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MAPPING THE BUSINESS AND HUMAN RIGHTS LANDSCAPE IN LUXEMBOURGNational Baseline Study
October 2019
Author : Dr. Başak Bağlayan
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TableofContentsListofAcronyms
INTRODUCTION......................................................................................................7
METHODOLOGYANDLIMITATIONS........................................................................9
METHODOLOGY.....................................................................................................9
LIMITATIONS........................................................................................................11
KEYFINDINGSANDRECOMMENDATIONS............................................................13
PILLARSI&III:STATEDUTYTOPROTECTANDREMEDY........................................13
STATEDUTY:LAWS,POLICYANDREGULATION....................................................13
STATEBUSINESSNEXUS.......................................................................................22
ACCESSTOSTATE-BASEDREMEDY.......................................................................22
PILLARSII&III:BUSINESSRESPONSIBILITYTORESPECTANDREMEDY.................26
HUMANRIGHTSPOLICYCOMMITMENT...............................................................26
HUMANRIGHTSDUEDILIGENCE..........................................................................27
REMEDIATION......................................................................................................28
AcknowledgementsAnnexI:NationalBaselineAssessmentTemplateAnnexII:BusinessSurveyonCorporateResponsibilitytoRespectHumanRights
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ListofAcronyms
ABBL AssoxiationdesBanquesetBanquiers
ACA AssociationdesCompagniesd’AssurancesetdeRéassurances
ALFI AssociationoftheLuxembourgFundIndustry
ASTM ActionSolidaritéTiersMonde
BHRRC BusinessandHumanRightsResourceCentre
BLEU Belgium-LuxembourgEconomicUnion
CAA CommissariatauxAssurances
CAD Commissiond'accèsauxdocuments
CASS Conseilarbitraldelasécuritésociale
CC ChambredeCommerce
CCDH CommissionconsultativedesDroitsdel'Homme
CET CentreforEqualTreatment
CFR-EU CharterofFundamentalRightsoftheEuropeanUnion
CLC ConfédérationLuxembourgeoiseduCommerce
CMCC LeCentredeMédiationCivileetCommerciale
CNDP CommissionNationalepourlaProtectiondesDonnées
CoE CouncilofEurope
CSSS Conseilsupérieurdelasécuritésociale
CSSF CommissiondeSurveillanceduSecteurFinancier
CSOs CivilSocietyOrganizations
CSR CorporateSocialResponsibility
DIHR DanishInstituteforHumanRights
EBA EverythingButArms
ECC CentreEuropéendesConsommateur
ECHR EuropeanConventiononHumanRights
ECtHR EuropeanCourtonHumanRights
EIA EnvironmentalImpactAssessment
EITI ExtractiveIndustriesTransparencyInitiative
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ESC EuropeanSocialCharter
EU EuropeanUnion
FEDIL Fédérationdesindustrielsluxembourgeois
GDPR GeneralDataProtectionRegulation
GRECO CouncilofEurope’sGroupofStatesagainstCorruption
GSP GeneralisedSystemofPreferences
HORESCA FédérationNationaledesHôteliers,Restaurateurs,etCafetiersduGrand-
DuchédeLuxembourg
ICAR InternationalCorporateAccountabilityRoundtable
ICCPR InternationalCovenantonCivilandPoliticalRights
ICESCR InternationalCovenantonEconomic,SocialandCulturalRights
ICocA International Code of Conduct for Private Security Service Providers
Association
ICT InformationandCommunicationTechnology
ILO InternationalLabourOrganisation
IMS InspiringMoreSustainability
INAP InstitutNationaldel'AdministrationPublique
INDR Institut national pour le développement durable et la responsabilité
socialedesentreprises
ITM Inspectiondutravailetdesmines
LuxFLAG LuxembourgFinanceLabelingAgency
LuxSE LuxembourgStockExchange
MAEE MinistèredesAffairesÉtrangèresetEuropéennes
NAP MinistèredelaCulture
NBA NationalBaselineAssessment
NCP NationalContactPoint
NCPC NewcodeofCivilProcedure
NGO Non-GovernmentalOrganisation
NHRI NationalHumanRightsInstitution
NPSD NationalActionPlanforSustainableDevelopment
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ODL OfficeduDucroire
OECD OrganizationforEconomicCo-operationandDevelopment
OEIGWG TheOpen-endedIntergovernmentalWorkingGroup
OGBL ConfédérationSyndicaleIndépendanteduLuxembourg
OGP OpenGovernmentPartnership
OHCHR OfficeoftheUnitedNationsHighCommissionerforHumanRights
OLAI LuxembourgReceptionandIntegrationAgency
RBC Responsiblebusinessconduct
SCAS Leservicecentrald’assistancesociale
SDGs Sustainabledevelopmentgoals
SMEs Smallandmedium-sizedenterprises
SNCI SociétéNationaledeCréditetd'InvestissementinLuxembourg
UDHR UniversalDeclarationofHumanRights
UEL UniondesEntreprisesLuxembourgeoises
ULC UnionLuxembourgeoisedesConsommateurs
ULESS Unionluxembourgeoisedel'économiesocialeetsolidaire
UNGPs UNGuidingPrinciplesonBusinessandHumanRights
UPR UniversalPeriodicReview
UNWG UNWorkingGrouponBusinessandHumanRights
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IntroductionTheUNHumanRights Council unanimously adopted theUNGuiding Principles onBusiness and Human Rights in June 2011.1Since their adoption, the UNGPs havebecome the authoritative global reference for preventing and addressing adversehuman rights impacts of business activity and have generated an unprecedentedconvergence of stakeholders around the specific and detailed Principles and theirimplementation.2TheUNGPscontain31principles,dividedoverthreecorepillars:PillarI(GPs1-10)clarifiestheStatedutytoprotectagainsthumanrightsabusesbybusinesses through effective policies, legislation, regulation and adjudication. TheUNGPs also stipulate that States should ensure that policies are coherent acrossdepartmentsandfunctions,andthattheirparticipationinmultilateralinstitutionsisaligned with their human rights obligations. States are required to exercise extravigilance in the regulationofbusiness in conflict-affectedareasorwhen there isaState-businessnexus.
Pillar II (GPs11-24),thecorporate responsibility to respecthumanrights,requiresbusinesses toadoptandembedahigh-levelpolicy commitment to respecthumanrights,developand implementhumanrightsduediligenceprocessesandestablishprocesses to remedyhuman rights harm that theyhave causedor contributed to.Thecorporateresponsibilitytorespecthumanrightscoversbothdirectandindirectimpacts that are linked to the companies’ operations, products, and services orthrough their business relationships ‘even if they have not contributed to thoseimpacts’(GP13).PillarIII(GPs25-31),accesstoaneffectiveremedy,emphasizestheneedforgreateraccess to judicial and non-judicial remedies for those affected by business-relatedhuman rights abuse. Businesses are also required to provide for or participate ineffectivemechanismstoidentifyandaddressgrievancesasearlyaspossiblebefore
1SpecialRepresentativeoftheSecretary-GeneralontheIssueofHumanRightsandTransnationalCorporationsandOtherBusinessEnterprises,GuidingPrinciplesonBusinessandHumanRights:ImplementingtheUnitedNations“Protect,RespectandRemedy”Framework,Annex,U.N.Doc.A/HRC/17/31(Mar.21,2011)(byJohnRuggie)[UNGPs].2KBuhmann,‘Businessandhumanrights:UnderstandingtheUNGuidingPrinciplesfromtheperspectiveoftransnationalbusinessgovernanceinteractions’(2015)6TransnationalLegalTheory339,415.
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theyescalateintohumanrightsabuses.
Three years after the adoption of the UNGPs, the UNHRC called on all MemberStatestodevelopnationalactionplans(NAPs)tosupporttheimplementationoftheUNGPswithintheirrespectivenationalcontexts.3ThisdevelopmentfollowedsimilarrequeststoMemberStatesmadebytheEuropeanUnionin20114and2012,5andbytheCouncilofEuropein2014,6amongothers.7TheUNWorkingGroupontheissueof human rights and transitional corporations and other business enterprises(UNWG)alsostronglyencouragesallstatestodevelop,enact,andupdateNAPsonbusiness and human rights. 8 To date, twenty-two States have developed andadoptedNAPstosupporttheimplementationoftheUNGPsandtwenty-threeareintheprocessofdevelopingone.9TheGovernmentoftheGrandDuchyofLuxembourgdeveloped itsNationalActionPlan for the Implementationof theUnitedNation’sGuidingPrinciplesonBusinessandHumanRights(2018-2019)andadopteditonJune22nd2018(hereinafter‘NAP’or ‘NAP 2018-19’).10In its current NAP, Luxembourg made several commitmentsundertheheadingof“AJointWorkProgram”,whichincludecommissioningastudythatanalyzes“[t]heexistingsituationandmappingofthepotentialnegativeimpactsofbusinessactivitiesonhumanrightsononehand,andofexistingeffortstopreventtheserisksortomitigatetheirconsequencesontheother…”.ThepresentReporthasbeen prepared in furtherance of this commitment and assesses systematically thecurrent level of implementation of the UNGPs in Luxembourg. The primaryobjectivesoftheReportare:
(a) To identify andanalysegaps in legislationandpolicy that concernbusinessandhumanrights;
3HumanRightsCouncilRes.26/22,U.N.Doc.A/HRC/RES/26/22,at2(15July2014).4CommunicationfromtheCommissiontotheEuropeanParliament,theCouncil,theEuropeanEconomicandSocialCommitteeandtheCommitteeoftheRegions:ARenewedEUStrategy2011-14forCorporateSocialResponsibility,COM(2011)681final(October25,2011).5EuropeanParliament,CommitteeonForeignAffairs,ReportontheReviewoftheEU’sHumanRightsStrategy,EUR.PARL.DOC.A7-0378/2012(Nov.19,2012).6Eur.Consult.Ass.,DeclarationoftheCommitteeofMinistersontheUNGuidingPrinciplesonBusinessandHumanRights(Apr.16,2014).7See,e.g.,OrganizationofAmericanStates,ResolutionPromotionandProtectionofHumanRights,OASAG/RES.2887(June14,2016)(XLVI-O/16),encouragingmembersoftheOrganizationofAmericanStatestoimplementtheUNGPs.8<https://www.ohchr.org/EN/Issues/Business/Pages/NationalActionPlans.aspx>9Ibid.10TheGovernmentoftheGrandDuchyofLuxembourg,Pland’actionnationalduLuxembourgsurlamiseenœuvredesPrincipesdirecteursdesNationsUniesrelatifsauxentreprisesetauxdroitsdel’homme<https://maee.gouvernement.lu/dam-assets/directions/d1/PAN-LU-entreprises-et-DH.pdf>(referencestotheEnglishtranslation).
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(b) To identifybusiness relatedhumanrights risksand impacts inLuxembourg,aswellaspracticesthatexisttoaddresstheseimpactsbybusinesses;
(c) To provide key findings and recommendations that will inform theformulation and prioritization of actions for the upcoming revisions of theNAP.
TheReportisdividedintotwomainpartsfollowingthisbriefintroduction.PartOneaddressesthemethodologyandthelimitationsofthestudy.PartTwolaysoutsomeof thekey findingsand recommendations related tobusinessandhuman rights inLuxembourg.ThedetailedfindingsareincludedintheAnnexI.
MethodologyandLimitations
MethodologyTheUNWGrecommendsStatestoconductanationalbaselineassessment(NBA)toidentifythegapsinUNGPsimplementationbytheStateaswellasbybusinessesinordertoinformthecontentoftheNAP.11Anumberofgovernmentshaveconductedsuch mapping either prior to developing their NAPs or as a part of their NAPcommitmentstoserveasabasisforidentifyingandinformingfurtheractionpoints.Occasionally, these studies are also undertaken by civil society organizations orindividual researchers in order to evaluate and analyse the State and corporatecommitments and progress in implementing the UNGPs. In December 2014, theUNWGpublishedaguideonNAPsinwhichitrecommendedtheuseofthedetailedtemplate for national baseline assessments developed by the Danish Institute forHuman Rights (DIHR) and the International Corporate Accountability Roundtable(ICAR).12ThepresentReportisbasedonthisTemplate.TheDIHR-ICARTemplate isa tool toassess thecurrent levelof implementationoftheUNGPsinagivenState.ThetemplateincorporatesthethreepillarsoftheUNGPsand “[p]rovides guiding questions aimed at helping users identify relevantinformation under each pillar of the UNGPs. The guiding questions […] reflect theconceptualandmethodological frameworkof indicatorsdevelopedby theOfficeoftheHighCommission forHumanRights (OHCHR). In linewithOHCHR’s framework,the guiding questions seek to support researchers in assessing progress ofimplementation at the structural, process, and outcome levels, which togetherprovideacomprehensivepictureofduty-bearers’effortstoaddresstheirobligations11<https://www.ohchr.org/Documents/Issues/Business/UNWG_NAPGuidance.pdf>12<https://www.icar.ngo/publications/2017/12/21/national-action-plans-naps-toolkit-2017-edition>,(‘DIHR-ICARTemplate’or‘Template’).
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and responsibilities”.13The Template also indicates links to the Goals of the 2030AgendaforSustainableDevelopment.The data in this Report were gathered primarily through desk research andstakeholder consultations (bymeans of surveys, interviews and email exchanges),and included engagement with businesses, civil society and the Governmentauthorities.Broadlyspeaking,thefollowingstepshavebeenundertaken:• Beforethestartoftheresearch,theproposedstructureandmethodologyofthe
Report togetherwiththeDIHR-ICARTemplatewerepresentedtothemembersof the Working Group on business and human rights (WG/GT)14in order toobtain their feedbackand comments (30 January2019). Itwasagreed to sendout a survey questionnaire to the thirty largest companies (defined by thenumberof theiremployees) inorder togather thedata for the secondpartoftheTemplate(SeeAnnexII).
• Thecoreofthecompanysurveyincluded25questionsrequestinginformationonthecompany,ontheirperceptionofhumanrightsandontheUNGPsingeneral.Dependingontheiranswers,theparticipantswereaskedtoreplythreefurthersetsofquestionswhichcorrespondedtotheirpolicycommitments(questions26to 31), human rights impact assessments (questions 31 to 37) and remedies(questions 38-46) (see Annex II). In addition to the DIHR-ICAR Template, thecontentof thequestionnairewas inspiredby the surveyannexed toScotland’sNBA15andtheOHCHRSurvey.16
• Therelevantcontactpersonsinthetargetedcompanieswereidentifiedwiththehelp of the representatives of the UEL and INDR who are also among themembersoftheWG/GT.EnglishandFrenchversionsofthesurveyweresentoutin March 2019. The UEL and INDR sent detailed emails to the companiesinforming them of the context and encouraging them to participate in thesurvey.
• Intotal,16outof30companiesresponded(53%).Ofthese16companies,fourreplied negatively (‘lack of time’, ‘questions too difficult’). Twelve companiesfilledoutthesurveyandreturnedittous(thustheinformationinthisReportisbasedon40%responserateof30companies).
13Ibid.14See,AnnexISection2.1.ForinformationontheWG/GT.15<http://www.snaprights.info/action-areas/better-world/business-and-human-rights>16<https://www.ohchr.org/Documents/Issues/Business/ForumSession1/Report_UNWGBusinessSurvey_Dec2012.pdf>
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• In addition to the business survey, a focus group session was held with therepresentatives of the CSOs including the members of the Initiative pourundevoirdevigilanceauLuxembourgonMarch20,2019.Beforethemeeting,listofquestionsweresenttothegrouprequestinginformationonwhattheyfeltwerethe main human rights challenges related to Luxembourgish business activity,thesectors thatposedhumanrights risksandthemostvulnerablegroups.Thefocusgroupmeeting,attendedbytenCSOmembers, includingNGOsandtradeunion representatives, lasted threehoursandwas recorded. Inaddition to thesurveyquestions,thepositionoftheCSOswasdiscussedindetail.Followingthemeeting the representatives of the CSOs submitted detailed written feedbackand various documents. They were encouraged to contact the researcherthroughoutthemappingprocess,whichtheyhavedonesooccasionally.
• ThemappingphasewascompletedwiththeassistanceofaninternattheMAEE.• Inadditiontodesk-basedresearch,variousconsultationshavetakenplacewith
therepresentativesofthepublicsectorincludingtheMAEE,theOECDNCP,theDépartementdes Travauxpublics, the INAP.ConsultationswerealsoheldwiththeCCDHandtheCMCC.
• Two telephone interviews were undertaken with companies that haverespondedtooursurveytoseekdetailedexamplesbasedontheirresponses.Basedontheinformationgatheredthroughtheconsultationsandresearch,thepresentReporthasbeendrafted. Ithasbeensubmittedtotheattentionofthemembers of the WG/GT to ensure that no key considerations have beenoverlooked.
LimitationsThefindingsoftheReportshouldbereadbearinginmindthefollowinglimitations:• The scope of the business survey is limited to the largest enterprises in
Luxembourg.o DiscussionswereheldattheWG/GTmeetingsontheselectioncriteriaof
the companies. Somemembers of theWG/GT raised concerns that thelimitedfocusonthe30largestcompaniesmightexcludebusinessesthathaveadversehumanrights impactsandthusnarrowthe findingsof themapping. It was subsequently clarified that, for the purposes of thepresentReport,theintentionofthecompanysurvey(whichcorrespondstothequestionsinthesecondpartoftheTemplate)wastomeasurethelevelofhumanrightsawareness,commitmentandpracticeofcompaniesinLuxembourg. Itwasnot intendedto identifythecompaniesthathave
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adverse human rights impacts as such. It was pointed out that theremainder of the Template had specific questions in order to identifybusinessesthathaveadversehumanrightsimpacts.
o Nevertheless, the business survey’s focus on the largest enterprises inLuxembourg does not suggest that small andmedium sized enterprisesareexcludedfromthebusinessandhumanrightsagendainLuxembourg.Onthecontrary,therecommendationsaddressedtolargebusinessesareapplicable to SMEswhose responsibilities are proportional to their sizeandscale(Section3.1).
• Followingthediscussionsat theWG/GTmeetings, theState-ownedenterpriseswereexcluded fromthescopeof thecompanysurveyon thegrounds that theNAP2018-19hasspecificactionpointsaddressingthoseenterprises.17Thisisanimportantlimitation.Severalissuesshouldbeconsidered:
o UNGP 4 provides that States should take “additional” steps to protectagainst human rights abusesbybusiness enterprises that areownedorcontrolledby the State.As the commentary to theUNGP4 recalls “thecloser a business enterprise is to the State, or the more it relies onstatutory authority or taxpayer support, the stronger the State’s policyrationale becomes for ensuring that the enterprise respects humanrights”.Thus,asamatterofpolicycoherence, legitimacyandcredibility“the State should not ask less of companies that are closely associatedwithitthanitasksofprivatebusinesses”.18
o TheUNGPs however, do not clarify the particular duties of StateswithrespecttotheenterprisesthatareownedorcontrolledbytheState.Onthispoint,theUNWorkingGrouphasnoted“agenerallackofattention,inpractice,onthepartofStatesandotheractorstothe implicationsofguiding principle 4 with respect to State-owned enterprises. Policies,guidelines and good practices are lacking at both the national andinternationallevels”.19
o This general comment is true in the context of Luxembourg. Theresearcher was not able to identify many examples of policies andguidelines regarding a State-business nexus. This is not to suggest thatsuchexamplesdonotexist.Thelimitedtimeandresourcesavailablefor
17SeeNAP2018-10,31:“PutinplacepilotprojectsonduediligenceinenterprisesinwhichtheStateisthemainshareholder”;aswellas“Raisinghumanrightsawarenessofcontractingauthoritiesaspartoftheirpublicprocurementprocedures”.18UnitedNations,GeneralAssembly,ReportoftheWorkingGroupontheissueofhumanrightsandtransnationalcorporationsandotherbusinessenterprises,A/HRC/32/45(4May2016).19Ibid,3(emphasisadded).
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themappingsuggestthatnotallrelevantexampleshavebeenidentified.Therefore, the author welcomes feedback from the members of theWG/GTon thisparticular topic, specificallyonquestions in theSections17,18,19,and21and22oftheAnnexI.
• There are five professional Chambers in Luxembourgwhich play an importantrole in particular in the development of the legislative framework inLuxembourg.20Regrettably, the researcher was not able to obtain their directinputduringthemappingduetotimeconstraints,whichmayexplainthelackofexamplesincertainsections.
KeyFindingsandRecommendations21
PILLARSI&III:STATEDUTYTOPROTECTANDREMEDY
StateDuty:Laws,PolicyandRegulationInternationalandRegionalLegalandSoftLawInstrumentsOverall, the policies, legislation and regulation dealing with business and humanrights arewell-developed in Luxembourg, owing to its strong commitment to andcompliance with the international human rights regime. Luxembourg’s domesticlegalorderisfoundedontheprimacyofinternationallaw.AllcourtsinLuxembourghaveacceptedthefullsupremacyanddirecteffectofinternationallawaswellasEUlaw.Luxembourg isoneofthefoundingmemberstatesoftheUnitedNations,andalsoasignatorytomostoftheUN’sDeclarationsandConventions.Itisapartytothe8core ILOConventionsaswellasvarious regionalhuman rights legal instruments,includingtheECHR,theESC,andtheCFRoftheEU.
Notwithstanding Luxembourg’s strong and dedicated commitment to theinternational and regional human rights regime, there are several relevant humanrightsinstrumentsthatLuxembourghasnotsignedorratified.Theyinclude,notably,theInternationalConventionontheProtectionoftheRightsofAllMigrantWorkersandMembersoftheirFamilies,the2014ProtocoltotheForcedLabourConvention(Po29) and theAdditional Protocol to the European Social Charter Providing for a
20Theseare;ChambredesSalarié,ChambredeCommerce,Chambredesfonctionnairesetdesemployéspublics,Chambred’Agriculture,ChambredesMétiers.21For more detailed findings and recommendations, see Annex I. Note that not all findings arefollowed by specific recommendations. Nonetheless, the Government and the relevant authoritiesshouldstrivetoaddresstheseissues.
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SystemofCollectiveComplaints. TherearealsoConventionsthatLuxembourghassignedbutnot ratified, aswell asConventions ratifiedwith reservations that limittheapplicabilityofcertainprovisionsinLuxembourg(Section1.1).
Luxembourg has also signed or issued formal statements of support to variousinstrumentsthatarerelevantinthecontextofbusinessandhumanrights,includingthe OECD Guidelines for Multinational Enterprises and the OECD Anti-BriberyConvention(Section1.4).Luxembourgalsosupportsvariousinitiativesandstandardsrelatedtobusinessandhumanrights(Section1.5),buthasfailedtodosoinregardto certain others. For instance, no evidence was found that the Governmentparticipates in or implements the Extractive Industries Transparency Initiative orVoluntary Principles on Security and Human Rights, both of which are relevantconsideringthattheNAP2018-19hasidentifiedtheextractiveindustryasoneofthesectorswith potential adverse human rights risks. Similarly, no evidence could befoundthattheGovernmentencouragesICTcompaniesto implementthePrinciplesonFreedomofExpressionandPrivacy (theGNIPrinciples)despitethefactthatthecurrentNAPhasidentifiedtheICTsectorasoneofthe“risksectors”.
FormalStatementofSupportfortheUNGPsLuxembourg has made a formal statement in support of the UNGPs in the firstversion of its NAP on business and human rights. Throughout the NAP 2018-19,Luxembourg shows a strong and explicit commitment to the UNGPs. The NAPunderscores theUNGPs as “the primary vehicle to prevent negative human rightsimpacts of business activities and, where necessary, to address theirconsequences”.22TheUNGPsareannexedtotheNAP2018-19.TheNAP2018-19 contains 13 actionpoints thatwere adopted after consultationswiththemulti-stakeholdergroupcreatedforthispurpose.Mostoftheactionpointscontainvoluntarymeasuresrelatingtothedisseminationofinformation,awarenessraising and capacity building with regards to the UNGPs (Section 1.2). Both theGovernment and the stakeholders have taken steps to implement the actionscontained intheNAP2018-19(Section1.2).However,variousactionpointsarestillpendingat thetimeof thewriting.For thenext revisionof theNAP,morespecificmeasuresshouldbeadoptedwithcleartargetsandtimelines,andidentifyingoftheresponsibleentity.
22NationalActionPlanofLuxembourgfortheImplementationoftheUnitedNationsGuidingPrinciplesonBusinessandHumanRights-2018-2019,Englishversion(hereinafterNAP2018-19)p20,(pagenumbersrefertotheEnglishversionoftheNAP)available;<https://maee.gouvernement.lu/en/directions-du-ministere/affaires-politiques/droits-de-l-homme/NAP-Human-Rights.html>
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Some of the recommendations concerning the actions points in the existing NAPinclude:
• Theorganizationoftrainingsessions,whichformanimportantpartofraisingawarenessonbusinessandhuman rights.Businessorganizations shouldbeencouraged to provide guidance and training to their members, drawingattentiontohumanrightsrisksassociatedwithspecificsectors.TheWG/GTshouldconsideradoptingtargetedactionpointstoofferbusinessandhumanrights trainings for judicial officials and other relevant authorities. TheBarreauandtheINAPcanbeusefulinterlocutorsforthispurpose.
• ThecurrentNAPcontainsanactionpointonawarenessraising, informationand promotional campaigns on the UNGPs, stating that “a generalcommunication, including through the media, should help to raise publicawarenessonthepositiverolethatbusinessescanplayinregardstohumanrights in theirownactivities,andtheir relationshipswiththeirsuppliersandcustomers”. No systematic communication campaign has been conductedyet.
o Attempts to raiseawarenessmight include incorporating theUNGPsinto thework of different agencies across theGovernment. A goodexample that already exists is a web reference to the SDGs at themain page of the Directorate for Development Cooperation andHumanitarian Affairs. The Government is advised to insert similarreferencestotheUNGPsacrossrelevantGovernmentwebsites.
o Also,amorespecificwebsitededicatedtobusinessandhumanrightsshould be developed. This website could profile the work of theWG/GT and provide information and guidance to businesses on theUNGPs,andofferadviceonthedevelopmentandimplementationofhuman rights policies, due diligence processes and reportingpractices.ThiswebsiteshouldprovidetailoredguidanceonSMEs.
o The Government has a comprehensive web portal, Guichet.luaddressedtobothprivatepersonsandbusinesses.Itisrecommendedthat references to the UNGPs and/or the NAP are included in thiswebsitetoreachthegeneralpublic.
o ItisadvisedthatreferencestotheUNGPsareinsertedinGovernmentpublications, such as the ones about investment opportunities inLuxembourg.
o The capacity of Luxembourgish embassies should be increasedwithregard to business and human rights. The embassies should beencouraged touse theUNGP frameworkwhen theyworkwith localgovernmentofficialsandwiththeLuxembourgishcompaniesthatdo
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businessorwishtodobusinessinagivencountry(forcommentsonotheractionpoints,seeSection1.2).
NationalLaws,PoliciesandRegulationsIn Luxembourg, the Inter-MinisterialHumanRightsCommittee,established inMay2015,isinchargeoffosteringinter-agencycooperationandcoordinationinthefieldofhumanrights.Duringthecourseof2017,WG/GT(theWorkingGrouponBusinessand Human Rights) was established within the Inter-Ministerial Human RightsCommitteewiththemandatetoelaboratetheNAPonbusinessandhumanrights.FollowingtheadoptionoftheNAP2018-19 inJune2018,theWG/GTcontinuedtooverseetheimplementationoftheNAPandsubmitteditsfirstannualreporttotheGovernment Council on 26 July 2019. The Government Council has extended themandateoftheWG/GT.BoththeInter-MinisterialHumanRightsCommitteeandtheWG/GTisconvenedandcoordinatedby theMinistryof ForeignandEuropeanAffairs. Themembersof theWorkingGroup include representatives of the public and private sector aswell asmembers of national human rights institutions, civil society organizations andacademia.Theworkinggroupmeetseverysixweeksandthemeetingsarepresidedby theAmbassador-at-Large forHumanRights (Section2.1).Currently, theWG/GTgroupdoesnothaveadedicatedbudget,butitwasconfirmedthatitcouldusethegeneralhumanrightsbudgetoftheGovernmentwhenneeded.AnothercriticismoftheWG/GT concerns the lack of visibility of the activities of group. This could beaddressedbyvariouspromotionalactivitiesreferredtoabove.“RiskSectors”AccordingtothelatestOECDfigures,theLuxembourgeconomyisprimarilybasedonthe services sector (87.7%), followed by industry including construction (12.1%).23The NAP 2018-19 has identified the following sectors as having potential adverseimpacts on human rights due to their general predominance in the Luxembourgeconomy,thenationalandinternationalnatureoftheiractivitiesandtheoriginandnumber of their employees: the financial sector, the extractive industries, theinformation and communication technologies, including the field of artificialintelligence, the construction sector and the hotel and catering sector. 24 The
23 OECD Economic Surveys: Luxembourg 2019, <https://www.oecd-ilibrary.org/economics/oecd-economic-surveys-luxembourg-2019_424839c1-en>.24NAP2018-19,p28.
