The Australian Government has launched an online register that publishes companies’ statements on their compliance with the country’s Federal Modern Slavery Act of 2018. The website, which is searchable and available to the public, marks the first government-run website tracking companies’ compliance with efforts to eradicate modern slavery. Unlike comparable legislation passed recently in other jurisdictions, including the U.K. Modern Slavery Act of 2015, Australia’s Act makes reporting mandatory within six months of a company’s fiscal year-end.… More
Category Archives: Transparency
As the United States Targets China’s Human Rights Abuses, Companies Should Prepare for Stricter Due Diligence on Forced Labor
As the United States seeks to take more forceful action punishing China for its escalating human rights abuses against Muslim ethnic minorities in the Xinjiang autonomous region and the citizens of Hong Kong, international businesses whose supply chains intersect with China should be prepared for new legislation and regulatory enforcement that could result in penalties. Companies will need to take additional steps to ensure their due diligence processes account for potential human rights risks associated with forced labor in Xinjiang and elsewhere in the country.… More
The COVID-19 pandemic is one of the most significant global public health crises since the Influenza Pandemic of 1918-20. The spread of the Coronavirus through every continent and major metropolis has led to unprecedented policy responses from governments both large and small. As a result, the human rights community is more closely scrutinizing the impact of these responses, while many company operations are more likely to overlap with the pandemic and evolving government policy in some way.… More
Pioneering Dutch Law Raises Global Standards for Eliminating Child Labor in Supply Chains – Understanding the Dimensions of Compliance
The Dutch Senate recently adopted the Child Labour Due Diligence Act, a new measure with far reaching implications for the sourcing, manufacturing, and consumption of products that contain inputs from the bodies of child laborers.
The new law is the product of protracted negotiations that have taken place over several years in the Dutch Parliament. The Dutch House of Representatives approved the legislation in February 2017 with 82 of the chamber’s 150 Members of Parliament in favor. … More
Tiffany & Company announced last week that it would become the world’s first jewelry company to share with its consumers information about the country of origin of each diamond they sell. This is the first in a step of transparency measures that the company is undertaking. By 2020, Tiffany hopes to provide its customers with information about where each diamond was cut,… More
The 2018 Corporate Human Rights Benchmark: Some Successes but Ongoing Challenges in Company Efforts to Advance Human Rights
On November 12, The Corporate Human Rights Benchmark (CHRB) released the results of its 2018 Corporate Human Rights Benchmark. The 2018 Corporate Human Rights Benchmark assesses over 100 of the largest publicly traded multinational companies in the world on a set of key human rights indicators, including governance policies, remedies and grievance mechanisms, responding to serious allegations, due diligence, and transparency.
Established in 2013,… More
It’s Friday and time for another overview of developments in the field of business and human rights that we’ve been monitoring.
This week’s post includes: two new reports looking at corporate compliance with the U.K. Modern Slavery Act and best practices with respect to efforts to address the risks of forced labor; and the release of a “Frequently Asked Questions” document by the U.S. Department of Homeland Security regarding the presumption that goods made by North Korean workers are made with forced labor.… More
The 2017 benchmarking report ranked 98 of the world’s largest publicly traded companies on their human rights performance using 100 specific performance indicators. The CHRB has focused on companies in the following three industry sectors: agriculture;… More
It’s Friday and time for another overview of developments in the field of business and human rights that we’ve been monitoring.
This week’s post includes: a new venture fund intended to support companies trying to increase transparency with regard to labor conditions in corporate supply chains; the launch of new principles on responsible corporate tax policy; and litigation alleging that a company’s failure to disclose human rights-related risks in its supply chain in its packaging is deceptive to consumers.… More
New FCPA Corporate Enforcement Policy Incentivizes Corporate Voluntary Self-Disclosure and Cooperation
Under the new FCPA Corporate Enforcement Policy recently released by the Department of Justice (“DOJ”), when a company has voluntarily self-disclosed misconduct, fully cooperated in the government’s ensuing investigation, and appropriately remediated the situation and made restitution or otherwise disgorged all illicit profits, there is a now an express presumption – absent certain identified aggravating factors – that DOJ will affirmatively decline to prosecute the company.
