Extractives sector

Action point 13

Strengthen and monitor the respect for human rights in public procurement

Renforcer et contrôler le respect des droits de l’Homme dans les marchés publics

The federal government states that the Working Group on Sustainable Public Procurement of the Interdepartmental Commission for Sustainable Development will examine how to strengthen and optimize the integration of respect for human rights into the purchasing policy of the public authorities. To this end, in consultation with the government and stakeholders concerned, including the sectoral federations, the working group will formulate a series of proposals with particular attention to hazardous sectors such as the apparel industry, the extractives industry etc.

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Pillar 1: The State Duty to Protect Human Rights

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

Action Point 1.8 (page 43)

The Ministry of Mining will organise talks and/or seminars about the inclusion of human rights standards in the development of mining projects.

Strand 3: Inclusion and Non-Discrimination

Action Point 3.3 (page 48)

The Ministry of Mining will generate the conditions for transiting to an inclusive organisational structure that includes the acknowledgement of respect and diversity in their practices. They will do this carrying out the following actions:

• Talks about business and human rights addressed at key actors in the small, medium and large-scale mining industry.
• Through the participation in Regional Boards and in the National Board for Women and Mining, the development of an action plan will be supported to raise awareness and motivate the different public and private actors involved in the mining industry in subjects such as gender equality. Likewise, the implementation of conditions for women to stay and develop a career in the mining industry and get equal pay will be fostered, as well as the creation of good labour practices and the balance between work, family and personal life.

Strand 9: State Business Enterprises

Action Point 9.3 (page 50)

To strengthen coordination between the Ministries forming part of the Inter-Ministerial Working Group, amplify the impact of this Action Plan, and make known its progress, the Group will carry out the following actions: …

2. Encourage the adoption of policies, statements or codes of conduct by business enterprises and urge the implementation of mechanisms of due diligence.

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• Mining, agribusiness and road infrastructure sectors are prioritised due to their higher level of social conflict (page 7).
• Action point 4.1 (p. 15):

 “The Government will strengthen the subscribing to these multi-actor initiatives: Guias Colombia, Swiss Ethical Committee and the Mining-Energy Committee, as well as the implementation of guides or the provided recommendations by such initiatives.”

• Action point 4.7 (p. 15):

 “The Ministry of Labor and the Colombian Institution for Family Welfare will strengthen actions intended to provide advice, training and monitoring to enterprises in respect of the integral protection of the children’s rights, as well as the implementation of the children’s rights and business principles in the priority sectors.”

• Action point 4.12 (p. 15):

 “In the year following the Plan’s launching, the Ministry of Mines and Energy will design a strategy to step forward as for the respect for human rights in the mining-energy sector, which will adjust the Principles and Criteria of the Extractive Industries Transparency Initiative (EITI) to the national needs.”

• Action point 5.1 (p. 16):

 “The Working Group will coordinate the preparation of a guide intended to define what executing due diligence means; what the practice is, particularly applied to the high risk business activity sectors.”

• Action point 9.3 (p. 22):

“Increase the recognition of Corporate Social Responsibility and dissemination of good practices by establishing sector platforms for the enterprises and stakeholders to make commitments and jointly supervise progress. The Ministry of Commerce, Industry and Tourism will supervise this process.”

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Introduction [page 4]

“The question of business and human rights was thrust into the public consciousness in the 1990s. With modern business no longer confined by the borders of nation states, production and extraction operations are free to roam in pursuit of the right raw materials, economic conditions and labour.”

Most serious infringements of working conditions [page 16]

“Between 2009 and 2011, there were several cases of large-scale labour exploitation involving up to several hundred workers in the forestry sector (Finding of the Constitutional Court II. ÚS 3436/14 of 19 January 2016 and Finding of the Constitutional Court I. ÚS 3196/12 of 12 August 2014).”

Supply chains and conflict minerals [page 20-21]

“Implements Principles 6 and 7

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. Raw materials imported from geopolitically unstable regions and flashpoints may be used as a source of funding to reconstruct the country and improve the conditions in which its inhabitants live. On the other hand, various groups may exploit slave or child labour in mining operations or in factories, and the proceeds from sales could then be used to pay for weapons and soldiers. The raw materials they have mined and the products they have made are then sold on the global market, often without the buyers knowing their provenance.

