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NAT.C03.EB Land Acquisition Engagement
Does the company, when acquiring, leasing land or making other arrangements to use or restrict the use or access to land or natural resources, discloses its processes to (i) identify legitimate tenure rights holders, including through engagement with affected communities in the process, paying particular attention to vulnerable or marginalized tenure rights holders, and (ii) negotiate with them to provide adequate compensation?
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Researched

About the data

This metric was designed by The World Benchmarking Alliance, more information can be found here. Sources and Alignments for each indicator can be found here as well as the scoring guidelines here

The World Benchmarking Alliance's Nature Benchmark measures and ranks the world's most influential companies on their efforts to protect our environment and its biodiversity.

This metric relates to the Indicator: The company respects the rights of legitimate tenure holders when acquiring, leasing or using land, paying particular attention to vulnerable tenure rights holders.

Rationale: When companies seek to acquire or lease land for their business activities, this can lead to relocation and loss of shelter or livelihoods for communities or individual households (IFC, 2012b). In countries where national governance and land administration are weak, local and indigenous communities are more exposed to rights violations and displacement (WRI, 2017).

WBA analysed all publicly available group-level disclosure in English on the applicable group website, which was predominantly annual reports and sustainability reports. Draft assessments were then sent to each company inviting them to provide feedback. This feedback could include additional publicly available group disclosure published. These were then reviewed and finalised. Final assessments were then shared with each company before being published online.

For this metric the company must describe how it identifies legitimate tenure rights holders. This can be through engagement with relevant local stakeholders or through processes regulated by international standards. It has to provide a negotiation process/FPIC process/engagement protocol to guarantee adequate compensation. This indicator looks for evidence of current and recent cases. If the company has not engaged in any land transactions in the past two years, it should describe its approach to identifying and negotiating legitimate tenure rights holders in general.

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