This new Policy is an evolutionary step forward in enforcement – not a radical change.… More
This week’s post includes: the formal withdrawal of the United States from the EITI; the passage of the Canadian Magnitsky Act; and the launch of the Investor Alliance for Human Rights.
- On November 2, the Government of the United States formally withdrew from the Extractive Industries Transparency Initiative (“EITI”).…
This week’s post includes: a paper from on the proposed draft elements for an international treaty on business and human rights; new guidance from the United Kingdom with regard to compliance with the Modern Slavery Act; and a review of corporate responsibility reporting.
- On September 29,…
This week’s post includes: a new report from the U.N. Working Group on Business and Human Rights; a report evaluating corporate efforts to assess forced labor risks in sugarcane supply chains; and a revised report reviewing national action plans on business and human rights as issued by 18 countries.… More
This week’s post includes: an announcement by the Government of Australia that it will move forward with the development of a new “Modern Slavery Act”; new commitments by five companies to prohibit recruitment fees in their supply chains; and decision by the African Commission on Human and Peoples’… More
As previously noted, on February 21, 2017, the French National Assembly adopted a law establishing a “duty of vigilance” for large multinational firms carrying out all or part of their activity in France.
In a subsequent development, on March 23, the French Constitutional Council released a decision upholding the majority of the legislation, but striking down the proposed civil penalties for companies that fail to develop a diligence plan.… More
This week’s post includes: a decision by the Ontario Superior Court of Justice addressing a corporation’s “duty of care” with regard to the employees of its suppliers; new IBA guidance for lawyers on integrating business and human rights considerations into their advice to clients; and a report evaluating corporate conflict minerals filings for calendar year 2016.… More
Update: On August 16, the Government of Australia announced that it would move forward with the development of a Modern Slavery Act.
Corporate counsel must increasingly assess the implications of new transparency statutes that require companies to make public disclosures as to their efforts to address certain human rights-related risks in connection with their business operations, including their supply chains.
Companies are also increasingly aware that their companies may be directly or indirectly linked to acts of human trafficking.… More
This week’s post includes: a new report on human rights litigation in U.S. federal courts; new guidelines on the E.U. directive on non-financial reporting; and the release of the U.S. State Department’s 2017 Trafficking in Persons report.
- On June 8, U.S. Customs and Border Protection published a final rule in the Federal Register amending existing customs regulations in order to to reflect the elimination of the consumptive demand exception,…
On May 31, shareholders at Exxon Mobil Corp. (“ExxonMobil”) voted in favor of a climate change resolution asking the company to publish an annual report on the business impact of measures designed to limit global temperature increases to 2 degrees centigrade, the target set by the Paris Agreement.
The non-binding resolution passed with more than 62% of the votes cast. Specifically, the resolution asks that,… More
This week’s post includes: a new report on the state of corporate human rights reporting; the passage of a shareholder resolution on climate change at Occidental Petroleum; and the latest Ministerial Declaration from the Labour and Employment Ministers of the G20.
- On May 10,…
This week’s post includes: a jury verdict in the Quinteros v. DynCorp litigation; the latest GAO report on corporate conflict mineral disclosures; and a statement from the Scottish Parliament that investments agreements should only be signed after appropriate human rights due diligence.
- On March 29,…
This week’s post includes: an effort by Twitter to enjoin U.S. Government demands for information regarding a user account critical of the Trump Administration; an announcement that seven telecommunications companies have joined the Global Network Initiative; and a decision by EITI to make project-level payment reporting mandatory.… More
This week’s post includes: the European Parliament’s adoption of a new conflict minerals regulation; the French Constitutional Council’s review of the proposed duty of vigilance legislation; the dismissal of the Doe v. Nestle litigation; and the release of a new Corporate Accountability Index by Ranking Digital Rights.… More
This week’s post includes: new reports on the U.S. National Action Plan on Responsible Business Conduct, corporate disclosures pursuant to the California Transparency in Supply Chains Act, and shareholder proposals on social and environmental issues; the second discussion paper published by the Thun Group of Banks;… More
This week’s post includes: a federal court decision holding that U.S.-based companies may be obligated to turn over customer data stored outside the United States; an amicus brief opposing President Trump’s Executive Order establishing an entry ban on individual from seven Muslim-majority countries; and new guidance from the OECD with regard to due diligence in apparel and footwear supply chains.… More
Congress passed a joint resolution this week expressing its disapproval of the revenue transparency rule issued last June by the Securities and Exchange Commission. The rule, issued pursuant to Section 1504 of the Dodd-Frank Act, required extractive sector companies (oil, gas, and mining) to disclose the payments that they make to governments for the commercial development of oil, gas, or minerals.