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stakeholderconsultationundertakenforthisreportalsohighlightedconcernsinthefollowingsectors:25• Agribusiness; numerous agribusiness companies registered in Luxembourg (or
investment funds based in Luxembourg that provide financial support toagribusinesssector)havebeendocumentedfortheiradverseimpactsonhumanrights in their overseas operations (see, Section 6.5. for non-exhaustive list ofexamples).
• Logisticsandmaritimetransportsectors;thestakeholdershavecitedthatthesesectorswillbepromotedbyLuxembourgaccordingto theCoalitionAgreementandwillthusincreasetheirpredominance.
• Food and textile distribution: CSOs have noted the presence of one hundredtextile companies and various big food distribution chains in Luxembourg andarguedthattheyshouldbeincludedintheriskmapping.
TheNAPhasidentifiedtherisksectorsbasedona“preliminaryobservation”withoutdifferentiatingamongtheirexistingandpotentialhumanrights impacts.Whilethepresentstudyhasidentifiedvariousissuesthatrelatetodifferentsectorsmentionedin the NAP (see various sections in Annex I), it has not been possible to dealexhaustively with each sector given the limited time and resources assigned tocompletethestudy.Therefore,inordertobetterunderstandtheimpactofspecificsectors,theGovernmentisadvisedtoconductfurthersectorspecificanalysis.GroupsatriskofvulnerabilitySeveralinstitutionsinLuxembourgworktoidentifyandassistparticularlyvulnerablegroups including children (Section 26.3) and women (Section 15.1). The presentreporthasalso identifiedpeople livingwith in-workpovertyandvictimsofhumantrafficking to be among the particularly vulnerable groups in Luxembourg (Section5.1).HumanRightsDueDiligenceHumanrightsduediligenceisoneofthekeycomponentsoftheUNGPs.Currently,thereareno laws inLuxembourgrequiringbusinessenterprises toconducthumanrights due diligence. The Law of 23 July 2016, giving effect to EU Directive2014/95/EU,obligescertaincompaniestoprovideanon-financialstatementaspartof their annual report (Section 4.3).While the companies are required to address
25WrittenfeedbackreceivedfromtheCSOs,April5,2019[hereinafter,“CSOs’writtenfeedback”].CSOshavesuggestedthatthereferencetothe“extractiveindustries”inthecurrentNAP,shouldbereplacedby“industry”).
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respect for human rights alongside other non-financial considerations, conductinghumanrightsduediligenceisnotoneoftherequirements.TheCoalitionAgreement(2018)includesacommitmenttoexplorethepossibilityofhumanrightsduediligencelegislationinLuxembourgandtosupporttheadoptionofbindingEUlegislation.TheNAP2018-2019alsoencouragescompaniestoadoptpolicyinstrumentsinorderto fulfill their responsibility to respecthuman rights, inparticular by introducing adue diligence process.26Moreover, the NAP 2018-2019 proposes to “put in placepilot projects on due diligence in enterprises in which the State is the mainshareholder”.27Due diligence was the subject of a parliamentary question on 22January2019(Section10.3).Stakeholders have different views on mandatory due diligence in Luxembourg.Luxembourg’sNationalHumanRightsCommission (CCDH)and civil society groups,under the heading of the “Initiative pour un devoir de vigilance au Luxembourg”,whichbringstogether16civilsocietyorganizations,havecalledfortheintroductionofbindingduediligencelegislationinLuxembourg.28However, some concerns were expressed about the impact of “new forms ofregulation”, especially among smaller businesses due to the impact that such aregimemayhaveon the resourcesof small andmedium size enterprises.29 It canalso be inferred from the contributions of the business representatives at theWG/GT meetings that the preferred way to address human rights issues is acoordinatedandcollaborativeapproachthatfocusesonhumanrightsguidanceandawareness raising, rather than amandatory regime.Concerns exist that legislativerequirementswillalterthelevelplayingfieldandputLuxembourgishcompaniesinacompetitivedisadvantage incomparisontocompaniesbased in jurisdictionswherenosuchlawsexist.
26NAP2018-2019,26.27Ibid,31.28Forfurtherdetails,see:<https://www.initiative-devoirdevigilance.org/>.Fortheproposaloftheinitiativeissee;<http://astm.lu/wp-content/uploads/2018/03/Proposition-devoir-de-vigilance_partis.pdf>29PublicinterventionbytherepresentativeofSMEsinLuxembourg,ConferenceonBusinessandHumanRights(June7,2019).
19
Thesearelegitimateconcerns,butastheUNWorkingGrouphasemphasized,they“do not negate the imperative forGovernments to take steps to close governancegaps,includingthroughlegalmeans”.30A strictly binary approach to business and human rights challenges appearsmisleading. In a recent statement, John Ruggie, the author of the UNGPs, hasreiterated that:“there isno inconsistency instatesadoptingmeasures that requirebusinesses tomeet their responsibility to respecthuman rights through legislation.Statessimilarlymayadoptlegislativemeasurestoencourage,supportorincentivizebusinessestodoso.[…]Statesareexpectedtoadoptamixofmeasures-voluntaryand mandatory, national and international- to foster respect for human rights inpractice.[…]”.31VariousGovernmentshaveadoptedorareintheprocessofadoptinghumanrightsduediligencelegislation(Section3.1).Admittedly,limitationsexistintheselawsandit is tooearly to assess their impacton the ground.Nonetheless, theUNWorkingGrouphasalreadyhighlightedtwopositiveeffects:(i)thatthelegislationishelpingto raise awareness of the corporate responsibility to respect human rights at thedecision-makinglevelwithinbusinessenterprises,and(ii)that,despitethefactthatthelegislationappliesonlytolargercompanies,obligationsshiftdownthroughvaluechainsthroughbusiness-to-businesspressure.32Inlightoftheabove,theGovernmentisadvisedtoadoptamixedsetofmeasurestoensure that human rights due diligence is embedded as part of standard businesspracticeinLuxembourg.• Introducing legislation or amending existing legislation to require Luxembourg
based companies, or companies that do business in Luxembourg to exercisehumanrightsduediligence.Thiscanbeastand-alonelegislation,ortheexistinglawscanbeamendedsoastoincludeduediligencerequirements.TheLawof23July 2016 giving effect to the EUDirective 2014/95/EU could be a useful basisupon which mandatory due diligence could be developed providing that thescopeof the law is expanded. Important considerationwould be to clarify theextraterritoriality requirements in the legislation as Luxembourg is home tomanyMNCsthathaveoperationsinotherjurisdictions.
30UnitedNations,GeneralAssembly,Promotionandprotectionofhumanrights:humanrightsquestions,includingalternativeapproachesforimprovingtheeffectiveenjoymentofhumanrightsandfundamentalfreedoms,A/73/163(16July2018).31JohnRuggie,LetteraddressedtoBusinessandHumanRightsResourceCenter,19September2019.32A/73/163(16July2018).
20
Extra-territoriality is not a requirement under the UNGPs, although theCommentaryacknowledgesthat‘therearestrongpolicyreasonsforhomeStatesto set out clearly the expectation that businesses respect human rightsabroad’. 33 In addition, it is important to note that, various treaty bodiesoverseeing international human rights conventions, to which Luxembourg is aparty, have issued conclusions and general comments stating that the stateparties obligations extend extraterritorially – also in the case of abuses bybusinesses.34 While General Comments issued by the treaty bodies are notlegally binding, they provide clarification, development and persuasiveinterpretationsoftheobligationscontainedintherespectivetreaties,andStateparties are expected to bring their laws into conformity with the generalcomments issued by the treaty bodies. Therefore, it is advised that any duediligencepolicyorlawgivesdueregardtotheextra-territorialityrequirements.
• Corporategovernancelawsalsohaveapotentialbasisuponwhichduediligencerequirements can be introduced. Considering various economic arguments forbusinesses to respecthuman rights –both in termsofmitigating risks and costand gaining competitive advantage in the market place–35it is reasonable toarguethatboardofdirectors’fiduciarydutiestotheirshareholdersrequirethemto consider long term rights and interests of other stakeholders. An examplealong these lines can be found in Principle 2 of the X Principles of CorporateGovernanceoftheLuxembourgStockExchangeforlistedcompanies:“TheBoard[…] shall act in the corporate interest, and shall serve all the shareholders byensuring the long-term success of the company. They shall consider corporatesocial responsibility aspects and shall take into account the interests of allstakeholdersintheirdeliberations”.36
33TheUNGPs,Principle2,Commentary.34Mostnotably,theCommitteeonEconomicSocialandCulturalRights,inGeneralComment24hasstated that “States Parties’ obligations under the Covenant do not stop at their territorial borders”insteadStates“arerequiredtotakethenecessarystepstopreventhumanrightsviolationsabroadbycorporations domiciled in their territory and/or jurisdiction (whether they are incorporated undertheir laws,orhave their statutory seat, centraladministrationorprincipalplaceofbusinesson thenationalterritory),withoutinfringingthesovereigntyordiminishingtheobligationsofthehostStatesunder the Covenant”. See, CESCR, General Comment No 24 on State Obligations under theInternationalCovenantonEconomic,SocialandCulturalRights in theContextofBusinessActivities,UNDocE/C.12/GC/24(23June2017)para26.35BBağlayan, ILandau,MMcVeyandKWodajo,“GoodBusiness:TheEconomicCaseforProtectingHumanRights” (January2019)<https://corporatejustice.org/eccj-publications/12124-good-business-the-economic-case-for-protecting-human-rights>.36 Luxembourg Stock Exchange, Les XPrincipes de gouvernance d'entreprisede la BourseduLuxembourg,4thedition-revisedversion(December2017),emphasisadded.
21
• State-owned or controlled enterprises, in particular, should be required toconducthumanrightsduediligenceinLuxembourgandabroad.Theattentiontothe State-owned or controlled businesses or those receiving State support isparticularly important in light of the State-business nexus. As such, theGovernment is advised to implement without delay the action point in thecurrent NAP that provides “putting in place pilot projects on due diligence inenterprisesinwhichtheStateisthemainshareholder”.
• Meanwhile, while exploring the possibilities of human rights due diligencelegislation,asalsowas stated in2018CoalitionAgreement, theGovernment isadvisedtodisseminateguidanceonbusinessandhumanrightsandhumanrightsduediligencetobothpublicandprivatecompanies.Inaddition,theGovernmentmaywish to consider using its economic leverage to incentivize companies toadopthumanrightsduediligence.Examplesofsucheconomic incentivesmightincludeinclusionofhumanrightsduediligenceasaneligibilitycriterionforpublicprocurement,forexportcreditandinvestmentsupport,forparticipationintrademissionsandsoon.
TheNAP2018-19proposes toelaborate,adoptand implementaNationalPactontheRespectforHumanRights intheActivitiesofBusinessEnterprises.Thepactwillbeaformaldeclarationofintenttorespecthumanrightsfromtopexecutivesofthesignatory company. In its current formulation, the Pact involves a number ofcommitments by businesses including, trainings and reporting, among others. ThestructureofthePactcanproveveryusefulasaninitialcommitment,asitwillallowindividualcompanies to tailor their trainingandreportingneeds to theirparticularsectorandriskprofile.TheGovernmentisadvisedtoensurethatthePactisadoptedassoonaspossibleandtoencourageasmanybusinessesaspossibletomakeformalcommitmenttothe instrument. Inparticular, theGovernment isadvisedtoensureallcompaniesthatareownedorcontrolledbytheStatesignthepactandfulfillthecommitmentscontainedtherein.37
37For other findings concerning national laws, policy and regulation, see various other sections inAnnexI.In particular; on Corporate Structures andGovernance (Section 4); Labour (Section5); EnvironmentandLand(Section6);CommunityConsultationandEngagement(Section7);OccupationalHealthandSafety (Section 8); Tax (Section9); Trade and Investment (Section 10); Anti-bribery and Corruption(Section 11); Human Rights Defenders and Whistleblowers (Section 12); Information andCommunication(Section13);ConsumerProtection(Section14);Anti-discrimination(Section15)andNationalHumanRightsInstitutions(Section16).
22
StateBusinessNexus
ThepresentstudyidentifiedagenerallackofhumanrightsguidancethatisaimedatcorporationsownedorcontrolledbytheStateoratbusinessesreceivingsubstantialsupport fromstateagencies inLuxembourg.AnexceptionmaybetheLuxembourgExportCreditAgency(OfficeduDucroire–“ODL”),whichhasadedicatedportaltosocial responsibility. TheODLhasestablished“environmental and social guidelinesfortheselectionofprojectseligibleforofficialsupportaswellasatwo-stepprocessin the prevention of transactions involving bribery”.38However, there are someissues in regards to the ODL’s formulation of the standards that makes itincompatiblewiththeUNGPs(Section17.4).Therefore,thereisaroomtodevelopguidance forpublic corporations thatexplicitlyaddresseshuman rights issues, andduediligencerequirements(seeabovesectiononduediligence).Regarding theGovernment contracting andpublic procurement; transparency, fairtreatment and equal opportunities are among the basic principles of publicprocurement legislation pursuant to EU Directives. In addition, the Law of 8 April2018 on Public Procurement, Article 12(2) requires the contracting authorities totake into account, aspects and problems relating to the environment and thepromotion of sustainable development when awarding public contracts.UnderArticle15(1);contractingauthoritiesmayrestricttenderstosocialenterprises,ortoenterprises that favour the inclusion of disabled persons, or that participate inlabour inclusion programmes. The e-procurement portal serves as an informationand communication platform on public procurement. Although the generalframeworkonpublicprocurementaddressesissuesthatoverlapwithhumanrights,thereisalackofexplicitreferencetohumanrightsandtheUNGPs,whichmaymeanthat public buyers may not be adequately informed about the potential humanrights risks.A clear guidance shouldbeprovided topublicbuyersonbusinessandhumanrightsandtheUNGPs.
AccesstoState-BasedRemedySanctionsThere are various bodies that can issue administrative sanctions in Luxembourg,including; the CSSF and the CAA (Section 24.1). The CNDP also has variousinvestigative, corrective and advisory powers including, among others, issuing
38<https://odl.lu/en/about-us/ethics/>
23
penalties for infringement set out by the GDPR, imposing penaltypayments(astreintes) for delay to comply with an order by the CNPD to provideinformationorwithacorrectivemeasureissuedbytheCNPD.State-BasedJudicialMechanismsLegalpersonscanbeheldcriminally liablepursuanttotheLawof3March2010.39The 2010 Law applies to most types of legal entities, apart from the State andmunicipalitieswhichareexpresslyexcluded(Article34).The Brussels I Regulation makes it mandatory for the national courts of the EUMemberStates toaccept jurisdiction in civil liability cases filedagainstdefendantsdomiciled in the forum State, whatever the nationality of the defendant or theplaintiff,andincasesofextra-contractualliability,whereverthedamageoccurred.40Article 60 (1) of the Regulation clarifies that “a company or other legal person orassociationofnaturalor legalpersons isdomiciledat theplacewhere ithas its:a)statutory seat, or b) central administration, or c) principal place of business”. InLuxembourg, itfollowsfromarticles14and15oftheCivilCode(see,Section24.1)that Luxembourg courts may be competent for any civil action brought against aLuxembourg national, in the absence of any other ground for jurisdiction (see,Section24.1).
ThewebsiteoftheMinistryofJustice41andvariousotherportals(see,Section24.5)provideinformationonlaws,policies,andregulationsaswellasjudicialmechanismsandhowtheycanbeaccessed.However,noneofthesesourcescontainreferencestobusinessrelatedhumanrightsgrievances.Oneof theotherexistinggaps is thatLuxembourghasnotraininginstituteforthejudiciaryandthisresearchdidnotfindanyevidenceoftrainingsonissuesrelatedtobusinessandhumanrightsofferedtothemembersofthejudiciary.In terms of access to remedies, Luxembourg law offers the relatively uncommonpossibilityforNGOstoseekremediesincivilcases(intheformofpunitivedamagesorawardsforthemselves- innomeproprio)whencasesareinthepublicinterest.42Also, in Luxembourg, the statuteof limitationperiod is30years (Article2262CivilCode),whichislongerthanmanyEUjurisdictions.Aspecialtimelimitoftenyearsis
39<http://legilux.public.lu/eli/etat/leg/loi/2010/03/03/n1/jo>40CouncilRegulation44/2001,2001O.J.(L012).41<http://mj.public.lu/>42See,EU,TrainingManualforJudgesandProsecutorsonEnsuringWomen’sAccesstoJustice(2017).
24
applied to obligations derived from trade, between professionals and betweenprofessionalsandconsumers,unlesstheyaresubjecttoashortertimelimit(Article189CommercialCode).One of the potential barriers for an alien who wants to bring a claim against aLuxembourgishdefendant is thecautio judicatumsolvi.Thissecuritypayment is tocover the court fees and damages arising from the proceedings. It can potentiallylimit theaccess to court in Luxembourg for foreignerswhowant to litigate a caseagainstaLuxembourgishdefendant,butdonothavethemeanstopaythesecuritydeposit.TheGovernmentisadvisedtoconsiderabolishingthecautiojudicatumsolvirequirement.Current legal framework in Luxembourg does not allow for class action (‘recourscollectif’)forclaimsarisingfromthesameevent.Ageneraljoindermechanismexists.UnderArt206oftheNCPC,claimsmaybejoinedanditispossibletoaskthecourttorule on them together. The joining of the cases is procedural, and each claimantindividuallyneeds tohavebothsufficient standing (qualitéd'agir)anda legitimateanddirectinterest(intérêtd'agir).The2018CoalitionAgreementenvisagesalawonclassaction.State-BasedNon-JudicialMechanismsConcerningnon-judicial remedies,OECDNationalContactPoint (“NCP”) is theonlygrievance mechanism in Luxembourg which has an explicit mandate to handledisputes related tobusiness andhuman rights, andmoregenerallyon responsiblebusiness conduct. The NCP has an individualised decision-making structure.Individualiseddecision-makingmeansdecisionsaretakeneitherbyoneindividualinasingleministry,orbyagroupof individualsbelonging to thesameservice in thesameministry.TheNCPisbased,managedandcoordinatedinandbytheMinistryofEconomy.IthastakenvariousactivitiestopromoteresponsiblebusinessconductasmandatedbytheGuidelines(foralistofvariouspromotionalactivitiesconductedbytheNCP,seeSection27.1).TheNCPhasawebsitethatcontainslinkstoanumberofusefulresources.ThewebsitealsocontainstheNCP’srulesofprocedure,anad-hocform for submitting complaints, list of closed and ongoing specific instances withrelevantdocuments,andthecontactdetailsofadedicatedperson.Regardinghandlingenquiriesandcontributingtotheresolutionof issues(knownasthe ‘specific instances’), the Rules of Procedure of the NCP contains variousinformation, including; the timeframe, scope, rules on transparency andconfidentiality, assistance available to the parties, and the different phases of the
25
complaints procedure. In oneof the complaints, theNCPhas conducted two fact-findingmissionsassistedbyamediatorassignedbytheNCP.Therecommendationsofthemediatorweresubsequentlyacceptedbybothoftheparties.Ingeneral,theOECD recognizes that fact-finding missions could impose considerable burden onNCPresources.Therefore, ingeneral, itdoesnotrequiretheNCPstoconductfact-finding.Therefore, the LuxembourgNCP’spractice canbeconsideredamonggoodpractices(forotherpositivepracticesoftheNCP,see,Section27.1).Nevertheless, the CSOs consulted for this study have raised various issues withregard to the practice of the NCP. The primary concern relates to the lack ofcollaborationbetween theNCPand thecivil societyand the lackof impartialityoftheNCP. It is noted that the position of theNCP at the “Comité de Conjoncture”withintheMinistryofEconomycontributestotheperceptionoflackofimpartiality.A distinction can be drawn between the notions of “impartiality” and“independence”.Concerningthe formerconcept, thespecific instanceshandledbytheNCPatthistimearetoofew(withvaryingstagesandoutcomes)tosuggestthatNCP lacks impartiality (for definitions of these concepts, see Section 27.1)Nonetheless, it is recommended that the NCP takes steps to mitigate thisperception. The NCP is advised to establish andmaintain a regular dialogue withbroadersetofstakeholderstoimprovetheirconfidence,includingCSOs.TheNCPisadvisedtoconsiderestablishingamulti-stakeholderadvisoryand/oroversightbodytopromoteimpartiality,asrecommendedbytheOECD(seeSection27.1fordetailsandreferences).TheNCPthusfarhashandledonlyfivespecificinstancesdespiteitsbroadmandateanddespitethepresenceofmanycompanies inLuxembourg.Thismaybepartiallyexplainedwitha lackofgeneral awarenesson the roleof theNCP.Therefore, theNCP is advised to develop a more active promotional strategy which raisesawareness on the role of the NCP as a grievance mechanism (for otherrecommendations,seeSection27.1).In addition to the NCP, Luxembourg offers various non-judicial dispute resolutionmechanisms. These, in principle, can be used to address business related humanrights abuses including the ones that occurredoutside of Luxembourg. In general,thesemechanisms are not bound by the nationality of the parties neither by thelocation of the conduct. As such, they have a wide scope of applicability.
26
Luxembourgoffersotheradvantagessuchasgeographicalaccessibilityandlinguisticdiversity.43Despitetheaboveadvantages,however,toourknowledgetheexistingprocedureshavenotbeenusedtoaddressbusinessrelatedhumanrightsabuses.Thismightbeduetoalackofawarenessaboutthepotentialuseofthesemechanisms.Inaddition,no legal aid exists for conventionalmediation in Luxembourgwhich can create anobstacle for parties to access mediation based non-judicial mechanisms. Note,however, that the 2018 Coalition Agreement envisages extending legal aid toconventionalmediation.
PILLARS II & III: BUSINESS RESPONSIBILITY TO RESPECT ANDREMEDY
HumanRightsPolicyCommitment
TheUNGPsstatethat“theresponsibilitytorespecthumanrightsisaglobalstandardof expected conduct for all business enterprises wherever they operate. It existsindependentlyofStates’abilitiesand/orwillingnesstofulfiltheirownhumanrightsobligations, and does not diminish those obligations”.Bearing inmind the limitedparametersofoursurvey,onecanarguethat there isanemergingawarenessandengagement with human rights issues among the largest business enterprises inLuxembourg.However,thisawarenessandengagementremainslimited.Of the twelve business enterprises that responded to our survey, seven (60%) ofthem confirmed that they have a human rights policy commitment in place. Onecompany stated that it is “in the process” of approving a human rights policycommitment.However,basedontheinformationprovidedbythecompanies,manyofthepolicycommitmentsdonotappeartobeinlinewiththeUNGPs.Forexample,of the sevenhuman rightspolicy commitments,only five “refers to internationallyrecognizedhumanrightsstandards.Thereappearstobeagenerallackofknowledgeandunderstandingofthecorporateresponsibility to respecthumanrightsamongcompanies inLuxembourg.Companyconsultations reveal that businesses in Luxembourg often conflate corporate43Consultations,RepresentativeoftheCMCC.
27
responsibility to respect human rights with traditional notions of CSR. The CSRfocusesoncompanies’voluntarycontributionstocommunitydevelopment,charityand other social and environmental efforts, as traditionally understood. Theexamplesof initiativesofcorporateresponsibilitytorespecthumanrightsgivenbyLuxembourg companies included; “financial contributions and volunteering”,“sponsoring an initiative working towards ending sexual violence in fragileenvironments”, “supporting non-profitable associations active in social area” andsimilarothers.Whilesucheffortsarerelevant,thefundamentaldifferencebetweenthem and the corporate responsibility to respect under the UNGPs is thatimplementationofthelatterisaglobalexpectationofallcompaniesandthathavingCSRpoliciesinplacedoesnotoffsetafailuretorespecthumanrights.
HumanRightsDueDiligence
Human rights due diligence refers to the processes that all business enterprisesshould undertake to identify, prevent,mitigate and account for how they addresspotential and actual impacts on human rights. This impact can be caused by orcontributed to through their own activities, or directly linked to their operations,productsor services by their business relationships. Impact assessment is the firstcomponentofhumanrightsduediligence.
The consultationswith thebusinesses reveal that significant efforts areneeded tomake human rights due diligence a part of standard business practice inLuxembourg.Amongthetwelverespondingcompanies,onlyfiveofthemstatedthattheycarryouthumanrights impactassessments (four routinely,oneoccasionally).TheCompanieswereaskedwhethertheyseekexternalandinternalfeedbackwhentracking their human rights performance.Only threeof them stated that they do.Again,onlythreebusinessesconfirmedthattheypubliclycommunicateonhowtheyaddressadversehumanrightsimpacts.Companies’practiceseemstobeparticularlyweakonseekingindependentverificationandcommunicatingtheresultstobroaderaudiences:Onlytwobusinessesconfirmedthattheyseekindependentverificationoftheirhumanrightsreportingandthesametwobusinessesconfirmedthattheytakesteps toensure theirhumanrightscommunicationsareaccessible to the intendedaudiences.
OursurveyresultsdemonstratethatthenumberofbusinessesthatconducthumanrightsduediligenceislimitedinLuxembourg.Andevenamongthosebusinessesthatconduct human rights due diligence, their practice generally do not meet therequirementssetoutbytheUNGPs.Ingeneral,thereismuchroomforimprovement
28
regardingthehumanrightsduediligenceprocesses.
Remediation
Incomparisontothehumanrightspolicycommitmentandimpactassessment,theresponses that we received for grievancemechanisms revealed surprising results.Ten out of twelve businesses stated that they have established procedures forhearing processing and settling internal and external concerns/complaints. All tenbusinessesstatedthatthisprocedurewasclearandeasilyaccessible.The grievance procedures that are in place generally appear to be in the form of“consultationdesks”and“whistleblowingsystems”.Onecompanystatedthatithasa “consultation desk”which is “not anonymous and is available to all employees,customersand suppliers anda “whistleblowing system”withanexternal supplier”whichisanonymous.Anothercompany,duringafollow-upinterview,statedthatithasaninternalprocedurewhichisclearandeasytounderstandforemployeeswhowanttofileacomplaintinternally.A key part of business’ responsibility is to provide for or cooperate in theremediationofitsimpactsonhumanrightsthroughlegitimateprocesses.ThismayinvolveState-basedjudicialandnon-judicialmechanisms,aswellasnon-State-basedgrievance mechanisms. Only three businesses stated that they provide for orcooperate in remediation in cases of adverse human rights impacts that they arelinked to. Also, only two businesses confirmed that they take measures againstforms of retaliation against individuals and groups raising complaints. Overall, theremedies provided by the companies also appear not to be in line with theinternationalstandards.Businesses are advised to seek guidance and information about the UNGPs, andshould adopt appropriate policies and processes to address human rights issuesthroughouttheiroperations.Businessandemployerassociationsareadvisedtobuildcapacityandofferguidanceand training to their members on responsibility to respect human rights inaccordancewithinternationalstandards.
29
AcknowledgementsThis work could not have been completed without the support of numerousindividuals and organizations. Iwould like to thank them all. First and foremost, IwishtothankeachmemberofourworkinggroupEntreprisesetdroitsdel’HommeandourchairMarcBichlerforputtingtheirtrustandconfidenceinmetocompletethistaskandfortheirsupportthroughout.Ifeelluckytohavesomanycolleaguesatthe University of Luxembourgwho have generously provided their time formanyinsightfuldiscussions.Membersof the Initiativepourundevoirdevigilanceaswellas theCommissionconsultativedesDroitsde l'Hommeprovidedvaluable feedbackfor which I am thankful. Representatives of the Institut national pour ledéveloppement durable and Union des Entreprises Luxembourgeoises wereinstrumental in reaching out to businesses. They constantly encouraged thecompanies to engage with the study and complete the survey questionnaire forwhichIremaindeeplygrateful.Ialsowishtothankallthecompanieswhohavefilledout the survey questionnaire as well as everyone who has been willing to beinterviewed.Iwishtothankthefollowingindividualsinparticular;SarahGentili,ChristianDeprez,AntoniyaArgirova, Jean-ClaudeBerardini,StefanBraum,FatimaChaouche, IsabelleCorbisier,GillesCuniberti,LucDockendorf,JohannesH.Fahner,NormanFisch,JörgGerkrath, Gilles Hauben, Dimitrios Kafteranis, Jan Kayser, Tine Larsen, SéverineMenetrey, Max Mousel, Martine Peters, Luca Ratti, Fabienne Rossler, ChristianSchuller, Anamarija Tunjic, Annelies Vandendriessche, Véronique Wiot and Jean-LouisZeien.
