1. © Shift Project Ltd, 2015. All rights reserved.

2. an initiative of Shift and Mazars NEED FOR MEANINGFUL REPORTING Human rights reporting has been weakest in sustainability and corporate responsibility reporting Lack of clarity about what “good” looks like Much reporting neither reflects nor supports respect for human rights in the core business Most reporting does not reflect the global authoritative standard of the Guiding Principles

3. an initiative of Shift and Mazars The first comprehensive framework for companies to report on how they respect human rights

4. an initiative of Shift and Mazars UNGP REPORTING FRAMEWORK Based on the authoritative global standard, the UN Guiding Principles Enables human rights reporting that : –It is meaningful for stakeholders to read; –It is feasible for companies to produce; –Helps companies improve their internal management systems Fits seamlessly with broader reporting frameworks and industry/issue-specific initiatives (incl. GRI, UNGC)

5. an initiative of Shift and Mazars CONTENT

6. an initiative of Shift and Mazars

7. MEANINGFUL QUESTIONS Open enough that any company can respond Targeted enough to focus the response on meaningful information Enables progress from 8 basic questions to the full 31 questions Cross-references industry-level indicators/requirements Encourages use of company-level indicators to support narrative responses

8. an initiative of Shift and Mazars CROSS REFERENCES TO OTHER REPORTING INITIATIVES DJSI (RobecoSAM - Corporate Sustainability Assessment [DJSI Sample Questionnaire] FTSE ESG (FTSE ESG Ratings Methodology and Usage Summary) GNI (Global Network Initiative: Governance Charter, and Implementation Guidelines) GRI (Global Reporting Initiative G4 Sustainability Reporting Guidelines) ICMM (International Council on Mining and Metals Assurance Framework) OECD (OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas) UNGC (UN Global Compact Advanced COP Self-Assessment) VPSHR (Voluntary Principles on Security and Human Rights Reporting Guidelines)

9. an initiative of Shift and Mazars CROSS REFERENCES TO OTHER REPORTING INITIATIVES

10. an initiative of Shift and Mazars PRINCIPLED FOCUS OF REPORTING The human rights at risk of the most severe negative impacts through the company’s operations and value chain.

11. an initiative of Shift and Mazars RISK TO PEOPLE, RISK TO BUSINESS

12. an initiative of Shift and Mazars PRACTICAL IMPLEMENTATION GUIDANCE

13. an initiative of Shift and Mazars PRACTICAL IMPLEMENTATION GUIDANCE

14. an initiative of Shift and Mazars PRACTICAL IMPLEMENTATION GUIDANCE

15. an initiative of Shift and Mazars COMPANY AND INVESTOR UPTAKE

16. an initiative of Shift and Mazars UPTAKE Over 26,000 website visitors in 10 months; over 41,000 views of the Framework – increasing in the last quarter Backed by largest ever investor coalition in support of a human rights initiative – over 85 investors, nearly $5 trillion AUM Agriculture supply chain guidance of UN PRI Sustainability guidance of Sustainable Stock Exchange Initiative National Human Rights Institutions in the UK and New Zealand and the Central Bank of Norway encouraging companies to use it Used by companies in German, France, UK, Switzerland, Netherlands, Sweden, Norway and from Colombia to Thailand to Australia Translations forthcoming: German, Spanish, Chinese, French

17. an initiative of Shift and Mazars UPTAKE First full reporting cycle now underway – dozens of companies using the Reporting Framework. Reports out from Ericsson, Nestle, Newmont, Microsoft, Electrolux, Unilever, H&M, SCA and others to follow Others using internally to improve human rights due diligence First adopter Other early adopters

18. an initiative of Shift and Mazars UPTAKE As an internal tool To build awareness with leadership/understanding among staff: using the questions and annex A to explain human rights and how they connect with the business To develop a human rights policy/improve risk management systems: with clarity on salient human rights issues and their integration in risk management For gap analysis: to see where the company has/lacks answers For supplier training and Code of Conduct training: to show what polices/processes/practices are needed