President Trump is expected to sign the joint resolution,… More
This week’s post includes: expected efforts by the U.S. Congress to repeal the Securities and Exchange Commission’s revenue transparency rule; the dismissal of a case against Royal Dutch Shell in the United Kingdom stemming from the company’s activities in Nigeria; and the revival of claims against Tahoe Resources in British Columbia on the basis of the alleged shooting of protestors at a mine site in Guatemala.… More
This week’s post includes: IHRB’s annual list of the Top 10 business and human rights issues for the coming year; the latest benchmarking report from Know the Chain focused on apparel and footwear companies; and the release of a reference annex to the IBA Practical Guide on Business and Human Rights for Business Lawyers.… More
On Friday, December 16, the Government of the United States will release its long-awaited National Action Plan on Responsible Business Conduct.
A livestream of the launch event, which will be held at 11 a.m. ET, can be accessed here.
First announced by President Obama in September 2014, the plan is expected to focus on ways in which the U.S.… More
This week’s post includes: new reports on the corporate responsibility to respect human rights; a report on sustainability disclosures in corporate filings with the U.S. Securities and Exchange Commission (“SEC”); a draft law in France that would require companies to conduct human rights due diligence; and developments in human rights litigation against Chiquita.… More
This week’s post includes: the first annual report from the U.K. Anti-Slavery Commissioner; a new benchmarking report from Know the Chain focused on food and beverage companies; and the results of a survey on corporate human rights due diligence efforts.
- On October 12,…
This week’s post includes: an important decision by the Supreme Court of British Columbia with regard to a case raising forced labor concerns; the release of the U.S. Department of Labor’s most recent List of Goods Produced by Child Labor and Forced Labor;… More
This week’s post includes: the GAO’s latest report on the conflict minerals rule; a civil society report on the SEC’s efforts to modernize financial disclosure requirements; and an independent impact assessment of the Better Work Programme.
- At the end of August, the U.S.…
This week’s post includes: litigation developments in cases that address the “Social Cost of Carbon,” the liability of interactive media service providers, and human trafficking in corporate supply chains; and a new global ranking of countries according to the relative risk of human trafficking and forced labor.… More
This week’s post includes: a new report from the U.N. Special Rapporteur on the Promotion and Protection of the Right to Freedom of Opinion and Expression; reviews of the latest round of conflict minerals reports; corporate efforts to address the risks of sex and labor trafficking in connection with the Olympic Games;… More
This week’s post includes: the release of the third, and likely final, draft of the World Bank’s revised safeguard policies; guidance for management accountants on how to identify human rights-related risks and manage human rights performance; and developments in a major Alien Tort Statute case.
- On July 20,…
New legislative requirements and stakeholder concerns have driven many companies to implement systems to identify address the potential human rights impacts of their operations. Companies increasingly realize the responsible management of human rights impacts helps mitigate legal, operational, and reputational risks.
That said, as companies begin to assess human rights impacts, they need to avoid the trap of treating these assessments as box-checking exercises. A large volume of information can be gathered through human rights due diligence,… More
This week’s post includes: a new lawsuit aimed at combating human trafficking in corporate supply chains; the release of the 2016 Trafficking in Persons Report by the U.S. State Department; and a change in the Reporting Requirements on Responsible Investment in Burma.
- On July 1,…
On June 27, the Securities and Exchange Commission (“SEC”) issued a new rule requiring extractive sector companies (oil, gas, and mining) to disclose the payments that they make to governments for the commercial development of oil, gas, or minerals.
The rule was enacted pursuant to Section 1504 of the Dodd-Frank Act, which directed the SEC to issue a rule requiring extractive sector companies to disclose payments to governments,… More
This week’s post includes: a new guide for business lawyers from the International Bar Association that seeks to promote implementation of the U.N. Guiding Principles on Business and Human Rights; the public release of Know the Chain’s first report benchmarking technology companies on efforts to address forced labor in their supply chains;… More
This post was originally published on The Huffington Post.