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#7&$--.#%%&)*
#+.&*
/,$'&.+6*)%&&+,5$0)%9
+
CONFIDEN
TIAL
2
RelevantSustainab
leDevelop
men
tGoa
lsand
Targets
• Go
al1:End
povertyinallitsfo
rmse
verywhe
re(T
arget1
.4)
• Go
al2:End
hun
ger,achievefood
securityandim
proved
nutritionandprom
otesustainableagriculture(T
arget2
.3)
• Go
al8:Promotesustaine
d,inclusiveandsustainableecon
omicgrowth,fulland
produ
ctiveem
ploymen
tand
decen
tworkfo
rall
(Target8
.5,Target8
.7,Target8
.8)
• Go
al12:Ensuresustainableconsum
ptionandprod
uctio
npatterns(T
arget1
2.4)
• Go
al10:Red
uceineq
ualitywith
inand
amon
gcoun
tries(Target10.3)
• Go
al17:Stren
gthe
nthemeansofimplem
entatio
nandrevitalizetheGlob
alPartnershipfo
rSustainableDevelop
men
t(Target17.1,
Target17.5,Target1
7.11
)
• Go
al16:Promotepe
acefuland
inclusivesocietiesforsu
stainablede
velopm
ent,provideaccessto
justicefora
llandbu
ildeffe
ctive,
accoun
tableandinclusiveinstitu
tionsata
lllevels(Target1
6.7,16.10
,Target1
6.a,Target1
6.b)
1. Internationa
land
Regiona
lLegaland
SoftLaw
Instrumen
ts
GuidingQue
stions
Statusand
Gap
s1.1.Hasth
estatesig
nedandratifiedrelevant
internationaland
region
alhum
anrightslegal
instrumen
tsand
anycorrespon
dingprotocols?
Status
Alongestablishe
djurisprud
enceofLuxem
bourg'sS
uperiorC
ourtsstatesthat
gene
rallyaccep
tedruleso
finternatio
nallaw
and
internationalcon
ventions,w
hen
theyhavebe
enra
tifiedbyanacta
ndhavecomeintoeffe
ct,shallform
anintegral
partofLuxem
bourg’sd
omesticlawand
shalloverrideanyothe
rcon
traryprovision
of
domesticlaw.2 Internationallaw
hasaclearsu
prem
acyoverdom
esticlawin
Luxembo
urg.Accordingly,the
below
internationaland
region
alhum
anrights
instrumen
tslistth
ehu
manrightsobligationsto
whichth
eGo
vernmen
thas
consen
tedto.
Thefollowingisano
n-exhaustiv
elisto
finterna
tiona
lhum
anrightscon
ventionsth
at
Luxembo
urghassigne
doracced
edto
:•
InternationalCoven
anto
nCiviland
PoliticalRights-ICCP
R(signe
d26
Nov197
4,
CONFIDEN
TIAL
3
ratified18
Aug198
3);
• InternationalCoven
anto
nEcon
omic,Socialand
CulturalRights-ICESCR
(signe
d26
Nov197
4,ra
tified18
Aug198
3);
• Co
nven
tionagainstT
ortureand
OtherCruelInhu
manorD
egradingTreatmen
tor
Punishmen
t-CAT
(signe
d28
Feb
198
5,ra
tified29
Sep
tembe
r198
7);
• OptionalProtocolofthe
Con
ventionagainstT
orture-CA
T-OP(signe
d13
Jan
2005
,ratified
19May201
0);
• Co
nven
tionon
theElim
inationofAllForm
sofD
iscrim
inationagainstW
omen
-CE
DAW(signe
d17
Jul198
0,ra
tified02
Feb
198
9);
• InternationalCon
ventionon
theElim
inationofAllForm
sofR
acialD
iscrim
ination
-ICE
RD(signe
d12
Dec196
7,ra
tified01
May197
8);
• Co
nven
tionon
theRightsofthe
Child-CR
C(signe
d21
Mar199
0,ra
tified07
Mar
1994);
• Con
ventionon
theRightsofP
ersonswith
Disa
bilities-CRP
D(signe
d30
Mar
2007
,ratified
26Sep20
11);
• OptionalProtocoltotheCo
nven
tionon
theRightsofthe
Childonthe
involvem
ento
fchildreninarm
edcon
flict-CR
C-OP-AC
(signe
d08Sep
2000,
ratified04
Aug200
4);
• OptionalProtocoltotheCo
nven
tionon
theRightsofthe
Childonthesaleof
childrenchildprostitu
tionandchildporno
graphy-C
RC-OP-SC(signe
d08
Sep
20
00,ratified
02Au
g20
11);
•
Ofthe
8ILOFun
damen
talCon
ventions,Luxem
bourghasratified
all8ofth
em.
Luxembo
urghasa
lsora
tified91
of1
78ILOTechn
icalCon
ventions.3
Thefollowingisano
n-exhaustiv
elisto
fregiona
lhum
anrightslegalinstrum
entsth
at
Luxembo
urghassigne
d:
CONFIDEN
TIAL
4
• Europe
anCon
ventionforthe
ProtectionofHum
anRightsa
ndFun
damen
tal
Freedo
ms-ECH
R(signe
d4Nov195
0,ra
tified3Sep19
53);
• Europe
anSocialCharter-ESC(signe
d18
Oct196
1,ra
tified10
Oct199
1);
• Co
nven
tionon
ActionagainstT
raffickinginHum
anBeings-CoE
(signe
d16
May
2005
,ratified
09Ap
ril200
9);
• Europe
anCharterfo
rRegionalorM
inority
Languages(signe
d05
Nov199
2,
ratified22
June
200
5);
• Europe
anCon
ventionforthe
PreventionofTortureand
Inhu
manorD
egrading
Treatm
entsorP
unish
men
t(sig
ned26
Nov198
7,ra
tified6Sep19
88);
• Luxembo
urgisalsopartyto
theCh
artero
fFun
damen
talRightso
ftheEurope
anUnion
. Gap
s
Luxembo
urgha
sneithersigned
norra
tifiedthefollo
winginternationa
lorregiona
lhu
man
rightslegalinstrum
ents:4
• InternationalCon
ventionon
theProtectio
nofth
eRightsofA
llMigrantW
orkers
andMem
bersofT
heirFamilies–ICMW;
• To
talnum
bero
f32ILOCon
ventionsorP
rotocols,includ
ingno
tablytheProtocol
of201
4toth
eForced
Labou
rCon
vention(Po2
9).5 TheNAP
2018-19pledgesto
sig
ntheCo
nven
tion;
• Ad
ditio
nalProtocoltotheEurope
anSocialCharterProvidingfo
raSystemof
CollectiveCo
mplaints.6
Luxembo
urgha
ssigne
dbu
tnotra
tifiedthefollo
winginternationa
lorregiona
lhu
man
rightslegalinstrum
ents:
• Co
nven
tionforthe
ProtectionofAllPe
rson
sfromEnforcedDisapp
earance-C
ED
(Signe
d06
Feb
ruary20
07);7
• Fram
eworkCo
nven
tionforthe
ProtectionofNationalM
inorities(signe
d20
July
1995);
CONFIDEN
TIAL
5
• Europe
anCon
ventionon
theAcadem
icRecognitio
nofUniversity
Qualifications
(signe
d14Decem
ber1
959);
• Europe
anCon
ventionon
theLegalStatuso
fMigrantW
orkers(signe
d24
Nov
1977);8
• Ad
ditio
nalProtocoltotheEurope
anSocialCharter(0
5May198
8);
• Protocolamen
dingth
eEurope
anSocialCharter(2
1Octob
er199
1);
• Europe
anCon
ventionon
theExerciseofC
hildren'sR
ights(sig
ned25
Jan19
96);
• Europe
anSocialCharter(revise
d)(signe
d11
Feb
199
8).
Luxembo
urgha
sissue
dreservations,d
eclaratio
nsoru
nderstan
dingstothe
follo
winginternationa
land
region
alhum
anrightslegalinstrum
entswhichlimits
thedo
mesticapp
licab
ilityofcertainprovision
s:9
• ICER
D•
ICCP
R•
ICCP
R-OP1
•
CAT
• CR
C•
OP-CR
C-AC
1.2.Hasth
estategivenaform
alstatem
ento
fsup
port
forthe
UNGP
s?
Hasthe
statedissem
inated
inform
ationabou
tthe
UNGP
sthrou
ghpub
licm
ediaso
urces,internal
guidancedocum
ents,oro
therm
aterials?
Ha
sthe
statepu
tinplacemeasurestocapacitatestate
actorsand
localcitizenswith
kno
wledgeand
inform
ationon
theUNGP
s,fo
rexample,th
rough
Status
Luxembo
urghasm
adeaform
alstatem
ento
fsup
portfo
rthe
UNGP
smostn
otablyin
thefirstversio
nofitsN
APonbu
sinessa
ndhum
anrightsado
pted
onJune
22n
d ,2018.
Througho
utth
eNAP
201
8-19
Luxem
bourgshow
sastrongand
expresscom
mitm
ent
toth
eUNGP
s.The
NAP
und
erscoresth
eUNGP
sas“
theprim
aryvehicletoprevent
negativ
ehu
manrightsim
pactso
fbusinessa
ctivitiesand
,whe
renecessary,to
addressthe
irconseq
uences”.10The
UNGP
sareann
exed
toth
eNAP
201
8-19.
TheNAP
2018-19
con
tains1
3actio
npo
intsalm
osta
llofwhichre
lateto
dissem
inationofinform
ation,awaren
essraisingand
cap
acity
buildingwith
regards
CONFIDEN
TIAL
6
worksho
ps,con
ferences,oro
therevents?
toth
eUNGP
s.The
seare;
• Ac
tionpo
int:Executingamappingexercise
toiden
tifythegapsinth
eim
plem
entatio
nofth
eUNGP
swhichwillbeshared
with
“thebu
sinessa
nd
humanrightsworkinggroup
,Inter-M
inisterialCom
mittee,and
thebroade
rpu
blic,includingth
epress”.11
• Ac
tionpo
int:Organizingastructured
dialoguewith
inth
eInter-ministerial
Committeebetweenallthe
actorsinvolved.Thisd
ialoguecomprise
sregular
multi-stakeh
olde
rmeetin
gsofthe
WorkingGroup
onbu
sinessa
ndhum
anrights
(Group
edeTravailEntreprisesetd
roitsdel'H
omme–WG/
GT)w
here
inform
ationisexchangedam
ongthemem
bersontheim
plem
entatio
nofth
eNAP
(seeSectio
n2.1.fo
rinformationon
theWG/
GT).Themeetin
gsareheldin
regularintervals.The
firsta
nnualrep
orto
fthe
WG/
GTwasapp
rovedbyth
eGo
vernmen
tinJune
201
9.
• Ac
tionpo
int:“Awaren
ess-raising,informationandprom
otionalcam
paignson
theUNGuidingPrin
ciples[inorde
rto]provide
com
panieswith
abetter
unde
rstand
ingofth
escop
eofth
eiro
bligationsand
ofw
hatise
xpectedofth
em,
buta
lsoth
eop
portun
itiesth
atre
spectin
gtheUNGuidingPrin
ciplescanpresent
inte
rmso
frisk
managem
enta
ndcom
petitiven
ess”.12Tothisen
d;
o Thecurren
tNAP
hasbeentransla
tedintoEnglishandpu
blish
edinth
eGo
vernmen
talw
ebsitetogetherwith
theoriginalFrenchversion.
13
o TheNAP
hasbeencommun
icated
toth
eSteerin
gCo
mmitteefo
rHu
manRightso
fthe
Cou
ncilofEurop
e.
o Apresen
tatio
nofth
estud
y“G
oodBu
siness:th
eEcon
omicCasefor
Protectin
gHu
manRights”
14to
okplaceinaW
orkingGroup
meetin
gfollowed
bydiscussio
nsamon
gtheWG/
GTm
embe
rs.
o TheMinistryofForeignand
Europ
eanAffairs,w
hichisoverseeingthe
implem
entatio
nofth
eNAP
,co-organizedaconferen
cewith
the
University
ofLuxem
bourg,entitled
Businessa
ndHum
anRightsto
CONFIDEN
TIAL
7
facilitatetheknow
ledgeexchangeamon
ginternationalexpertsand
localstakeho
lders.
o TheMinistrie
sofForeignand
Europ
eanAffairsand
Econo
my,
togetherwith
theUELand
INDR
areplann
ingtoorganize
a
conferen
ceonbu
sinessa
ndhum
anrightsinOctob
er201
9.15The
conferen
ceweb
sitehasa
linkto
theNAP
201
8-19.
Otherstakeh
olde
rshavealsoinitiated
activitiesto
promotetheUNGPsand
business
andhu
manrightsm
orebroadly.Notably;
o
Luxembo
urgBa
rAssociatio
n,whichishostin
gtheInternational
AssociationofLaw
yers’ann
ualcon
gressin20
19,hasinclud
ed
busin
essa
ndhum
anrightsaso
neofthe
twoprincipalthe
mesinth
eir
annu
alprogram
me.
16
o AB
BLhasexten
dedinform
ationon
businessa
ndhum
anrightsto
all
itsm
embe
rsviaemail,inparticularatthe
levelofSocialCom
mission,
theCE
Osa
ndth
edirectorofh
umanre
sources.17
o UELand
INDR
haveen
gagedinpromotionandaw
aren
essraisin
gthroughtheirE
xecutiv
eCo
mmittee.The
issuehasb
eeninth
eagen
da
ofth
ebo
ardofdire
ctors’m
eetin
gs.B
usinessa
ndhum
anrightsto
pic
hasb
eeninclud
edinth
eINDR
’snew
slettersreachingou
ttotw
othou
sand
con
tacts.The
UELhasdissem
inated
inform
ationon
bu
sinessa
ndhum
anrightsto
itsinternalcom
mun
icationne
twork,
whichwassu
bseq
uentlysh
ared
with
allthemem
bers.18
o Fina
ncean
dHu
man
Rights,anon
-profitorganiza
tion,hasbeen
laun
ched
byprivatestakeh
olde
rswhichre
ceived
awidecoveragein
localpress.The
Organiza
tionhasd
issem
inated
inform
ationam
ong
thepu
blicth
roughvario
usinform
ationsessionsand
pub
lications.19
CONFIDEN
TIAL
8
o LocalCSO
shaveorganizedvario
usactivitiesinorderto
raise
aw
aren
ess,one
ofw
hichisaworksho
ptitled“Tow
ardsm
andatory
humanrightsdue
diligencelegisla
tioninEurop
e”(tobe
heldon
24
Octob
er201
9).
o TheCC
DHheldapressreleaseonOctob
er3,201
9de
tailingits
positionconcerningth
ecurren
tNAP
and
providingre
commen
datio
ns
toth
eGo
vernmen
tforfu
tureaction.
•
Actio
nPo
int:Ad
optin
gandim
plem
entin
gaNationa
lPacto
ntheRe
spectfor
Human
RightsintheAc
tivitiesofB
usinessE
nterprisesinorderto
“[fo
rmalize
]thepa
rtnershipan
dthejointcom
mitm
entb
etweentheStatean
dthe
busin
essesinordertoho
nourth
eirrespectiveob
ligationsund
erth
eUNGuiding
Principles”.
20The
Pactw
illinvolveanu
mbe
rofcon
creteun
dertakingsby
busin
esse
nterprise
s,particularlyinte
rmso
ftrainingactiv
ities.The
Pacth
as
been
drafted
byasub-grou
pwith
inth
eWG/
GTcon
sistin
gofth
erepresen
tativ
esofthe
Governm
ent,bu
siness,CSO
sand
theacadem
ia.Atth
etim
eofth
ewriting,th
efin
aldraftisbeingcirculated
amon
gtheWG/
GT
mem
bersto
gen
eratecommen
ts.The
intentionistofo
rmallylaun
chth
ePact
beforeth
een
dofth
eyear.
• Ac
tionpo
int:Prop
osingtrainingse
ssionsbased
ontheUNGP
sforth
esubscribingcompaniesasa
wayto
ensureaconcretefo
llow-upandto
measureth
ecommitm
entm
adebyth
eparties.21
o IM
S(togethe
rwith
ASTMand
Fairtrade
Lëtzebu
erg)hasoffe
redatw
odaytrainingon“H
umanRights:FromRisk
toOpp
ortunity”.Fou
rteen
companiesparticipated
inth
efirstse
ssionofth
etraining(secon
dsessionhasn
otyetta
kenplaceasofw
ritingofth
isrepo
rt).
o Theno
n-profitFinanceandHu
manRights,incollabo
ratio
nwith
HoT
,haso
fferedatrainingm
odule(on06
June
201
9)th
athasbeen
CONFIDEN
TIAL
9
attend
edby6companies.
o Tw
otrainingm
odulespropo
sedbyIN
DRto
getherwith
anexpe
rtfrom
theUniversity
ofLuxem
bourgwerepo
stpo
neddu
etoinsufficien
tnu
mbe
rofregistratio
ns.
• Ac
tionpo
int:Prop
osingtoupd
atetheCSRlabe
lingprocesso
fINDR
with
a
mod
uleon
therespecto
fhum
anrightsinorderto
givevisib
ilityto
those
enterprisesth
atliveuptoth
eirh
umanrightsobligations.O
ngoingcon
tacts
with
theINDR
asw
ellasthe
LuxFLAG
(regardingth
ehu
manrightslabe
lingof
investmen
tfun
ds)h
avetakenplace.
• Ac
tionPo
int:Prom
otingtheUNGP
sininternationalforaandinternational
relatio
ns,includingininternationalecono
micre
latio
nsand
relatio
nswith
the
Luxembo
urgDe
velopm
entC
oope
ratio
npartne
rcou
ntrie
s:
o Ade
legatio
nofth
eWG/
GTatten
dedtheUNForum
onBu
sinessa
nd
HumanRightsin20
18.A
notherdelegationisexpe
cted
toatten
dto
theForumin201
9.
o Co
ntactsweremadewith
theDe
partmen
tofD
evelop
men
tCo
operationofth
eMAE
E,particularlyinre
latio
ntoth
ecoop
eration
programofthe
BusinessP
artnershipFacility.
o Mem
bersofthe
Develop
men
tCoo
peratio
nDe
partmen
thavebe
en
attend
ingtheWG/
GTm
eetin
gsand
makingpresen
tatio
nsre
garding
theirw
ork.
o Ameetin
gwasheldwith
theMinisterofD
evelop
men
tCoo
peratio
non
4M
arch201
9who
hasexpressed
interestindevelop
ingaBu
siness
andHu
manRightsP
actforcom
paniesfrom
partnercou
ntrie
sinvolved
inLuxem
bourgCo
operationprojects.
• Ac
tionpo
int:Pu
ttinginplacepilotp
rojectso
ndu
ediligen
ceinenterprise
sin
whichth
eStateisthemainshareh
olde
r.To
thisen
d,letterssigne
dbyth
eMinisterofthe
MAE
Eweresentto
thedirectorso
fthe
Stateowne
dcompanies
CONFIDEN
TIAL
10
inAugust2
8,201
9.The
letterprovide
dbackgrou
ndinform
ationon
theUNGP
sandtheNAP
.Itd
rewatten
tiontoth
efactth
at“theStatehastoleadby
exam
ple”inim
plem
entin
gtheprinciplesexpressed
therein.Itinform
edth
ecompaniesth
atth
eywillbecontactedfurthe
rtodiscussthe
follow-upofth
eUNGP
s’im
plem
entatio
nwith
inth
eircom
panies,and
encou
ragedthem
to
engagecon
structivelywith
theUNGP
s.22
• Ac
tionpo
int:Ra
isinghum
anrightsawaren
esso
fcon
tractin
gauthoritiesasa
partofthe
irpu
blicprocuremen
tprocedu
res.
• Ac
tionpo
int:Insertinglanguageth
atwillra
isehum
anrightsand
CSR
awaren
essintothefilesofe
cono
micm
issions;
Gap
s
Bothth
eGo
vernmen
tand
therelevantstakeh
olde
rshavetakenstep
stoim
plem
ent
theUNGP
sinLuxembo
urg,notablyth
roughtheNAP
201
8-29
.The
ireffortsa
re
grow
ingwith
theup
comingrevisio
nandup
dateofthe
NAP
201
8-19
.Despiteth
eincreasedattention,how
ever,certaingapsrem
ainregardingthedissem
inationof
inform
ationandcapacity-buildingefforts:
• Re
gardingtheactio
npo
into
naw
aren
essraisin
g,inform
ationand
prom
otionalcam
paignsontheUNGP
s,th
eNAP
statesth
ata“special
emph
asiswillbeplaced
,interalia,onhu
man
trafficking
forforcedlabo
ur”.
Noconcreteactioninth
isregardhasbeentakenyet.
• Thesameactio
npo
intstatesthat“ageneralcom
mun
ication,includ
ing
throug
hthemedia,sho
uldhelpto
raise
pub
licawarenesso
nthepo
sitiverole
thatbusinessesc
anplayinre
gardstohu
man
righ
tsinth
eiro
wnactivities,
andtheirrelationshipswith
theirsup
pliersand
customers”.Nosystem
atic
commun
icationcampaignhasb
eencond
uctedyet.Somemem
bersofthe
WG/
GThaveraise
dthepo
intthatthe
med
iawasnotsu
fficien
tlyinform
ed
abou
tthe
con
ferencehe
ldbytheMAE
EandUniversity
ofLuxem
bourgin
June
2019.
CONFIDEN
TIAL
11
• Thetrainingse
ssionswereno
tpromoted
sufficien
tlyeno
ughasevide
nced
by
thelownum
bero
fturnou
tinthetrainingse
ssions–andthefactth
atso
meof
thesessionswerecancelleddu
etoinsufficien
tnum
bero
fregistratio
ns.
• Prop
osition
tocon
siderdevelop
men
tofspe
cifictrainingm
odules,w
ithth
eparticipationofNGO
shasnotbeenrealize
dyet.
• Whilese
veralcon
tacts(bo
thinternationaland
dom
estic)h
avebe
en
establish
edre
gardingtheprom
otionofth
eUNGP
sthatrelatetoth
eseveral
ofth
eactio
npo
intsinth
eNAP
,moreconcreteactionisne
eded
inorderto
arguethatth
eseactio
npo
intsarefu
lfilled.
• Attemptstoraise
awaren
essm
ightinclud
e,butisnotlimite
dto,
incorporatingtheUNGP
sintotheworkofdifferen
tagenciesa
crossthe
Go
vernmen
t.Agood
examplethatalre
adyexistsisthe
web
-linkto
theSD
Gs
atth
emainpageofthe
Dire
ctorateforD
evelop
men
tCoo
peratio
nand
Humanita
rianAffairs.23The
Governm
entisa
dvise
dtoinsertsimilar
referencesto
theUNGP
sacrossa
llrelevantGovernm
entw
ebsites.
• TheGo
vernmen
thasacom
preh
ensiv
eweb
portal,Gu
ichet.luaddressedto
bothpub
licand
priv
ateen
tities.Itisre
commen
dedthatre
ferencesto
the
UNGP
sand
/orthe
NAP
tobeinclud
edinth
isweb
sitetore
achbroadpu
blic.
• TheGo
vernmen
tisa
dvise
dtoinsertre
ferencesto
theUNGP
sinits
publications,forexample,th
eon
esth
atcon
cerninvestmen
topp
ortunitie
sin
Luxembo
urg.
• TheGo
vernmen
tsho
uldincreaseth
ecapacityofLuxem
bourgem
bassiesw
ith
regardstobu
sinessa
ndhum
anrightsbyinform
ingthem
abo
utth
eUNGP
s.
Theem
bassiessho
uldbe
encou
ragedtouseth
eUNGP
fram
eworkwhe
nthey
workwith
localgovernm
ento
fficialsa
ndwith
theLuxembo
urgishcom
panies
thatdobu
sinesso
rwish
todobu
sinessinagivencoun
try.
1.3.Hasth
estateparticipated
ininternationaleffo
rts
Luxembo
urghasb
eenfollowingtheactiv
itiesofthe
OEIGW
Gon
bindinginstrumen
t
CONFIDEN
TIAL
12
todevelop
abindinginstrumen
tonhu
manrightsand
bu
siness?
asaEUm
embe
rstate.24
Notethatth
eRe
visedDrafto
fthe
bindingtreaty,releasedin16July201
9,hasta
ken
intoaccou
ntEU’sprim
arycriticism
and
haswiden
thescop
eofth
einstrumen
tto
includ
e“allbu
sinessa
ctivities”(Art.3.1)and
notonlytransnationalenterprise
s’.25
Thene
gotia
tionsofthe
instrumen
tarestillongoing.
Authoritiescon
sulte
datth
eMAE
Ehavestated
that“with
theform
ationofth
egovernmen
tthatresultedfrom
theOctob
er201
8legisla
tiveelectio
ns,the
MAE
Eparticipated
moreactiv
elyinth
einternalEUcon
sulta
tionsahe
adofthe
OEIWG
negotia
tionsand
willengageconstructiv
elydu
ringthefifthse
ssionofth
eOEIGW
Gin
Octob
er201
9”.26
1.4.W
hichotherre
levantinstrumen
tshasth
estate
signe
dorm
adeaform
alstatem
ento
fsup
port?For
exam
ple:
• TheSustainableDe
velopm
entG
oals;
• TheOEC
DGu
idelinesfo
rMultin
ational
Enterprises;
• TheOEC
DAn
ti-BriberyCo
nven
tion;
• TheUNCon
ventionagainstC
orruption;or
• Ope
nGo
vernmen
tPartnership.
Thefollowingisano
n-exhaustiv
elisto
finstrum
entsth
atth
eGo
vernmen
thassigned
and/orissued
afo
rmalstatem
ento
fsup
port:
Sustaina
bleDe
velopm
entG
oals
TheGo
vernmen
thasbeenasteadysu
pportero
fthe
203
0Ag
endafo
rSustainable
Developm
enta
ndth
eSD
Gs.Luxem
bourgpu
blish
editsfirstN
ationa
lPlanfor
Sustaina
bleDe
velopm
ent(NPSD)in199
9.On25
June
200
4,th
eGo
vernmen
tadop
tedtheLawontheCo
ordinatio
nofNationalPoliciesforSustainable
Developm
entthatformsthe
basisofGovernm
ent’sinstitu
tionalstructureon
SustainableDe
velopm
ent.2
7 Secon
dNPSDwaspub
lishe
din201
0.The
draftofthe
third
NPSDwaspresented
inJu
ly201
8andiscurren
tlyund
erre
view
.Luxem
bourg
wasalso
aparto
fthe
201
7Vo
luntaryNationalReviewofthe
High-LevelPolitical
ForumonSustainableDe
velopm
ent.
TheNAP
2018-19
reite
ratesthe
impo
rtantrolethatth
ebu
sinessesa
reexpectedto
playinth
eim
plem
entatio
nofth
eSD
Gs,and
statesth
atth
eNAP
“isdesig
nedto
complem
enttheeffo
rtso
ftheLuxem
bourgGo
vernmenttoachievetheSD
Gsby
CONFIDEN
TIAL
13
providingbu
sinessesw
ithth
einform
ationan
dmeansto
ena
blethem
tore
spect
human
righ
tsinternallyand
throug
houtth
eire
cono
micvaluecha
ins”.28
OEC
DGuide
linesfo
rMultin
ationa
lEnterprises
TheGo
vernmen
tadh
eresto
theOECDGu
idelinesfo
rMNEsand
hasestablishe
da
NationalCon
tactPoint(N
CP).TheNCP
isoverseeingtheprom
otionand
implem
entatio
nofth
eGu
idelines.29The
activitiesofthe
NCP
arecoo
rdinated
bythe
secretariato
fthe
Com
itédeconjun
ctureun
derthe
supe
rvision
ofthe
Ministryof
Econ
omy(seeSectio
n27
.1.forfu
rthe
rinformationon
theNCP
). OEC
DAn
ti-BriberyCo
nven
tion
Luxembo
urgsig
nedtheOECDAn
ti-BriberyCo
nventio
non
17De
cembe
r1997(see
below,Sectio
n11
.).30
UNCon
ventionagainstC
orruption
Luxembo
urgsig
nedtheUnitedNationsCon
ventionag
ainstC
orruption(UNCA
C)on
10Decem
ber2
003.