19. an initiative of Shift and Mazars BUILDING MARKETS FOR GOOD REPORTING The questions: How do we build markets that can recognize and reward good human rights performance? To what extent are companies reporting what we need to know about how they respect human rights in practice? The answer: A database in which users can see and compare companies’ current human rights reporting and how it meets the expectations of the UNGPs

20. an initiative of Shift and Mazars BUILDING MARKETS FOR GOOD REPORTING Enabling companies, investors and other stakeholders to: Compare reporting year on year and across companies Find what different companies say they are doing to address a particular human rights impact Identify areas for improvement See leading examples of reporting that can inspire better disclosure See leading examples of practice that can inspire better performance Address arguments about what is and isn’t possible

21. an initiative of Shift and Mazars UNGP REPORTING DATABASE

22. an initiative of Shift and Mazars Dominic Burke, Hermes EOS Filip Gregor, Frank Bold Bertrand Janus, Total Sofie Nystrom, H&M with Richard Howitt, MEP PANEL DISCUSSION

23. an initiative of Shift and Mazars GOVERNMENT UPTAKE

24. an initiative of Shift and Mazars UPTAKE: THE ROLE OF GOVERNMENTS UN Working Group on Business and Human Rights: "States should encourage and give incentives to improved human rights reporting and consider where mandatory reporting could help to advance corporate practices. The UN Guiding Principles Reporting Framework offers an opportunity for convergence around a tool that is based directly on the GPs.” 2015 Report to the UN General Assembly

25. an initiative of Shift and Mazars UPTAKE: THE ROLE OF GOVERNMENTS National Action Plans – Sweden “February 2015 saw the launch of the first comprehensive guidance for companies on human rights reporting in line with the UNGP: UN Guiding Principles Reporting Framework.” “Companies are encouraged to use the UNGP’s Reporting Framework.” 2015 National Action Plan

26. an initiative of Shift and Mazars UPTAKE: THE ROLE OF GOVERNMENTS Transposition of EU NFR Directive – Norway “ Small amendments to Norwegian legislation may be necessary in order to implement the expected new EEA rules corresponding to the new EU Directive (2014/95/EU) on disclosure of non-financial and diversity information by certain large companies and groups, which includes CSR. In this context it will be appropriate to look to other international developments, such as the new UN Guiding Principles Reporting Framework.” 2015 National Action Plan

27. an initiative of Shift and Mazars UPTAKE: THE ROLE OF GOVERNMENTS Other reporting regulations and guidance UK Government guidance on Modern Slavery Act transparency provisions: The UNGP Reporting Framework "sets out the ways in which businesses can choose to meet their responsibilities with regard to human rights" Transparency in Supply Chains: A Practical Guide 2015, UK Home Office

28. an initiative of Shift and Mazars UPTAKE: THE ROLE OF GOVERNMENTS Procurement - US Government Services Agency Suggests encouraging and in some cases requiring contractors to disclose human rights policies and procedures using the Reporting Framework “Informing the contractor about these risks and encouraging transparent reporting will help minimize risks to your organization from these practices and let contractors know you are interested in avoiding these impacts." Sustainability Facilities Tool for government purchasers

29. an initiative of Shift and Mazars UPTAKE: THE ROLE OF GOVERNMENTS Other awareness raising/support Swedish Ministry of Economy and Innovation webinar for state-owned enterprises German Government funding translation of UNGP Reporting Framework Also by statutory bodies UK Equality and Human Rights Commission guidance for board directors of listed companies (forthcoming)

30. an initiative of Shift and Mazars UPTAKE: THE ROLE OF GOVERNMENTS EU Non-Financial Reporting Directive: an opportunity Government transpositions into domestic law Government-issued guidance for companies European Commission’s own guidance for companies

31. an initiative of Shift and Mazars AUDIENCE DISCUSSION AND RECOMMENDATIONS

32. an initiative of Shift and Mazars LEARN MORE UNGPreporting.org @UNGPreporting www.ungpreporting.org/reportingdatabase/ Caroline Rees Caroline.rees@shiftproject.org