Key highlights from July 2022 in the sustainability space.
UNDP guidance for businesses in conflict regions – The United Nations Development Program (UNDP) Working Group on the issue of human rights and transnational corporations officially launched a guide for businesses operating in conflict-affected regions. Because the risk of gross human rights abuses is heightened in conflict-affected contexts, heightened human rights due diligence becomes necessary to identify and assess not only a business’ adverse impacts on human rights, but also its adverse impacts on the conflict. Grounded on the United Nations Guiding Principles on Business and Human Rights (UNGPs), the 60+ page document provides practical guidance for businesses on what to do and when, including a valuable compliance checklist.
Business & Human Rights in Luxembourg – On July 6, the government of Luxembourg announced that 50 corporations had signed the countries’ National Action Plan (NAP) for Business & Human Rights. Developing and enacting a NAP is part of the responsibility of States to disseminate and implement the United Nations Guiding Principles on Business and Human Rights. Linklaters LLP, Grant Thornton and Luxembourg’s national railroad company are among the signatories. ABBL, Luxembourg’s banker’s association, is also one of them.
2 weeks after the announcement, however, Luxembourg postponed the scheduled country visit of the UN Working Group on Business and Human Rights at the last minute. This qualifies as a disappointing conflicting message at best. Indeed, the Working Group’s busy agenda signals that its visit may now be pushed back for months if not years.
Germany accelerates expansion of renewables – Earlier this month, Germany’s Parliament approved proposed legislative amendments designed to accelerate the roll out of renewable energy in the country. The so-called “Easter Package” includes, among other measures, an increase of gross electricity consumption from renewable energy sources from 42% in 2021to 80% by 2030.
H&M suspends its operations in Russia – On July 18, H&M’s CEO announced that the Swedish retailer was leaving the Russian market and entering a “responsible wind down” phase there. H&M had suspended its sales in Russia back in March, following the Russian invasion of Ukraine. In her statement, Helena Helmersson explained that “After careful consideration, we see it as impossible given the current situation to continue our business in Russia.”