Luxembo
urgisamem
bero
fthe
Cou
ncilofEurop
e’sG
roup
ofS
tatesa
gainst
Corrup
tion(GRE
CO),theCo
mmitteeofE
xpertsontheEvalua
tionofAnti-M
oney
Laun
derin
gMeasuresa
ndth
eFina
ncingofTerrorism(M
ONEYVA
L)and
the
Fina
ncialA
ctionTaskForce(FAT
F),anintergovernm
entalorganiza
tionmandatedto
combatm
oneylaun
derin
gandterrorism
financing.
Ope
nGovernm
entP
artnership(O
GP)
Luxembo
urgisamem
bero
fthe
OGP
since20
16.The
Governm
enth
asapp
rovedthe
firstOGP
NAP
on26
July201
9.
CONFIDEN
TIAL
14
Notably,also
,Luxem
bourghasind
icated
itssup
portfo
rthe
followinglegallynon
-bind
inginstrumen
ts:U
NDeclaratio
non
theRightsofInd
igen
ousP
eoples(U
NDR
IP)
(200
7);U
NBasicprin
ciplesand
Guide
linesontherig
htto
aRem
edyan
dRe
paratio
nforV
ictim
sofG
rossViolatio
nsofInterna
tiona
lHum
anRightsL
awand
Serious
ViolationsofInterna
tiona
lHum
anita
rianLaw(2
005)
Gap
s
ArecentOEC
Dstud
yhasn
oted
thatLuxem
bourg’se
nforcemen
tofthe
OEC
DAn
ti-briberyCo
nven
tionremainsverymod
est,with
onlyon
ecrim
inalcaseconclude
dover
1999-201
7,and
onlyon
eindividu
alsa
nctio
ned(seeSectio
n11
.1.).
31
1.5.Doe
sthe
statesupp
orta
ndparticipateinother
relevantinitiativesonbu
sinessa
ndhum
anrights?For
exam
ple:
• TheExtractiv
eIndu
strie
sTransparency
Initiative(EITI);
• TheInternationalCod
eofCon
ductfo
rPrivateSecurityServiceProviders
Association(IC
oCA);and
•
TheVo
luntaryPrinciplesonSecurityand
HumanRights(VP
s)
UNGloba
lCom
pact,ISO
260
00,Interna
tiona
lFinan
cialCorpo
ratio
nPerforman
ce
Stan
dard,Equ
atorPrin
ciples,and
Globa
lReportin
gInitiativearemen
tione
dasbest
practicesinth
eNAP
2018-19.
UNGloba
lCom
pact(U
NGC
)isa
non
-bindingUnitedNationspacttoen
courage
busin
essesw
orldwidetoaligntheirstrategiesa
ndope
ratio
nswith
tenprincipleson
humanrights,labou
r,en
vironm
enta
ndanti-corruption.
.32 T
hereare12thou
sand
splusparticipantsinover1
60cou
ntrie
s.Inadd
ition
tobusinesses,th
eUNGC
en
couragesapp
licationsfrom
non
-businesses,includ
ingacadem
icinstitu
tions,
busin
essa
ssociatio
ns,citiesand
mun
icipalities,civilsocietyorganizatio
ns,
foun
datio
ns,labou
rorganiza
tions,pub
licse
ctororganiza
tionsand
CSRorganiza
tions.
ISO26000isanInternationalStand
ardofferin
gvoluntaryguidanceto
any
organizatio
nregardlessoftype,sizeorlocation,ontheissue
sofsocial
respon
sibility.3380ou
tofm
orethan160
ISOm
embe
rcou
ntrie
shaveadop
tedISO
2600
0and21
areinth
eprocesso
fado
ption.Nationalado
ptionofanISOstandard
meansth
at“stakeh
olde
rsinth
atcou
ntryhavede
cide
d,th
roughtheNational
StandardsB
ody,th
atastandardisre
levantto
theirm
arket/societyandne
edstobe
CONFIDEN
TIAL
15
transla
tedandmadeavailable”.34
Internationa
lFinan
cialCorpo
ratio
n(IF
C),am
embe
rofthe
WorldBankGrou
p,isth
elargestg
lobaldevelop
men
tinstitutionfocusedon
theprivatesectorinemerging
markets.35IFCPe
rforman
ceStand
ards(IFC-PS)defineIFCclients’re
spon
sibilitie
sfor
managingtheire
nviro
nmen
taland
socialrisks.The
Governm
enth
asastrategic
partne
rshipwith
theIFCthatcoversb
usinessd
evelop
men
tand
don
orfu
nded
initiatives.36
Equa
torP
rinciples(E
Ps)“isariskmanagem
entframew
ork,ado
pted
byfin
ancial
institu
tions,fordetermining,assessin
gandmanagingen
vironm
entaland
socialrisk
inprojectsa
ndisprim
arilyintend
edto
provide
am
inim
umstandardfo
rdue
diligen
ceand
mon
itorin
gtosu
pportrespo
nsibleriskdecision
-making”.37
Globa
lRep
ortin
gInitiative(GRI)isa
ninde
pend
entinternatio
nalorganiza
tionthat
specializesinsu
stainabilityrepo
rtingon
issuessu
chasc
limatechange,hum
anrights,
governanceand
socialwell-b
eing.38Certaincom
paniesinLuxem
bourgusetheGR
IRe
portingfram
eworktodisc
loseth
eirn
on-financialand
diversityinform
ationin
accordancewith
theLawof2
3July201
6on
disc
losureofn
on-financialand
diversity
inform
ationim
plem
entin
gtheEU
Dire
ctive20
14/95.
Inadd
ition
;Luxembo
urgparticipatesinth
eKimbe
rleyprocess(KP
)asa
EUm
embe
rstate.The
KP
isam
ultilateraltraderegimeestablish
edin200
3with
thegoalofp
reventingthe
flowofcon
flictdiamon
ds.39In200
2,th
eEU
ado
pted
Regulation(EC)No23
68/200
2,
implem
entin
gtheKimbe
rleyProcessC
ertificationSche
meforthe
internationaltrade
inro
ughdiam
onds.
CONFIDEN
TIAL
16
Guichet.Luhasa
ded
icated
CSRpageinitsb
usinessp
ortalthatreferstoseverallocal
initiatives,includinglabe
lsandCh
arters.The
seinclud
e:th
eESRqu
ality
labe
lofINDR
;theEcoLabelfo
rtou
riste
stablishm
entsofthe
Gen
eralDire
ctorateforT
ourism;the
qu
ality
labe
lSup
erDrecksKë
schtfirB
etrib
er;the
eco-la
belofthe
Europ
eanUnion
;theDiversity
CharterLëtzebu
erg.
40
Gap
s
Thereisno
evide
ncethatth
eGo
vernmen
tparticipatesorimplem
entsth
efollowing
initiativeswhicharere
levantcon
sideringthatth
eNAP
201
8-19
iden
tifiedextractive
indu
stryaso
neofthe
sectorsw
ithpoten
tialadversehum
anrightsrisks:Extractive
Indu
strie
sTranspa
rencyInitiative(EITI)4
1 and
Volun
taryPrin
ciplesonSecurityan
dHu
man
Rights(VP
s).42
Re
gardingtheUNGC
;the
reare32activ
eparticipantsfrom
Luxem
bourgallofw
hich
arebu
sinesse
nterprise
s(3pu
bliclylisted
and
theremainingpriv
atelyow
ned
companies).One
state-ow
nedcompany,P&TLuxembo
urg,hasm
adeacommitm
ent
toparticipateinth
eUNGC
inAugust2
009.How
everth
ecompanysu
bseq
uently
madearequ
estforwith
draw
aland
wasdelisted
inAugust2
013.
43
Noeviden
cecou
ldbefoun
dthatanypub
licse
ctorinstitu
tionorm
unicipality
participatesinth
eUNGC
.Noreferencetoth
eUNGC
cou
ldbefoun
don
the
Governmen
t’sweb
site.
AccordingtoIS026
000web
site,Luxem
bourghasn
otado
pted
ISO260
00asa
natio
nalstand
ard.
44
RegardingtheEquatorP
rinciples;97fin
ancialinstitu
tionsin37coun
triesh
ave
adop
tedtheEPs.W
hileso
meofth
eseinstitu
tionshavetheiro
peratio
nsin
CONFIDEN
TIAL
17
Luxembo
urg,non
eofth
efin
ancialinstitu
tionsheadq
uartered
inLuxem
bourgare
mem
bersto
theinitiativeasofJuly20
19.45
Noeviden
cecou
ldbefoun
dthatth
eGo
vernmen
tencou
ragesICT
com
paniesto
im
plem
entthe
Prin
ciplesonFreedo
mofE
xpressionan
dPrivacy(the
GNIPrin
ciples)
despite
thecurren
tNAP
iden
tifiesICT
aso
neofthe
“risksectors”(seeSectio
n13
.).
TheGN
IPrin
ciplesprovide
dire
ctionandguidanceto
theICTindu
stryand
its
stakeh
olde
rsinprotectingandadvancingtheen
joym
ento
frightstofreedo
mof
expressio
nandprivacyglob
ally.46
Itisadvisedthatth
egovernmen
tsup
portsthe
abo
vem
entio
nedfram
eworksand
initiativesand
encou
ragesb
usinessestoadop
tand
implem
entthe
m.
1.6.Hasth
estateno
tedandaccepted
recommen
datio
nsfrom
theUNHum
anRightsC
ouncil,
suchasthrou
ghth
eUniversalPeriodicRe
view
(UPR
)process,orfromotherUNtreatybod
iesthata
re
relevantto
preventingadversehu
manrightsim
pacts
bybusinessesd
omiciledwith
inth
estate’sterritoryor
jurisdiction,ope
ratin
gathom
eorabroad?How
hasth
estatefollowed
upon
theserecommen
datio
nsand
has
thestatemon
itoreditsim
plem
entatio
nofth
erecommen
datio
ns?
TheUPR
isare
view
ofthe
hum
anrightsre
cordso
fall19
3UNM
embe
rStateso
nce
everyfourand
ahalfyearsbytheUNHum
anRightsC
ouncil.Luxem
bourghad
unde
rgon
eallthreere
view
cycleso
fthe
UPR
.The
third
UPR
ofLuxem
bourgwas
cond
uctedon
Janu
ary18
,201
8.The
twopreviousre
view
swerecond
uctedin
Janu
ary24
,201
3andDe
cembe
r2,200
8respectiv
ely.Inth
elatestre
view
,Luxembo
urgreceived
totalnum
bero
f149
recommen
datio
nsth
reeofwhich
concerne
dde
velopm
ento
fanationalactionplanonbu
sinessa
ndhum
anrights.
Luxembo
urgaccepted
thesethreerecommen
datio
nsand
respon
dedthatit“is
planningto
ado
ptth
efirstactionplanfo
rthe
implem
entatio
nofth
eUnitedNations
GuidingPrinciplesonBu
sinessa
ndHum
anRightsinthecomingweeks”.
47The
NAP
wasado
pted
onJune
22,201
8.
Gap
s
Therecommen
datio
nreceived
from
theStateofPalestin
edu
ringthethird
review
cyclereads:
“Takethene
cessarystep
stoen
sureth
atitsn
ationalactionplanto
im
plem
entthe
GuidingPrin
ciplesonBu
sinessa
ndHum
anRightsinclude
s
CONFIDEN
TIAL
18
provision
sthatw
ouldensurethatLuxem
bourg’sc
ompaniesarenotinvolved
inanyactivity
thathasanegativeim
pactontheen
joym
ento
fhum
anrights,
particularlyincon
flictareas;thisincludessitu
ationsofforeign
occup
ation,in
whichth
ereareheightenedriskso
fhum
anrigh
tsabu
ses”.48
Thisrecommen
datio
nmirrorsthe
UNGP
7whichcon
cernsthe
statedu
tyto
protect
incon
flict-affe
cted
areaswhe
reth
ereisahe
ighten
edriskofgrosshum
anrights
abuse.
Thereisno
specificreferenceinth
eNAP
201
8-19
tostate’sd
utytoprotectfo
rm
busin
essrelated
hum
anrightsabu
sesinconflict-affectedareas(seeSectio
n20
).1.7.Hasth
estateno
tedandfollowed
upon
recommen
datio
nsbyanyothe
rinternatio
nalor
region
albod
iesregardingstep
stopreven
tbusiness-
relatedadversehu
manrightsim
pacts?
Luxembo
urgison
eofth
efoun
dingm
embe
rsofb
oththeCo
uncilofE
urop
eandthe
Europe
anUnion
.Bothorganizatio
nshaveissue
drecommen
datio
nsto
theirm
embe
rstatesto
develop
NAP
forthe
implem
entatio
nofth
eUNGP
s.InitsN
AP2018-19,
Luxembo
urgrefersto
theserecommen
datio
nsasa
parto
fthe
internationalrational
fram
eworkpavingwayto
theadop
tionofth
eNAP
.
2. Nationa
lLaw
s,Policies,and
Regulations
GuidingQue
stions
Statusand
Gap
s2.1.Hasth
estatepu
tinplacerelevantstructuresto
en
sureim
plem
entatio
nofth
eUNGP
s,fo
rexample,
throughtheestablish
men
tord
esignatio
nofabod
ytasked
with
implem
entatio
nmeasureso
rthrou
ghth
eallocatio
nofinternalre
sources?
InLuxem
bourg,th
eInter-Ministeria
lHum
anRightsC
ommitteeisinchargeof
fosteringinter-agen
cycoo
peratio
nandcoordinatio
ninth
efie
ldofh
umanrights.The
Co
mmitteewasestablishe
dinM
ay201
5.In2017,W
orking
Group
onBu
sine
ssand
Hu
man
Rights(WG/
GT)w
ascreated
with
inth
eInter-MinisterialH
umanRights
Committee.The
mandateofthe
WG/
GTinclud
edelabo
ratin
fthe
NAP
onbu
siness
andhu
manrights.Followingtheadop
tionofth
eNAP
201
8-19
,the
WG/
GTcon
tinue
dtooverseeth
eim
plem
entatio
nofth
eNAP
and
subm
itted
itsfirsta
nnualrep
ortto
theGo
vernmen
tCou
ncilon
26July201
9.The
Governm
entC
ouncilextend
edth
emandateofthe
WG/
GT.
Bothth
eInter-MinisterialH
umanRightsC
ommitteeand
theWG/
GTiscon
vene
dand
coordinatedbyth
eMinistryofForeignand
Europ
eanAffairs.The
mem
bersofthe
CONFIDEN
TIAL
19
workinggroup
includ
erepresen
tativ
esofthe
pub
licand
priv
atesector,national
humanrightsinstitu
tions,civilsocietyorganizatio
nsand
theacadem
ia.The
working
grou
pmeetsevery6weeksand
themeetin
gsarepresid
edbytheAm
bassador-at-
LargeforH
umanRights.
Gap
s
Thereisno
web
sitede
dicatedtoth
eworkofth
eWG/
GT.The
Governm
entisa
dvise
dtocreateade
dicatedweb
siteandup
dateitre
gularly
. TheWG/
GTdoe
snothaveitsownbu
dget.H
owever,itw
ascon
firmed
thatitcan
resortto
thegene
ralhum
anrightsbud
geto
fthe
Governm
entw
henne
eded
.49
Non
ethe
less,the
Governm
entsho
uldconsiderallocatin
gaspecificbu
dgetfo
rthe
activ
itiesofthe
WG/
GTto
ensuretocon
tinuityofthe
workofth
eGrou
p,including
vario
uspromotionalactivitiesofthe
NAP
.
2.2.Hasth
estateintrod
uced
and
/orimplem
ented
policiestohe
lpfacilitatebu
sinessrespe
ctfo
rhum
an
rightsthrou
ghth
eadop
tionofNationalA
ctionPlans
(NAP
s)onbu
sinessa
ndhum
anrights,corpo
rateso
cial
respon
sibility,develop
men
t,anti-discrim
ination,
governmen
ttransparency,wom
en’srights,orh
uman
rightsingene
ral?
Luxembo
urghasa
dopted
firstversio
nofitsN
APonbu
sinessa
ndhum
anrightson
June
22n
d ,20
18.The
NAP
isentitled
:“Plan
d’actionna
tiona
lduLuxembo
urgpo
urla
miseen
oeu
vrede
sPrin
cipe
sdire
cteu
rsdesNationsUniesre
latifsa
uxentrepriseset
auxdroitsdel’h
omme20
18-2019”.
Thefollowingisano
n-exhaustiv
elisto
fotherre
levantnationalactionplansthat
Luxembo
urghasissue
d:
• Nationa
lPlanforS
ustainab
leDevelop
men
t50
• Nationa
lActionPlan
onWom
enand
Peaceand
Security
201
8-2023
51
• Nationa
lActionPlan
onEq
ualitybe
tweenWom
enand
Men
52
• Nationa
lActionPlan
onHu
man
Trafficking5
3 •
Nationa
lActionPlan
onIntegration5
4 •
Nationa
lActionPlan
onProstitution5
5
CONFIDEN
TIAL
20
• Nationa
lActionPlan
onProm
otionofLGBT
Rights5
6 •
Nationa
lActionPlan
forthe
Implem
entatio
nofth
eUnitedNationsCon
vention
onth
eRightsofP
ersonswith
Disab
ilitie
s57
• Nationa
lActionPlan
onHIV5
8 •
Nationa
lActionPlan
forthe
Ope
nGovernm
entP
artnership
59
Gap
sNAP
2018-19
notesth
ataNAP
onCSRisbe
ingde
velope
dun
derthe
auspiceso
fthe
MinistryofE
cono
mythatiden
tifiesh
umanrightsexplicitlyasanationalissue
for
busin
esses.60Nofollow-upon
theNAP
onCSRcouldbe
foun
d.
CSRcanbe
veryvaluableinadvancingbusinessa
ndhum
anrights,includingth
eUNGP
s.The
refore,the
Governm
entisa
dvise
dtofo
llow-uptheworkthathasalre
ady
startedon
theNAP
onCSR,ensuringthatth
econten
tofthe
NAP
iscoh
eren
twith
the
NAP
onbu
sinessa
ndhum
anrights.
Ingen
eral,the
Governm
entisa
dvise
dtoensureapo
licycohe
rencethatbuildso
ncommon
and
con
sistentapp
roacham
ongallofthe
NAP
s.
2.3.Hasth
estateseto
utand
fullydissem
inated
to
relevantgovernm
enta
gencies(includ
ingforeign
embassiesa
ndcon
sulates)clearpolicystatem
entson
theexpe
ctationthatallbu
sinessesd
omiciledinits
territo
ryand
/orjurisd
ictio
nrespecth
umanrights?
Thepu
blicofficialsc
onsulte
dforthisstudyhavestated
that:“Alldiplomaticm
issions
arebriefedon
are
gularb
asisab
outLuxem
bourg’sc
ommitm
entsto
theprotectio
nan
dprom
otionofhum
anrigh
ts,boththroug
hofficialpolicystatem
ents,likethe
MinisterofForeign
and
Europ
eanAffairs’ann
ualstatemento
nforeignpo
licyto
Parliam
ent(B&
HRsh
asbeenatopicinre
centyears),aswellasthrou
ghth
eDirectorateofPoliticalA
ffairs”.
61
Gap
s
Thereisaclearforim
provem
entinrelatio
ntoincreasin
gthecapacityofforeign
embassiesa
ndcon
sulatesinregardstotheUNGP
s.Embassiessho
uldbe
inform
ed
CONFIDEN
TIAL
21
abou
tthe
UNGP
sand
shou
ldbeen
couraged
touseth
eUNGP
fram
eworkwhe
nthey
workwith
localgovernm
ento
fficialsa
ndwith
theLuxembo
urgishcom
paniesth
atdo
busin
esso
rwish
todobu
sinessinagivencoun
try.
2.4.Isth
estateun
dertakingorsu
pportin
gactiv
itiesto
iden
tifyspecificbu
sinesssectorsora
ctivitiesth
atm
ay
haveparticularlynegativeim
pactso
nhu
manrights,
suchasthe
extractive,app
arel,and
otherse
ctors?
Notethat,initsNAP
Guidance,th
eUNW
orkingGroup
hasund
erlined
thatth
emappingofrisk
sectorssho
uldinclud
eadversebu
siness-relatedhu
manrights
impactso
ccurrin
gon
theState’sterritoryaswellasa
broa
dwith
theinvolvem
ento
fa
companydom
iciledinth
ecoun
try.
62M
oreo
ver,itshou
ldalso
com
prise
impa
cts
occurringatth
etim
eofassessm
enta
swellasp
otentia
lfutureim
pacts.63
TheNAP
2018-19hasiden
tifiedthefollowingashavingpo
tentialadverseim
pacton
humanrightsdue
toth
eirg
eneralpredo
minanceinth
eLuxembo
urgecon
omy,th
enatio
naland
internationalnatureofth
eira
ctivitiesand
theoriginand
num
bero
ftheire
mployees:Financialse
ctor,extractiveindu
strie
s,inform
ationand
commun
icationtechno
logies–includ
ingthefie
ldofartificialintelligence–data
protectio
n,th
econstructio
nsectorand
theho
teland
cateringsector.64
TheCSOsc
onsulte
dforthisstudy,inad
ditio
ntoth
eab
ovecommercialactivities,
referred
toth
efollowingsectorsa
sposingactualorp
oten
tialrisk
stohu
manrights
andcommen
tedthatin-dep
thanalysisofthe
sese
ctorsisn
eede
d:65
• Ag
ribusiness;sincenu
merou
sagribusinessc
ompaniesre
gistered
inLuxem
bourg
(orinvestm
entfun
dsbased
inLuxem
bourgthatprovide
financialsup
portto
agrib
usinesssector)havebe
endocum
entedforthe
iradverseim
pactso
nhu
man
rightsintheiro
verseaso
peratio
ns(seeSectio
n6.5.fo
rnon
-exhaustivelisto
fexam
ples).
Inadd
ition
,agribusinesssectorp
laysapredo
minantroleinLuxem
bourgdu
eto
thepresen
ceofa“glob
alplayer”,FerroGroup
,who
seinternationalheadq
uarters
arelocatedinLuxem
bourg.
• Logisticsa
ndm
aritimetran
sportsectors;66th
eCSOsh
avecitedthatth
esesectors
CONFIDEN
TIAL
22
willbeprom
oted
byLuxembo
urginth
eyearstocomeaccordingtoth
eCo
alition
Ag
reem
enta
ndth
atth
eirp
redo
minancewillth
usincrease.
• Food
and
textiledistrib
ution:th
eCSOsh
aveno
tedpresen
ceofo
nehun
dred
textilecom
paniesand
variousbigfo
oddistrib
utionchainsinLuxem
bourgand
argued
thatth
eysh
ouldbeinclud
edinth
eriskmappinginlighto
fthe
irpo
tential
impactonhu
manrights.
Gap
s
TheNAP
hasiden
tifiedtherisksectorsb
ased
ona“prelim
inaryob
servation”with
out
diffe
rentiatin
gam
ongtheire
xistingandpo
tentialhum
anrightsim
pacts.W
hileth
epresen
tstudyhasiden
tifiedvario
usgapsthatrelatetodifferen
tsectorsm
entio
ned
inth
eNAP
(seevariousse
ctionsinth
epresen
tstudy),ithasn
otbeenpo
ssibleto
de
alexhaustivelywith
eachsectorgiven
thelim
itedtim
eandresourcesa
ssigne
dto
completethestud
y.The
refore,itisrecom
men
dedthatth
eGo
vernmen
tcon
ducts
furthe
rsectorspe
cificanalysisintoth
esectorside
ntified
abo
ve.
2.5.Isth
estateun
dertakingorsu
pportin
gany
activ
itiesto
iden
tifyspecificim
pactso
nparticularly
vulnerablegroup
s,su
chasw
omen
,children,
minorities,and
indigeno
uspeo
ples?
Severalinstitu
tionsinLuxembo
urg
work
oniden
tifyingspecific
impacts
on
particularlyvulne
rablegrou
ps.Forinstitu
tionsand
procedu
resforchildren,see
Section26
.3.,forw
omen
,seeSectio
n15
.1.
Thisrepo
rthasalso
iden
tifiedpe
oplelivingund
erin
-workpo
vertyandolde
rpe
ople
asw
ellasvictim
sofhum
antraffickingtobeam
ongtheparticularlyvulne
rable
grou
ps(seeSectio
n5.1.).
2.6.Hasth
estatede
velope
dguidancefo
rbusinesses
onre
spectin
ghu
manrightsth
atisapp
ropriateto
diffe
rentindu
stryse
ctors(fore
xample,high-risk
sectorssuchasextractives),particularhum
anrights
issue
s(fore
xample,workingcon
ditio
ns,
discrim
ination),and
differen
ttypesofb
usiness
enterprises(forexample,M
NEs,SMEs)?
TheNAP
2018-19
makesare
ferencetoth
e“H
uman
RightsG
uida
nceTools
develope
dbyth
eUNEPFinanceInitiative[w
hich]o
ffersase
ctorialhum
anrightsrisk
analysis,includ
ingthefin
ancialse
ctor.Thistoo
lcanbeused
tostructurethe
dialogue
with
priv
atesectoractorsa
ndth
eirsectoria
lprofessionalorganiza
tions”.
67
TheNAP
2018-19
also
statesth
at;“[c]on
cerningtheprotectio
nofchildren’srightsin
thecontexto
fbusinessa
ctivities,U
NICEFand
theDa
nishInstitu
tefo
rHum
anRights
(DIHR)havede
velope
dasupp
lemen
ttotheHu
man
RightsG
uida
nceTools,on
CONFIDEN
TIAL
23
Children‘sR
ightsinNationa
lActionPlan
sonBu
siness&
Hum
anRights,inorderfo
rgovernmen
tsand
otherstakeh
olde
rsto
und
erstandho
wobligationsre
garding
children’srightsc
ouldbeim
plem
entedinpractice”.68
Gap
sAp
artfromth
eabovereferences,thisstudydidnotfind
anysp
ecificguidanceissued
byLuxem
bourgforb
usinesses.The
Governm
entisa
dvise
dtostronglyencou
rageth
ebu
sinessestomakeuseofvariousse
ctorsp
ecificguidanceth
atexistatthe
internationallevel.Inadditio
n,inlighto
fthe
variousgapside
ntified
with
regardto
thelawsa
ndre
gulatio
nsre
latin
gtoanti-d
iscrim
ination(seeSectio
n15
),the
Governmen
tsho
uldissue
aclearguidanceforb
usinesseso
ndiscrim
ination,amon
gst
othe
rs.Con
sideringthelim
itedresourcesa
vailableforS
MEsto
implem
enth
uman
rightsp
olicies,th
eGo
vernmen
tsho
uldconsiderdevelop
ingaguidanceta
iloredfor
SMEs.
3. DU
EDILIGEN
CE
GuidingQue
stions
Statusand
Gap
s3.1Ha
sthe
stateestablish
edlawsreq
uirin
gbu
siness
enterprisesto
dohu
manrightsdue
diligence,includ
ing
inre
latio
ntoth
eirsub
sidiarie
sand
supp
liers,
regardlessofw
hereth
eyope
rate?
Humanrightsdue
diligenceison
eofth
ekeycompo
nentso
fthe
UNGP
s.The
UNGP
17
provide
sthat:
Inorderto
identify,prevent,m
itiga
teand
accou
ntfo
rhow
theyadd
ressth
eir
adversehu
man
righ
tsim
pacts,businesse
nterprise
ssho
uldcarryou
thum
an
rights’duediligence.Theprocesssh
ouldinclud
eassessingactualand
po
tentialhum
anrigh
tsim
pacts,integratingan
dactin
gup
onth
efin
ding
s,
tracking
respon
ses,and
com
mun
icatingho
wim
pactsa
readd
ressed.
