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The power of integrating human rights and environmental due diligence
4 November 2024
Protecting the environment and safeguarding local communities shouldn't be an either-or decision. Yet, despite good intentions, many businesses are not fully considering the impact on both in a joined up way.
We spoke with Madeleine Mauwer and Cora Morena Fritz about how Human Rights and Environmental Due Diligence (HREDD) can provide better integrated solutions – ensuring that people and the planet are both prioritised.
Madeleine and Cora, how would you define HREDD?
Madeleine: It is a way for companies to manage and mitigate the risks their activities pose to people and the planet. Essentially, it’s about taking a combined approach to both human rights and environmental impacts – looking at them together rather than in isolation.
Cora: For example, when a company implements an approach without HREDD, solely focused on environmental benefits, there can be unforeseen outcomes for communities.
Madeleine: Yes, I recently worked on a project where a company was offsetting the environmental impact of their operations through large-scale tree planting programmes. Some people in the local community were upset as they wanted the land for farming to support their income.
We brought those involved together to discuss some tricky questions: What would be a win for the planet, the local people and the company? Should the environment benefit from more trees at the cost of people’s livelihoods? What kind of engagement is needed to fully understand the perspectives and needs of the local community?
We proposed an HREDD approach to enable the company to respond appropriately – including how to understand people’s needs in relation to their environment, and meet legal obligations for managing impacts.
Why is it so important to consider an HREDD approach?
Madeleine: HREDD helps mitigate unintended consequences by actively involving communities in the decision-making process and incorporating their needs and perspectives. When implemented correctly, it ensures a company isn't just doing the right thing for the environment or for the people they most impact – it’s creating conditions where both people and ecosystems can thrive. It is a framework that creates collaboration and alignment and delivers long term and meaningful impact.
Cora: Let’s take a large-scale environmental project for example. If the plan is to achieve meaningful, long-term impact, then the human rights and environmental teams need to collaborate from the start. HREDD provides the management framework that makes that collaboration and integration possible.
How can companies go about implementing HREDD?
Madeleine: The good news is that we don’t have to reinvent the wheel. Companies can build on progress and momentum that already exists. Implementing HREDD is like putting any management system in place. We firstly start with commitment and vision, then understand the issues before taking action to close the gaps. The difference is that this management system asks you to continually improve your understanding of upcoming issues for people and the environment and how they are interrelated.
Cora: For example, climate change is impacting people everywhere, whether it's excessive heat or floods. For companies working in agriculture, human rights must be considered alongside environmental impacts. How much time should farmers or workers spend in extremely hot weather or the pouring rain? What shift patterns should be in place? What protection is available for those affected? What investment is needed to prevent unfit working conditions?
We see many businesses are under pressure to deliver strong financial results whilst meeting their net zero targets and complying with new regulations like the EU CSRD (Corporate Sustainability Reporting Directive) and EU CSDDD (Corporate Sustainability Due Diligence Directive). This can lead to an over-reliance on quantitative data – meeting the demands of lenders, shareholders, and other stakeholders for measurable results, but overlooking the voices of those most affected.
Madeleine: For companies to deliver HREDD successfully, they need the capability to implement processes and the people skills to ask the right questions, to listen, learn and work together to create solutions. It is important work; it isn’t easy, but by doing so businesses are in a better position to deliver strong financial results and meet their net zero targets through a just transition.
What expertise does twentyfifty bring?
Cora: At twentyfifty, we are experts in bringing people together and gathering valuable insights from diverse groups, such as local communities, farmers, factory workers, village elders or truck drivers. For example, we might speak with workers to understand their motivations for migrating and the challenges they face, or we might talk to community elders about the impacts of deforestation and water scarcity on their culture, health, and livelihoods. These types of conversations are vital when it comes to HREDD and finding solutions to complex challenges.
Madeleine: HREDD creates the language that helps people to align and agree. Last year we supported the integration of an HREDD roadmap into a cotton supply chain to meet the needs of their clients. This year we have reviewed an FMCG company’s salient human rights risks through a climate lens and provided actionable recommendations.
For us it is hugely rewarding work that leaves our clients and their stakeholders in a stronger position to tackle our complex social and environmental challenges.
If you would like to find out more, please contact us – info@twentyfifty.co.uk