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DRAFT REPORT (2023/2108(INI))

Shaping the EU’s position on the UN binding instrument on business and human rights, in particular on access to remedy and the protection of victims

AFET-PR-751807

Committee on Foreign Affairs · Rapporteur: Heidi Hautala

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This draft report by the Committee on Foreign Affairs sets out Parliament's position on the UN binding instrument on business and human rights. It strongly supports the negotiations and calls on the EU to adopt a negotiating mandate so it can participate actively. It asks for a broad instrument covering all business enterprises and international human rights law, with a strong prevention framework, access to justice and remedies for victims, and an international fund for victims. It calls on the Commission, the European External Action Service and member states to engage proactively with partner states and to coordinate a common EU position.

Committee position. The rapporteur proposes that Parliament strongly support the UN binding instrument negotiations, call on the EU to adopt an ambitious negotiating mandate, and set out detailed elements for an EU position, including a broad scope, a strong prevention framework and robust access to remedy for victims.

Key points

  1. Strongly supports the full implementation of international standards on responsible business conduct and welcomes the shift from voluntary soft-law initiatives towards binding standards.
  2. Underlines the need to close legal and regulatory loopholes exploited by transnational corporations and investors at the cost of human rights and the environment.
  3. Notes with concern the many procedural, substantive and practical barriers victims face in access to justice, including difficulties identifying the competent court, short limitation periods and excessive evidentiary burdens.
  4. Strongly supports the work of the OEIGWG and calls for transparent negotiations with meaningful engagement of civil society, labour unions and the private sector, and active engagement from all regions.
  5. Considers it crucial for the EU to actively participate in the OEIGWG as the only global multilateral forum for mandatory rules on business and human rights.
  6. Urges the Commission to recommend that the Council adopt an ambitious mandate for negotiations as soon as possible so the EU can shape the future instrument.
  7. Calls on member states to coordinate their positions ahead of negotiations and expects the European External Action Service and the Commission to play a proactive role.
  8. Welcomes the updated draft instrument of July 2023 as a solid basis for negotiations and believes it would be compatible with and complementary to EU-level developments.
  9. Supports a broad scope covering all business enterprises, including transnational activities and state-owned enterprises, and all core international human rights treaties and fundamental ILO conventions.
  10. Regrets the removal of references to the environment and climate change from the latest draft and calls for the environmental and climate impact of business activities to be included.
  11. Calls for a compulsory prevention framework obliging companies to conduct regular human rights impact assessments, with particular attention to conflict-affected areas and groups at heightened risk.
  12. Insists on robust provisions on access to justice, legal liability, reparations and an international fund for victims, and on the safety of human rights defenders, journalists and indigenous peoples.

Who is affected

  • EU institutions: the Commission is urged to recommend a negotiating mandate; the Council is asked to adopt one.
  • EU member states: called on to coordinate positions and engage proactively with partner states.
  • Business enterprises, including transnational corporations and state-owned enterprises, would be covered by the instrument's obligations.
  • Victims of corporate abuse would benefit from improved access to justice, reparations and an international fund.
  • Human rights defenders, environmental defenders, journalists, workers and indigenous peoples would have their safety protected under the instrument.

Figures and deadlines

  • 16 June 2011: adoption of the UN Guiding Principles on Business and Human Rights by UN Human Rights Council Resolution 17/4.
  • 26 June 2014: UN Human Rights Council Resolution 26/9 establishing the open-ended intergovernmental working group.
  • 31 July 2023: circulation of the updated draft legally binding instrument by the Chair-Rapporteur.
  • 23-27 October 2023: scheduled dates for the ninth session of the OEIGWG.
  • Eight sessions: number of sessions held by the OEIGWG to date.

Legal basis: Articles 2, 3, 8, 21 and 23 of the Treaty on European Union