Humanrightsdue
diligenceisalsoadd
ressed
inth
eOEC
DGu
idelinesfo
rMNEswhich
furthe
rprovide
that:
CONFIDEN
TIAL
24
Enterprisessh
ould,w
ithinth
efram
eworkofinternationa
llyre
cogn
isedhu
man
rig
hts,th
einternationa
lhum
anrigh
tsobligationsofthecou
ntrie
sinwhich
theyoperateasw
ellasrelevan
tdom
esticlawsa
ndre
gulatio
ns,carryout
human
righ
tsduediligenceasapp
ropriateto
theirsize
,thenaturean
dcontexto
foperatio
nsand
theseverityofth
erisksofa
dversehum
anrigh
ts
impa
cts.
•
Curren
tly,the
rearenolawsinLuxembo
urgrequ
iringbusinesse
nterprise
sto
cond
ucth
umanrightsdue
diligence.
• TheLawof2
3July201
6givingeffe
ctto
EUDire
ctive20
14/95/EU
,obligescertain
companiesto
provide
anon
-financialstatemen
tasa
parto
fthe
irannu
alre
port
(ford
etails,se
eSection4.3.).Whileth
ecompaniesarere
quire
dtoadd
ress
respectforhum
anrightsalongsid
eothe
rnon
-financialcon
siderations,
cond
uctin
ghu
manrightsdue
diligenceisno
tone
ofthe
requ
iremen
ts.
• TheCo
alition
Agreemen
t(20
18)include
sacom
mitm
enttoexplorethepo
ssibility
ofHRD
Dlegisla
tioninLuxem
bourgandtosu
pportthe
ado
ptionofbindingEU
legisla
tion:
69
“LeLuxembo
urgsoutiend
radesinitiativeseurop
éenn
espou
rrenforcerla
respon
sabilitésocialeetenviro
nnem
entaledesentreprise
stransna
tiona
les
danslagestio
ndeleursc
haînesd’app
rovisio
nnem
ente
ts’eng
ageraau
niveau
européenpou
runelégisla
tioncontraigna
nteeteffe
ctive.Dan
scecontexte,la
possibilitédelégiférersurledevoird
ediligencepou
rlesentreprise
sdo
miciliéesa
uLuxembo
urgseraétudiée,dan
slamesureoù
cedernier
perm
ettradegaran
tirlere
spectd
esdroitshum
ainsetd
el’enviro
nnem
ent
toutaulong
deleurcha
înedevaleure
treprésenteraitu
nem
esure
complém
entaire
auPlan
d’actionna
tiona
lsurlese
ntreprise
setlesdroits
humainsquiso
ulignel’im
portan
cedeladiligenceraiso
nnab
lepou
rprévenir
desv
iolatio
nsdesdroitshum
ainsetd
esdom
mag
esenviro
nnem
entaux
CONFIDEN
TIAL
25
engend
résp
arlesa
ctivité
sdesentreprise
s”.
• TheNAP
201
8-2019encou
ragesc
ompaniesto
ado
ptpolicyinstrumen
tsinorder
tofu
lfilltheirrespo
nsibilityto
respecth
umanrights,inparticular,byintrod
ucing
adu
ediligen
ceprocess.70
• TheNAP
201
8-2019propo
sesto“putinplacepilotp
rojectso
ndu
ediligen
cein
enterprisesinwhichth
eStateisthemainshareh
olde
r”.71
• “D
uediligence”wasth
esubjecto
faparliamen
taryque
stionon
22Janu
ary20
19
(seeSectio
n10
.3.).
• Inadd
ition
,o
The“Initia
tivepo
urunde
voirde
vigilanceau
Luxem
bourg”(Luxem
bourg
duediligen
ceinitiative)callsforintrodu
ctionofabindingdue
diligence
legisla
tionforT
NCsdom
iciledinLuxem
bourg.
72The
Initiativebrings
together16CSOs.Itisre
presen
tedatth
eWG/
GTm
eetin
gsand
participatesinth
eNAP
deliberations.
Durin
gconsultatio
nswith
therepresen
tativ
esofthe
Initiative,
73th
ey
restated
theirp
osition
and
calledfora
lawonhu
manrightsdue
diligence
forcom
paniesre
gistered
inLuxem
bourgwhichsh
ouldcoverth
eirv
alue
chains.
o Inapressre
leaseon
Octob
er3,201
9,th
eCC
DHhasadvise
dthe
Governmen
ttoadop
talegisla
tionon
hum
anrightsdue
diligencefora
llen
terprises,inaccordancewith
itsc
ommitm
ente
xpressed
inth
ecoalition
agreem
ent.
Gap
s
CONFIDEN
TIAL
26
• Asstated
abo
ve,CCD
Handthecivilsocietygroup
shavecalledforthe
introd
uctio
nofahum
anrightsdue
diligencelegisla
tion.
•
However,som
econcernswereexpressedabou
tthe
impactof“ne
wfo
rmso
fregulatio
n”includ
inghu
manrights,butalso
enviro
nmen
tand
theGD
PR,
espe
ciallyamon
gsm
allerb
usinessesd
ueto
theim
pactth
atsu
chare
gimemay
haveontheresourceso
fsmalland
med
iumsizeenterprise
sinparticular.74
Itisim
portanttono
teth
at,w
hileallbu
sinessesregardlesso
fthe
irsiz
e,se
ctor,
operationalcon
text,owne
rshipandstructurehaveanob
ligationtore
spect
humanrights,the
meansth
roughwhichabusinesse
nterprise
meetsits
respon
sibilityto
respectisp
ropo
rtionaltoitssizeand
scaleofth
ebu
siness.75
Therefore,ta
ilorin
gthehu
manrightsdue
diligencerequ
iremen
tsto
refle
ctth
esiz
eandtype
ofb
usinessesm
ayadd
ressth
eforegoingconcernsofthe
smaller
enterprises.D
uringthestakeh
olde
rcon
sulta
tions,atradeun
ionrepresen
tativ
esuggestedthatth
eStatecouldconsiderded
icatingexpe
rtstoassistsmaller
companiesto
fulfilltheirh
umanrightsobligations.76
•
Itcanalsobeinferred
from
thecontrib
utionsofthe
businessrep
resentativesat
theWG/
GTm
eetin
gsth
atth
epreferredwayto
add
resshum
anrightsissuesisa
coordinatedandcollabo
rativ
eapproachth
atfo
cuseso
nhu
manrightsguidance
andaw
aren
essraisin
g,ra
therth
anam
andatoryre
gime.Con
cernse
xistth
at
legisla
tiverequ
iremen
tswillalte
rthe
levelplayingfieldandpu
tLuxem
bourgish
companiesinacom
petitivedisadvantageincom
parison
tocom
paniesbased
in
jurisdictionswhe
renosuchlawse
xist.
Thesearelegitim
ateconcerns,butasthe
UNW
orkingGroup
ontheissue
of
humanrightsand
transnationalcorpo
ratio
nsand
otherbusinesse
nterprise
shas
CONFIDEN
TIAL
27
emph
asize
d,th
ey“do
notnegatetheim
perativeforG
overnm
entsto
takestepsto
closego
vernan
cegap
s,includ
ingthroug
hlega
lmeans.W
henconsideringthe
moste
ffectiveap
proa
ches,Statesm
aylearnfrom
bothlegisla
tivean
denforcem
ente
ffortsinotherfields,su
chasa
nti-b
riberyan
denvironm
ental
protectio
n[…],wherebusinesse
nterprise
shavebeenabletoadjusttothe
implem
entatio
noflawsc
oncerningcorporaterespon
sibilityexpectatio
ns.
Generally,businessa
ctorsa
renotopp
osedto
legisla
tionwhenithelpstolevelthe
playingfieldand
providesp
redictab
ility”.
77
TheGo
vernmen
tcanpartia
llyadd
ressth
eseconcernsbytakingam
oreproactive
rolewith
inth
eEU
byadvocatin
gbind
ingmeasuresa
tthe
EUlevelincluding
supp
lychaindue
diligence;and
byadvocatin
gfora
moreconstructiv
een
gagemen
tofthe
EUwith
themultilateralbusinessa
ndhum
anrightstreaty
negotia
tions(the
latterapp
earsto
bethecasebased
onthecommen
tsre
ceived
bypub
licofficials,se
eSection23
.3.).
• An
expertinterview
edfo
rthisstudystated
thatLuxem
bourgisa“follower,not
aninno
vator”whe
nitcomesto
corpo
rategovernanceissue
s.78Thisc
ommen
t,ho
wever,canbede
bated.In201
6,th
eLuxembo
urgStockExchangelaun
ched
the
firstglobalplatformded
icated
togreen
,sociallyre
spon
sibleand
sustainable
securities;Luxem
bourgGreenExchange(LGX
).79 N
evertheless,evenifon
eassumesth
atLuxem
bourgisno
taninno
vatorb
utonlyfollowsthe
tren
ds,the
re
appe
arstobe
acleartren
dinm
andatoryhum
anrightsdue
diligencelegisla
tion:
o In201
7,Franceintrod
uced
thelawonledevoird
evigilancewhich
impo
seso
nFren
chbusinesse
nterprise
sabo
veacertainsizeadutytobe
vigilantinorderto
preventenviro
nmen
taland
hum
anrightsharmcaused
byth
eirsub
sidiarie
sand
throughtheirb
usinessrelationships.
o Cu
rren
tly,the
SwissParliamen
tisc
onsid
eringamandatoryhum
anrights
CONFIDEN
TIAL
28
duediligen
ceputfo
rwardbyth
eSw
issRespo
nsibleBusiness
Initiative(RBI)and
theParliam
entarycou
nter-propo
sal.
o Ge
rmanFed
eralM
inistryfo
rEcono
micCoo
peratio
nandDe
velopm
enth
as
draftedandreleased
alaw(1
0February201
9)onmandatoryhum
an
rightsd
uediligenceforG
ermancom
paniesand
theirsup
plychains.
o Co
ncerningfo
rced
labo
urand
hum
antraffickingasw
ellasc
hildlabo
ur;
theUnitedKingdo
mhasado
pted
theMod
ernSlaveryAct2
015which
requ
iresb
usinesse
nterprise
sthatcon
ductbusinessinthecoun
tryand
haveanannu
altu
rnoverof£
36m
illionorm
oretore
portonstep
staken
toensurethatth
ereisno
forced
labo
urand
traffickinginth
eirsup
ply
chainsand
theiro
wnactiv
ities.
o TheCaliforniaTransparen
cyinSup
plyCh
ainsActof2
010requ
ires
affected
businesse
nterprise
scon
ductingbu
sinessinCaliforniatore
port
toth
epu
blicontheire
ffortsto“eradicateslaveryandhu
mantrafficking
from
[the
ir]dire
ctsu
pplychainfo
rtangiblegood
soffe
redforsale”.
o Thechildlabo
urdue
diligencelawofthe
Nethe
rland
s,app
rovedbyth
eDu
tchSenateon14
May201
9,re
quire
scom
paniesto
determinewhe
ther
childlabo
urexistsintheirsup
plychainsand
seto
utaplanofactionon
ho
wto
com
batit.
o TheMod
ernSlaveryActo
fAustralia,inforcesin
ceJa
nuary20
19,req
uires
fore
nterprise
sofacertainsizeto
repo
rtonho
wth
eym
anagemod
ern
slaveryrisksintheiro
peratio
nsand
supp
lychains.
• Inth
eEU
,Regulation(EU)2
017/82
1laysdow
nsupp
lychaindue
diligence
obligationsfo
rselectedEU
impo
rterso
fcertaincon
flictm
ineralsa
ndm
etals(see
Section10
.4.)
• TheEU
regulatio
non
disc
losureofn
on-financialinformationbycertainlarge
busin
esse
nterprise
salso
includ
esprovisio
nsfo
rcreatingincentivesto
exercise
hu
manrightsdue
diligence(seeSectio
n10
.4.).
CONFIDEN
TIAL
29
•
Admitted
ly,lim
itatio
nsexistinth
eselawsa
nditisto
oearly
toassessthe
irim
pact
onth
egrou
nd.N
onethe
less,the
UNW
orkingGroup
hasalre
adyhighlighted
two
positiveeffects:(i)thatthe
legisla
tionishe
lpingtora
iseawaren
esso
fthe
corporaterespon
sibilityto
respecth
umanrightsatthe
decision
-makinglevel
with
inbusinesse
nterprise
s,and
(ii)that,despiteth
efactth
atth
elegisla
tion
applieso
nlytolargercom
panies,obligationssh
iftdow
nthroughvaluechains
throughbu
siness-to-businessp
ressure.
80
• Strictly
binaryapproachto
businessa
ndhum
anrightschallengesapp
ears
misc
onstrued
.Inarecentstatem
ent,John
Ruggie,th
eauthorofthe
UNGP
s,has
reite
ratedthat:
o “thereisnoinconsistencyinstatesado
ptingmeasurestha
trequire
busin
essestomeettheirrespon
sibilityto
respecth
uman
righ
tsth
roug
hlegisla
tion.Statessim
ilarly
mayado
ptlegisla
tivemeasurestoencourag
e,
supp
orto
rincentivize
businessestodo
so.[…]Statesa
reexpectedto
adop
tam
ixofm
easures-volun
taryand
man
datory,nationa
land
internationa
l-tofo
sterre
spectforhum
anrightsinpractice.[…
]Bydo
ing
so,the
yaredo
ingwhatw
eexpe
ctgovernm
entsto
do:to
govern,and
to
governinth
epu
blicinterest”.81
•
Inlighto
fthe
abo
ve,the
Governm
entisa
dvise
dtoado
ptam
ixedse
tof
measurestoensureth
athum
anrigh
tsduediligenceisem
bedd
edasp
arto
fstan
dardbusinessp
racticeinLuxem
bourg,includ
ing;
o introd
ucinglegisla
tionoramen
dingexistinglegisla
tiontore
quire
Luxembo
urgbasedcompanies,orcom
paniesth
atdobu
sinessin
Luxembo
urgtoexercise
hum
anrightsdue
diligence.Thisc
anbeastand-
CONFIDEN
TIAL
30
alon
elegisla
tion,orthe
existinglawsc
anbeam
ende
dsoastoinclud
edu
ediligen
cere
quire
men
ts.The
Law
of2
3July201
6givingeffe
ctto
the
EUDire
ctive20
14/95/EU
cou
ldbeausefulbasisup
onwhichm
andatory
duediligen
cecou
ldbede
velope
dprovidingthatth
escop
eisexpand
ed.
o Co
rporategovernancelawsa
lsohaveapo
tentialbasisup
onwhichdue
diligen
cere
quire
men
tscanbeintrod
uced
.Con
sideringvario
usecono
mic
argumen
tsfo
rbusinessestorespecth
umanrights–bo
thinte
rmso
fmitigatin
grisksand
costa
ndgainingcom
petitiveadvantageinth
emarket
place–
82itisre
ason
ableto
argue
thatboardofd
irectors’fidu
ciarydu
ties
toth
eirshareho
ldersreq
uireth
emto
con
siderlongte
rmrightsand
interestso
fotherstakeh
olde
rs.Forinstance,prin
ciple2ofth
eXPrinciples
ofCorpo
rateGoverna
nceofth
eLuxembo
urgStockExchangefo
rlisted
companiesstatesth
at:“TheBo
ard[…]shallactinthecorporateinterest,
andshallservealltheshareh
olde
rsbyen
surin
gthelong
-termsu
ccesso
fthecompa
ny.The
yshallcon
sidercorpo
rateso
cialre
spon
sibilityaspects
andshalltakeintoaccou
ntth
einterestso
fallstakeholdersinth
eir
deliberations”.
83
o State-ow
nedorcon
trolleden
terprises,inparticular,sho
uldbe
requ
iredto
cond
ucth
umanrightsdue
diligenceinLuxem
bourgandabroad.The
attentiontoth
eState-ow
nedorcon
trolledbu
sinesseso
rtho
sere
ceiving
Statesupp
ortisp
articularlyim
portantinlightofthe
State-businessn
exus.
Accordingtoth
eUNGP
4:“Statessh
ouldta
keadd
ition
alstepstoprotect
againsth
uman
righ
tsabu
sesb
ybu
sinesse
nterprise
stha
tareownedor
controlledbyth
eState,ortha
treceivesu
bstantialsup
portand
services
from
Stateagenciessuchasexportcredita
genciesa
ndofficialinvestment
insuranceorgua
ranteeagencies,includ
ing,whereapp
ropriate,by
requ
iring
hum
anrigh
tsdue
dilige
nce”.A
ssuch,th
eGo
vernmen
tis
advisedtoim
plem
entw
ithou
tdelayth
eactio
npo
intinthecurren
tNAP
CONFIDEN
TIAL
31
thatprovide
s“pu
ttinginplacepilotp
rojectso
ndu
ediligen
cein
enterprisesinwhichth
eStateisthemainshareh
olde
r”.
•
Atth
emeantim
e,Luxem
bourgisadvisedtocon
tinue
explorin
gwaysto
incentivise
businessestocond
ucth
umanrightsdue
diligenceandaccelerateth
eaw
aren
essraisin
gactiv
ities.
• TheNAP
2018-19
propo
sestoelaborate,ado
ptand
implem
enta
Nationa
lPact
onth
eRe
spectforHum
anRightsintheActivitiesofB
usinessE
nterprise
s.The
pact
willbeaform
aldeclaratio
nofintentto
respecth
umanrightsfrom
topexecutives
ofth
esig
natorycom
pany.Initscurrentfo
rmulation,th
ePactinvolvesanum
ber
ofcom
mitm
entsbybu
sinessesincluding,trainingsand
repo
rting,amon
gothe
rs.
ThePactcanbeausefulto
olasa
ninitialcom
mitm
enta
sitw
illallowindividu
al
companiesto
tailorthe
irtrainingand
repo
rtingne
edstotheirp
articularse
ctor
andriskprofile.The
Governm
entsho
ulden
sureth
atth
ePactisado
pted
assoo
naspossib
leand
asm
anybu
sinessesa
spossib
leareencou
ragedtom
akeform
al
commitm
enttotheinstrumen
t.TheGo
vernmen
tisa
dvise
dtoensurethatall
companiesth
atareowne
dorcon
trolledbyth
eStatesig
nthePact.
• ThefirstNAP
onbu
sinessa
ndhum
anrightsofLuxem
bourgiscurren
tlyund
er
revisio
nfora
nup
date.The
WG/
GTsh
ouldcon
siderado
ptingcleartargetsso
far
asitcon
cernsthe
due
diligenceexpe
ctationsfrom
businessesinLuxembo
urg.An
inspira
tioncanbe
drawnform
otherNAP
sand
policyinstrumen
ts.84
3.2.Hasth
estateprovided
guidancearou
ndits
expe
ctationsand
bestp
racticesinre
latio
ntohum
an
rightsd
uediligence?
TheNAP
2018-20
19se
tsoutth
eGo
vernmen
t’sexpectatio
nsfrom
com
panies“to
fullyre
specth
umanrightsingen
eral”,and
inparticularto
:•
“[P]reventhum
anrightsviolatio
nsasa
resultofth
eira
ctivities;
• [A]dop
tthe
necessarypolicyinstrumen
tsfo
rthisp
urpo
se,inparticularby
introd
ucingadu
edilig
enceprocess.Inthiscontext,du
ediligen
cere
fersto
the
CONFIDEN
TIAL
32
processthate
nablescom
panies,asa
nintegralparto
fthe
irde
cisio
n-makingand
riskmanagem
entm
echanism
s,to
iden
tify,preventand
mitigatepoten
tialhum
an
rightsimpactso
fthe
iractiv
ities,asw
ellastorepo
rtonho
wth
eyadd
ressth
isissue
.[…]
• [R]edressa
nyadverseim
pactso
fthe
iractiv
itiesonhu
manrights”.
85
(SeeSectio
n3.1.fo
rcom
men
tsondu
ediligen
ce)
4. CO
RPORA
TESTR
UCT
URE
SAN
DGOVE
RNAN
CE
GuidingQue
stions
Statusand
Gap
s4.1.Hasth
estateestablish
edm
easurestoovercome
thechallengesassociatedwith
limite
dliabilityof
parentcom
panies?Fore
xample,hasth
estate
establish
eda“du
tyofcare”fo
rparen
tcom
paniesin
term
softhe
hum
anrightsim
pactso
fthe
irsubsidiarie
s,
regardlessofw
hereth
esubsidiarie
sope
rate?
Expe
rtsh
aveno
tedthat,“thereisno
legaldefinition
of‘corporategovernance’in
Luxembo
urg.
86
InLuxem
bourg,limite
dliabilitycompany(sociétéàre
spon
sabilitélim
itée-SAR
L)is
themostw
idelyused
form
ofcom
pany(aroun
d2/3ofth
ecompaniesinLuxem
bourg
areSA
RLs).87Article2ofthe
Com
panyLaw
listsc
ommercialcom
panieswith
legal
person
ality
and
statesth
ateachform
shallcon
stitu
tea“legalpersonseparatefrom
itsm
embe
rs”.
Accordingtoth
eprincipleoflimite
dliability,th
eshareh
olde
rsinacorpo
ratio
nmay
notb
ehe
ldliablefo
rthe
deb
tsofthatcorpo
ratio
nbe
yond
thelevelofthe
irinvestmen
t.Whileth
iscorporateform
hascertainecono
micadvantages,inth
econtexto
fcorpo
rategroup
s,limite
dliabilityandcorporateseparatio
nhaveledto
challengesfo
rthirdpartie
swho
havesuffe
redharm
asa
resultofth
econd
ucto
fan
overseassu
bsidiaryand
soughtre
paratio
nsbeforethenatio
naljurisd
ictio
nofth
eho
mestateofth
eparentcom
pany.88Expertshaveargued
forthe
restrictio
nofth
edo
ctrin
ewhe
reitisusedtosh
ieldth
eow
nersand
con
trollersofacom
panyagainst
liabilitiestothird
partie
s.89
CONFIDEN
TIAL
33
Whe
therorn
otaparen
tcom
panycanbehe
ldliablefo
rthe
con
ductofthe
subsidiarie
sthatitcon
trolso
roughtto
con
trolsh
alldep
endon
thelawapp
licableto
thecase.90The
BrusselsIand
Rom
eIIRe
gulatio
nsre
lateto
the“dom
icile”ofa
busin
ess.Thisisspe
cificallydefined
asb
eingth
ebu
siness’s“
statutoryseat,”“central
administratio
n,”or“principleplaceofbusiness.”Bu
t,expe
rtsh
aveno
tedthat,the
principleoflimite
dliabilityremainsth
edo
minanta
pproach,and
und
erm
ostlegal
system
s,onlyexceptionallywillitbepo
ssibleto
liftth
ecorporateveil.
91Con
sistent
with
thisdo
ctrin
e,th
eliabilityofth
eparentcom
panym
aynotbeen
gagedsolelyon
thebasisofthe
factofthe
con
trolitexercise
sonthesubsidiary,w
hereth
elatter
commitshum
anrightsviolatio
nsorcon
tributesto
suchviolatio
ns.92Ase
xpertshave
noted,th
ismaym
akeitdifficultforv
ictim
softhe
con
ductofthe
subsidiaryto
seek
reparatio
nbyfilingaclaimagainstth
eparentcom
pany.93
4.2.Hasth
estatepu
tinplacecorporateand/or
securitieslaw
sand
regulatio
nsto
supp
orte
thical
corporatebe
haviou
rand
businessrespe
ctfo
rhum
an
rights,su
chastho
sere
latin
gtofinancialrep
ortin
g;
articleso
fincorpo
ratio
n;re
gistratio
n;and
corpo
rate
board,dire
ctor,and
stockexchangelisting
requ
iremen
ts?
Thefollowingisano
n-exhaustiv
elisto
fmainlegisla
tiveandregulatorypracticeson
corporategovernanceinLuxem
bourg:
• Themainsourceofcorpo
rategovernanceistheLawonCo
mmercialCom
panies
of10Au
gust191
5,asa
men
dedin201
6(the
“Co
mpaniesLaw
”);94
• TheLawof1
9De
cembe
r200
2on
theTradeandCo
mpaniesRegisterand
the
accoun
tingandannu
alaccou
ntso
fund
ertakings,asa
men
ded(“RC
SLaw”);95
• TheLawof1
0July200
5,re
latin
gtoprospectusesforse
curities,asa
men
ded,
implem
entin
gDirective20
03/71/EC
;96
• TheLawof1
1July200
8(the
“Transparen
cyLaw
”)ontransparen
cyre
quire
men
tforissue
rs,asa
men
ded,im
plem
entin
gEU
Dire
ctive71
/301
3;
• TheLawof2
3De
cembe
r201
6on
marketa
buse,implem
entin
gRe
gulatio
n596/2014
(the
“MarketA
buseLaw
”);
• TheCivilCod
e;
• TheCo
mmercialCod
e;
CONFIDEN
TIAL
34
• TheLawof1
2De
cembe
r201
6createssocietalimpactcom
panies(société
d'im
pactso
ciétal-SIS),alegalformofb
usinessreservedforb
usinessesa
ctivein
thesocialand
solidarity
econo
my.
97The
lawderogatesfrom
Article183
2ofth
eCivilCod
e,bystatingthat“anactofp
artnershipm
ayprovide
thatth
ecompanyis
notcon
stitu
tedforthe
purpo
seofp
rovidingth
epartne
rswith
adire
ctorind
irect
profit”.98
• InNovem
ber2
018,EUCom
missionreferred
Luxem
bourgtoth
eCo
urto
fJustice
ofth
eEU
forn
otcom
pletelyim
plem
entin
gEU
anti-m
oneylaun
derin
grules.99
Subseq
uently,Luxem
bourgadop
tedtheLawof1
3Janu
ary20
19creatinga
registerofb
eneficialowne
rs(‘RB
O’)andtransposingthe4t
h EUAMLDirective1
00
asamen
dedbyth
e5t
h EUAMLDirective1
01intodom
esticlaw.The
Law
entered
in
tofo
rceon
1M
arch201
9.10
2 Followingsix
-mon
thtransitionalperiod(byen
dof
August201
9)allin-scope
entities,includingcom
mercialcom
panies,spe
cial
limite
dpartne
rships,and
investmen
tfun
dswererequ
iredtoprovide
theRB
O
with
relevantinform
ationon
theiru
ltimatebe
neficialowne
rsofLuxem
bourg
corporateandothe
rlegalentities.
•
TheXPrinciplesofC
orpo
rateGoverna
nce(“theXPrinciples”)ofthe
Luxem
bourg
StockExchange(the
LuxSE)forlisted
com
paniesapp
lyto
allLuxembo
urg
companieslisted
onLuxSEandarealigne
dwith
theEurope
anCom
mission’s
guidance,setinth
e20
03ActionPlan.10
3 o
TheXPrinciplesinclud
e,amon
gsto
thers,aprin
cipleon
CSR(P
rinciple9)
andaccompanyingrecommen
datio
ns.1
04The
XPrin
ciplesre
commen
ds
companiesto
provide
clearand
transparen
tnon
-financialinformationon
sustainablede
velopm
enta
ndencou
ragesthe
mto
useinternationally
recognize
dfram
eworksto
doso(R
ecom
men
datio
n9.2).10
5 o
ThePrincipleon
CSRalso
recommen
dslisted
com
paniesto
“regu
larly
considerth
ecompa
ny’snon
-fina
ncialrisk
s,includ
inginparticularth
e
CONFIDEN
TIAL
35
socialand
enviro
nmentalrisk
s”(R
ecom
men
datio
n9.3)and
to“pu
blish
a
metho
dologicalm
emoran
dum[…
]relatingtoth
ewayinwhichsign
ificant
factorsh
avebeenidentifiedan
dda
tahavebeenestab
lished”
(Recom
men
datio
n9.4).The
latterre
commen
datio
niden
tifiesthe
following,assom
eofth
esig
nificantp
erform
anceindicatorsapp
licableto
bu
sinessa
ctivities:“workforce,stafftraining
,safety,absenteeism
,gender
balance,su
bcon
tractin
gan
drelatio
nswith
supp
liers,energyconsum
ption,
watercon
sumption,wastetreatm
ent,CO
2em
issions,ada
ptationtoth
econsequencesofclim
atechan
ge,m
easurestakento
preserveordevelop
biod
iversity”.10
6 o
TheXPrinciplesarebased
onafle
xible“com
plyorexplain”system
which
allowsc
ompaniesto
deviatefrom
therecommen
datio
nsprovidingth
at
theyexplainwhyth
eyhavedo
neso
.o
TheLuxSehasa
lsocom
piledanESG
repo
rtingguideforcom
panies
complem
entin
gtheTenPrinciples.
