Brussels, 1 June
2016 – KLP, Norway’s largest pension fund [1], commissioned the International
Law and Policy Institute (ILPI) [2] to write a report on the human rights and
environmental risks related to the current practice of dismantling end-of-life
ships on intertidal beaches. The report entitled Shipbreaking practices in
Bangladesh, India and Pakistan. An investor perspective on the human rights and
environmental impacts of beaching was released last week and examines the
shipbreaking practices in Bangladesh, India and Pakistan in light of
internationally recognised frameworks for responsible business conduct, as well
as the practice of the Council on Ethics for the Norwegian Governmental Pension
Fund.
The report argues
that the responsibility of companies operating in the global market place does
not stop at its own doorstep, but extends to adverse human rights impacts in
the entire value chain. KLP joins a number of other investors and clients of
shipping [3] that increasingly raise concerns over the current conditions of
the shipbreaking industry in South Asia.
“The dismantling of
ships using the ‘beaching’ method as it is practiced on the beaches of South
Asia is dangerous for people and the environment”, said Jeanett Bergan, head of
responsible investment at KLP.
International
standards by which corporate responsibility can be measured include the OECD
Guidelines for Multinational Enterprises and the UN Guiding Principles for
Business and Human Rights (UNGP). Companies are required to carry out a
risk-based due diligence with respect to the human rights as well as
environmental impact of their business activities, including their value chain.
In the report’s
foreword, CEO of KLP, Håvard Gulbrandsen, states: “We hope that the report can
help raise awareness of the severe human and environmental risks beaching can
entail for shipping industry companies, their customers, and also for other
investors. […] KLP hopes to encourage investors to work together to engage with
companies on improving labour and environmental conditions. The shipping
industry is and will be an important part of Norwegian investors' portfolios
for the foreseeable future. KLP's goal is to work towards a future where
responsible shipbreaking is the industry standard.”
NOTES
[1] KLP is Norway's
largest life insurance company. Kommunal Landspensjonskasse (KLP) delivers
financial and insurance services to the public sector, enterprises associated
with the public sector and their employees.
[2] International
Law and Policy Institute (ILPI) is an independent institute focusing on good
governance, peace and conflict, and international law. Their approach to
solving global challenges is based on the integration of law and social
sciences and on bridging the gap between academia and politics. They provide
research, analysis, policy advice, process support and training to clients
ranging from private companies and institutions to governments and
international organisations.
[3] Major companies
such as H&M, Tetra Laval, ABB, Philips, Volvo and Volkswagen do not want to
be associated with substandard shipbreaking practices in South Asia and have
asked their forwarders – the shipping companies they use to transport their
goods – to adopt sustainable ship recycling policies. For more information
click here.
CONTACT
Patrizia Heidegger
Executive Director
NGO Shipbreaking
Platform
+32 2 609 44 19
Source:
NGO shipbreaking platform
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