Five years ago today, on June 16, 2011, the way we view the human rights responsibilities of companies changed. On that day, the United Nations Human Rights Council unanimously endorsed the UN Guiding Principles on Business and Human Rights (the “Guiding Principles”). This endorsement could have gone unnoticed except by those in the room at the time,… More
This week’s post includes: new guidance for boards of directors on business and human rights; the launch of the Responsible Sourcing Tool; the release of the 2016 Global Slavery Index; and a new code of conduct in Europe by which American Internet companies have committed to taking actions to combat illegal hate speech.… More
This week’s post includes: developments on mandatory disclosure requirements in both the United States and Europe; a new report from Professor John Ruggie addressing the human rights responsibilities of FIFA; and an update from Oxfam on its “Behind the Brands” campaign.
- On April 14,…
On March 21, the Corporate Human Rights Benchmark (“CHRB”) released the methodology that it will use to rank 100 companies on their human rights performance as part of an initial pilot. The companies chosen for the pilot include members of the extractive, apparel, and agricultural sectors.
Earlier this year, the CHRB announced the list of companies that it will assess as part of the pilot effort.… More
This week’s post includes: an overview of amicus briefs in the Apple case; the arrest of a Facebook executive in Brazil; and a statement from the U.S. Government on its human rights “commitments and pledges,” including its forthcoming adoption of a National Action Plan on Responsible Business Conduct.… More
This week’s post includes: Apple’s refusal to comply with a federal court order; a new report highlighting the most pressing business and human rights challenges facing companies today; and an evaluation of corporate compliance with the California Transparency in Supply Chains Act.
- Apple made headlines this week when it announced that it would not comply with a federal court order requiring the company to assist the FBI in unlocking the iPhone of one of the San Bernardino shooters.…
On December 11, 2015, the Securities and Exchange Commission (“SEC”) issued a new proposed rule to implement a key provision of the Dodd-Frank Act that targets corruption and increases transparency requirements for payments made to foreign governments by the oil, gas, and mining industries.
A District Court judge in California has dismissed a complaint against Nestlé USA Inc. and Nestlé Purina Petcare Co. (together “Nestlé”) which argued that the company was obligated to inform consumers that seafood in its catfood products may have been sourced from forced labor. Plaintiffs alleged violations of the California Unfair Competition Law, the Legal Remedies Act, and the California False Advertising Law.
Specifically, plaintiffs stated that they would not have purchased the company’s products if they had been informed that the seafood in those products was linked to forced labor,… More
On November 4th, the World Federation of Exchanges (WFE) released a set of 34 sustainability measures that include environmental, social and governance indicators. WFE recommends that its member exchanges implement these indicators into the disclosure requirements for listed companies.
The WFE is an industry trade organization made up of 99 organizational members, including 64 regulated exchanges (such as NASDAQ and NYSE) across the globe.… More
The transparency provisions of the U.K. Modern Slavery Act went into effect on October 29. At the same time, the U.K. Government has released guidance for companies seeking to comply with the Act.
As previously discussed, the transparency provisions of the Act are applicable to companies that do any part of their business in the United Kingdom if they have annual gross worldwide revenues of £36 million (approximately $56 million) or more each year.… More
Companies face a range of new requirements and expectations calling for enhanced transparency regarding human rights-related risks in connection with their operations. Responsible compliance with both mandatory requirements and voluntary standards requires a coordinated internal approach that seeks to address the concerns of key stakeholders while mitigating potential legal risks.
Examples of new transparency requirements include:
This week’s post includes notice of several new lawsuits regarding human rights concerns in corporate supply chains as well as coverage of the European Court of Justice’s recent decision to strike down the 15-year old “Safe Harbor” agreement allowing companies to self-certify that their data transfers between the United States and Europe are in compliance with E.U.… More
On October 2, the Securities and Exchange Commission (“SEC”) filed a schedule with the U.S. District Court for the District of Massachusetts providing details as to when the agency will seek to issue a final rule on revenue transparency.