•
Vario
usre
commen
datio
ns,instructio
nsand
circularso
ncorporategovernance
publish
edbythefin
ancialre
gulatorC
ommission
deSurveilla
ncedu
Secteur
Fina
ncier(CSSF).1
07
•
Ano
n-profitLuxembo
urgFina
nceLabe
lingAg
ency(LuxFLAG
)wasestablishe
din
2006with
theaimofp
romotingtheraisingofcapita
lform
icrofin
anceby
awardingasp
ecificlabe
ltoeligiblem
icrofin
anceinvestmen
tfun
dsbased
ona
numbe
rofcriteria.10
8 Itsobjectiv
eistore
assureinvestorsthatthe
labe
led
investmen
tveh
iclesinvestintherespon
sibleinvestmen
tsector.
• InSep
tembe
r200
9theAssociationofth
eLuxembo
urgFund
Indu
stry(A
LFI)
publish
edaCod
eofCon
ductfo
rLuxem
bourgFund
stoprovideLuxembo
urg
CONFIDEN
TIAL
36
fund
s'bo
ardsofd
irectorsw
ithhigh-levelprin
ciplesand
bestp
ractice
recommen
datio
ns.10
9
Gap
s
Theiden
tificationofben
eficialowne
rshipofentitiesre
mainsahighprofileissuein
Luxembo
urg,inparticularfo
llowingtheLuxembo
urgleaksscand
alin201
4.11
0 Itisrepo
rted
that,%
53ofthe
in-scope
entitiesofthe
RBO
law,amou
ntingtom
ore
than68,00
0companies,didnotre
gisterth
eirb
eneficialowne
rshipde
tailsbythe
initialdeadlineof31Au
gust201
9.11
1 The
adm
inistratorsofthe
registergranted
additio
naladm
inistrativ
epe
riodof3m
onthstoen
titiesthath
aveno
tyetm
adetheir
declarationtoth
eRe
gisterofB
eneficialO
wne
rs(R
egistredesbénéficiaire
seffe
ctifs-
RBE).11
2 The
web
siteofth
eregisterdoe
snotprovide
reason
forthe
exten
sion.
4.3.Hasth
estatepu
tinplacelawsa
ndre
gulatio
nsto
supp
ortd
isclosureand
repo
rtingbycorpo
ratio
nson
humanrights,labou
rrights,enviro
nmen
talimpacts,
corporatesocialre
spon
sibility,oro
therethicalissues?
Doth
eselawsa
ndre
gulatio
nsexten
dtore
portingon
op
erationsand
activitiesabroad?Hasth
estateprovide
guidanceonho
whum
anrightsim
pactsa
re“material”
toth
eecon
omicperform
anceofthe
repo
rtingbu
siness
enterprise?
Thefollowingisano
n-exhaustiv
elisto
flaw
sand
regulatio
nsto
supp
ortd
isclosure
andrepo
rtingbycorpo
ratio
nsonen
vironm
entaland
socialim
pacts,CSRand
other
ethicalissue
s:
• Do
cumen
tsth
atcom
paniesarere
quire
dtodisc
losearelisted
inArticle11biso
ftheCo
mpaniesLaw
.The
listdoe
snotre
quire
thedisclosureofinformationon
humanrights,labou
rrights,enviro
nmen
talimpacts,CSRoro
therethicalissues.
•
TheLawof2
3July201
6im
plem
entsth
eDirective20
14/95/EU
ofthe
Europ
ean
Parliam
enta
ndofthe
Cou
ncilof22Octob
er201
4am
endingth
eDirective
2013
/34/EU
(the
“Accoun
tingDirective”)asregardsdisc
losureofn
on-financial
anddiversity
inform
ationbycertainlargeun
dertakingsand
group
s.The
prim
ary
purposeofth
elawisto
increaseth
eEU
com
panies’transparencyand
performanceinre
specto
fenviro
nmen
taland
socialissues.The
lawapp
lies
“com
plyorexplain”principle.
o Thelawsa
ppliestothecompaniesth
atfu
lfillthefollowingcond
ition
s:11
3
CONFIDEN
TIAL
37
§ Av
erag
enu
mbero
ffull-tim
estaffemployedduringthefin
ancial
year:o
ver5
00
§ Nettu
rnover:o
verE
UR40
million;and
/orBalancesh
eettotal:
overEUR20
million
§ Pu
blicInterestEntities:Listed
com
panies,creditinstitutions,
insuranceun
dertakings
§ Forinsuranceund
ertakings(includ
ingreinsuranceun
dertakings),
thecrite
ria“ne
tturno
ver”hasbeenrenamed
“grossw
ritten
prem
iums”inline
with
dire
ctive91
/674/EEC
.o
Targeted
und
ertakingsm
ustd
iscloseanon
-financialstatemen
tcon
taining
inform
ationtoth
eextentnecessaryfo
ranun
derstand
ingofth
eun
dertaking’sd
evelop
men
t,pe
rformance,position
and
theim
pactofits
activ
ityre
latin
gto,atleast,enviro
nmen
tal,socialand
employeem
atters,
respectforhum
anrights,anti-corruptionandbriberymatters;
o Targeted
und
ertakingsm
ustd
iscloseth
einform
ationinth
eir
managem
entrep
ort,orinase
paratere
portpub
lishe
dwith
the
managem
entrep
ort,orwith
in6m
onthso
fthe
balancesh
eetd
ate,m
ade
availabletoth
epu
blicontheirw
ebsite;
o Therepo
rtsh
allinclude
;§
ade
scrip
tionofth
eun
dertaking’sb
usinessm
odel,
§ companypoliciesrelatingtonon
-financialm
atters,and
the
outcom
esoftho
sepolicies,
§ principlerisksre
latedtonon
-financialm
attersand
business
activ
ities,
§ anyno
n-fin
ancialkeyperform
anceindicatorswhichareused.
o Subsidiarie
smaybeexem
pted
from
suchre
portingob
ligationsifth
eyare
includ
edinth
econsolidated
non
financialstatem
ento
fano
thergroup
parentcom
pany.
CONFIDEN
TIAL
38
o Afin
ebe
tweenEU
R50
0toEUR25
,000
maybeim
posedon
dire
ctorso
rmanagersw
hohavebreached
thepu
blicationrequ
iremen
tregardingnon
-fin
ancialand
diversityinform
ation(eith
erincon
nectionwith
theannu
al
accoun
tsorthe
con
solidated
accou
ntso
fthe
relevantcom
pany).
•
TenPrinciplesofC
orpo
rateGoverna
nceofth
eLuxembo
urgStockExchan
ge(X
Principles).1
14
Gap
s
Thescop
eofth
eLawof2
3July201
6islim
itedwith
largegrou
psand
und
ertakings.It
doesnotcreateob
ligationsfo
rsmallera
ndm
ediumsizedbu
sinesses.
4.4.Hasth
estateprovided
anyincentivesfo
rbu
sinessestorespecth
umanrights,suchassu
chas
preferen
tialtreatmen
tinprocurem
entp
rocesses
whe
reacom
panyevide
ncesth
erespon
sibilityto
respecth
umanrights?
Thepresen
tresearchdidno
tfindanypo
sitiveincentivesprovide
dbyth
eStatefor
companiesto
respecth
umanrights.
5. LA
BOUR
GuidingQue
stions
Statusand
Gap
s5.1.Hasth
estatepu
tinplacelabo
urlawsa
nd
regulatio
nsto
ensurebu
sinessrespe
ctfo
rworkers’
rights?Areth
eselawsinlinewith
theprotectio
nprovided
bytheILOFun
damen
talPrin
ciplesand
Rights
atW
ork(CoreCo
nven
tions)and
anyotherILO
conven
tionsra
tifiedbyth
estate?
Thefollowingisano
n-exhaustiv
elisto
flabou
rlaw
sand
regulatio
nsinLuxem
bourg;
• Ofthe
8ILOFun
damen
talCon
ventions,Luxem
bourghasratified
all8ofth
em.
Luxembo
urghasa
lsora
tified91
of1
78ILOTechn
icalCon
ventions.11
5 •
TheCo
nstitution(Article11(4))recognizerighttoworkasafu
ndam
entalright:
“thelawgua
ranteestherigh
ttoworkan
dtheStateshallensurethateach
citizenm
ayexercise
thisrig
ht.Thelawgua
ranteesfreedom
ofa
ssociatio
nan
dorga
nizestherigh
ttostrik
e”;
• Lawsa
ndre
gulatio
nsre
gardingworkandem
ploymen
tarecon
solidated
inLabou
rCo
deof1
Sep
tembe
r200
6.11
6
CONFIDEN
TIAL
39
• Co
llectivebargainingagreemen
ts(con
ventioncollective)
Gap
s
Ingen
eral,Luxem
bourghasa
well-d
evelop
edsy
stem
ofe
mploymen
tand
collective
labo
urlawsa
ndalso
hasm
echanism
sinplacetom
onito
rthe
iren
forcem
enta
nd
implem
entatio
n(seeSectio
n5.3.).Thepresen
tstudy,how
ever,fou
ndth
atcertain
issue
sdeservefu
rthe
rscrutinyandon
goingattention,includ
ing;
• In-w
orkpo
verty(pauvretéautravail):Luxem
bourgisam
ongthecoun
tries
whe
rein-w
orkpo
vertyrateiscon
siderablyhighe
rthantheEU
average.
Accordingtoth
eEU
-SILC(statisticso
nincome,so
cialinclusionandliving
cond
ition
s)indicators(also
ado
pted
bytheSTAT
EC),in-w
orkpo
vertycomprise
stheshareofpersonswho
areemployed
and
haveanequ
ivalise
ddisposable
incomebe
lowth
erisk-of-povertyth
reshold,whichisse
tat6
0%ofthe
national
med
ianeq
uivalised
disp
osableincome(afterso
cialtransfers).A
nindividu
alis
considered
asb
eingemployed
ifhe/shewasemployed
form
orethanhalfo
fthe
referenceyear.11
7 •
Therateofin-workpo
vertyinLuxem
bourghasincreased
from
7.1%in200
3to
13.7%in2017.
118 Incomparison
toit'sne
ighb
ours,in-workpo
vertyisthehighest
inLuxem
bourg(5.0%inBelgium
,9.1%inGermanyandin201
6itwas7.9%in
France).1
19Thisrateisthesecond
highe
stinth
ewho
leEUbeh
indRo
mania.12
0 Accordingtoth
eSTAT
EC,amon
gthepe
oplecon
sidered
with
inin-w
orkpo
verty,
18%workinth
econstructio
nsector,12%
inth
eareaofaccom
mod
ationand
caterin
g,12%
incom
merce,11%
inadm
inistrativ
eandsupp
orta
ctivities,10%
in
healthhum
anre
sourcesa
ndso
cialaction,9%inpub
licadm
inistratio
n,5%in
domesticse
rvicesand
5%inm
anufacturin
gactiv
ities.12
1 Re
gardinggene
ralpovertyra
te,the
201
9OEC
DEcon
omicSurveyofLuxem
bourg
hasn
oted
that“thou
ghm
ostimmigrantsfindajob,th
eyte
ndto
earnlessth
en
thenativ
e-bo
rnand
arem
oreexpo
sedtopoverty,w
hichweighso
nthepo
verty
CONFIDEN
TIAL
40
ratefo
rthe
pop
ulationasawho
le”.
122
•
Gen
derp
aygap
:Wagegapbe
tweenmen
and
wom
eninLuxem
bourgison
eof
thelowestinEurope
.123 N
onethe
less,accordingto
theconclusio
nsofthe
Europe
anCom
mitteeofSocialRights,Luxem
bourgisno
tcom
pliantwith
Article4
(3)o
fthe
Europ
eanSocialCharter,w
hichstipulates“no
n-discrim
inationbe
tween
wom
enand
men
with
respecttoremun
eration,onthegrou
ndth
at“ithasn
ot
been
establishe
dthatth
eprincipleofequ
alpayisensured
inpractice”.12
4
•
Traffickingfo
rthe
purpo
seoflab
oure
xploita
tion:Cou
ncilofEurop
e’sG
roup
of
Expe
rtso
nActio
nagainstT
raffickinginHum
anBeings(GR
ETA)haveno
tedthat
“Luxem
bourgcontinue
stobe
cou
ntryofd
estin
ationandtransitfo
rpeo
ple
subjectedtotraffickinginhum
anbeings”.12
5 Duringthepe
riodof201
3-17
,the
authoritieshaveiden
tified24
victim
strafficked
forthe
purpo
seso
flabou
rexploitatio
nwhichto
okplaceparticularlyinth
econstructio
nandcaterin
gsectors.12
6
• Inadd
ition
;Luxem
bourghasn
otsigned
,orsigne
dbu
tnotra
tifiednu
merou
sinternationalasw
ellasregionalCon
ventions(seeSectio
n1.1.)related
toth
eprotectio
noflabo
urrightswhichcreatesgapsintheoverallregim
e.The
Go
vernmen
tisa
dvise
dtocon
sidersingingtheseinstrumen
tsand
implem
ent
them
inorderto
add
ressth
esegaps.
5.2.Hasth
estateprovided
lawenforcemen
tand
relevantautho
ritiesw
ithinform
ationandtrainingon
issue
srelated
tolabo
urrights,includingfo
rced
labo
ur,
childlabo
ur,non
-disc
rimination,freedo
mof
association,collectivebargaining,livingwage,etc.?
TheNationa
lInstituteofPub
licAdm
inistration(L'Institu
tnationa
ld'adm
inistratio
npu
blique–IN
AP)isthe
Governm
ent’sleadingcivilservicetrainingsc
hoolin
Luxembo
urg.Itprovide
sinitia
land
vocationaltrainingforp
ublicemployeesa
tthe
Stateandlocallevels.12
7 Legalbasisofth
esetrainingsisp
rovide
dinth
eGrand-Du
cal
Regulatio
nof31Octob
er.12
8 Accordingly,pub
licse
rviceofficialsarerequ
iredto
CONFIDEN
TIAL
41
followse
rieso
f“common
core”trainings(“formationsdutron
ccommun
”)whichis
compu
lsoryfo
ralltraine
es,and
ase
tof“op
tional”trainings(“formationsauchoix”)
whicharedetermined
individu
allyfo
reachtraine
ebyth
ehe
adofadm
inistratio
nor
hisd
elegate.Possib
leoptionalcou
rsesarelisted
inth
eAn
nextoth
eGrand-Du
cal
Regulatio
nof31Octob
er.The
Ann
exlistsv
ariouscou
rsesinth
efie
ldoflaw
includ
ing,labo
urlaw,pub
licprocuremen
t,copyrightlaw
,con
stitu
tionallaw
and
socialse
curitylaw.Trainingsarealso
provide
dun
derthe
headingofrightsa
ndduties
ofpub
licofficials(“droitsetd
evoirsdesagentsp
ublics”)w
hichinclud
esto
picssu
ch
as,diversityinth
epu
blicse
rvice,protectionofindividu
alsw
ithre
gardto
the
processin
gofpersonaldata,equ
alopp
ortunitie
sand
health
atw
orkam
ongothe
rs.
Detailedcatalogueofalltrainings(accessibleonline<h
ttps://fon
ction-
publique
.pub
lic.lu/fr/form
ation-de
velopp
emen
t.htm
l>)also
listsh
umantrafficking
(“Latraitedesêtreshum
ains”)aso
neofthe
trainingm
odulesoffe
redbyth
eINAP
.129
Gap
s
Curren
tly,the
reareno“hum
anrights”trainingso
fferedbyth
eINAP
.How
ever,a
represen
tativ
eofth
eINAP
con
firmed
thatth
eywillbe“m
orethanglad”to
provide
suchtrainingssho
uldthene
edand
dem
andarise
s.13
0 5.3.Doe
sthe
statehavesy
stem
sinplacetom
onito
ren
forcem
enta
ndim
plem
entatio
nofth
eselabo
urlaws
andregulatio
ns?
• TheLabo
urCou
rt(T
ribun
alduTravail)hasjurisd
ictio
noverindividu
aldisp
utes
betw
eenem
ployersa
ndemployeesa
risingfrom
alabo
rcon
tracto
ran
appren
ticeshipcontract,com
plem
entarypen
sionsche
mes,and
insolven
cy
insurance.
• TheMinistryofLab
or,Employmen
tand
theSocialand
Solidarity
Econ
omy(M
inistèredu
Travail,del'Emploietd
el'Écono
mieso
cialeetso
lidaire)
determ
inesand
supe
rvise
sthe
implem
entatio
noflabo
urlawsa
ndre
gulatio
nsas
wellasp
ropo
singfuturepoliciesinrelatio
ntoemploymen
t.131
• TheInspectorateofLab
oura
ndM
ines(Inspectiondu
travailetd
esm
ines-ITM)
CONFIDEN
TIAL
42
isrespon
siblefo
r,am
ongothe
rthingstoen
sureth
eprop
erapp
licationofth
elegal,regulatory,adm
inistrativ
eandcontractualprovisio
nsonworkinghou
rs,
wages,safety,health
and
wellbeing,asw
ellasthe
employmen
tofchildrenand
adolescents,equ
altreatm
entform
enand
wom
en,protectionagainstsexual
harassmen
tintheworkplaceand
forp
rovidinginform
ationandtechnical
adviceto
employersa
ndworkersonho
wto
com
plywith
legal,regulatory,
administrativ
eandcontractualprovisio
ns;13
2 o
Socialelectionsta
keplaceinLuxem
bourgeveryfiveyearsw
hereth
eem
ployeesv
otetoelectth
emem
bersofthe
staffd
elegationinth
eir
company.The
delegationthen
app
oints“
healthand
safety
represen
tativ
e”and
an“equ
ality
officer”.The
health
and
safety
represen
tativ
e,isre
quire
dtobeconsultedbyth
eem
ployerinth
ematterscon
cerning:
§ riskassessmen
tforoccup
ationalsafetyandhe
alth,includingfo
rgrou
psofe
mployeesa
tparticularrisk;
§ protectiv
emeasurestobe
takenandmaterialstobeused
;§
anyactio
nbyth
eem
ployerth
atm
ayhavesig
nificante
ffectso
nsafetyand
health
;§
measurestaken
infirsta
id,fire
fightin
gandevacuatio
nof
employees;
§ theapprop
riatetrainingth
ateachem
ployeere
ceivesinth
einterestofh
ishe
althand
safety;
§ measurestaken
toprotectth
een
vironm
entw
hereth
ehe
althor
workingcon
ditio
nsofe
mployeesa
recon
cerned
.o
Followingtheinspectio
ns,ifthe
find
ingsofthe
health
and
safety
represen
tativ
erequ
ireim
med
iateinterven
tionbyth
eITM,heorsh
emay
contactthe
ITMdire
ctly,and
mustinformth
ecompanym
anagerand
the
staffd
elegationatth
esametim
e.
CONFIDEN
TIAL
43
o Inorderto
mitigateanyriskto
employeeso
relim
inatesourceso
fdanger,health
and
safetyre
presen
tativ
emayaskth
ecompanym
anager
tota
keth
eapprop
riatem
easuresa
ndsu
bmitprop
osals.13
3
• TheNationa
lCon
cilia
tionOffice(OfficeNationa
ldeCo
nciliation–ONC)is
respon
sibleofp
reventingorse
ttlingcollectivelabo
urdisp
utes;13
4 •
TheNationa
lEmploymen
tAge
ncy(Agencepo
urledévelop
pementd
el'emploi-
ADEM
)registersa
ndse
ekse
mploymen
tforune
mployed
personsand
allocates
unem
ploymen
tben
efits;
• TheEcon
omicCom
mittee(C
omité
deCo
njon
cture)ista
sked
with
mon
itorin
gthe
developm
ento
fecono
micand
cyclicalsituationofth
elabo
urm
arket.Itrepo
rts
toth
eGo
vernmen
tCou
ncileverymon
thadvisingonmeasurestopreven
tlayoffs
duetocircum
stantia
lfactors.13
5 The
secretariato
fthe
Econo
micCom
mitteealso
coordinatesthe
activitiesofthe
OEC
DNCP
ofLuxem
bourgun
derthe
supe
rvision
ofth
eMinistryofE
cono
my.
136
Inadd
ition
,the
rearefiveprofessionalchambe
rsinLuxem
bourg(threefo
rthe
em
ployersa
ndtw
oforthe
employees):
• TheCh
ambe
rofSalariedWorkers(C
hambrede
sSalarié-CSL);
• TheCh
ambe
rofC
ivilServan
tsand
Pub
lic-SectorW
orkers(C
hambrede
sfonctio
nnairese
tdesemployéspub
lics);
• TheCh
ambe
rofA
griculture(C
hambred’Ag
riculture);
• TheCh
ambe
rofC
ommerce(C
hambrede
Com
merce-CC
),and
• TheCh
ambe
rofT
rade
s(Ch
ambrede
sMétiers-CD
M).
TheCh
ambe
rsplayanim
portantrole,inparticularinth
ede
velopm
ento
fthe
legisla
tivefram
eworkinLuxem
bourg.The
professionalchambe
rshavean
establish
edadviso
ryro
leondraftsand
propo
salsforregulatorytexts.
CONFIDEN
TIAL
44
Mem
bershipofth
eprofessio
nalchambe
rsiscom
pulso
ryfo
rbothem
ployersa
nd
workers,unlikerepresen
tatio
nbyth
etradeun
ionsand
employers’associatio
ns,
whichisvolun
tary.The
followingisalisto
fmajortradeconfed
erationsin
Luxembo
urg:
• theGen
eralCon
fede
ratio
nofth
eCivilService(C
onfédératio
ngénéraledela
fonctio
npu
blique-CGF
P);
• theInde
pend
entLuxem
bourgTrad
eUnion
Con
fede
ratio
n(Ono
fhängege
Gewerkschaftsbo
ndLëtzebu
erg-O
GB-L)
• theGen
eralCon
fede
ratio
nofW
orkinLuxem
bourg(Con
fédératio
ngénéraledu
travailduLuxembo
urg-C
GT-L)com
prisingOGB
-Land
FNCT
TFEL,
• theLuxembo
urgCo
nfed
erationofChristia
nTrad
eUnion
s(Lëtzebuerger
ChrëschtlecheGe
werkschaftsbo
nd–LCG
B),
• theAssociationofban
kem
ployees(AssociationLuxembo
urgeoisedesEmployés
deBan
queetAssuran
ce–ALEB
A),
• theGen
eralFed
erationofth
eMun
icipalAdm
inistration(Fédérationgénéralede
lafo
nctio
ncommun
ale-FGF
C).
Gap
s•
Luxembo
urgisdistinguish
edbyitstripartiteinstitu
tionalised
system
ofsocial
dialogue
com
prisingth
eGo
vernmen
t,em
ployersa
ndemployees.Accordingto
a
repo
rtpub
lishe
dbyEurofou
nd:13
7 “theLuxem
bourgsocialdialogu
emod
elhasth
ead
vantag
eofse
curin
gpeacefullabo
urre
latio
nswith
inth
ecoun
trybecauseitha
sthecap
acityto
reactveryqu
icklyan
dtora
pidlymob
iliseth
eactorswhenaprob
lemarises”.
Thesamerepo
rt,how
ever,also
notesth
atth
isadvantageshow
sweaknessesn
amely
that,
“[t]hish
ighlyreactivean
dinform
alm
etho
d[…]lackstran
sparencyand
clarity
CONFIDEN
TIAL
45
[that]itisdifficulttoseean
dun
derstand
how
decision
sarem
ade.The
functio
ning
oftheTrip
artiteCo
ordina
tionCo
mmitteeillustratesthisp
oint:the
lawdefineswho
sitsonthecommittee,butnothow
decision
sarem
ade
there”.
TheGo
vernmen
tsho
uldconsiderado
ptingmeasurestomitigateth
epe
rcep
tionof
lackoftransparencymen
tione
dabove.
• Thefollowingissue
wasbroughtto
theattentionofth
eauthorbytheCSOs
durin
gtheconsultatio
ns:W
ithre
gardto
theem
ployeere
presen
tativ
eselected
du
ringthesocialelections,the
relevantlegisla
tionhasb
eenextend
edto
cover
“health
”(in
add
ition
tose
curity)onlydu
ringthelatestelectionsin201
9.
Therefore,th
eCSOsh
averaise
dconcernsth
atth
ene
wlyelected
staff
represen
tativ
esm
aynothavethene
cessarypriortrainingon
health
issues.
TheGo
vernmen
tisa
dvise
dtoprovide
add
ition
altrainingsinhe
althissuesto
the
employeere
presen
tativ
es.
5.4.Areth
erepu
bliclyre
ported
casesofb
usiness-
relatedadverseim
pactso
nlabo
urrights,including
childlabo
ur,forcedlabo
ur,disc
rimination,violatio
nsof
freedo
mofassociatio
nandcollectivebargaining,and
inadeq
uateworkingcon
ditio
ns,w
henop
eratingat
homeorabroad?
TerniumS.A.isa
pub
liclimite
dliabilitycompany(sociétéano
nyme)re
gistered
in
Luxembo
urg,
138 a
ndisone
ofthe
biggeststeelcom
paniesope
ratin
ginAmericas.The
companyhasbeenaccusedofbreechingworkersrightsinitso
peratio
nsin
Guatem
alaandrefusin
gtoengageinnegotiatio
nswith
Sitraternium
,aunion
represen
tingTerniumworkersrights.13
9 Ind
ustriALLGlobalU
nion
and
Ternium
have
filed
acom
plaintagainstth
ecompanyatthe
OEC
DNCP
Luxem
bourginSep
tembe
r20
17.Cu
rren
tly,the
caseissuspen
dedtoallowfo
rnegotiatio
nsbetweenparties.14
0 6.
EN
VIRO
NMEN
TAN
DLA
ND
GuidingQue
stions
Statusand
Gap
s6.1.Hasth
estatepu
tinplaceen
vironm
entallaw
sand
regulatio
nsto
ensuretheprotectio
nandprom
otionof
therig
htso
fitscitizensto
health
,ahealth
y
Thefollowingisano
n-exhaustiv
elisto
frelevante
xistingen
vironm
entallaw
sand
regulatio
nsinLuxem
bourg:
• Protectio
nofth
een
vironm
enta
ndanimalsisa
mon
gconstitutionalprin
ciplesin
CONFIDEN
TIAL
46
environm
ent,andlivelihoo
dsinclud
ing,fo
rexample,
cleanwater,cleanair,and
cultiv
atableland
?
Luxembo
urg(Article11b
is);
• TheEn
vironm
entalCod
eprovidesacom
preh
ensiv
ecompe
ndiumofn
ational
legisla
tionapplicableinth
efie
ldofe
nviro
nmen
t;141
• TheLawofM
ay15,201
8on
Enviro
nmen
talImpa
ctAssessm
ent;1
42
• TheGrand
-DucalReg
ulationof15May201
8establishing
listso
fprojects
subjecttoan
enviro
nmen
talimpa
ctassessm
ent;1
43
• TheLawof2
1March201
2on
wastem
anag
emen
t;144
• TheLawof2
1June
197
6on
thefig
htaga
instnoise;14
5 •
TheLawof2
5Novem
ber2
005on
respectin
gpu
blicaccesstoen
vironm
ental
inform
ation;
146
• TheLawof2
9March201
6on
reorga
nizing
theEn
vironm
ental
Administration;
147
Luxembo
urghasb
eenapion
eeringreenfin
ance:“TheLuxembo
urgGreenExchange
isthefirstplatformexclusiv
elyde
dicatedtosu
stainablesecurities,listingalmosth
alf
ofth
eworld’sgreen
bon
dvolumeandanestim
ated
third
ofsustainabilityand
social
bond
s”.14
8 OnJune
26,201
8Luxembo
urgadop
tedalawestablishingalegal
fram
eworkfora
new
type
ofcovered
bon
dtofinancethegene
ratio
nofre
newable
energies.14
9 Inits2
019NationalReformProgram
me,th
eGo
vernmen
tstatedthatit“willexplore
thepo
ssibilityofintrodu
cingta
xincentivesfo
rinvestm
entsth
atm
eetthe
goalsof
sustainablede
velopm
enta
ndclim
atetransition”.15
0 Gap
s
Airp
ollutio
ninLuxem
bourg,causedinpartb
ytrafficcon
gestion,re
mainsacon
cern,
accordingtoth
eEU
Enviro
nmen
talImplem
entatio
nRe
view
201
9.15
1
CONFIDEN
TIAL
47
Europe
anCou
ncilRe
commen
datio
nof9Ju
ly201
9on
the20
19NationalReform
ProgrammeofLuxem
bourgalsohighlightsa
irpo
llutio
nandtrafficcon
gestionatpeak
timesasm
ajorproblem
sforLuxem
bourg:
152
“[…]theCO2em
issionsfrom
road
tran
sportcon
tributetoclim
atechan
ge.
