CHRB C.7.S1 Remedying adverse impacts
For adverse human rights impacts that it has caused or to which it has contributed, does the company describe the approach it took to provide or enable a timely remedy for victims OR if no adverse impacts have been identified then does the company describe the approach it would take to provide or enable timely remedy for victims?
This metric is from the Corporate Human Rights Benchmark (CHRB), part of the World Benchmarking Alliance (WBA), which has been assessing the human rights disclosures of some of the largest global companies since 2017. By ranking these companies on their policies, processes and practices, as well as how they respond to serious allegations, the CHRB aims to create a race to the top through which companies strive to fulfil their responsibility to respect the human rights of the individuals and communities that they impact.
Remedies and grievance mechanisms
What do the UN Guiding Principles on Business and Human Rights expect?
• Where a company identifies that it has caused or contributed to negative human rights impacts, it should provide for or cooperate in their remediation through legitimate processes.
• Companies should establish or participate in effective operational-level grievance mechanisms for stakeholders who may be negatively impacted by their activities.
• Remediation processes provided by the state or third-party institutions can provide alternative channels for affected stakeholders to raise complaints or concerns. Complainants should be free to choose which available channels they wish to use.
Why is this important?
• Access to effective remedy is a human right in itself and therefore a core part of respecting human rights. Unless a company actively engages in the remediation of impacts it has caused or contributed to, it cannot fully meet its responsibility to respect human rights.
• Negative impacts may occur despite a company’s best efforts, given the complexity of activities and business relationships involved. Companies need to be prepared for this situation so they can respond quickly and effectively.
• Strong remediation processes can help prevent impacts or conflicts from increasing or escalating.
Remedies and grievance mechanisms
What do the UN Guiding Principles on Business and Human Rights expect?
• Where a company identifies that it has caused or contributed to negative human rights impacts, it should provide for or cooperate in their remediation through legitimate processes.
• Companies should establish or participate in effective operational-level grievance mechanisms for stakeholders who may be negatively impacted by their activities.
• Remediation processes provided by the state or third-party institutions can provide alternative channels for affected stakeholders to raise complaints or concerns. Complainants should be free to choose which available channels they wish to use.
Why is this important?
• Access to effective remedy is a human right in itself and therefore a core part of respecting human rights. Unless a company actively engages in the remediation of impacts it has caused or contributed to, it cannot fully meet its responsibility to respect human rights.
• Negative impacts may occur despite a company’s best efforts, given the complexity of activities and business relationships involved. Companies need to be prepared for this situation so they can respond quickly and effectively.
• Strong remediation processes can help prevent impacts or conflicts from increasing or escalating.
The benchmark uses publicly available information from the company’s website(s), its formal financial and non-financial reporting or other public documents, plus statements such as those related to its policy commitments. These could be codes of conduct, policies, values, guidelines, FAQs and other related documents. The CHRB also considers reports, such as annual, corporate social responsibility and sustainability reports, or human rights reports if these are available, or other reports written for other purposes if these contain information applicable to the CHRB indicators. Full methodology for each sector can be found here.
Scoring:
Most CHRB indicators operate using 'OR' and 'AND' rules. Where two or more requirements are separated by 'AND', companies being benchmarked are required to complete both or all of the options listed in order to obtain a full point but they can score half points if they meet at least one of the requirements. Where two or more requirements are separated by 'OR', companies being benchmarked are required to complete one of the options listed.
Scoring:
Most CHRB indicators operate using 'OR' and 'AND' rules. Where two or more requirements are separated by 'AND', companies being benchmarked are required to complete both or all of the options listed in order to obtain a full point but they can score half points if they meet at least one of the requirements. Where two or more requirements are separated by 'OR', companies being benchmarked are required to complete one of the options listed.