As discussed in previous posts, the SEC originally issued a rule in August 2012 implementing Section 1504 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.… More
This week’s post includes a number of recent reports on issues ranging from conflict minerals to children’s rights. It also notes the release of the Sustainable Development Goals and the convening of Climate Week NYC.… More
There continue to be regular developments in the business and human rights field that warrant attention from both companies and their stakeholders. New legislation and regulation, shifting policy positions, and developments in ongoing litigation…there is always a lot to discuss.
To conclude this week, we have put together a rundown of five recent developments that we’ve been watching closely:
- On September 2,…
Companies that do business in the United Kingdom should assess their exposure to the U.K. Modern Slavery Act, which goes into effect this October. The transparency provisions of the Act are applicable to companies that do any part of their business in the United Kingdom if they have annual gross worldwide revenues of £36 million (approximately $56 million) or more each year.
The transparency provisions are applicable to all commercial organizations, … More
In late July, Representative Carolyn Maloney (D-NY) introduced H.R. 3226, the Business Supply Chain Transparency on Trafficking and Slavery Act of 2015. The bill, if passed, would require companies to file annual reports with the Securities and Exchange Commission (“SEC”) disclosing their efforts to identify and address specific human rights risks in their supply chains. Senator Richard Blumenthal (D-CT) is expected to introduce a companion bill in the Senate.… More
The State of California has recently stepped up enforcement of the California Transparency in Supply Chains Act, which went into effect on January 1, 2012. The California Department of Justice has also issued new guidance on compliance with the legislation.
In April 2015, the Department of Justice sent out letters to certain retailers and manufacturers regarding compliance with the transparency legislation. The letters requested the companies to provide,… More
U.N. Guiding Principles Reporting Framework Released by the Human Rights Reporting and Assurance Frameworks Initiative
In late February, after 18 months of research and consultation, a new Reporting Framework has been released to help companies report on their human rights performance in a manner aligned with the expectations set forth in the U.N. Guiding Principles on Business and Human Rights. The Reporting Framework is intended to enable companies of all sizes, and in all sectors, to report on their efforts to operate consistently with the corporate responsibility to respect human rights.… More
Companies increasingly face expectations that they will “know and show” that they are taking appropriate steps to manage the human rights impacts associated with their business activities. New transparency requirements on issues ranging from conflict minerals to investments in Burma reflect this trend.
With respect to human trafficking, existing statutes such as the California Transparency in Supply Chains Act and proposed statutes such as the Business Supply Chain Transparency on Trafficking and Slavery Act require companies to report on their efforts to conduct due diligence on their supply chains in order to identify the risks of human trafficking.… More
On June 11, Representative Carolyn Maloney (D-NY) introduced H.R. 4842, the Business Supply Chain Transparency on Trafficking and Slavery Act of 2014. The bill, if passed, would require companies to file annual reports with the Securities and Exchange Commission (“SEC”) disclosing their efforts to identify and address specific human rights risks in their supply chains.
The proposed federal legislation, co-sponsored by Representative Chris Smith (R-NJ),… More
The European Union took another step toward requiring large companies to publish social and environmental performance reports when the European Parliament approved amendments to a draft directive by a 599-55 majority last week. All that now remains for the measure to come into force is for the leaders of the 28 EU member states to approve the directive by a qualified majority at their next meeting,… More
On April 14, the D.C. Circuit Court of Appeals issued an opinion in National Association of Manufacturers v. SEC, a case that sought to challenge the conflict minerals rule released by the Securities and Exchange Commission (“SEC”) in August 2012.
The Court largely rejected the plaintiffs’ challenges, holding that the SEC did not act arbitrarily or capriciously in adopting the due diligence and disclosure requirements of the rule and in deciding not to include a de minimis exception.… More
Corporate social responsibility (“CSR”) may have its roots in voluntary efforts by businesses to address their broader impacts on society, but the trend towards CSR becoming mandatory advanced significantly this week under a deal that will soon require all large European companies to begin issuing annual social and environmental performance reports.