Accordingtoth
e20
17nationa
lprojectionssu
bmittedto
theCo
mmission,itis
expectedth
atinth
eab
senceofadd
ition
alm
easures,Luxem
bourgwillm
issits
2020
greenho
usega
semissionredu
ctiontargetby3percentagepointsa
ndits
2030
targetby20
percentag
epo
ints.Thenum
bero
fcross-borderw
orkers,
who
currentlyre
presenta
bout45%
ofLuxem
bourg’slab
ourforce,thelow
taxatio
noftran
sportfueland
highho
usepricesstim
ulateincreasedcaru
se
andarean
obstacletoim
provingairq
ualityan
dtrafficcon
ditio
ns”.
The20
19OEC
DEcon
omicSurveyhasn
oted
thatth
ereisa“scope
tofu
rthe
rred
uce
theCO
2em
issions,especiallyfrom
transport”,notingthatpercapita
emissionsin
Luxembo
urgtobeam
ongthehighestintheOEC
D.15
3 Themoste
ffectivepo
liciesa
ndm
easuresforre
ducinggreen
housegase
missionsby
privatecarsand
roadtransportseemlikelyto
involveapackageorcom
binatio
nof
measures.The
seinclud
e;volun
taryagreemen
tsbetweenvehiclemanufacturersand
governmen
ttoprod
ucelow-fu
elcon
sumptionvehicles;gradu
ated
veh
icleta
xes;fu
el
taxesa
ndexcise
duties;con
sumerinform
ation;and
promotionofgreaterfu
el
efficiencyinth
ediffe
rentse
ctors.15
4
Itisrecommen
dedthatLuxem
bourgconsidersimplem
entin
gtheforegoingmeasures
andpo
liciestogethe
rwith
thene
cessarylegisla
tiveandregulatoryre
gimesinorder
tore
duceCO2em
issionsbyroadtransporta
ndto
meetthe
settargets.
6.2.Hasth
estatepu
tinplaceland
managem
entlaw
sandregulatio
nsto
ensuretheprotectio
nofth
erig
hts
ofitsc
itizens,includingth
erecognition
ofcustomary
Thefollowingisano
n-exhaustiv
elisto
fenviro
nmen
talimpactassessm
ent(“EIA”)
lawsa
ndre
gulatio
ns;
• TheLawofM
ay15,201
8on
Enviro
nmen
talImpa
ctAssessm
ent;1
55
CONFIDEN
TIAL
48
land
rightsand
theincorporationofhum
anrights
considerationsintoenviro
nmen
taland
socialim
pact
assessmen
tsand
relatedlicen
singpractices?
• TheGrand
-DucalReg
ulationof15May201
8establishing
listso
fprojects
subjecttoan
enviro
nmen
talimpa
ctassessm
ent;1
56
• TheGrand
-DucalReg
ulationof15May201
8am
ending
theGrand
-Ducal
Regu
latio
nof13Septem
ber2
011concerning
thespecialprocedu
reto
be
follo
wed
forcertainclassified
estab
lishm
ents;15
7 •
TheCo
rrigen
dumto
theGrand
-DucalReg
ulationof15May201
8am
ending
the
Grand
-DucalReg
ulationof13Septem
ber2
011concerning
thespecialprocedu
re
tobefollo
wed
forcertainclassified
estab
lishm
ents.15
8
TheLawof2
6Novem
ber2
003on
classified
facilitiessetso
utare
quire
men
tto
obtainprio
rautho
risationfora
nyindu
stria
l,commercialorcraftfacility,whe
ther
publicorp
rivate,whe
neverthe
activity
maypresentdangero
rnuisancetose
curity,
healthorcon
venien
ceand
health
and
safetyofw
orkersinth
eworkplaceasw
ellas
thehu
manand
naturalenviro
nmen
t.159
TheGo
vernmen
t’sofficialinform
ationpo
rtalGuichet.luhasaded
icated
web
siteon
“U
rbanPlann
ingandEnvironm
ent”whichcon
tains,amon
gsto
therto
pics,asiteon
EIA,
160 a
ndasiteded
icated
toCSR.16
1 6.3.Hasth
estateprovided
lawenforcemen
tand
relevantautho
ritiesw
ithinform
ationandtrainingon
issue
srelated
toland
rightsand
thelinkagesb
etween
humanrightsand
theen
vironm
ent?
Seethegene
ralrespo
nseon
trainingissuesinSectio
n5.2.
6.4.Doe
sthe
statehavesy
stem
sinplacetom
onito
ren
forcem
enta
ndim
plem
entatio
nofth
eselawsa
nd
regulatio
ns?
Luxembo
urg’sE
nviro
nmen
tAge
ncy(Adm
inistrationde
l’en
vironn
emen
t)hasth
efollowingrespon
sibilitie
s;16
2 •
providingtraining,informationandadviceasw
ellasraisin
gaw
aren
essa
bout
environm
entaltop
ics,
• managingandprom
otingvoluntaryen
vironm
entalcertificationsche
mes,
CONFIDEN
TIAL
49
• thede
term
ination,th
einventorying,the
descriptio
n,th
eevaluatio
nand
mon
itorin
gofth
eevolutionofth
estateofth
een
vironm
enta
ndth
eim
pactof
humanactivitiesontheen
vironm
ent,
• theconcep
tion,promotionandim
plem
entatio
nofstrategies,con
cepts,plans
andprograms,
• carryingoutre
searchprogram
s,projectsa
ndanalyses,
• participatinginth
eelaborationoflegal,regulatoryand
adm
inistrativ
eprescriptio
ns,
• thesupe
rvision
and
con
trollingofth
eapplicationoflegal,regulatoryand
administrativ
eprescriptio
nsasw
ellasp
oliceactiv
itiesre
latin
gtoth
ese
prescriptio
ns.
6.5.Areth
erepu
bliclyre
ported
casesofb
usiness-
relatedadversehu
manrightsim
pactsinthecontexto
fland
and
theen
vironm
ent?
• SO
CFIN(SociétéFinancièrede
sCaoutchou
cs)isa
Luxem
bourgbasedagro-
indu
stria
lgroup
specialized
inoilpalm
and
rubb
erplantations.V
ariousre
ports
from
NGO
sand
internationalorganisa
tionshaveshow
nsevereenviro
nmen
tal16
3 socialand
hum
anrightsim
pacts1
64associatedwith
SOCFIN’sland
investmen
ts.
Thelatestre
portre
leased
byFIAN
Belgium
con
cerningthecompany’sactivitiesin
SierraLeo
nesh
owsthata
ffected
com
mun
itieswho
havelostaccesstoand
controloverthe
irland
havebe
enexposed
tose
rioushum
anrightsviolatio
nsand
abusessince20
11.1
65The
repo
rtalso
pointstoallegatio
nsofcorruption,lackof
transparen
cyand
non
-implem
entatio
nofCSRpromise
sbySO
CFIN.16
6 SOCFINhas
denied
allallegatio
nsinaletterre
spon
dingto
FIAN’sre
port.16
7 Therehasb
eenanOEC
DNCP
specificinstanceagainstSocfin
Group
/Socapalm
hand
ledbyth
eBe
lgiumNCP
and
supp
ortedbyth
eFranceand
Luxem
bourg
NCP
s.16
8 The
com
plaintcon
cerned
Socapalm'sactiv
itiesinCam
eroo
nthatwere
allegedlycausingen
vironm
entaland
socialdam
age.O
nJune
201
7,in
consultatio
nwith
theNCP
sofFranceandLuxembo
urg,th
eBe
lgianNCP
decided
tote
rminatethemed
iatio
nprocessn
otingthatth
eremed
iatio
nplanagreedto
CONFIDEN
TIAL
50
previouslyin201
3wasonlypartiallyim
plem
entedbyth
eSocfinGroup
.The
threeNCP
snoted
that“de
spite
thefactth
atth
eSocfinGroup
hasprogressedin
term
sofp
ubliccom
mitm
entsre
latin
gtoth
eim
plem
entatio
nofinternationalCSR
standards,practicaland
measurableresultsonthegrou
ndhaveyettobe
achieved
,particularlyinCam
eroo
n”.16
9 Itisrepo
rted
inth
epressthata
lawsuithasb
eenfiled
againstSOCFINinFrance
byaCam
bodianethnicgrou
pBu
nong.The
group
accusesSOCFINofd
epriv
ing
them
ofthe
irecon
omicre
sources,destructin
gtheirp
laceofw
orshipand
causin
gen
vironm
entaldegradatio
n.17
0
• ParaguayAgriculturalCorpo
ratio
n(PAY
CO)isa
com
panyowne
dbyapriv
ate
equityfirm
Rioforte(84.2%)b
ased
inLuxem
bourgandtheGe
rmanBankfor
Developm
ent(15
.8%).Thecompanym
anages135
000
hectareso
flandin
Paraguay.Paraguayhasa
highlysensitiveland
con
textdue
tocon
centratio
nsof
land
owne
rship,increasin
gnu
mbe
rofu
nderno
urish
edpersonsand
high
percen
tageofp
overtyofthe
ruralpop
ulation.
171 Inadditio
n,whatm
akesland
investmen
tshighlyprob
lematicisth
atpartsofthe
land
con
trolledbyPAY
COare
claimed
byindigeno
usand
peasantcom
mun
ities.17
2 Localpeo
plehave
complaine
dabou
tunselectiv
esprayingso
fagro-toxicsand
resultinghealth
prob
lemsinseveralofthe
com
pany’sholdings.17
3 Ith
asalso
beenrepo
rted
that
someofPAY
CO’sope
ratio
nsarecarrie
dou
tinCh
aco,anen
vironm
entallyhighly
fragilere
gion
,whichhasth
eworld’shighe
stdeforestatio
nrate.17
4
•
InM
ay201
7,clim
ateprotectio
nplatform
,Votum
Klim
a,pub
lishe
darepo
rttitle
d“The
Luxem
bourgPe
nsionFund
and
Hum
anRights”.Intherepo
rt,the
autho
rs
allegeth
atLuxem
bourgpe
nsionfund
investsincompaniesth
atviolatehum
an
rights.17
5
CONFIDEN
TIAL
51
• Be
loM
onteDam
ontheXinguRiverintheBrazilianAmazon
basinwou
ldbethe
world’sth
ird-la
rgesth
ydroelectricproject.The
dam
wou
lddivertthe
flow
ofthe
XinguRiver,de
vastateanexten
siveareaofthe
Brazilianrainforest,disp
laceover
20,000
peo
ple,and
threaten
thesurvivalofind
igen
oustrib
esth
atdep
endon
the
river.The
Ode
brechtGroup
whichisinvolved
inth
econstructio
nofth
edam,1
76
hasfivecom
paniesre
gistered
inLuxem
bourgtw
oofwhichhavedirectlinksto
Ode
brechtSAinBrazil,accordingto
theActionSolidarité
TiersM
onde
(ASTM).1
77
• NGO
s,ASTM(Luxem
bourg)and
FIAN(G
ermany)haverepo
rted
thatAgrivision
,a
companywho
seactivitieswerefin
ancedbyLuxem
bourg-basedAA
TIF(Africa
Agricultureand
Trade
Investmen
tFun
d)hasbeenim
plicated
inland
grabb
ingin
Zambia.
178
7.
CO
MMUNITYCO
NSU
LTAT
IONANDEN
GAG
EMEN
TGuidingQue
stions
Statusand
Gap
s7.1.Isth
erearequ
iremen
tforth
efree,prio
r,and
inform
edcon
sent(FPIC)ofp
oten
tiallyim
pacted
indigeno
uscom
mun
ities?Ha
sthe
stateprovided
relevantautho
ritiesw
ithinform
ationandtrainingon
issue
srelated
toth
erig
htso
find
igen
ousp
eoples,
includ
ingtheirrightto
FPIC?
Thefollowingisalisto
fhardandsoftlawinstrumen
tsth
atcon
tainFPIC
requ
iremen
tsth
atLuxem
bourghassigne
dorexpressed
supp
orto
f(seesections1.1.
and1.5.fo
rreferen
ceand
details):
• ILO’sIn
dige
nousand
Trib
alPeo
plesCon
vention(198
9)(in
particular,A
rticles5
,15
and
16);17
9 •
theUNDeclaratio
non
theRigh
tsofInd
igen
ousP
eoples(U
NDR
IP)(20
07)(in
particular,A
rticles1
0,19
,29,32);
• theUNGPs(2
011),prin
ciple12
;•
theIFCEn
vironm
entaland
SocialPerform
anceStand
ards(2
012)(p
erform
ance
standard7,clause14
,15,16,17).
7.2.Areth
erepu
bliclyre
ported
casesoffailureby
busin
essesd
omiciledinth
estate’sterritoryor
TheCSOsh
avereferred
toSOCFINand
Ode
brechtGroup
asb
usinessesthath
ave
failedtoeffe
ctivelycond
uctp
ubliccon
sulta
tionsand
/orF
PICprocessesintheir
CONFIDEN
TIAL
52
jurisdictiontoeffe
ctivelycond
uctp
ubliccon
sulta
tions
and/orFPICprocessesinrelatio
ntoth
eiro
peratio
nsat
homeorabroad?
operationsabroad(seeSectio
n6.5.).
8. OCC
UPA
TIONAL
HEA
LTHAN
DSA
FETY
GuidingQue
stions
Statusand
Gap
s8.1.Hasth
estatepu
tinplacehe
althand
safetylaws
andregulatio
nsto
ensurebu
sinessrespe
ctfo
rthe
ph
ysicaland
men
talhealth
ofw
orkersand
commun
ities?
Thefollowingisano
n-exhaustiv
elisto
flaw
sand
regulatio
nsinLuxem
bourgrelated
tooccup
ationa
lhea
lthand
safety;
• Thelawof1
7June
1994rend
ered
occup
ationalhealth
measuresc
ompu
lsoryfo
rallcom
paniesand
allem
ployeesintheGrandDu
chyofLuxem
bourg:
o TheLawonsafetyatw
orkisinclud
edinth
eLabo
rCod
einth
earticles
L.311-1toL.314
-4,and
;o
TheLawonoccupatio
nalhealth
isinclud
edinarticlesL
.321
-1to
L.327
-2
ofth
eLabo
rCod
e.
• Grand
-DucalReg
ulationof27Septem
ber2
004on
thesettingofprocedu
resfor
thetrainingofsafetyrepresen
tativ
es;18
0 •
Grand
-DucalReg
ulationof20July201
8am
endingth
eGrand-Du
calRegulationof
14Novem
ber2
016concerningth
eprotectio
nofth
esafetyand
health
of
employeesa
gainstth
erisksassociatedwith
che
micalagentsintheworkplace;18
1 •
Coordinatedtextof3
Novem
ber1
995ofth
eam
ende
dGrand
-DucalReg
ulation
of13June
1979on
thedirectivesonsecurityinth
epu
blicse
rvice;
182
• TheDirective20
12/18/E
Uofthe
Europ
eanParliam
enta
ndth
eCo
uncilof4
July
2012
onthecontrolofh
azardsassociatedwith
majoracciden
tsinvolving
dangerou
ssub
stances,amen
dingand
subseq
uentlyre
pealingCo
uncilD
irective
96/82/E
Chasb
eentransposed
intoLuxem
bourglawbytheLawof2
8Ap
ril
2017onthecontrolofm
ajor-acciden
thazardsinvolvingdangerou
ssubstances;18
3 •
On24
March201
6,nationalstakeho
lders,includ
ingtheAA
A(Associatio
n
CONFIDEN
TIAL
53
d’AssuranceAccide
nt),theUELand
theINDR
,havesig
nedthenatio
nalV
ISION
ZERO
Cha
rterfo
rthe
promotionofhealth
and
safetyatw
orkwhichcallsfora
common
and
integrated
app
roachtore
ducingth
enu
mbe
rand
severityofwork
accide
nts,com
mutingaccide
ntsa
ndoccup
ationaldise
asesinLuxem
bourg.
184
•
Thereisno
legisla
tionaddressin
gmen
talhealth
atw
orkplaceinLuxem
bourg.
185
8.2.Hasth
estateprovided
lawenforcemen
tand
relevantautho
ritiesw
ithinform
ationandtrainingon
labo
urrightsinth
econtexto
foccup
ationalhealth
and
safety?
Seethegene
ralrespo
nseon
trainingissuesinSectio
n5.2.
8.3.Doe
sthe
statehavesy
stem
sinplacetom
onito
ren
forcem
enta
ndim
plem
entatio
nofth
eselawsa
nd
regulatio
ns?
TheMinistryofLab
ourisinchargeofthe
executio
nofth
enatio
nalpolicyon
em
ploymen
tand
labo
ur,and
coo
rdinatesactionsre
latin
gtolabo
urlaw,w
orking
cond
ition
sand
indu
stria
lrelations.
TheOccup
ationa
lHea
lthDivisionofth
eMinistryofHea
lth isinchargeoforganising,
coordinatin
gandoverseeingth
efunctio
ningofthe
occup
ationalhealth
services.Itis
alsoanappe
albod
yfore
mployersa
ndworkersincaseswhe
reth
eop
inionofan
occupatio
naldoctorisd
isputed
. Latest“QualityofW
orkInde
x”(2
7Novem
ber2
018)pub
lishe
dbyth
e Chambrede
sSalarié
sand
theUniversity
ofLuxem
bourghasc
onclud
edpsychosocialissue
stobe
themainprob
leminth
eworkplacelinked
with
risin
gstresslevels.
186
TheITMhasth
etaskofinspe
ctingoccupatio
nalhealth
and
safetyinpriv
atesector
includ
ing;preventingpsycho
socialrisks,externalviolenceandbu
rn-out,m
anaging
stressofd
ismissaland
mob
bing.
TheAc
cide
ntIn
suranceAssociation(Associatio
nd’AssuranceAccide
nt-AA
A),und
er
CONFIDEN
TIAL
54
theauspicesofM
inistryofSocialSecurity
,isa
pub
licinstitu
tionrespon
siblefo
rthe
preven
tionandpaym
ento
fcom
pensationforw
orkaccide
ntsa
ndoccup
ational
diseases.
(Forfu
rthe
rinformation,se
eSection5.)
Gap
s
Thereisno
institu
tewho
seactivitiesareexclusiv
elyde
dicatedtopreventioninth
efie
ldofo
ccup
ationalhealth
and
safety.
8.4.Areth
erepu
bliclyre
ported
casesofadverse
impactso
nthehe
althand
safetyofw
orkersath
ome
orabroadbybusinessesd
omiciledinth
estate’s
territo
ryorjurisd
ictio
n?
Theconstructio
nsectorhasbeenrepo
rted
tohavethehighestn
umbe
rofw
orkplace
accide
ntsinLuxembo
urg.
187 R
ecen
tly,the
ITMcarrie
dou
tinspe
ctionson93
constructio
nsites(b
etweenJuly26,201
9andAu
gust18,201
9).14constructio
nsites
wereshutdow
ndu
etobreache
sofh
ealth
and
safety.W
orksinth
reeseparate
placeswerestop
peddu
etoim
minen
tand
serio
usdangertothesafetyand
health
of
employeesintheworkplace.18
8 9.
TA
XGuidingQue
stions
Statusand
Gap
s9.1.Hasth
estatepu
tinplacetaxlawsa
ndre
gulatio
nsto
supp
orte
thicalcorpo
ratebeh
aviourand
businessrespe
ct
forh
umanrights?
Thefollowingisano
n-exhaustiv
elisto
frelevante
xistingLuxembo
urgtaxlawsa
nd
regulatio
ns:1
89
• TheGen
eralTaxLaw
of2
2May193
1(Abgaben
ordn
ung);19
0 •
TheAd
aptatio
nTa
xLawof1
6Octob
er193
4(Steueranp
assung
sgesetz);19
1 •
TheWea
lthTaxLaw
of1
6Octob
er1934(Vermög
enstuergesetz);19
2
• TheCo
mmun
alTaxLaw
of1
Decem
ber1
936(G
ewerbesteuergesetz);
• ThePe
rson
aland
Corpo
rateIn
comeTa
xlawof4
Decem
ber1
967;
193
• TheVA
TLawof1
2Februa
ry197
9.19
4 •
Fore
achofth
eselaws,th
eexecutivebranchhasado
pted
variousGrand
-Ducal
CONFIDEN
TIAL
55
regulatio
nsto
provide
guidanceinth
ecorrectimplem
entatio
nofth
elaws.
9.2.Hasth
estateprovided
lawenforcemen
tand
relevant
authoritieswith
inform
ationandtrainingonthehu
man
rightsimpactso
ftaxevasio
nandavoidance?
Seethegene
ralrespo
nseon
trainingissuesabo
ve,Sectio
n5.2.
9.3.Doe
sthe
statehavesy
stem
sinplacetom
onito
ren
forcem
enta
ndim
plem
entatio
nofth
eselawsa
nd
regulatio
ns?
InLuxem
bourg,th
reede
partmen
tsarere
spon
siblefo
renforcingta
xlegisla
tion:
• theRe
gistratio
nDu
ties,Estatesand
VAT
Autho
rity(Adm
inistratio
nde
l’enregistrement,desd
omainese
tdelaTVA
-AE
D);19
5 •
theLuxembo
urgdirectta
xau
thorities(Ad
ministratio
ndesc
ontributions
directes-AC
D);19
6 •
theCu
stom
sand
ExciseAg
ency(A
dministratio
ndesd
ouan
eseta
ccise
s),19
7 whe
reapp
licable.
Whileth
eEU
doe
snothaveadirectro
leincollectingtaxeso
rsettin
gtaxrates,it
overseesnationaltaxru
lesincertainareassofara
tthe
yrelateto
EUbusinesses
andconsum
erpolicies.19
8 Inadditio
n,th
eEurope
anCom
missionisob
liged
to
investigatecertainnatio
naltaxtreatm
entsth
atm
ightcon
stitu
teaviolatio
nof
stateaidrulesu
nderArticle108
(2)T
FEU.19
9 TheEurope
anCom
missionhas
laun
ched
severalformalin-dep
thinvestigationsto
evaluatewhe
therth
etax
rulingsgranted
byLuxembo
urgtocertainm
ultin
ationalcom
paniescon
stitu
te
stateaidwith
inth
emeaningofE
Ulawand
hascon
clud
edth
atLuxem
bourghas
grantedselectivetaxadvantagesto
certaininternationalcom
paniesinviolatio
nof
EUstateaidrules.20
0 Luxem
bourgandthecompaniesbroughtactionsbeforethe
Gene
ralCou
rtofthe
EUse
ekingtheannu
lmen
tofthe
Com
mission’sd
ecision
s.
TheCo
urtrecen
tlyissued
adecision
ontheactio
nbrou
ghtb
ytheFiatChrysler
FinanceEurope
and
Luxem
bourg,dism
issingbo
thactionsand
con
firmingthe
validity
ofthe
Com
mission’sd
ecision
.201
9.4.Areth
erepu
bliclyre
ported
casesofadversehum
an
InNovem
ber2
014,Luxem
bourgLeaks(LuxLeaks)scand
albrokeoutwhe
nthe
CONFIDEN
TIAL
56
rightsimpactsstemmingfrom
taxevasionandavoidance
bybusinessesd
omiciledinth
estate’sterritoryor
jurisdictionop
eratingathom
eorabroad?
InternationalCon
sortiumofInvestig
ativeJournalists(ICIJ)pu
blish
ednearly
28,00
0pageso
fcon
fiden
tialdocum
entsleaked
byAn
toineDe
ltour,awhistleblow
erand
form
eremployeeofP
ricew
aterho
useC
oope
rs(P
wC).20
2 The
docum
entsinclud
ed
hund
redsofp
rivatetaxrulings,revealingde
tailsabo
uthow
com
panieswith
op
erationsinLuxem
bourghadcutthe
irtaxbillsbymovingprofitsaroun
ddiffe
rentpartsofthe
corpo
rategroup
and
playingnationaltaxsy
stem
soffagainst
oneanothe
r.203The
com
panieshadworkedwith
bigaccou
ntingfirms,includ
ing
PwC,Ernest&
You
ng,D
eloitteandKP
MG,amon
gothe
rs,20
4 and
securedrulings
from
theLuxembo
urgtaxagen
cyth
atsu
charrangemen
tsdidnotflou
tnational
laws.20
5 Aroun
d35
0internationalcom
panieswereim
plicated
inth
escandal
accordingtoth
eleaked
docum
ents,including;A
ccen
ture,A
bbottLaboratories,
AmericanInternationalG
roup
,Amazon
,Blackston
e,Deu
tscheBa
nk,Fed
Ex,the
Co
achhand
bagem
pire,H
.J.Heinz,JPMorganCh
ase,Pep
si,IKEA
,Burbe
rry,
Procter&
Gam
ble,th
eCarly
leGroup
,the
Abu
DhabiInvestmen
tAutho
rityandthe
othe
rs.20
6
Gap
s
Corporatetaxavoidance,alth
oughm
aynotbeillegalund
ernationallaw
s,is
increasin
glyraisingcon
cernsa
stowhe
theritharmsthe
governm
ent’sabilityto
meetitshum
anrightsobligations,inparticularinre
gardstoecon
omicand
social
rights.
Inare
portpub
lishe
din201
3,th
eInternationalBarAssociatio
n’sH
umanRights
Institu
te(IBA
HRI)conclude
dthatta
xabuseshaveconsiderablenegativeim
pacts
onth
een
joym
ento
fhum
anrights:
“taxabu
sesd
epriv
ego
vernmentsofthere
sourcesrequiredtoprovideth
eprog
rammesth
atgiveeffectto
econo
mic,socialand
culturalrights,and
to
createand
streng
thenth
einstitu
tionsth
atuph
oldciviland
politicalrights.
Actio
nsofstatestha
tencou
rageorfacilitateta
xab
uses,ortha
t
CONFIDEN
TIAL
57
deliberatelyfrustratetheeffortso
fotherstatesto
cou
nterta
xab
uses,
couldconstituteaviolationofth
eirinterna
tiona
lhum
anrigh
tsobligations,
particularlywith
respecttoecon
omic,socialand
culturalrights”.20
7
Alon
gsim
ilarlines,the
OHC
HRinaninform
ationno
teonthe“Rightto
De
velopm
enta
ndTaxation”hasstated
that:
“Byfailingto
add
ressth
ewaysthatinternatio
naldifferen
cesintaxatio
ncanleadto
redu
ceddo
mesticre
sourcesforth
erealiza
tionofhum
an
rights,and
inde
edinso
mecasesa
ctivelyen
ablingtaxavoidancepractices
bytransnationalcorpo
ratio
ns,Statesa
lsofailtoliveuptoth
eirh
uman
rightsc
ommitm
ents”.
208
Luxembo
urghasc
ommitted
tobettercoo
perateand
regulateitstaxpractices
followingtheLuxLeakssc
andal.Ithastaken
variousstep
stocombatthe
issueof
aggressiv
etaxplanning,includingamen
dingth
eCrim
inalCod
etointrod
uce
penaltiesfo
rfraud
and
making“aggravatedtaxevasion”acrim
inaloffe
nce2
09and
ratifyingth
eMultilateralCon
ventionforthe
Implem
entatio
nofM
easureso
nTa
xCo
nven
tionsto
PreventBaseErosionan
dProfitShifting(‘M
LI’)whichentered
intofo
rceinLuxem
bourgasof1
August2
019.
210
Despite
theseim
provem
ents,how
ever,gap
srem
ain:
Inapressre
leasepu
blish
edinFeb
ruary20
19,the
EUParliamen
t’sSpe
cial
CommitteeonFinancialCrim
es,TaxEvasio
nandTaxAv
oidancefoun
dseven
Europe
ancou
ntrie
s,includ
ingLuxembo
urg,to
“displaytraitsofata
xhavenand
facilitateaggressiv
etaxplanning”.
