Conflict-affected areas

The UN Guiding Principles on Business and Human Rights (UNGPs) recognise that business activities in conflict-affected and high-risk areas increase the risks of enterprises fuelling conflict and being complicit in gross human rights abuses committed by other actors. The Guiding Principle 7 highlights the importance of supporting business respect for human rights in conflict-affected areas. It specifies that:

“States should help ensure that business enterprises operating in those contexts are not involved with such abuses, including by:

(a) Engaging at the earliest stage possible with business enterprises to help them identify, prevent and mitigate the human rights-related risks of their activities and business relationships;
(b) Providing adequate assistance to business enterprises to assess and address the heightened risks of abuses, paying special attention to both gender-based and sexual violence;
(c) Denying access to public support and services for a business enterprise that is involved with gross human rights abuses and refuses to cooperate in addressing the situation;
(d) Ensuring that their current policies, legislation, regulations and enforcement measures are effective in addressing the risk of business involvement in gross human rights abuses.”

The Commentary to the Guiding Principle 7 outlines that States can play an important role in guiding responsible businesses to “avoid contributing to human rights harm in these difficult contexts”. It addresses the problem of ineffective ‘host’ State human rights protection in the context of operations by transnational corporations by calling on ‘home’ States to assist “both those corporations and host States to ensure that businesses are not involved with human rights abuse”. Mares analyses that this principle is a foundational rule outlining the “exceptional duties of home States” to address companies’ involvement in gross abuses in conflict-affected areas and beyond, including repressive or authoritarian regimes.

The Commentary to the Guiding Principle 7 emphasises “the risk of sexual and gender-based violence, which is especially prevalent during times of conflict”. Conflict can result in higher levels of violence against women and girls, including arbitrary killings, torture, sexual violence and forced marriage. Women and girls are primarily and increasingly targeted by the use of sexual violence, including as a tactic of war. While women and girls are in general more predominantly subject to sexual violence, men and boys have also been victims of sexual violence, especially in contexts of detention. (United Nations OHCHR).

The UN Working Group on Business and Human Rights (Working Group) clarifies in its 2020 report on conflict-affected areas that businesses should conduct heightened human rights due diligence in these contexts through a conflict-sensitive approach. Such an approach involves identifying the root causes of tensions and potential triggers and analysing how the businesses’ own operations, products, or services impact existing social tensions. Building on this report, the Working Group and United Nations Development Programme further developed guidance on ‘Heightened Human Rights Due Diligence for Business in Conflict-Affected Contexts’ in 2022. This guide provides parameters for businesses to design and implement effective due diligence measures in contexts affected by armed conflicts and other situations of widespread violence.

The Commentary to the Guiding Principle 12 further clarifies that “in situations of armed conflict, enterprises should respect the standards of international humanitarian law.” International humanitarian law applicable to business in conflict-affected areas includes, for instance, the Geneva Conventions and their Additional Protocols and The Arms Trade Treaty.

Businesses may contribute to, or facilitate, human rights abuses committed by other actors, such as security forces or armed non-State actors. For instance, tin, tantalum, tungsten, and gold are metals found in most household electronic appliances. However, they are often mined in conflict areas, such as the Eastern Democratic Republic of Congo, and have consequently earned the term ‘conflict minerals’. The purchase of conflict minerals contributes to human rights violations, including summary executions, forced labour, rape, and finances armed rebel groups who contribute to ongoing violence in the region. (Human Rights Watch Report, The Curse of Gold, (2005)). In 2013, internally displaced farmers in Colombia faced killings, intimidation, threats, and further forced displacement from paramilitaries, when trying to reclaim their land, where oftentimes paramilitaries acted on behalf of businesses seeking to evict rightful landowners. (Human Rights Watch Report, The Risk of Returning Home, (2013)).

Companies have also been accused of being complicit with military dictatorships by enabling the torture and disappearance of trade union members and workers, including in Brazil and Chile. A number of multinational corporations have been sued in 2017 for allegedly aiding and abetting “terrorist operations against Americans in Iraq”. In 2022, the cement company Lafarge was charged with aiding and abetting crimes against humanity, for making payments to ISIS, that amounted to at least €13 million, to keep its Jalabiya cement plant operational. As another example, two former executives of Swedish oil company Lundin Energy were charged with complicity and aiding and abetting war crimes in South Sudan between 1997 and 2002, with an ongoing judicial process before the courts of Sweden as of 2024. In 2023, Ericsson agreed to plead guilty and pay a US$ 206 million penalty because it violated the Deferred Prosecution Agreement signed in 2019 under the Foreign Corrupt Practices Act 1977 (FCPA). This violation included failing to fully disclose misconduct in Iraq, which allegedly involved making bribery payments to ISIS to facilitate the transport of telecommunications equipment in Iraq.

