Outcomes and case study of due diligence processes for human rights impact assessments

1. Getting the human rights
impact assessment right
Reana Rossouw
Next Generation Consultants

2. Case Study: BHP Billiton
Compliance
Assessment
• Country Risk
• Legal and organisational
Frameworks
Impact/Risk
Assessment
• Stakeholder Engagement
• Community Relations
Projects Impact
Assessment
Outcomes
• Impact (Low, Medium,
High)
• Risk (Low, Medium, High)
• Recommendations:
Human Rights
Management Plan

3. The Process
Country Risk
Assessment
•Global
•Local (South Africa)
•Industry specific
Compliance
Assessment
•Institutional
Frameworks
•Self Assessment Tools
regarding internal
management
functions and specific
human rights
practices
Impact/Risk
Assessment
•Internal and External
Stakeholders views,
perceptions and
awareness
Tests
•Violation
•Infringement
•Failure to Respect
•Respect
•Enhancement/
Improvement
Outcomes
•Recommendation for
Enhancement /
Improvement
•Human Rights
Management Plan

4. The Outcome

5. Specific Assessment Aspects
Geographic Assessment Industry AssessmentCountry Risk Assessment
Human Rights
Aspect
Case studies/Examples:
Right to
housing
A mine relocates people from their homes and land. The resettlement process occurs without
adequate consultation and results in poorer housing conditions post-relocation.
Population influx resulting from a mining project drives up the price of local housing, forcing
poorer members of a community to move into substandard dwellings.
Right to health A mining operation exposes local communities to hazardous materials.
Influx of construction workers contributes to the spread of STIs (sexually transmitted infections) in
the local community.
Population influx from a mining project places pressure on existing local health facilities and
negatively impacts local access to services.
Right to
education
A mine development causes the relocation or destruction of a local school, or entails resettlement
of communities to a location without adequate educational facilities.
Local teachers seek higher paying jobs in mining and local schools are left under staffed.
Right to an
adequate
standard of
living
Mining activities restrict or prevent people’s access to land used for subsistence livelihoods,
affecting their food security.
Disruption of natural water flows means that people are no longer able to irrigate crops or grow
enough food for their needs.
Artisanal small-scale mining is prohibited by a company or government affecting local traditional
livelihoods.
Right to
participate in
cultural life
Mining activities lead to the destruction or loss of access to a significant cultural heritage.
Mining operations significantly impede traditional or cultural ways of living.
Unplanned in-migration leads to the decline of important cultural heritage practices.
Right to
security of
person
Public or private security personnel use excessive force while evicting illegal small-scale miners
from the site or in breaking up community protests.
Unplanned in-migration leads to law and order issues in the community.
Influx of contract workers causes an increase in crime and risk of violence against women and
children.
Right to
freedom of
opinion and
Government representatives and/or security forces present at company-held consultation
meetings inhibit free expression by the community
A company discourages local media from publishing an unfavourable article regarding mining

6. Company Compliance Assessment
Company Policy
Global and Local Company
Commitment
• BHP Billiton respect and promotes fundamental human rights and the
value of cultural heritage. BHP Billiton is committed to operating in
accordance with the following voluntary standards:
• UN Declaration of Human Rights
• The United Nations Global Compact
• The Voluntary Principles on Security and Human Rights
• International Finance Corporation Performance Standard 5: Land
Acquisition and Involuntary Resettlement
• International Council for Metals and Mining (ICMM)
• GRI Reporting Guidelines including Sector Supplements
80 international Human
Rights Instruments
Mining and Metals Sector
Industry Standards
ICMM requirements
GRI G4 reporting
requirements
GRI Mining and
Metals reporting
Sector
Supplement
Employment
Practices
Community
Impact
Supply
Chain
Managemen
t
Company
Policy
Company
Procedures
Company
Performance
Human Rights Compliance Assessment Process
Findings
Standard Compliance
United Nations Global Compact Limited Compliance
United Nations Declaration on Human Rights Compliant
ICMM Limited
GRI Limited
Voluntary Principles on Security and Human Rights Limited
IFC Standard 5: Land Acquisition and Voluntary Settlement Compliant

7. Impact and Risk Assessment
Internal and External Stakeholder
Perceptions
Human Rights (Society) Detailed Scoring
Question Rating
BHPBMSA makes you feel proud to have them in your community 3.10
BHPBMSA assists with the fight against HIV/AIDS 3.10
BHPBMSA does not discriminate in any way 2.89
BHPBMSA complies with laws and legislation in South Africa 2.86
BHPBMSA is an ethical/honest company 2.84
BHPBMSA does not have forced and compulsory labour / child labour practices 2.84
BHPBMSA allows freedom of association and collective bargaining 2.74
BHPBMSA ensures that its associates and business partners are not involved in any
practices that could be constituted as unfair, corrupt, unethical or in breach of human
rights aspects
2.52
BHPBMSA involves the local community in all aspects affecting them 2.49
BHPBMSA does not engage in corruption, extortion and bribery 2.43
BHPBMSA honours the land, passage, and usage rights of local or indigenous peoples
on company-controlled land
2.39
Overall Rating 2.75
Summary of Findings
•Risk - Medium
•Impact - Medium
Human Rights Country Risk Assessment
•Risk - High
•Impact - High
Human Rights Compliance Assessment
•Risk - Low
•Impact - Low
Human Rights Risk Assessment - Internal Stakeholders
•Risk - Medium
•Impact - Medium
Human Rights Impact Assessment - External Stakeholders

8. Human Rights Management Plan
Benchmark
• Global Companies
• Industry Specific Companies
GAP Analysis
Management of human rights at BHP Billiton Manganese South Africa
Resources
Resources Appointment of dedicated resources to assume responsibility for developing a
local Human Rights Strategy and Policy (aligned to the global BHP Billiton
Policy).
Training The development of a training and awareness campaign aimed at educating
internal stakeholders (management, employees, contractors, security
personnel) on aspects of human rights.
Awareness The development of an awareness, educational and compliance campaign
aimed at external stakeholders (suppliers, business partners, unions,
community members) on aspects of human rights.
Management
Processes Development of internal processes and systems to implement and monitor
human rights practices across the business, operations and functions.
Alignment Ensure the alignment of local human rights management practice to
international, country, industry standards, guidelines and frameworks.
Monitoring Monitor the grievance and complaints’ mechanisms to ensure effective
management of human rights risks and impacts.
Communication
Communication Regularly communicate with both internal and external stakeholders
regarding the progress, impacts and risks pertaining to human rights aspects –
integrate feedback into existing stakeholder forums – aimed at both internal
and external stakeholders.
Reporting Measure, evaluate, assess progress of human rights aspects across the
business (locally) and integrate with global reporting processes.
Integrate and
Align
Ensure that human rights aspects are included in all company relationships
and processes across operational functions – and monitor performance across
the supply and value chain.

9. Reana Rossouw
rrossouw@nextgeneration.co.za
• Thank You
• Questions
• Please note this presentation is part of
a larger body of knowledge and
research.
• For more information regarding this
case study and other please see our
website @ www.nextgeneration.co.za