This is a problem that needs to be tackled internationally. One solution lies in certification schemes proving the origin of raw materials. The certification authority guarantees that workers’ rights have not been infringed during mining or production. These certificates are issued by state and international organisations on the one hand, and private issuers on the other. Current legislation allows the public sector to take into account or to demand this certification in the course of procurement, in which case it is only necessary to comply with the conditions of transparency, equal treatment and non-discrimination. [Judgment of the EU Court of Justice of 10 May 2012 in European Commission v Kingdom of the Netherlands (C-368/10)]

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.
• European Commission is working with the OECD to establish criteria for internal control and regulatory mechanisms at businesses.
• Numerous voluntary certification schemes run by states and international organisations on the one hand and the private sector on the other attempt to map out the origin of raw materials and supply chains.
• The Dodd-Frank Act in the US requires a certificate of origin for certain raw materials. This is also relevant to the Czech Republic inasmuch as it also applies to foreign subcontractors.
• Under the new European rules on non-financial reporting, companies will also publish information on their supply chains.
• The Czech Republic was involved in the consultation and approval of the OECD-FAO Guidance for Responsible Agricultural Supply Chains. The Ministry of Industry and Trade and the Ministry of Agriculture will arrange for this Guidance to be published and publicised at their seminars and workshops.
• 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
• In the public sector’s procurement of high-risk products and raw materials, consider giving preference to suppliers participating in recognised certification schemes.
  Coordinators: All ministries
  Deadline: Running”

Pillar II, Scope and content of the obligation to respect human rights [page 30]

“For businesses, there are three dimensions to respect for human rights: …

• Do not be associated with violations of human rights: This applies to other parties’ activities about which a business knows, on which it has a bearing, and/or which are closely related to its own business, and may encompass:
  • Lending for a mining project that permanently damages the environment. …”

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The Danish NAP makes no direct reference to extractives.

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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 for the more general responsible acquisition of raw materials, the new EU accounting directive obliges companies operating in oil, gas, extractive industry and loggers of primary forests to report on the fees paid to governments in connection with the financial statement8. The directive is currently being implemented in Finland.

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.”

3 Expectations towards companies and support services

3.1 Clarification of due diligence [page 26]

WHAT IS SUFFICIENT?

“As a follow-up measure, the working group proposes that • companies, non-governmental organisations and other key stakeholders are invited to a roundtable discussion by branch of activity. For example, the discussion could begin with the forest industry, the consumer goods trade and the textile industry. With the discussions, an attempt shall be made to create a dialogue amongst various stakeholders and to establish the essential risks for each branch of activity as well as sufficient risk management and due diligence.”

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I- The State’s Obligation to Protect Human Rights

The National Framework

13. The Role of Public Agencies

The Agence Française de Développement (AFD) [page 28]

… [AFD] also has an exclusion list which prevents it from financing projects that involve … diamond mining activities outside of the Kimberley Process.

Actions Underway: 

• When evaluating extractive industry projects, the AFD ensures that funding recipients comply with the Extractive Industries Transparency Initiative (EITI), without excluding those who respect EITI standards but are not based in EITI countries.

15. Economic Sectors and Human Rights

The Extractive Sector [page 34]

the NAP cites France’s participation in multilateral and european initiatives aiming to strengthen the legal and normative frameworks regulating companies in the extractive sector, in particular in contexts of fragile governance: France participates in the monitoring and contributes to the funding of the implementation of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (paragraph 3, p36); France participated in the development and adoption of the OECD Due Diligence Guidance for Meaningful Stakeholder Engagement in the Extractive Sector (paragraph 4,p36); it played a major role at the EU in negotiations regarding the regulation on conflict minerals and was one of the first European countries to transpose the 26 June 2013 directive imposing obligations of transparency on extractive companies (paragraph 5,p36); and France’s President committed to adhere to the EITI (paragraph 1, p36). This section concludes by indicating that the implementation of the EITI will “contribute to enhancing the transparency of financial flows and tripartite dialogue between the State, business and civil society on the social and environmental impact of extractive activity on the national territory” (paragraph 2, p37).

Actions Underway

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

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There is no mention of extractive sectors in the Business and Human Rights Chapter of the Georgian Human Rights NAP.

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

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.”

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.”

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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 to [page 20]

“5. Continue to participate in the Kimberley Process Certification scheme and support the scheme’s stewardship by the European Commission.

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.”

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IV. Government Responses: Current activities and future commitments

B. Operational Principles

Supporting business respect for human rights on conflict-affected areas
GP 7 [page 23]

Italy recognizes the importance of respecting human rights especially in conflict-affected areas, whereas the promotion of human rights may yet represent a fundamental mean to guarantee peace and security. On this basis, Italy can draw on best practices of awareness raising and training activities with regard to conflict minerals, and in particular the gold sector, in line with the OECD due diligence and relevant EU regulation.

Planned Measures

• Further promote the knowledge of the OECD due diligence guidance ‘Risk Awareness Tool for Multinational Enterprises in Weak Governance Zones’ and ‘Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High- Risk Areas’, encouraging and supporting SMEs to follow as well this guidance tools;

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The Lithuanian NAP makes no reference to the extractives sector.

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Part III – NAP
3. Government’s Response (p.28)

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

3.2 A joint work program (pg.31)

…

Other measures:

…

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

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The Dutch NAP makes some small references to the extractive sector.