In other cases, shipping companies have also contributed to human rights abuses in conflict-affected regions by transporting weapons, including in breach of United Nations sanctions. For instance, in 2016, Egyptian authorities discovered more than 30,000 rocket-propelled grenades in a ship that set sail from North Korea, with a North Korean crew, but flew a Cambodian flag under the “flag of convenience” doctrine, a tactic intended to avoid international attention. The cargo was destined for Egyptian buyers. According to the United Nations, this was “the largest seizure of ammunition in the history of sanctions against the Democratic People’s Republic of Korea”.

Businesses are frequently confronted with the difficult decision of whether to continue operations in regions with heightened conflicts or deteriorating human rights conditions. The topic of irresponsible disengagement from complex environments is a growing concern amid ongoing global conflicts and other situations of widespread violence. For example, civil society organisations submitted complaints against telecom multinational Telenor before the Norwegian National Contact Point under the Organisation for Economic Co-operation and Development (OECD) Guidelines, claiming that Telenor’s sale of its Myanmar business fails to meet the standards of responsible disengagement set out in the OECD Guidelines.

The OHCHR published guidance in 2023 on considerations for remaining in or exiting challenging contexts, including situations of armed conflict or authoritarian regimes. The guidance recognises that businesses might decide to leave certain countries and contexts based on human rights considerations. It advises companies on how to responsibly make and act on decisions to either remain or disengage in accordance with the UNGPs. Scholars have also discussed the nature of responsible conduct for companies that supply essential goods and services in conflict-affected areas and examined how these companies should decide whether to stay or withdraw, while upholding their responsibilities to human rights in challenging environments.

Documents, such as the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas 2011 and its Supplement on Gold and the UN Global Compact Guidance on Responsible Business in Conflict-Affected and High-Risk Areas 2010, also address the increased risks for business enterprises operating in conflict areas, and provide guidance to help companies prevent or mitigate the risk of contributing to human rights abuses.

Some governments have undertaken efforts to provide and promote adequate guidance to businesses operating in conflict-affected areas, while many others remain reluctant and ill-equipped to do it in a meaningful manner. Examples of efforts include: support for the Voluntary Principles on Security and Human Rights 2000, requiring companies to comply with the International Code of Conduct for Private Security Providers’ Association (ICoCA) 2013, and promotion of supply chain due diligence guidelines.

The EU has adopted the Conflict Minerals Regulation 2017 to establish “a Union system for supply chain due diligence in order to curtail opportunities for armed groups and security forces to trade in tin, tantalum, and tungsten, their ores, and gold.” Following the EU’s path, Switzerland adopted the Conflict Minerals and Child Labour Due Diligence Law, which entered into force in January 2023, by regulating the reporting and due diligence obligations of Swiss companies in relation to minerals and metals from conflict-affected and high-risk areas and in relation to child labour.

As of April 2017, the Securities and Exchange Commission (SEC) has suspended the requirement under section 1502 of the Dodd-Frank Act (the conflict minerals rule) that companies using gold, tin, tungsten, and tantalum report on whether those materials came from the Democratic Republic of Congo, or an adjoining country, pending further internal investigation. If found, the section obliged companies to perform a due diligence review of their supply chain to determine whether their purchases are funding armed groups in the region. Companies were also required to report publicly on their due diligence findings and submit their reports to an independent audit. (Public statement on the Conflict Minerals Rule). The suspension followed from a court ruling which found that the Conflict Minerals rule “violate[s] the First Amendment to the extent the statute and rule require regulated entities to report to the Commission and to state on their website that any of their products have ‘not been found to be “DRC conflict free.”(National Association of Manufacturers v. Securities Exchange Commission).

