Assessment of EHSR issues
Environmental, Social and Human Rights Due Diligence (ESHR)
Human rights
The consideration of human rights is a high priority in foreign trade promotion. The German government expects environmental, social and human rights standards to be observed, particularly in projects that are supported by German foreign trade promotion instruments. The Federal Government expects companies to observe the established canon of human rights in their business activities. Companies are required to act in accordance with the OECD Guidelines for Multinational Enterprises (OECD Guidelines) and to comply with their human rights due diligence obligations as formulated in the German National Action Plan for the Implementation of the UN Guiding Principles on Business and Human Rights (UN Guiding Principles).
The German government therefore places high demands on the project appraisal when issuing UFK guarantees.
As part of the assessment of environmental, social and human rights aspects, topics such as occupational safety, health and safety of the population, legality of land acquisition and resettlement, protection of indigenous peoples, protection of cultural heritage, consultation opportunities for those affected, workers' rights (including freedom of assembly, right to trade union membership, right to freedom of movement, etc.), the protection of minorities and particularly vulnerable groups and the existence of a grievance mechanism are examined.
In this context, the published reports of the National Contact Point for the OECD Guidelines (NCP), complaints received by the NCP and certain related events and problems (e.g. the non-participation of a company) are taken into account in the review. Organizations and individuals can contact the NCP if they believe that the OECD Guidelines have been violated.
Environmental, Social and Human Rights Due Diligence (ESHR)
Against the background of the environmental, social and human rights risks frequently involved in them, raw material projects have to be closely examined with regard to their impacts.
The minimum prerequisite for the cover of an untied loan is that the project country’s standards are met. Furthermore, every project will be screened and categorised and reviewed in accordance with the internationally established OECD Common Approaches on the Environment and Officially Supported Export Credits (PDF). The project’s compliance with the IFC Performance Standards and the relevant World Bank/IFC Environmental Health and Safety Guidelines will be examined within the final assessment of the eligibility for cover. Besides, an Environmental and Social Impact Assessment (ESIA) must usually be furnished for the review.
