Risk-Based Due Diligence, Climate Change, Human Rights and the Just Transition
2. Climate Change, Business Impacts and Human Rights
3. From Human Rights Due Diligence to Risk-Based Due Diligence
3.1. The Concept of Human Rights Due Diligence
3.2. The Concept of Risk-Based Due Diligence
A process put in place by an undertaking in order to identify, assess, prevent, mitigate, cease, monitor, communicate, account for, address and remedy the potential and/or actual adverse impacts on human rights, including social, trade union and labour rights, on the environment, including the contribution to climate change, and on good governance, in its own operations and its business relationships in the value chain.
4. The Three Facets of Risk-Based Due Diligence in Relation to Climate Change
4.1. Risk-Based Due Diligence and Prevention
4.1.1. The Expectation to Set Measurable Objectives and Targets
Through on-going social dialogue [...] companies should develop robust, measurable and evidence-based just transition plans that are underpinned by the goals of the Paris Agreement. These plans should cover all business activities and consider both short and long-term objectives. For a just transition plan to be effective, it should be aligned with broader government and stakeholder action on climate resilience.
measurable objectives and, where appropriate, targets for improved environmental performance and resource utilisation, including periodically reviewing the continuing relevance of these objectives; where appropriate, targets should be consistent with relevant national policies and international environmental commitments.
the OECD Guidelines demand that ING, and other commercial banks, put effort into defining, where appropriate, concrete targets to manage its impact towards alignment with relevant national policies and international environmental commitments. Regarding climate change, the Paris Agreement is currently the most relevant international agreement between states, a landmark for climate change.
4.1.2. Case-Law Developments in Relation to Prevention
‘much may be expected of RDS. RDS heads the Shell group, which consists of about 1100 companies, and operates in 160 countries all over the world. It has a policy-setting position in the Shell group [...] which is a major player on the worldwide market of fossil fuels and is responsible for significant CO2 emissions, which exceed the emissions of many states and which contributes towards global warming and a dangerous climate change in the Netherlands and in the Wadden region [...] with serious and irreversible consequences and risks for the human rights of Dutch residents and the inhabitants of the Wadden region’.
4.2. Risk-Based Due Diligence and Mitigation
4.2.1. The Dilemma of a Fair Transition
4.2.2. The Pertinence of Risk-Based Due Diligence to Advance Fair Transitions
4.3. Risk-Based Due Diligence and Remediation
4.3.1. Due Diligence and Access to Remedy
4.3.2. Case-Law Expectations in Relation to Remediation
Institutional Review Board Statement
Informed Consent Statement
Conflicts of Interest
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Bright, C.; Buhmann, K. Risk-Based Due Diligence, Climate Change, Human Rights and the Just Transition. Sustainability 2021, 13, 10454. https://doi.org/10.3390/su131810454
Bright C, Buhmann K. Risk-Based Due Diligence, Climate Change, Human Rights and the Just Transition. Sustainability. 2021; 13(18):10454. https://doi.org/10.3390/su131810454Chicago/Turabian Style
Bright, Claire, and Karin Buhmann. 2021. "Risk-Based Due Diligence, Climate Change, Human Rights and the Just Transition" Sustainability 13, no. 18: 10454. https://doi.org/10.3390/su131810454