Conflict-affected areas are of direct relevance to Sustainable Development Goals (SDGs) Goal 16 (Promote just, peaceful, and inclusive societies). Many conflict-affected and post-conflict countries encounter a number of capacity issues that prevent them from effective implementation of SDG 16, such as access to justice and the rule of law (SDG 16.3). The role of business in regard to SDG 16 can be crucial as, for instance, conflict-affected areas are often rich in valuable natural resources. Thus, business respect for human rights in this context is critical (See the Issue page on the 2030 Agenda for Sustainable Development for more information).

References

The United Nations Guiding Principles on Business and Human Rights.
Report of the Special Representative of the Secretary-General on the issue of human rights and transnational corporations and other business enterprises, John Ruggie, Business and human rights: further steps toward the operationalization of the “protect, respect and remedy” framework, UN Doc. A/HRC/14/27, (9 April 2010).
International Committee of the Red Cross, The Geneva Conventions and their Commentaries.
International Committee of the Red Cross, Arms Trade Treaty.
Human Rights Watch, The Curse of Gold: Democratic Republic of Congo, (2005).
Human Rights Watch, The Risk of Returning Home: Violence and Threats against Displaced People Reclaiming Land in Colombia, (2013).
BBC, Volkswagen ‘allowed torture’ under Brazil military rule, (23 September 2015).
J. Lynch and K. Manson, US veterans sue drug companies over Iraq bribes, (Financial Times, 2017).
Hummel, Lafarge can be charged with ‘complicity in crimes against humanity’, French court says, (2024).
ECCHR, Lafarge in Syria: Accusations of complicity in grave human rights violations.
Corporate Accountability Lab, Lundin Corporate Executives Face Prosecution for Aiding and Abetting War Crimes, (December 2023).
SwedWatch, Historic Trial against Lundin Begins.
Warrick, A North Korean ship was seized off Egypt with a huge cache of weapons destined for a surprising buyer, (2017).
OHCHR, Women’s human rights and gender-related concerns in situations of conflict and instability.
Mares, Corporate and State Responsibilities in Conflict-Affected Areas, 83 (3) Nordic Journal of International law, (2014).
Uvarova, Responsible Business Conduct in Times of War, Implications for Essential Goods and Services Providers in Ukraine, (2022).
OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.
UN Global Compact Guidance on Responsible Business in Conflict-Affected and High-Risk Areas.
Voluntary Principles on Security and Human Rights.
International Code of Conduct for Private Security Providers’ Association (ICoCA).
EU Conflict Minerals Regulation.
Switzerland Ordinance on Due Diligence and Transparency in relation to Minerals and Metals from Conflict-Affected Areas and Child Labour, (2021).
US Securities and Exchange Commission, Statement of Acting Chairman Piwowar on the Court of Appeals Decision on the Conflict Minerals Rule, (2017).
UN Working Group on Business and Human Rights, A/75/212: Report on business, human rights and conflict-affected regions: towards heightened action, (2020).
OHCHR and UNDP, Heightened Human Rights Due Diligence for Business in Conflict-Affected Contexts: A Guide, (2022).
OHCHR, Business and Human Rights in Challenging Contexts: Considerations for Remaining and Exiting, (2023).
OECD Watch, SOMO representing 474 Myanmar CSOs vs. Telenor ASA, (2021).

What National Action Plans say on Conflict-affected areas

Belgium (2017 - open)

Action point 22

Encourage responsible supply chain management with a sector-wide approach

Encourager la gestion responsable des chaînes d’approvisionnement avec une approche sectorielle

The NAP describes several tools of the OECD, including “OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas,” which the federal government seeks to engage with through the Belgian NPC.

Pillar 1: The State Duty to Protect Human Rights

Strand 1: Training in the Field of Business and Human Rights

Action Point 1.2 (page 30)

The Under-Secretariat of Human Rights of the Ministry of Justice and Human Rights will: …

Promote the introduction of contents about business enterprises and human rights in training sessions held by the Armed Forces and the Order and Security Forces, when relevant, according to the trainees’ profiles…

II. CHALLENGES

(…)

Additionally, the participation of the business sector in the coordinated implementation of the stabilization policy will be an important challenge in order to consolidate the culture of legality in areas affected by poverty, the presence of illegal economies, institutional weakness and generalized violence. It is clear that the presence of the business sector in certain areas of the country, accompanied by the institutional presence of the State, should contribute to improving the living conditions of people in the rural areas most affected by violence, thus helping to close the gaps and achieve greater equity and inclusion, particularly in the most remote and unprotected areas.

