Ipieca has launched new guidance for companies on how to identify labour rights risks in their supply chains.
Risk identification is a key step in conducting effective human rights due diligence. By identifying actual or potential labour rights risks in the supply chain, companies can assess and manage these risks through mitigation and remediation measures.
The scope of this guidance focuses specifically on labour rights risks to workers in the supply chain. By asking the right questions and considering the key areas of risk at the start of supplier relationships, a company can build, where necessary, an appropriate labour rights risk management plan, considering the company's responsibilities towards its workers.
The guidance covers:
- How companies may address conducting risk identification and assessment.
- General principles and examples of processes for risk-based screening methodologies.
- Further sources of information to help companies research risk categories and background resources on human rights due diligence.
This document is intended for oil and gas, and alternative energy company practitioners working in procurement and sustainability functions on supply chain human rights due diligence. The guidance document is also useful for suppliers to know and understand the general approach which operators use for risk identification in their supply chains and may help them to further cascade these good practices down their own supply chain.