Working towards responsible business practices in the oil and gas sector Rose Kimotho Programme Manager (East Africa) Institute for Human Rights and Business
Dec 25, 2015
Working towards responsible business practices in the oil and
gas sector
Rose KimothoProgramme Manager (East Africa)
Institute for Human Rights and Business
Overview
What is the Nairobi Process? Aims and Objectives
Background and Rationale
How oil and gas companies can integrate human rights in their operations
Addressing human rights challenges in the oil and gas sector: Focusing on security
Conclusion
What is the Nairobi Process?
An initiative developed by IHRB, in collaboration with KNCHR, which seeks to embed human rights due diligence in Kenya’s emerging oil and gas sector via UN Guiding Principles.
Government Advocacy(human rights input in legislation under review)
Business to Business Learning(industry grouping of ‘majors’ and ‘juniors’)
Civil Society engagement (capacity building with NHRIs around the UN GPs…)
Three strands of intervention
Background
Tullow’s Oil Discovery in Kenya in early 2012
Proliferation of oil and gas exploration in the East African region
Socio-economic baseline in Kenya (education levels, poverty rates, access to basic services) linked to high level of expectations
Kenyan Constitution of 2010 (Bill of Rights)
UN Guiding Principles (2011)
Aims and Objectives
Creation of industry groupingOngoing engagement with group of
companiesCreation of confidential ‘dilemmas forum’Development of Sector Wide Impact
Assessments
Stakeholders
Government of Kenya (GoK)Host communitiesLicense holders, ie Oil and Gas Companies (‘majors’ and ‘juniors’)Civil Society Organisations (Kenya and East Africa)National Human Rights Institutions (East Africa)Industry Associations
Business and Human Rights
Why should oil and gas companies care about human rights? Because the law requires it. Because the state is sometimes unable to protect rights. Because the state is sometimes unwilling to protect
rights. Because it helps companies anticipate and mitigate
human rights risks. Because it helps manage reputation. Because it can help companies get local approval –
“social licence to operate”. Because external stakeholders ask for it – investors, civil
society, prospective employees. Because internal stakeholders want it – unions, current
employees. Because it is the right thing to do.
International Standards and Guidelines
United Nations Guiding Principles on Business and Human Rights (2011)
IPIECA Guidelines on Human Rights Due Diligence
EU Guidance on Integrating Human Rights Due Diligence in the Oil and Gas Sector
Voluntary Principles on Security and Human Rights
Integrating Human Rights
respect human rights in projects or operations; seek to prevent or mitigate potential human rights issues
that may be caused directly by the company’s projects or operations, or by project
partners and suppliers; have policies and processes to manage potential human
rights issues; express commitment to respect human rights through a
policy statement conduct assessments to identify potential human rights
issues in projects or operations, and have processes in place to manage these issues and track responses;
communicate with stakeholders about how issues are being addressed; and
grievance mechanisms to address issues raised by the community.
Human Rights Due Diligence
Assessing actual and potential human rights impacts.Integrating and acting upon the findings.Tracking responses.Communicating how impacts are being addressed.
Human Rights Challenges
Public security forces Managing expectations and public awareness-raisingDealing with grievancesLand acquisition and useInter and Intra-communal conflictCommunity engagement: consultation, dialogue or consentMinorities and Marginalized groups: women and youthOil and Gas Legal framework Capacity gaps - information on Oil and Gas issues, applying human rights frameworks in Oil and Gas Revenue-sharing and management: national versus local government and communitiesLack of social investmentLoss of livelihoods (with reference to fisher folk in coastal areas)Water management and use
Addressing Security
Stakeholder consultations: Oil and Gas Companies, VP Signatory Governments and Civil Society
Identification of security as a major human rights challenge by O+G companies
Capacity building around Voluntary Principles on Security and Human Rights
Joint Risk Assessments – Companies, VP signatory governments, Police Services & civil society
Conclusion
The corporate responsibility to respect human rights means that companies must act with due diligence to avoid infringing on the rights of others. In addition to complying with national laws, the corporate responsibility to respect human rights is the baseline expectation for all companies in all situations. Companies may take on additional responsibilities voluntarily, and in some situations, such as when they perform certain public functions, more may be required of them.
Changing corporate culture Aligning policies Undertaking due diligence
Context matters. Impacts matter. Relationships matter.
Establishing corrective mechanisms Incentives and disincentives for particular conduct