(…)

On the other hand, an additional challenge is the already existing circumstances of violence in the territory, which have affected business activity. The Government has even taken measures to benefit those corporations that have been affected by the violence in Colombia, which is evidence of the existence of this problem.

In the situation caused by Covid-19, violations have been denounced due to massive layoffs, the non-adoption of biosecurity measures for workers, public health effects on specially protected groups such as indigenous people, the worsening of violence in some sectors of the country and informality.

VIII. FUNDAMENTAL PILLARS

i. Fundamental Pillar 1: The State’s obligation to protect human rights

Strand 6 [Eje nº 6]: In areas affected by violence, provide guidance and assistance to companies in order to promote the promotion and guarantee of human rights

The Observatory of the Presidential Advisory Office for Human Rights, together with the National System for Human Rights and International Humanitarian Law, will be responsible for identifying areas where there is a possible impact on human rights. Once this analysis has been carried out, the Business and Human Rights area, together with business associations and local authorities, will train companies on the UN Guiding Principles on Business and Human Rights.
The Ministry of Environment and Sustainable Development will develop tools to prevent human rights violations related to socio-environmental conflicts by strengthening Regional Environmental Dialogue Centres and providing guidance to affected communities.

Strand 8 [Eje nº 8]: Participation strategies for people in the reintegration process, as well as initiatives that strengthen the stabilisation and consolidation of the country

The Agency for Reintegration and Normalisation will disseminate the strategy for the participation of people in the reintegration process in the business, productive and peacebuilding spheres.
The Agency for Reintegration and Normalisation will encourage the public and private business sector to involve people in the reintegration and reincorporation processes.
The Presidential Advisory Office for Stabilisation will formulate and implement a policy document containing a human rights approach for the participation of the public and private business sector in the stabilisation and consolidation of the country.
The Unit for the Attention and Integral Reparation of Victims (UARIV) will implement a strategy in which companies are linked through their social management, social architecture or Corporate Social Responsibility (CSR) in the creation of income-generating opportunities for victims affected by violence.
The Unit for the Attention and Integral Reparation of Victims (UARIV) will implement strategies with international cooperation actors, the social sector and the private sector that contribute to productive inclusion, recovery of historical memory, peace-building, reconciliation, promotion of human rights and reconstruction of the social fabric of the victims of violence.

Trade in military equipment [page 18-20]

“…non-profit organisations such as Amnesty International continue to criticise the Czech Republic for exporting weapons to “high-risk countries”.

“Current state of play: …

The Czech Republic participates in a number of international schemes to regulate the arms trade. In particular, it is party to the Arms Trade Treaty (ATT), which provides that if there is a clear risk that the conventional arms to be exported might be used in the commission of serious violations of international humanitarian law, export will be denied. …

Tasks: …

Hold regular meetings between the Ministry of Foreign Affairs, the Ministry of Industry and Trade and the non-governmental sector on issues of transparency and human rights in trade in military equipment.
Coordinators: Ministry of Industry and Trade, Ministry of Foreign Affairs
Deadline: Running
Offer all necessary cooperation and assistance to the Parliamentary Subcommittee on Acquisitions of the Ministry of Defence, Trade in Military Equipment and Innovations of the Armed Forces of the Czech Republic so that regular assessments can be carried out of the human rights risks posed by export licences and by military equipment exports that have been made.
Coordinators: Ministry of Industry and Trade, Ministry of Foreign Affairs
Deadline: Running”

Supply chains and conflict minerals [page 20-21]

“Increasing attention is being paid to safety conditions at work (e.g. the use of slave and child labour in mining). Risks of this type are particularly serious in areas plagued by armed conflict, which can be attributed to the absence of state authority here. …

Current state of play:

At EU level, a regulation on “conflict minerals” has been adopted in order to standardise procedure in all EU Member States. …
The Czech Republic was involved in the consultation and approval of OECD recommendations on the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas and Due Diligence Guidance for Meaningful Stakeholder Engagement in the Extractive Sector. The Ministry of Industry and Trade IS now considering how they can best be implemented in the Czech Republic. …

Tasks:

Establish one or more competent bodies responsible for the application, in the Czech Republic, of Regulation (EU) 2017/821 of the European Parliament and of the Council 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, and notify that body (those bodies) to the European Commission.
Coordinator: Ministry of Trade and Industry
Deadline: 9 December 2017”

Pillar II, Scope and content of the obligation to respect human rights [page 31]

“…some businesses may face conflict with other rights and principles specific to a particular country or industry. For the sake of example, a manufacturer of military equipment should not supply goods to a regime if there is a deep-seated suspicion that they will be used against civilians, and should not make instruments of torture.”