On February 26, the European Council and the European Commission reached an agreement that all but guarantees that the forthcoming European directive on corporate social responsibility will require all publicly traded companies with more than 500 employees to report their performance on a number of non-financial metrics every year.… More
Today, February 11, is a digital day of protest against surveillance by the National Security Agency. Billed ‘The Day We Fight Back“, participants in the protest range from activist groups to the Reform Government Surveillance Coalition, an business entity which includes Google, Microsoft, LinkedIn, Twitter, Facebook, Yahoo!, and AOL. Protesters’ demands include Congressional support for the Freedom Act,… More
In November, Gwen Jaramillo and I published a piece in Practical Law that looked at trends relevant to CSR. The piece covered a range of topics, including new legislative and regulatory requirements, the role of the board of directors, and key concerns for corporate general counsel.
In noting the key role of the board in overseeing a company’s approach to CSR,… More
Gare founded the CSR practice in 2000 after serving as Senior Foreign Policy Advisor and Counsel to U.S. Senator Edward M. Kennedy and Principal Deputy Assistant Secretary in the U.S. State Department’s Bureau of Democracy,… More
Everyone is in favor of transparency and anti-corruption – at least, everyone except the occasional despot or dictator. Yet substantial controversy now swirls around the disclosure of the vast sums that governments receive from mining and oil projects.
The question is not whether the streams of payments paid to governments by oil, gas, and mining companies should be disclosed, but how.… More
On July 2, the U.S. District Court for the District of Columbia vacated the rule implementing Section 1504 of the Dodd-Frank Wall Street Reform and Consumer Protection Act and remanded it to the Securities and Exchange Commission (“SEC”) for further consideration. Section 1504 requires Securities and Exchange Commission issuers involved in the extraction of oil, gas, and minerals to report on their payments to foreign governments and the U.S.… More
A number of significant briefs were filed recently with the U.S. Court of Appeals for the D.C. Circuit in support of Section 1504 of the Dodd-Frank Act, which requires oil, gas, and mining issuers to report on their payments to governments.
On January 16, Oxfam filed an intervenor brief in the case that the American Petroleum Institute (“API”) and others have brought against the Securities and Exchange Commission (“SEC”) to block its final rule. … More
On January 2, the Securities and Exchange Commission (“SEC”) filed its brief (.pdf) in the lawsuit brought by the U.S. Chamber of Commerce, the American Petroleum Institute (“API”), the National Foreign Trade Council, and the International Petroleum Association of America that seeks to alter or overturn the SEC’s final extractive industry transparency rule.
The petitioners’ lawsuit made several key arguments,… More
On November 8, the Securities and Exchange Commission (“SEC”) rejected a request by industry groups to stay new regulations requiring disclosure of payments to governments relating to oil, gas, and mining projects. The American Petroleum Institute, U.S. Chamber of Commerce, and other groups in the extractive sector had urged the SEC to stay the requirements while the groups’ litigation against the rules proceeds.… More
Earlier this month, on October 10, the U.S. Chamber of Commerce and three other industry groups filed suit against the Securities and Exchange Commission in federal court in Washington, D.C. The lawsuit seeks to overturn the recently-promulgated SEC rule implementing Section 1504 of the Dodd-Frank Act, which requires disclosure of payments to governments relating to oil,… More
On August 22, the Securities and Exchange Commission (“SEC”) voted two to one in favor of a final rule implementing Section 1504 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Commissioners Schapiro and Paredes were recused from the vote. A copy of the final rule is available here (.pdf).
As discussed in previous posts, Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act directed the SEC to issue a rule defining specific disclosure requirements for issuers for which conflict minerals are “necessary to the functionality or production of a product” manufactured,… More
Securities and Exchange Commission Sets Date for Final Hearing on Conflict Minerals and Revenue Transparency Rules
On August 22, the Securities and Exchange Commission ("SEC") will hold an open meeting to consider whether to adopt final rules implementing Section 1502 and Section 1504 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Under the original statutory provisions, both rules were to have been issued by April 17, 2011. Draft rules were originally released in December 2010 and the final rules have been long-delayed. … More
FTC Releases Final Report: “Protecting Consumer Privacy in an Era of Rapid Change: Recommendations for Businesses and Policymakers”
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FTC has released the final version of its original 2010 Report — "Protecting Consumer Privacy in an Era of Rapid Change: Recommendations for Businesses and Policymakers."… More
The most popular suite of tools to measure and manage greenhouse gases just got a lot more complete — allowing companies to track the impact of their products from natural resources and raw materials, through manufacturing, use and disposal, and providing a detailed framework to measure companies’ “everything else” Scope 3 emissions.