3.1 An active role for the government

The OECD Guidelines Proactive Agenda [page 15]

“[the OECD] is also working with the various interested parties in the extractive sector on a guide to using stakeholder engagement in their CSR policies. … A multi-stakeholder approach to conflict minerals has proved highly successful in preventing funds being channelled into the civil war in the DCR.”

3.3 Clarifying due diligence

Raising companies’ awareness [page 22]

“It is essential for companies to have access to all available information on due diligence. The European Commission has published human rights guidance for three business sectors: ICT companies, oil and gas companies and employment and recruitment agencies.”

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2.1 The state as a legislator: The Minerals Acts [page 19]:

In Norway as in other countries, conflicts may arise between commercial activity and indigenous peoples’ rights. Protection of Sami rights is laid down in the Constitution and other legislation, and obligations towards the Sami people follow from international conventions, particularly Article 27 of the International Covenant on Civil and Political Rights and ILO Convention 169 concerning Indigenous and Tribal Peoples in Independent Countries. In Norway, Sami rights are also enshrined in special legislation and through consultation procedures between the public authorities and Sámediggi (the Sami Parliament). As part of its follow-up of ILO Convention 169, Norway is conducting a dialogue with ILO on how the convention is being implemented in Norwegian law, including in the area of mineral resources. In the Official Norwegian Report 2007:13 on legislation pertaining to the Sami, the Sami Rights Commission reviewed measures relating to mineral resources and in legislation that regulates mineral extraction. Some of the commission’s proposals were evaluated in connection with the preparatory work on the Minerals Act. The Act, which replaced five existing acts, entered into force on 1 January 2010. As part of the Government’s follow-up of the report from the Sami Rights Commission, the Ministry of Trade, Industry and Fisheries will evaluate proposals for amendments to the Minerals Act.

…

2.1: Regulations on country-by-country reporting:

 Under the country-by-country reporting regulations, large enterprises that are required to submit accounts, and issuers of financial instruments listed on the stock exchange, in the extractive industry and/or forestry and logging, are required to prepare and publish an annual report on their activities by country and by project.

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Pillar I: The state’s duty to protect human rights

1. Regulations relating to business and human rights

Occupational safety and health [page 14]

“The provision of safe and hygienic working conditions to employees is also ensured by the provisions of other laws, including the Construction Law, Atomic Law, and Geological and Mining Law.”

Pillar III: Access to remedies

3. National Labour Inspectorate (PIP): an institution that oversees business and human rights

Supervisory and inspection activities [page 47]

“The National Labour Inspectorate actively supports employers’ involvement in issues concerning safety and working conditions, as well as employee participation, both in its oversight and inspection capacity and in its preventive and promotional activities. These include seminars, conferences, and training meetings with employers involved in permanent workplace safety improvement programmes (enhanced oversight in industrial establishments, permanent inspections in construction, rail infrastructure, forestry, and mining sectors).”

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Guiding Principle 3

Measure 5

“The implementation will be promoted by business and trade unions, general or sectorial, including representative organizations of social economy entities; as well as other institutions such as chambers of commerce, chambers abroad, universities, business schools, etc. of actions that should promote online training and advice and Resolution of queries, coordinated with those carried out in the application of the Spanish Strategy of Corporate Social Responsibility.”

Guiding Principle 7

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.”

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Annex: Measures taken [page 22-24]

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).
• … Sweden provides support to the Extractive Industries Transparency Initiative (EITI), which works to combat corruption in the mining industry.”

Annex: Measures planned [page 27]

• “The interim report Implementation of the EU’s new accounting directive (Swedish Government Official Reports 2014:22) proposes enhanced transparency regarding payments made by some companies active in the extractive industry and in the logging of natural forests. The provisions will require companies to publish annual reports on payments made to authorities in the countries in which they operate. The aim is to combat corruption.”

Annex: Links [page 30]

“The European Commission has produced a guide to human rights for small and mediumsized enterprises in Swedish, based on the UN Guiding Principles for Business and Human Rights. The Commission has also developed industry-specific guides for extractive industries (oil and gas), temporary-work agencies and the ICT sector. These are available on the Commission website: www.ec.europa.eu”

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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. …

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The UK 2013 NAP in the section on Further actions planned [page 15] states:

“We will: … (ii) encourage trade associations/sector groupings of companies to develop guidance relevant to their members’ sector of activity on developing human rights policies and processes, including due diligence. There is generic guidance online about doing this e.g. at the Business & Human Rights Resource Centre. Some sector-specific guidance also exists, for example the International Council on Mining and Metals has produced a guide for mining companies on human rights due diligence…”

The UK 2013 NAP lists a number of initiative around extractives and mining in its chapter of References.