Appendix 1, GP 7

State Duty to Protect [page 30]

“Supporting business respect for human rights in conflict-affected areas.

Because the risk of gross human rights abuses is heightened in conflict-affected areas, States should help ensure that business enterprises operating in those contexts are not involved with such abuses, including by:

a) Engaging at the earliest stage possible with business enterprises to help them identify, prevent and mitigate the human rights-related risks of their activities and business relationships;

b) Providing adequate assistance to business enterprises to assess and address the heightened risks of abuses, paying special attention to both gender-based and sexual violence;

c) Denying access to public support and services for a business enterprise that is involved with gross human rights abuses and refuses to cooperate in addressing the situation;

d) Ensuring that their current policies, legislation, regulations and enforcement measures are effective in addressing the risk of business involvement in gross human rights abuses.”

Status in Denmark (initiatives implemented before the UN ratification of the Guiding Principles) [page 30]

“The Danish development assistance generally contributes to the promotion of human rights in conflict areas. In conflict areas it is often difficult to work closely with the host country, because local authorities do not always have sufficient capacity to monitor and legislate. The Danish efforts in fragile states include support for building institutional framework.” …

Initiatives taken or planned as a dedicated measure to implement the UNGPs (after the UN ratification of the Guiding Principles) [page 30]

“The Danish Government has provided financial assistance to the OECD Proactive Agenda work which has a specific focus on conflict-affected areas. For more information see http://mneguidelines.oecd.org/proactiveagenda.htm.”

1 The state obligation to protect human rights

1.3 Activities in the EU [page 17]

RAW MATERIALS

“The international interest in raw materials is increasing. Whilst the materials may be used as a resource supporting development, there is also a risk of ambiguities related to the funds received from raw materials and/or the funds being used to support conflicts. The European Commission has made a proposal to establish a due diligence system for the union based on a spontaneous declaration by the responsible importers of certain minerals originating in conflict zones and high-risk areas.

The Commission proposal has taken into consideration both the OECD Guidance for mineral purchasing in conflict zones as well as the OECD and UN guidelines more generally related to responsible supply chain management. The proposal is currently being discussed on the national level. Finland actively participates in the discussion of the proposal in the Council working group. …

As a follow-up measure, the working group proposes that

Finland actively participate in the discussion of the proposal for a regulation on conflict minerals and in the discussion for the development of practices for responsible supply chains in the raw material sectors.
Principal responsible party: Ministry for Foreign Affairs, continuous activities.”

I – The State’s Obligation to Protect Human Rights

The International Framework

3. The Organisation for Economic Co-Operation and Development (OECD) [page 14]

… Lastly, France finances actions supporting the implementation of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. It is also very active in the working group developing a guide for the textile industry, following the recommendations of its NCP in this field.

The European Framework

7. The European Union (EU) [page 18]

… Following the proposal for a European regulation on the traceability of minerals from conflict zones,6 France supported an ambitious draft regulation on responsible supply chains for minerals in conflict zones and high-risk areas. The regulation on due diligence for conflict minerals was approved at a plenary session of the European Parliament in March 2017, following the political understanding announced by the Council in June 2016. France will work to ensure that it is correctly implemented and quickly evaluated so it can be reinforced if necessary …

The National Framework

13. The Role of Public Agencies

Actions Underway [page 30]

COFACE Government Guarantees and the Ministry of the Economy and Financeare currently examining whether to implement an IT module widening the scope of checks, to highlight at-risk industries or countries in the short, medium and long term. This would make it possible to check compliance with the UN Guiding Principles by reviewing all credit insurance operations and assessing human rights risks.

…

15. Economic Sectors and Human Rights [page 31]

Not only must the authorities promote and raise awareness of CSR standards, they must also require extra vigilance with respect to high-risk economic sectors, geographic areas and products.

