Human rights benchmarking system launched to drive ‘race to the top’

The group hopes that the creation of the Corporate Human Rights Benchmark (CHRB) system will help harness the competitive nature of markets to drive better human rights performance. The idea was first mooted in December 2014 at the UN Forum on Business and Human Rights. The creators hope that the CHRB will incentivise better human rights performance through the development of a transparent, publicly available and credible ranking of corporate human rights policy and performance.hideThe CHRB is led by a multi-stakeholder coalition that includes Aviva Investors, the Business and Human Rights Resource Centre, Calvert Investments, governance research body EIRIS, the Institute for Human Rights and Business and VBDO, the Dutch association of investors for sustainable development. The CHRB currently seeks input on two documents that will inform the CHRB Methodology 1.0. The Framework Paper for Multi-Stakeholder Consultations sets out an overview, framework and process for the development of the CHRB. This document also seeks to provide an understanding of the rationale and aims of the CHRB. A Draft List of Indicators sets out plans for Methodology 1.0 of the CHRB, developed by the CHRB's partners. The CHRB said that the draft Methodology 1.0 will be revised in light of public input on these two documents. The group will publish the full revised Methodology 1.0 in November 2015. CHRB said that the first pilot benchmark, undertaken using the revised CHRB Methodology, is scheduled for June 2016. CHRB said that there is already 'considerable evidence' that public transparency combined with public rankings of companies' performance can help drive a 'race to the top'. It states that a recent survey by the Economist Intelligence Unit on business and human rights found that CEOs believe that a public benchmark would be the most useful initiative to support them to better fulfill their corporate responsibility in respect of human rights. CHRB hopes that the initiative will make corporate human rights performance more visible and simpler to understand for a wide range of audiences-both inside and outside of companies. It believes the plans will also commend and reward companies that do well and point the way forward to better performance. The new system will also enable investors, civil society and regulators to challenge companies where performance is poor and improvements are necessary, using an evidence-based approach to improving corporate accountability, stated the CHRB. "Investors will be better equipped with information to direct investments to companies actually performing against human rights standards and away from those who are not," explained the CHRB. "Business will be incentivised to make information publicly available and when adverse events do occur they will be more likely to demonstrate 'learning', resulting in greater preventative measures as well as adequate remedies for victims," it added. The CHRB said that civil society, communities and customers will be 'empowered' to make well-informed choices about specific companies and products based on greater transparency and better performance data. They will also have better information to encourage and pressure advances in human rights, it added. "Policy-makers will have an objective means by which to focus on those companies and business sectors that have the greatest human rights impacts and in particular those which are underperforming against significant human rights risks, highlighting where regulation and incentives might be necessary," stated the CHRB. Jeff Furman, Chairman of the Board of Directors of Ben & Jerry's, is a supporter of the new benchmarking system and said: "The initiative by the Corporate Human Rights Benchmark to rank 500 companies on their human rights performance should drive a change in corporate behaviour. This performance ranking is built on what the companies do rather than their rhetoric. Those who truly support and deliver on high labour, environmental and human rights standards will be recognised and those that do not will have their records exposed to investors, customers, civil society and home governments. The expectation is that this ranking system will drive a race to the top and a competition to benefit people, the planet and the bottom line."

Human rights benchmarking system launched to drive ‘race to the top’

Want to read this article?

Read Next

AXA P&C increases premiums by 7% as rates rise at AXA XL

Hong Kong and Shanghai to cooperate on captives and ILS

Swiss broker Kessler names head of special risks

Supply chain cyber risk concentrated in 15 top vendors with ‘below average’ cybersecurity

Four in five non-EU companies to align with CSRD

AXA P&C increases premiums by 7% as rates rise at AXA XL

Hong Kong and Shanghai to cooperate on captives and ILS

Swiss broker Kessler names head of special risks

Supply chain cyber risk concentrated in 15 top vendors with ‘below average’ cybersecurity

Four in five non-EU companies to align with CSRD

Want to read this article?

Read Next

AXA P&C increases premiums by 7% as rates rise at AXA XL

Hong Kong and Shanghai to cooperate on captives and ILS

Swiss broker Kessler names head of special risks

Supply chain cyber risk concentrated in 15 top vendors with ‘below average’ cybersecurity

Four in five non-EU companies to align with CSRD

Related Articles