold extraction and trading

At the end of 2018, the Federal Council adopted a report setting out a range of measures designed to improve the traceability of gold imported to Switzerland, strengthen multi-stakeholder dialogue and expand development cooperation on responsible gold production.21

The measures aim to improve the collection and publication of information on the sources of gold imported in Switzerland, and increase transparency not only regarding the risk assessments conducted by the industry but also regarding its human rights due diligence. The federal government will take steps to promote best practices and examine the possible use of blockchain technologies to improve traceability in the gold industry.

Switzerland will continue to support the implementation of OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas and other relevant guidelines. As recommended in the above report, it will explore the possibility of granting the Central Office for Precious Metals Control wider responsibilities, including with respect to transparency on the provenance of gold imported to Switzerland.

2.1.4 Business respect for human rights in conflict-affected areas

Measure 15: Economic sanctions

The Federal Act on the Implementation of International Sanctions (Embargo Act, EmbA) provides that Switzerland may apply non-military sanctions imposed by the UN, the OSCE and Switzerland’s major trading partners for the purpose of complying with international law and, in particular, upholding human rights. The Embargo Act itself does not refer to specific sanctions as such, but provides the legal framework for the Federal Council to adopt ordinances on the imposition of sanctions. Sanctions may include restrictions or prohibitions on the trade in goods, services, payments, capital and the movement of people. Sanctions policy strategy is based on the principles laid down in Switzerland’s foreign policy and foreign economic policy.

2.1.5 Policy coherence

Guiding Principle 9

The federal government enters into economic agreements with other States or with business enterprises. They include bilateral investment promotion and protection agreements, free trade agreements and agreements governing investment projects. The federal government should ensure that these agreements provide sufficient domestic policy scope to fulfil the human rights obligations of both Switzerland and the contracting partner.

As part of its commitment to upholding human rights, the Federal Council should ensure that provisions to achieve coherence are included in agreements. The provisions should provide contracting partners with sufficient scope to fulfil their human rights obligations. The federal government also supports projects specifically designed to foster respect for human rights among business enterprises in partner countries.

Measure 18: Consistency between trade agreements and protection of human rights

The primary aim of free trade agreements is to foster bilateral trade relations and increase the economic competitiveness of contracting states. In negotiating free trade agreements (and investment promotion and protection agreements; see below), Switzerland is committed to ensuring that provisions to achieve consistency between trade and sustainable development are included. These serve to underline the parties’ obligation to comply with the applicable multilateral environmental agreements and ILO conventions, and to implement them effectively. They also refer to international instruments to protect human rights, and the principles of responsible corporate governance. Swiss free trade agreements also contain provisions stipulating that the agreement should not impede or compromise existing obligations under international law, including in respect of human rights. Free trade agreements are monitored by joint committees. Civil society contributes to the preparatory work for joint committee meetings, specifically through the WTO/FTA liaison group. The Federal Council continues to monitor and conduct impact assessments regarding international developments on human rights due diligence in trade agreements.

In the interests of policy coherence, Switzerland also advocates the inclusion of consistency provisions when negotiating investment protection agreements (IPAs). The federal government drafted provisions to achieve greater consistency between IPAs and sustainable development objectives (e.g. provisions setting out the right to regulate; references to human rights and corporate social responsibility in the recitals to IPAs). These provisions underline the importance of interpreting and applying these agreements in a manner that is consistent with other international commitments undertaken by Switzerland and its partner countries, including those on human rights protection.

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4. Position of the Federal Council on the UN Guiding Principles on Business and Human Rights

4.3 The position and expectations of the Federal Council [page 8]:

Depending on the circumstances, business enterprises must also observe additional standards concerning particularly vulnerable population groups (cf. OECD Guidelines for Multinational Enterprises, Guideline 40). These include, for example, the Declaration of the Rights of Indigenous Peoples, and the international conventions protecting women, minorities, children, people with disabilities and migrant workers and members of their families.

Read more about Workers’ rights