The Extractive Sector [page 34]

…

France helps monitor and finance the implementation of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. This document is an international reference in the field of good practices for businesses seeking to identify and manage non-financial risks in their mineral supply chains (funding for armed groups and terrorism, human rights abuses, child labour, corruption, etc.).
France is also active at the EU level. For example, it took part in negotiations on the Conflict Minerals Regulation, which concluded on 22 November 2016. It played a key role in pushing through the adoption of Chapter 10 of the Accounting Directive of 26 June 2013, which requires companies in the extractive sector to report all payments to governments in the countries they operate in, broken down by country and by project. France was one of the first European countries to transpose this requirement.

…

Actions Underway

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

II – Businesses’ Responsibility to Respect Human Rights

Actions Underway

The French Ministry of Foreign Affairs and International Development issues advice for businesses operating in conflict zones and/or high-risk areas.

2.3 Business activity in conflict zones [page 32-33]

“The UN Guiding Principles attach particular priority to assisting enterprises in respecting human rights in areas torn by conflicts. One characteristic of such areas is an especially high risk of serious human rights violations resulting from the frequent total absence of state structures. The Federal Government therefore considers that it has a responsibility to try to ensure that German enterprises operating in such conditions have no part in any adverse impacts on human rights. Enterprises operating in these conditions are to be supported whenever they are able, through their investments and business activities, to contribute to the stabilisation and development of such areas. In fragile or war-torn countries, there is often a danger that trade in raw materials is cornered by destabilising players, who will use it for their own ends and thereby fuel existing conflicts. Importance therefore attaches not only to international commodity diplomacy but also to local contributions in cases where specific interests are affected by the exploitation of raw materials.”

The current situation

“An important contribution to these efforts is being made by the deliberations, which Germany is backing, on what are known as ‘conflict minerals’, an intense discussion being conducted within both the OECD and EU frameworks. In 2011, the OECD published a guide to corporate responsibility along supply chains in which minerals from conflict zones are traded and handled. The guide, entitled OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, has also been available in German since 2015. The primary aim of the Guidance is to curb the funding of armed conflicts from the proceeds of trade in raw materials; in addition, compliance with its recommendations would help to prevent serious human rights violations, especially child labour.

The European Commission has presented a proposal for a regulation setting up a Union system for supply chain due diligence self-certification of responsible importers of tin, tantalum and tungsten, their ores, and gold originating in conflict-affected and high-risk areas. Based on the aforementioned OECD guide, the Commission’s draft regulation would establish a voluntary undertaking to observe due diligence rules within supply chains when importing the minerals referred to above so as to ensure that proceeds from their sale are not used to fund armed struggles in conflict zones or other high-risk areas. The European Parliament, on the other hand, expressed itself in favour of a binding instrument for downstream operators, that is to say along the whole value chain. A basic compromise has now been reached between the European Parliament, the Council and the European Commission on a binding instrument focused on the upstream area, i.e. the supply chain. Further details will now have to be negotiated in the context of the trialogue conducted by the EU institutions.

In the quest for targeted improvements in the protection of human rights, the Federal Government is sponsoring a research project that is being conducted by the German Institute for Human Rights. Through the project, selected national human rights institutions in countries with which Germany engages in development cooperation are strengthened in their work in the raw materials sector. In the framework of technical cooperation, human rights analyses are being conducted in the Andean countries. Human Rights Risks in Mining – A Baseline Study, presented by the Federal Institute for Geosciences and Natural Resources at the beginning of 2016, contains an in-depth analysis of the impact of mining on human rights. In addition, the Federal Government is promoting conflict-sensitive management of natural resources, particularly in Africa (Mali and the Democratic Republic of the Congo), in a project in which representatives of government, the private sector, civil society and affected populations are brought together in a dialogue with a view to reconciling their diverse interests in a participative and conflict-sensitive framework.”

Measures

“The Federal Government is pursuing the aim of preventing the use of proceeds from the sale of tin, tantalum and tungsten, of their respective ores and of gold to fund armed struggles in conflict zones and other high-risk areas. It is committed to the establishment of binding due diligence rules, which should be proportionate and should not entail unnecessary red tape, particularly for small and medium-sized enterprises.”

