8 May 2013
Resolution to be presented at the Annual General Meeting (AGM) of Lundin Petroleum AB
Resolution regarding the implementation of the United Nations Guiding Principles on Business and Human Rights
A shareholder proposes that the Annual General Meeting calls on the Board of Directors to
- 1. express support for the June 2011 United Nations Guiding Principles on Business and
Human Rights, and the May 2011 Guidelines for Multinational Enterprises of the
Organisation for Economic Cooperation and Development; and
- 2. ensure compliance with these standards by
- a. assessing actual and potential human rights impacts of the company, integrating and acting upon the findings, tracking responses, and communicating how impacts are addressed;
- b. identifying when and how the company and its legal predecessors may have caused or contributed to adverse human rights impact in the past, through a process that is independent of the company and that has the confidence of shareholders and relevant stakeholders ;
- c. provide for or co‐operate through legitimate process in the remediation of these impacts and ensure access to remedy for adversely affected individuals and communities and;
- d. institute a grievance mechanism in conformity with the United Nations Guiding Principles on Business and Human Rights.
Supporting Statement for Resolution regarding the implementation of the United Nations Guiding Principles on Business and Human Rights
In June 2011, the United Nations Human Rights Council unanimously endorsed the UN Guiding Principles on Business and Human Rights. It reaffirms that states have a duty to protect human rights and prevent and sanction abuses by third parties, including business; it establishes that companies have a responsibility to respect human rights; and it stresses the right to access to effective remedy, both judicial and non‐judicial, for victims of business‐ related human rights abuses. The May 2011 updated Guidelines for Multinational Enterprises of the Organisation for Economic Cooperation and Development (OECD) now include a specific chapter on human rights that draws on the Guiding Principles. Key concepts underpinning both standards is that corporations know and show their impact on the dignity and rights of the people that are affected by their operations, and that they ensure the right to remedy of people who have been adversely affected. The Swedish and Norwegian Governments, among others, expect international companies to operate according to these standards.
Similarly, the International Standards Organisation’s (ISO) 26000 social responsibility standard and the revised Performance Standards of the International Finance Corporation (IFC) have embraced the Guiding Principles as their benchmark in the area of human rights. The European Commission has invited all EU member states to submit national plans for implementation of the UN Guiding Principles.
The European Commission is currently drafting an “Oil and Gas Sector Guide on Implementing the UN Guiding Principles on Business and Human Rights”, that sets as a European standard that companies identify and assess any negative impacts on human rights with which they may be involved, and this includes:
- actual impacts (past and current) and potential impacts (those possible in the future);
- impacts from the company’s own activities and from its business relationships – direct relationships and those one or more steps removed.
Realistically, compliance with the United Nations Guiding Principles on Business and Human Rights and the Guidelines for Multinational Enterprises of the Organisation for Economic Cooperation and Development is not optional. It is an expectation from states, a prerequisite to obtain a ‘license to grow from society’, and a quality mark for excellence and success.
Lundin Petroleum has been accused of complicity in international crimes during its past operations in Sudan. The accusations are continuing to damage its reputation, credibility, and eventually its growth potential, and must be dealt with decisively, credibly, and in compliance with international standards.
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