The Greenhouse Gas Protocol Initiative (a collaboration between the World Resources Institute and the World Business Council for Sustainable Development) finalized its two newest global greenhouse gas standards on October 4. The GHG Protocol are the most widely used suite of accounting tools for measuring,… More
On September 20, the Obama Administration announced its intent to join the Extractive Industries Transparency Initiative ("EITI"). Government members of the EITI are required to disclose the payments that oil, gas, and mining companies make to them, and companies operating in those countries publish their payments to the governments. The two can then be reconciled for greater transparency and certainty regarding payments to governments.
A working group in each EITI member country –… More
In the Carbon Disclosure Project’s 2011 analysis of the largest 500 companies, the Global 500, there is a very interesting statistical trend — the companies who were the most strategically focused on accelerating low-carbon growth had returns from January 2005 to May 2011 that doubled the Global 500 as a whole, with returns totaling over 85%, compared to the 42.7% returns for the index. Even more amazingly, the 13 companies that had been recognized by CDP for this strong focus for the last 3 years outperformed the Global 500 by over 60 percentage points over the same period. … More
H.R. 2759: New Federal Bill Would Require Companies to Disclose Efforts to Address Human Rights Risks in their Supply Chains
On August 1, Rep. Carolyn Maloney (D-NY) introduced H.R. 2759, the Business Transparency on Trafficking and Slavery Act (.pdf), a bill modeled after the California Transparency in Supply Chains Act. The bill would require companies to disclose efforts to identify and address the risks of human trafficking, forced labor, slavery, and the worst forms of child labor in their supply chains.
Retailers and manufacturers seeking to evaluate the potential applicability of The California Transparency in Supply Chains Act to their businesses should make certain that they are aware of recent changes in the California Revenue and Tax Code. Specifically, Section 23101 of the Revenue and Tax Code was amended in a way that creates a more expansive definition of "doing business" in the state for taxable years beginning on or after January 1,… More
Transparency International and Revenue Watch have released a report, Promoting Revenue Transparency: 2011 Report on Oil and Gas Companies, that is indicative of the pressure being placed on extractive sector companies to report on their payments to host governments and the value-sharing stipulations in their contracts.
The report ranks 44 oil and gas companies – both publicly listed and national oil companies –… More
Thirty of the largest apparel manufacturers and retailers – together comprising an estimated 60% of global apparel sales – recently announced the formation of the Sustainable Apparel Coalition. This group, which also includes academics, non-profits and the Environmental Protection Agency, is creating the industry’s first large-scale initiative to improve environmental and social performance through the establishment of standards and tools.
The Sustainable Apparel Index will be a tool for companies to evaluate the impacts of the entire life cycle of apparel products,… More
Conflict Minerals and Payments to Governments: SEC Extends Time Period for Comments on Proposed Rules
The Securities and Exchange Commission ("SEC") has extended the time period for comments on proposed rules issued pursuant to Section 1502 (conflict minerals) and Section 1504 (disclosure of payments to governments) of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The proposed rules are now open for comment until March 2, 2011.
The extension applies to rules proposed pursuant to:
The California Transparency in Supply Chains Act: New Legislation Requires Disclosures on Corporate Efforts to Eliminate Slavery and Human Trafficking
On September 30, California Governor Arnold Schwarzenegger signed The California Transparency in Supply Chains Act of 2010 into law. The legislation will require companies to disclose their efforts to ensure that their supply chains are free from slavery and human trafficking.
The legislation will go into effect on January 1, 2012 and applies to retail sellers and manufacturers doing business in California that have annual gross receipts exceeding one hundred million dollars.… More
The Dodd-Frank Wall Street Reform and Consumer Protection Act (.pdf), signed into law by President Obama on July 21, contains broad-reaching transparency provisions requiring oil, gas, mining, and other extractive industry companies to report their payments to governments to the Securities Exchange Commission (“SEC”).
The premise of the bill is that transparency, in the long run, supports human rights, and helps limit corruption in countries where few benefits from mineral wealth typically reach the general population.… More