Section 2: Current Legislative and Regulatory Framework

Supply Chain [page 15]

“The Government supports the proposal by the European Commission for an EU Council Regulation which provides for the establishment of an EU-wide system for supply chain due diligence of responsible importers of tin, tantalum and tungsten, their ores, and gold originating in conflict-affected and high-risk areas. The main objective of this proposal is to help reduce the financing of armed groups and security forces through mineral proceeds in conflict-affected and high-risk areas by supporting and further promoting responsible sourcing practices of EU companies. Of course, supply chain diligence is not limited to the extractive industries and areas of conflict.

Annex 1 – List of additional and ongoing actions to be carried out across Government

EU and Multilateral Efforts [page 20]

“6. Support the implementation of the Regulation establishing an EU-wide system for supply chain due diligence of responsible importers of tin, tantalum and tungsten, their ores, and gold originating in conflict-affected and high-risk areas.”

Trade and Investment [page 21]

“18. Provide advice to business enterprises of the possible risks of human rights situations when operating in conflict affected areas.”

I. Guidelines and General Principles

“So far the second NAP-BHR also incorporates the recommendations received during the third cycle of the Universal Periodic Review, relating to efforts – in terms of policies, legislative and administrative measures – to prevent and manage the obvious risk of companies’ involvement in human rights violations in conflict situations, and to support companies in better implementing legislative measures to combat labour exploitation in the agricultural sector” (p.8)

III. Expectations towards Business Companies

“In this area it is important to mention:

– the implementation of the Regulation (EU) 2017/821 on “conflict minerals”: the Regulation entered into force on 1 January 2021 and Legislative Decree No. 13 of 2 February 2021 provides for its adequate domestic implementation”” (p. 12)

IV. Italian ongoing activities and future commitments

Responsible Conduct and Due Diligence in the framework of the United Nations, OECD and European Union

“At the European level, the adoption of Regulation (EU) 2017/821 of the European Parliament and of the Council of 17 May 2017 establishing supply chain Due Diligence obligations for Union importers of tin, tantalum and tungsten, minerals and gold, originating in conflict or high-risk areas, has recently led EU Member States to take action to adapt their legal and regulatory systems to introduce this new obligation for Union importers” (p. 44)

Internationalization of companies

“Italy acknowledges an enhanced attention to the respect of human rights in areas affected by armed conflict, where their promotion can be an essential tool to prevent conflict and rebuild more stable and peaceful societies. On this basis, and with specific reference to minerals from areas affected by conflict or at high risk – in particular in the gold sector – Italy has performed best practices through awareness campaigns and training activities in line with the OECD Guidelines on Due Diligence, as well as the relevant EU regulations. In addition, again with reference to responsible trade in minerals, Regulation (EU) 2017/821 of the European Parliament and of the Council was adopted in 2017. This established supply chain Due Diligence obligations for Union importers of tin, tantalum and tungsten, their ores, and gold, originating in conflict or high-risk zones. It has been transposed into Italian law through Legislative Decree No. 13 of 2 February 2021, which establishes Due Diligence obligations in the supply chain for Union importers of tin, tantalum and tungsten, their ores, and gold, originating in conflict or high-risk areas.” (p. 52)

ANNEX 1 – Accountability Grid and Assessment Tools for the Implementation of the NAP

“37. Fully implement Regulation (EU) 2017/821 establishing supply chain Due Diligence obligations for Union importers of tin, tantalum and tungsten, their ores, and gold, originating in conflict or high-risk areas.

38. Further promote awareness of the OECD Guides on Due Diligence for Companies Operating in Weak Governance Zones (the “Risk Awareness Tool for Multinational Companies in Weak Governance Zones” and the “Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas”).

39. Include respect for human rights by businesses through specific projects designed and developed through the Italian Agency for Development Cooperation in areas of armed conflict (or high risk) that include awareness raising and capacity-development activities.

40. Strengthen the action of the Italian Cooperation on gender equality, including through support to the economic development of women in post-conflict situations in line with the three UN Pillars (peace and security, development and human rights) and in the context of the legislative and programmatic framework of UN Security Council Resolution 1325 “Women, Peace and Security” and Fourth National Action Plan on Women, Peace and Security adopted by Italy in 2020.” (p. 67)

ANNEX 2 – Summary of the Results of the Assessment concerning the Implementation of the first PAN BHR

“2. What are the good practices adopted by stakeholders, in line with the measures of the first NAP BHR?

