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In This Issue
Editor's Note
Conducting Due Diligence on Conflict Minerals
As soon as next month, the U.S. Securities and Exchange Commission will issue regulations requiring public companies to report on “conflict minerals” in their supply chains. To help companies prepare for this imminent regulation, BSR Advisory Services Manager Sasha Radovich provides a five-step framework for responsibly managing minerals sourced from the area around the Democratic Republic of the Congo and explores stakeholders’ expectations at different ends of the supply chain.
This week, we also hear from human rights expert Christine Bader, who stressed during last week’s Sustainability Matters webinar that companies need to consider a full suite of issues when developing a comprehensive human rights framework.
And finally, we highlight a report by the Global Compact, UN Environment Programme, Oxfam, and World Resources Institute that reveals business’ top concerns related to climate change impacts.
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In Depth
Conflict Minerals Due Diligence: What Can Companies Expect?
By
As soon as next month, the U.S. Securities and Exchange Commission will issue regulations requiring public companies to report on “conflict minerals” in their supply chains. But what does it mean for companies to manage their supply chains in a responsible manner? And what will stakeholders expect for companies at different ends of the supply chain, from mines to retailers?
Read more →
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On the Record
Experts Urge Companies to Consider Full Suite of Human Rights
By Elissa Goldenberg, Associate, Advisory Services, BSR
During last week’s Sustainability Matters webinar, BSR Human Rights Director Faris Natour and Christine Bader, Advisor to the UN Special Representative of the Secretary-General for Business and Human Rights, discussed how companies can align their human rights processes and management systems with the new Guiding Principles on Business and Human Rights.
During a discussion on how industries that deal with a wide range of issues or operate in multiple countries can build a comprehensive human rights framework, Bader responded:
“Human rights are not a la carte. You can't pick some that you think are interesting or the easiest to tackle, or even the ones that you assume are the most relevant to your business. … For every company, no matter where you operate or what industry that you are in, starting with the full suite of human rights is actually a really helpful, comprehensive framework, and I would argue more helpful than thinking about CSR because there are no agreed standards or definitions.”
—Christine Bader, Advisor to the UN Special Representative of the Secretary-General for Business and Human Rights (June 29, 2011)
Download the event recording, or contact Faris Natour for more information.
Quick Hit
Increasing Costs, Water Scarcity Top Business’ Climate Change Concerns
According to a recent report by the Global Compact, UN Environment Programme, Oxfam, and World Resources Institute, water scarcity and the increasing costs of raw materials and natural resources are business’ two greatest concerns about climate change risks. As the report notes, climate change impacts—including rising temperatures, floods, and extreme weather events—present a variety of risks to companies’ operations and value chains, including:
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Physical and operational risks: unreliable access to core inputs such as water and energy, costly disruptions to production, and increased absenteeism
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Legal and regulatory risks: new land use or zoning regulations to manage resources better and reduce a country’s vulnerability to disasters
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Financing risks: more expensive debt financing for companies at a higher risk of being impacted by climate change
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Market risks: change in demand for inefficient products and a drop in purchasing power as more consumers are forced to adapt to climate change
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Political risks: domestic conflict and instability triggered by issues such as food security
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Reputational risks: negative media coverage or being targeted by civil society advocacy groups for failing to have climate adaptation plans or for being a heavy emitter
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