The UK 2016 Updated NAP in the Government Commitment section states that [page 10]:

“The Government will do the following to reinforce its implementation of its commitments under Pillar1 of the UNGPs: (…) Continue to work closely with Voluntary Principles on Security and Human Rights Initiative (VPI) member governments, extractive companies and civil society organisations, to promote greater understanding of the Voluntary Principles and strengthen the implementation, effectiveness and membership.”

The UK 2016 Updated NAP, in the section on Case studies, includes an example from Kenya regarding responsible business conduct and extractives [page 12].

UK 2016 Updated NAP includes a section devoted to Actions Taken [page 8]:

“To give effect to the UN Guiding Principles, the Government has: (…)

Taken account of business activity in conflict and fragile states, or countries with high levels of criminal violence, within the Building Stability Overseas Strategy. … We will continue to promote implementation of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict Affected and High-Risk Areas;

In March 2015 the Government concluded its chairmanship of the Voluntary Principles Initiative. During our chairmanship we worked to raise awareness of the VPI in priority countries for membership, to support UK oil, gas and mining companies to use the VPs to manage security and human rights risks more effectively, and encouraged greater openness by companies in line with the UN Guiding Principles on Business and Human Rights.”

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Collaborating with Stakeholders [page 13]

“Agencies within the U.S. government have been catalysts for and participants in several MSIs, including providing start-up funding for the formation of the Fair Labor Association, which comprises companies across several sectors as well as academic, civil society, and other participants; facilitating the launch of, and acting as a leading member of, the Voluntary Principles on Security and Human Rights (VP), which guide oil, gas, and mining companies on providing security for their operations in a manner that respects human rights; and helping to launch and actively participating in the development of the ICOC and continued involvement as a member of the board of the ICOC Association.

Through the Extractive Industries Transparency Initiative (EITI), the United States is committed to promoting transparency in the extractives sector by playing an active role on the International EITI Board and Board committees. The U.S. commitment to EITI — both to promote it abroad and to implement it at home — sends a strong signal to our international partners that transparency is critical for countries at all levels of development, and in all regions.”

Outcome 2.1: Enhance the Value of Multi-Stakeholder Initiatives on RBC

Ongoing Commitments [page 15]

“DOL Technical Cooperation: DOL funds a range of projects involving collaboration with private sector actors on RBC issues, including: …

• A $6 million DOL project in Brazil and Peru, launched in March 2014, partners with national governments, businesses, and civil society organizations to combat forced labor and promote the exchange of good practices between the two countries. In Brazil, the project partners with the state of Mato Grosso’s Integrated Action Program to provide livelihood opportunities to households vulnerable to forced labor. In Peru, the project has conducted research on forced labor in gold mining and logging and trained more than 1,000 government officials on the issue of forced labor.” – Implementing Department or Agency: DOL

Outcome 3.3: Capacity Building and Technical Support to Promote Enabling Environments

New Actions [page 19-20]

“Support for Reducing Land Conflict in West Africa: State is supporting a program to reduce land conflict in Sierra Leone, Liberia, and Guinea by strengthening the capacity of civil society organizations to work on land rights and tenure issues as they relate to the UN Guiding Principles on Business and Human Rights. This program complements USAID’s existing investments in Côte d’Ivoire to support responsible business practices in the process of diamond sourcing, support country compliance with the Kimberley Process Certification Scheme, and stem the flow of conflict diamonds, while improving community land rights.” – Implementing Department or Agency: State

“Stakeholder Engagement in Extractive Industries in East Africa: State is funding a program to promote RBC in East Africa. The goal of the program is to strengthen civil society’s capacity to meaningfully participate in business and human rights initiatives in East Africa and to reduce conflict for communities in the operations of extractive companies.” – Implementing Department or Agency: State

 Ongoing Commitments and Initiatives [page 20]

“Dodd-Frank Section 1502: Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) supports regional and international efforts to break the link between conflict and natural resources and prevent armed groups or abusive state forces in the African Great Lakes region from benefiting from the sale of certain natural resources that are sourced from the Democratic Republic of the Congo (DRC) or an adjoining country. Section 1502 requires certain companies to submit annually a description of the measures taken to exercise due diligence on the source and chain of custody of the four “conflict minerals.” Commerce will continue to work with the U.S. Geological Survey to issue annually a list of conflict mineral processing facilities to assist in this reporting and will develop recommendations on ways to improve accuracy and establish standards of best practices. State will continue to provide guidance to help companies ensure that their products and their suppliers’ products do not directly or indirectly finance armed conflict or result in labor or human rights violations. Through the Public-Private Alliance for Responsible Minerals Trade, State and USAID work in partnership with U.S. companies and civil society to support conflict-free sourcing from the DRC and African Great Lakes region.” – Implementing Department or Agency: State, USAID, SEC, Commerce, USGS

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