Two further relevant aspects also emerged: typical conditions of countries at high risk, depending on the introduction of strict contractual clauses for trade transactions in such contexts – also in line with Regulation (EU) 2017/821 on minerals from “conflict or high risk areas”; the obligation of Due Diligence in relation to the import of minerals.” (p. 70)

Principle 7 – Conflict-affected areas

For the time being, in conflict-affected areas, Slovenia provides humanitarian aid only in the form of donations to international organisations. Slovenia appeals to all actors involved in conflicts, including economic operators, to respect humanitarian principles and international humanitarian law. (pg. 29)

Guiding Principle 7

The measures adopted regarding Guiding Principle 7 are incorporated to the obligations corresponding to the State under International Humanitarian Law in situations of armed conflict and in accordance with International Criminal Law and, in particular, those derived from signing of the Rome Statute of the International Criminal Court. In this context, it should also be noted that Spain is part of the Montreux Document on the relevant legal obligations and good practices of States with regard to the operations of private military and security companies during armed conflicts.

Measure 1

“The Government, through its representations abroad, will inform companies about the risks involved in their business activities and relationships, especially in areas affected by conflicts.”

Measure 2

“Within the framework of the implementation of the II National Action Plan on Women, Peace and Security, the Government will develop tools and action guides directed to companies on how to address the risk of sexual violence and gender violence in conflict situations.”

Measure 3

“The Government undertakes to include clauses on respect for human rights when contracting private military and security services in accordance with the United Nations Basic Principles on the Use of Force and Firearms by Law Enforcement Official Officials (1990), the Code of Conduct for Law Enforcement Officials (1979) and the Arms Trade Treaty (2013).”

Measure 4

“The Government will promote the application of the OECD Due Diligence Guide for Supply Chains Responsible for Minerals in Conflict or High Risk Areas.”

Measure 5

“The Government will participate in multilateral efforts aimed at improving the prevention, mitigation and remedy of situations in which companies are involved in serious human rights abuse.”

2 The corporate responsibility to respect human rights [page 13]

“The Government’s clear expectation is that companies operating in Sweden or abroad respect human rights in all their activities. This means that their business activity should not cause, contribute or be linked to human rights abuses, not least in conflict-affected areas, and that they should act to prevent such abuses. Similarly, they should address adverse human rights impacts with which they are involved.”

Annex: Measures taken [page 22]

The State as actor

“The conduct of companies in relation to armed conflicts is highly relevant to respect for human rights. Sweden has proposed sharper formulations in the draft regulation on responsible trade in minerals from conflict areas that is currently being discussed in the EU. In other words, we consider it should be mandatory for importers from particularly problematic countries to obtain certification. Sweden is carrying out awareness-raising activities on this issue and supports the OECD’s work on how companies are to identify risks in the supply chain and avoid trade in conflict minerals (OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas).”

Annex: Measures planned [page 27-28]

How can the State support the business sector?

“At Swedish embassies, knowledge about CSR and the UN Guiding Principles on Business and Human Rights will be enhanced through training initiatives. Embassies should use their local networks for Swedish and other companies, government agencies, trade unions and NGOs for support, cooperation and dialogue on how best to respect human rights. Embassies should be prepared to capture information about potential problems related to human rights and Swedish companies, especially in conflict-affected countries.”

Objectively verifiable indicators	× Benchmark: NAP 1
Verification sources	× NAP 1 Implementation Report × Follow-up in the Working Group on Business and Human Rights [GT « Entreprises et droits de l’Homme »]
Expected results	× Raising awareness among stakeholders × Implementation of the Regulation according to the timetable indicated × Predictability and legal certainty, especially for businesses
Implementation timeline	Depending on the entry into force of the Regulation
Means of implementation	× MAEE (Ministry of Foreign and European Affairs), Directorate for European Affairs and International Economic Relations

ACTION POINTS PILLAR 1	Aim	Responsible party	Timeline
Doing business in conflict areas and fragile states
Include the UNGPs and conflict sensitivity in the Multiannual Country Strategies (MACS) of embassies in fragile states, through dialogue between embassies, implementing organisations, the business community, and with local stakeholder involvement	Further improve integration of conflict sensitivity into foreign policy”	BZ	From 2022
Develop conflict sensitivity guidelines for the Dutch business community in collaboration with businesses, NGOs and implementing organisations, and distribute them via the RBC support office	Inform businesses on conflict sensitivity	BZ in collaboration with implementing partners and appropriate businesses in the Netherlands and abroad.	From 2022