211
Onthesameissue
,the
Cou
ncilRe
commen
datio
nof9Ju
ly201
9on
the20
19
NationalReformProgram
meofLuxem
bourgstatesth
at;
“Luxem
bourgha
stakenm
easuresa
gainstagg
ressivetaxplan
ning
,butth
e
CONFIDEN
TIAL
58
high
levelofd
ividend,interestand
royaltypaymentsasa
percentag
eof
GDPsugg
eststh
atth
ecoun
try’staxru
lesa
reusedbycom
paniesth
at
enga
geinagg
ressivetaxplan
ning
.Them
ajorityofforeign
dire
ct
investmentish
eldby'specialpurpo
seentities'.Theab
senceofwith
holding
taxeso
nou
tbou
nd(i.e.fromEUre
sidentsto
third
cou
ntryre
sidents)
interestand
royaltypaymentsand
theexem
ptionfrom
with
holdingtaxes
ondividendpa
ymentsund
ercertaincircum
stan
cesm
aylead
toth
ose
paym
entsescap
ingtaxaltogether,iftheyarealsonotsu
bjecttotaxinth
erecipientjurisd
ictio
n”.2
12
Luxembo
urgissue
dseveralreservatio
nsto
MLIwhichm
akesitdifficulttoasses
howeffe
ctivethedo
mesticim
plem
entatio
nofth
einstrumen
twou
ldbe.The
se
reservationsinclud
e:21
3 •
Article4(D
ualResidentE
ntities);
• Article8(D
ividendTran
sferTransactio
ns);
• Article9(C
apita
lGainsfrom
theAliena
tionofSha
reso
rInterestsofE
ntities
Deriv
ingtheirV
aluesP
rincipa
llyfrom
Immovab
leProperty);
• Article10(Anti-a
buseRuleforP
erman
entE
stab
lishm
entsSitu
atedinThird
Jurisdictions);
• Article11(App
licationofTaxAgreementsto
Restricta
Party’sRightto
Taxits
OwnRe
sidents);
• Article12(ArtificialAvoidan
ceofP
erman
entE
stab
lishm
entsth
roug
hCo
mmissiona
ireArran
gementsand
Sim
ilarS
trategies);
• Article14(Splitting-up
ofC
ontracts);and
• Article15(Definition
ofa
PersonCloselyRe
latedtoanEnterprise).
10. TRA
DEANDINVE
STMEN
TGuidingQue
stions
Statusand
Gap
s
CONFIDEN
TIAL
59
10.1.D
oesthe
staterequ
ireth
atahum
anrightsim
pact
assessmen
tbecond
uctedon
thepo
tentialimpactso
ftradeandinvestmen
tagreemen
tsbeforesig
ningsu
ch
agreem
ents?
• Luxembo
urgispartofthe
harmon
isedtradesystem
ofthe
EU.The
EUhas
exclusivepo
werto
legisla
teontrademattersand
tocon
clud
einternational
tradeagreem
entsonbe
halfofEUm
embe
rcou
ntrie
s.Itsp
olicycoverstradein
good
sand
servicesasw
ellasm
atterssu
chasc
ommercialaspectsof
intellectualprope
rtyandforeigndirectinvestmen
t.The
ruleso
nEU
trade
policyareseto
utinArticle207
ofthe
Treatyon
theFunctio
ningofthe
Europe
anUnion
.214
• InLuxem
bourg,th
eDirectorateofIn
ternationa
lEcono
micRelationsand
Eu
rope
anAffa
irs(LaDirectionde
srelationsécono
mique
sinterna
tiona
lese
tde
saffa
irese
urop
éenn
es-DirectorateII)ofthe
MinistryofForeignand
Europe
anAffa
irschairsth
eInter-ministerialCom
mitteefo
rthe
Coo
rdination
ofEurop
eanPo
licy(CICPE),andcoordinatesthe
transposition
and
app
lication
ofEurop
eanUnion
law.21
5 •
TheEU
'stradepo
licy,alongsid
eitsfo
reignpo
licyandde
velopm
ent
coop
eration,su
pportsre
spectforhum
anrightsinnon
-EUcou
ntrie
s.21
6 The
EU
exam
inesth
eeffectso
ftrade
agreemen
tsonhu
manrightsinboththeEU
and
itstradepartne
rsth
roughim
pactassessm
entsbeforeanddu
ringne
gotia
tions,
andevaluatio
nsoftrade
agreemen
tsoncetheyareinope
ratio
n.21
7 •
TheEU
’sGen
eralised
SystemofP
references(G
SP)and
GSP+system
sare
amon
gthemostn
otableexistingpracticesto
promotehu
manrightsth
rough
trade.
218
• TheGS
PandEverything
ButArm
sschem
es(the
“EB
A”)allowexportersfrom
de
velopingcou
ntrie
stopaylowercustomsd
uties.G
SPand
EBA
canbe
with
draw
nifthereareserio
usand
system
aticviolatio
nsofh
umanrights.G
PS+
entailsfu
llremovaloftariffso
nover66%
ofE
Uta
rifflines.The
ben
eficiary
coun
trymusth
averatifiedthe27
GSP+relevantinternationalcon
ventionson
humanand
labo
urrights,enviro
nmen
talprotection,and
goo
dgovernance.21
9
CONFIDEN
TIAL
60
• Mod
ernEU
trad
eag
reem
entsobligetheEU
and
itsp
artnerstorespecta
nd
implem
entthe
ILO’sfu
ndam
entalcon
ventionsonfreedo
mofassociatio
nand
therig
htto
collectivebargaining,abo
lishingallform
sofforcedorcom
pulso
ry
labo
ur,abo
lishingchildlabo
urand
end
ingdiscrim
inationinth
eworkplace.22
0 •
TheBe
lgium-Luxem
bourgEcon
omicUnion
(“BLEU
”-U
nion
écono
mique
belgo-luxembo
urgeoise-UEB
L)wasestablishe
dbyaCon
ventionon
July25,
1921
.The
UEB
LCo
nven
tionwasamen
dedon
18De
cembe
r200
2and
approved
bytheLawof2
7May200
4.22
1 The
amen
dedCo
nven
tionauthorize
sLuxembo
urgandBe
lgiumto
exten
dtheircollabo
ratio
nbe
yond
purely
econ
omicand
mon
etarysphe
res,includ
ing;strengthen
ingcoop
erationwith
in
internationalorganiza
tions,inten
sifyingre
latio
nsinth
eareaso
fhum
anita
rian
aidandde
velopm
entcoo
peratio
nandstrengthen
ingcoop
erationinth
efie
ld
ofdefen
seand
peacekeep
ing.
222
InM
arch201
9,th
eBLEU
hasunveiledane
wm
odelinvestmen
ttreatytext
whichwillbeused
tonegotiatefu
tureagreemen
tswith
non
-EUstatesth
at
havenotalre
adyconclude
dagreem
entswith
theEU
itself.
223 T
hem
odel
agreem
entcon
tainslanguagerecognizingth
eim
portanceoflabou
rstand
ars
(Article16),enviro
nmen
talstand
ards(A
rticle17),CSRand
RBC
(Article18).22
4 Notably,the
mod
elagreemen
t’sprovisio
non
CSRgoe
sfurtherth
anm
ost
recenttreatie
sand
mandateth
atinvestorssho
uld:
“actinaccorda
ncewith
internationa
llyacceptedstan
dardsa
pplicab
leto
foreigninvestorstowhichth
eCo
ntractingPa
rtiesa
reaparty[a
nd]strive
tom
akethemaxim
umfeasiblecon
tributionsto
thesustaina
ble
developm
ento
ftheHostStateand
localcom
mun
ityth
roug
hsocially
respon
siblepractices.”
225
Gap
s
Whe
therth
eGS
Plabo
urand
hum
anrightscon
ditio
nalityhasb
eeneffectivehas
been
thesubjecto
fdeb
ate.
226 G
iven
thelim
itednu
mbe
rofcasesinwhich
CONFIDEN
TIAL
61
suspen
sionofpreferenceshasbeenapplied,itisdifficulttomakeanymeaningful
gene
ralisationabou
titseffe
ctiven
ess.22
7
10.2.D
otradeandinvestmen
tagreemen
tsinclud
especific,enforceableprovisio
nsre
quiringcom
pliancewith
internationallyre
cognise
dhu
manrights,includinglabo
ur
rights?
NAP
2018-19
statesth
at:“Alltrade
and
coo
peratio
nagreem
entscon
clud
edwith
third
cou
ntrie
sinclude
ahum
anrightsclausespecifyingthatth
eserig
hts
constituteafund
amen
talaspecto
frelationswith
theEU
,whichhasre
peated
ly
impo
sedsanctio
nsfo
rviolatio
nsofh
umanrights”.
228
10.3.A
reth
erelawsa
ndpoliciesthate
nsurethat
expo
rted
goo
dsand
services,suchasdualuse
techno
logies,dono
tcon
tributetoadversehum
anrights
impactsa
broad?
• Theexpo
rt,transitandbrokeringofdual-u
seitem
sarewith
inth
econtrolof
theEU
.Dua
lUseReg
ulation(EC)No42
8/20
09governsth
eEU
'sexpo
rt
controlregim
e.22
9 TheRe
gulatio
n(EC)No42
8/20
09isapp
licableth
rougho
ut
theEU
.InSeptem
ber2
016,th
eEU
Com
missionadop
tedaprop
osalto
recast
theRe
gulatio
n(EC)No42
8/20
09and
mod
ernizeth
eEU
Exportcon
trolsy
stem
toinclud
eprovision
srelated
toth
econtrolofe
xportsofcyber-surveillance
techno
logiesto
cou
ntrie
swith
autho
ritarianorre
pressiv
egovernmen
ts.23
0 •
Theexpo
rtofgoo
dswhichhaveno
otherpracticaluseth
anth
atofinflictin
gthede
athpe
nalty
ortortureand
othercruel,inh
umanord
egradingtreatm
ent
orpun
ishmen
tareprohibitedinLuxem
bourginaccordancewith
Ann
exIIof
theEU
Gen
eralExportA
utho
rizationRe
gulatio
n(EUGEA
123
6/20
05)e
xcep
twhe
nintend
edfo
rdisp
layinam
useu
m.Trade
initem
sthath
avelegitim
ate
purposebu
tcou
ldalso
beused
fortortureore
xecutio
nsissu
bjectto
authoriza
tion.
• Th
eLawof2
7June
201
8regulatesthe
con
trolofthe
export,transfer,transit
andim
portationofgoo
dsofastrictly
civiliannature,defen
se-related
produ
cts
anddu
al-usegoo
ds.23
1 Inadd
ition
,Luxem
bourgisamem
bero
fthe
followingno
n-prolife
ratio
nand
expo
rtsc
ontrolre
gimes:23
2 •
Wassena
arArran
gemen
t(WA):d
ual-u
segoo
ds,con
ventionalw
eapo
ns,
CONFIDEN
TIAL
62
transferofind
ustrial,cryptologicandadvanced
techno
logieslikelyto
beused
forv
ariousm
ilitaryprogram
mes,
• MissileTechn
olog
yCo
ntrolR
egim
e(M
TCR)againstth
eprolife
ratio
nof
missilesa
ndm
issilete
chno
logy,
• NuclearSup
pliersGroup
(NSG
)againstth
eprolife
ratio
nofnucleargoo
dsand
techno
logies,
• Au
stralia
Group
(AG)a
gainstth
eprolife
ratio
nofche
mical,biologicaland
toxic
good
sand
weapo
ns,
• Ch
emicalW
eapo
nsCon
vention(CWC)againstth
eprolife
ratio
nofche
mical
weapo
ns.
On22
Janu
ary20
19,aparliamen
taryque
stionwasra
isedaddressin
gtheMinister
ofM
AEEon
themurde
rofthe
JamalKhashoggi.23
3 Khashoggi,adissiden
tSaudi
journalist,wasassassin
ated
inth
eSaud
icon
sulateinIstanb
ulon2Octob
er
2018.An
Israelicom
panyNSO
Group
Techn
ologies,wassu
bseq
uentlyim
plicated
forsellingasoph
isticated
pho
ne-hackingsy
stem
calledPe
gasustoSaud
iauthoritieswhichallegedlyfacilitated
themurde
r.234Itwasclaim
edth
atth
etransactionwaspartly
con
ducted
throughanaffiliateofthe
NSO
calledQCyber
Techno
logies,based
inLuxem
bourg.
235
Theparliam
entaryque
stion,with
outm
entio
ningth
enamesofthe
com
panies,
inqu
iredwhe
therth
eMinisterwasawareofth
ecaseand
theextentto
whichth
eGo
vernmen
tinten
dsto
interven
ewith
Israeliautho
ritiestoob
tainfu
rthe
rclarificatio
n.The
parliamen
taryque
stionalsoinqu
iredwhe
therth
eMinister
considersthatthe
actionsofthe
Luxem
bourgsubsidiaryviolatesh
umanrightsand
ifsowhatcon
sequ
encesd
oesthe
Governm
entinten
dtoim
pose.Finally,referrin
gtoth
epu
relyvolun
tarynatureofth
eNAP
201
8-19
,the
parliamen
taryque
stion
inqu
iredwhe
therth
eGo
vernmen
tbelievesthate
xistinglegisla
tionpreven
tsand
whe
reapp
ropriate,rem
ediesh
umanrightsand
enviro
nmen
taldam
agecaused
by
CONFIDEN
TIAL
63
theactiv
itiesofcom
paniesestablishe
dinLuxem
bourgandofth
eirv
alue
chain.
TheMinisterso
fMAE
EandEcon
omyissue
dajointrespo
nseon
19February201
9.
Theyre
ferred
toth
eLawof2
7June
201
8andtheEurope
anand
theinternational
fram
ework.The
Ministersstatedthat,based
onthepressrep
orts,the
export
licen
sefo
rthe
spy-warewasgranted
bytheIsraeliautho
ritiesa
ndth
atth
eLuxembo
urgauthoritieshaveno
tinanycasebeenrequ
estedbyth
ecompany
establish
edinLuxem
bourgtoautho
rizeanyexpo
rt.The
Ministersfurtherstated
thatth
eNAP
201
8-19
und
erlinesth
eim
portanceofd
uediligenceinpreventing
humanrightsviolatio
nsbyen
terprises,and
thatInorderto
implem
entthe
NAP
2018-19,th
eGo
vernmen
tisraisin
gaw
aren
essa
mon
gcompaniesand
expects
them
tofu
llyre
specth
umanrights.The
Ministersreferredtoth
eCo
alition
Ag
reem
ent2
018whe
rebyth
eGo
vernmen
talso
und
ertookto
stud
ythepo
ssibility
oflegisla
tingthedu
ediligen
cefo
rcom
paniesdom
iciledinLuxem
bourg,insofara
ssuchdutywou
ldre
presen
tacom
plem
entarym
easureto
theNAP
.236
10.4.H
asth
estatepu
tinplacelawsa
ndre
gulatio
nsto
prom
otebu
sinessrespe
ctfo
rhum
anrightswith
intrade
practices?Fore
xample,areth
erelawso
rregulationsth
at
ensureth
atgoo
dsand
servicesbeingim
ported
arenot
linkedtoviolatio
nsofinternatio
nallyre
cognise
dhu
man
rights,includ
inglabo
urrights?
• TheRe
gulatio
n(EC)No23
68/200
2im
plem
entin
gtheKimbe
rleyProcess
certificatio
nsche
meforthe
internationaltrade
inro
ughdiam
ondsbansa
llim
portsintotheEurope
anUnion
ofrou
ghdiamon
dsth
atarenot
accompanied
byanapp
ropriatecertificateoforig
inprovingth
eyarenot
relatedtocon
flict.23
7 •
TheRe
gulatio
n(EU)2
017/82
1laysdow
nsupp
lychaindue
diligence
obligationsfo
rselectedEU
impo
rterso
fcertaincon
flictm
ineralsa
ndm
etals,
includ
ingsm
eltersand
refin
ersp
rocessingmineralsinsidetheEU
.238 T
he
impo
rtersn
eedtocom
plywith
,and
repo
rton,su
pplychaindue
diligence
obligationsifth
emineralso
riginatefrom
con
flict-affe
cted
and
highriskareas.
Asam
embe
rofthe
EU,the
Con
flictM
ineralsR
egulationwillapp
lyin
Luxembo
urgasof1
Janu
ary20
21.
CONFIDEN
TIAL
64
10.5.D
ostateinstitu
tionsth
atsu
pporto
verseas
investmen
thaveanden
forcepe
rformancestandardsthat
supp
ortthe
protectionandprom
otionofhum
anrights?
AccordingtoLuxem
bourg’se
xportcredita
gency,th
eOfficedu
Ducroire
(ODL
),en
vironm
entalimpactand
socialre
spon
sibilityareamon
gtheindicatorsof
eligibilitycriteriafo
rfinancialsu
pport.2
39The
ODL
notesth
atitcom
pliesw
ithth
eOEC
Dguidelinesonen
vironm
entaland
socialdue
diligencefore
xportcredits.24
0 10
.6.H
asth
estateprovided
lawenforcemen
tand
relevantautho
ritiesw
ithinform
ationandtrainingon
issue
srelated
totradeandinvestmen
t?
Seethegene
ralrespo
nseon
trainingissuesinSectio
n5.2.
10.7.D
oesthe
statehavesy
stem
sinplacetom
onito
ren
forcem
enta
ndim
plem
entatio
nofth
eselaws,policies,
andregulatio
ns?
InLuxem
bourg,th
eOfficeofE
xportC
ontrol,Impo
rtand
Transit(OCEIT–form
erly
LicensingOffice)isrespo
nsiblefo
rapp
lyingtherulesc
oncerningtheim
port,
expo
rt,intra-Com
mun
itytransferand
transitofthe
goo
dswho
setradeis
regulated.
241 T
heseinclud
e;
• du
al-usegoo
ds,
• de
fense-relatedprod
ucts,
• prop
ertyofastrictly
civilnature(e
.g.diamon
ds),
• prop
ertylikelyto
beused
forthe
purpo
seofcapita
lpun
ishmen
tortorture.
10.8Areth
ereanypu
bliclyre
ported
instanceso
ftrade
andinvestmen
tagreemen
tsund
erminingtherealisa
tion
ofhum
anrightsath
omeorabroad?Forexample,th
euse
ofastabilisatio
nclauseso
rinvestor-statedispute
settlemen
tprovisio
nsto
und
erminethestate’sd
utyto
protecth
umanrights.
Thepresen
tstudydidnotfind
anyinstancesw
hereth
euseofstabilisatio
nclauses
orinvestor-statedisp
utesettlemen
tprovisio
nshadund
ermined
Luxem
bourg’s
dutyto
protecthum
anrights.
11. A
NTI-BRIBE
RYANDCO
RRUPT
ION
GuidingQue
stions
Statusand
Gap
s11
.1.H
asth
estatepu
tinplacelawsa
ndre
gulatio
ns
aimed
atp
romotinganti-briberyandcombatting
corrup
tionwith
inand
acrossg
overnm
ents?
Thefollowingisano
n-exhaustiv
elisto
fexistinglawsa
ndre
gulatio
nsaim
edat
prom
otinganti-briberyandcombattingcorrup
tionwith
inand
acrossthe
Go
vernmen
t.•
Luxembo
urghassigne
dtheOEC
Danti-briberyCo
nven
tioninDecem
ber
CONFIDEN
TIAL
65
1997.24
2 TheLawof1
5Janu
ary2001im
plem
entsth
eCo
nven
tion
domesticallybyintrod
ucingintoLuxem
bourglaw,orm
odifying,th
eno
tionsof
misa
ppropriatio
n,destructio
nofdeedsand
securities,embe
zzlemen
t,taking
unlawfulinteresta
ndbrib
ery.24
3 The
Law
amen
dsth
eCrim
inalCod
e,th
eCo
de
ofCrim
inalProcedu
reand
theLawof4
Decem
ber1
967on
IncomeTax.
• Luxembo
urghassigne
dtheUNCon
ventionagainstC
orruptioninDecem
ber
2003.24
4 The
Con
ventionwasra
tifiedbyanActo
fJuly20
07.
Thefollowingisano
n-exhaustiv
elisto
fotherre
levantlawsa
ndre
gulatio
nsin
Luxembo
urginre
gardstothecorrup
tionandanti-bribery:
245
• TheLawof3
0March200
1,intera
lia,amen
dingth
eCrim
inalCod
esoasto
makeitanoffe
ncetoengageinanym
isapp
ropriatio
nofsu
bsidies,inde
mnitie
sorallocatio
nsorinanyfraudu
lentactso
rmanoe
uvresd
esigne
dtore
duce
illegallyaninternationalinstitution’sc
ontributiontoth
ebu
dget;24
6 •
TheLawof2
3May200
5transposingintoLuxem
bourglawalltheinstrumen
ts
relatin
gtoth
epu
nishmen
tofcorruptionun
derthe
crim
inallawado
pted
by
theEurope
anUnion
and
theCo
uncilofE
urop
einth
eyears1
997-2003,
includ
ingtheFram
ework-De
cisio
n20
03/568
/JAIofthe
Cou
ncilof22July200
3on
com
batin
gcorrup
tioninth
eprivatesector,byintrod
ucingintoth
eCrim
inal
Code
Articles3
10and
310
-1whichm
akecorrup
tioninth
eprivatesectora
crim
inaloffe
nce;
• TheLawof1
Aug
ust2
007approvingthe“M
erida”Con
ventionofth
eUnited
NationsAgainstCorruption,
247 a
ndse
ttingup
theCo
rrup
tionPreven
tion
Committee(CO
PREC
O)inLuxembo
urg;
• TheLawof1
8De
cembe
r200
7approvingthe“Palermo”Con
ventionofth
eUnitedNationsagainsttransnationalorganize
dcrim
e;24
8 •
TheLawof1
7July200
8transposingDirective20
05/60/EC
ofthe
Europ
ean
CONFIDEN
TIAL
66
Parliam
enta
ndofthe
Cou
ncilof26Octob
er200
5on
thepreven
tionofth
euse
ofth
efin
ancialsy
stem
forthe
purpo
seofm
oneylaun
derin
gandterrorist
financing;
• TheLawof1
7July200
8on
thefightagainstm
oneylaun
derin
gandterrorist
financing,and
amen
ding:A
rticle506
-1ofthe
Crim
inalCod
e;
• TheLawof1
4June
200
1adaptin
gthecrim
inaloffe
nceofm
oneylaun
derin
gin
Luxembo
urglaw;
• TheLawof3
rdM
arch201
0introd
ucingtherespon
sibilityoflegalpersonsin
theCrim
inalCod
e,and
amen
dingth
eCrim
inalCod
e,th
eCrim
inalProcedu
re
Code
,and
certainotherlegalprovisio
ns;
• TheLawof1
3Februa
ry201
1reinforcingthemeansto
com
batb
ribery,
enhancingtheeffectiveprotectio
nofwhistleblow
ersinthepu
blicand
priv
ate
sector;
• TheLawof2
7Octob
er201
0reinforcingthelegalframew
orkon
thefight
againstm
oneylaun
derin
gandterroristfinancing;
• TheLawof2
ndNovem
ber2
012ratifyingth
eagreem
ento
nthestatusas
internationalorganiza
tionofth
eInternationalA
nti-corruptionAcadem
y(IA
CA)
signe
dinVienn
aon
2nd
Sep
tembe
r201
0;
• TheGrand
-Ducalorderof1
4Novem
ber2
014pe
rtainingto
theethicalrules
applicableto
theMem
bersofG
overnm
enta
ndth
eiro
bligationsand
rights
durin
gtheirm
andate(asa
men
ded)
249 d
ealingwith
poten
tialcon
flictso
finterestwith
respecttogovernmen
tmem
bers,the
irrepo
rtingob
ligations,
outsideactiv
ities,post-mandateemploymen
t,gifts,offe
rsofh
ospitality,
decoratio
nsand
hon
oursand
theuseofre
sourcesp
rovide
dbyth
eState,and
settingup
anad-hocethicsc
ommittee.
Gap
s
Thelegalframew
orkprom
otinganti-briberyandcombattingcorrup
tionis
CONFIDEN
TIAL
67
gene
rallyadvancedinLuxem
bourg.A
recentOEC
Drepo
rtnotesth
atLuxem
bourg
isregarded
aso
neofthe
leastcorruptcou
ntrie
sintheworldaccordingto
diffe
rentindiceso
fperceptionofcorruption.
250 Accordingtoth
elatestevaluation
repo
rtissued
bytheCo
uncilofE
urop
e’sG
roup
ofStatesa
gainstCorruption
(GRE
CO),“Luxem
bourgtradition
allysc
oreshighlyininternationalperception
surveyso
ncorrup
tion,and
riskso
fminorcorruptionorbrib
eryseem
virtuallynon
-existen
t”.2
51The
interviewsc
ondu
cted
bytheGR
ECOevaluationteam
con
clud
ed
thatpettycorruptionorstraightforw
ardbriberyappe
arto
berarein
Luxembo
urg.
252 T
hatsaid,th
esamerepo
rtnotesth
atLuxem
bourgappe
arsto
takeam
orereactiv
ethanproactiv
eapproachto
otherfo
rmso
fcorruptioninth
ebroade
rsen
se,suchasexchangesofservices,favouritism
,etc:“Whenthe
authoritiesbecom
eaw
areofsu
chacts,th
eyta
keth
enecessarystepsto
investigatean
dpu
nishth
eperpetrators,butth
ereisno
strategy–generalor
sectoral–aim
edatidentifyingspecificrisksand
taking
thenecessarypreventiveor
remedialm
easures”.25
3 Nep
otism
and
favouritism
ishighlighted
asp
roblem
sinLuxembo
urgalsointh
eEurobarometersu
rveyofcom
paniesissued
in201
3.25
4 Accordingto
theSurvey,
whilecorruptionispe
rceivedby30%
ofthe
que
stione
dbu
sinessesa
saproblem
in
Luxembo
urg(w
ellbelow
theEU
averageof4
6%),ne
potismand
favouritism
are
seen
asa
problem
by47
%(E
Uaverage:41%
),andthereforeappe
arto
bea
“greatercauseofcon
cern”.25
5 Theabove-men
tione
dOEC
DSurveynotesth
atth
elargescaleofcapita
lflows
involvingLuxembo
urgpo
sesa
ssociatedrisksofe
cono
miccrim
e,especiallyofa
cross-bo
rdernature.
256 T
here
portm
akesapointofb
riberyoffo
reignpu
blic
officialsno
tingthat“Luxembo
urg’se
nforcemen
tofthe
OEC
DAn
ti-bribery
Conven
tionremainsverymod
est,with
onlyon
ecrim
inalcaseconclude
dover
CONFIDEN
TIAL
68
1999-201
7,and
onlyon
eindividu
alsa
nctio
ned”.25
7 Lobb
yingisnotre
gulatedinLuxem
bourg.The
reisnospecificob
ligationtore
gister
lobb
yistso
rrep
ortcon
tactsb
etweenpu
blicofficialsa
ndlobb
yists.
11.2.H
asth
estateprovided
lawenforcemen
tand
relevantautho
ritiesrespo
nsiblefo
renforcinganti-b
ribery
andcorrup
tionlawsb
eenprovided
with
inform
ationand
trainingonhu
manrights?
Concerningth
einform
ationandtrainingonhu
manrights,seeth
egene
ral
respon
seontrainingissuesinSectio
n5.2.
Inadd
ition
,accordingto
theGR
ECORep
ort,up
onre
cruitm
ent,stateofficialswho
areno
tmem
bersofthe
governm
entu
ndergoacom
pulso
rytraine
eshipwhich
laststhreeyears.The
traininginclud
escou
rsesontheexecutive,coveringthe
ruleso
fcon
ductto
beob
served
bygovernmen
tmem
bers;o
ncivilservice
regulatio
ns,includingrightsand
obligations;and
onspecificcrim
inaloffe
nces
applicableto
civilservants.25
8 Inthecourseofthe
ircareers,officialsa
rere
quire
dtocom
pleteacertainminim
umnum
bero
ftrainingdaysinorderto
obtaina
certificatein"p
ublicm
anagem
ent"whichpavesth
ewayfo
rprofessional
advancem
ent.2
59Som
eofth
ecourseso
fferedinth
iscontextd
ealspe
cificallywith
preven
tingcorrup
tioninpub
licadm
inistratio
n.26
0 Ministersc
anobtainadviceonethicalm
attersfrom
theEthicsCom
mittee,
followingareferralfrom
thePrim
eMinister.M
inistersc
analso
obtainadvicefrom
theSecretariatG
eneralofthe
Governm
entC
ouncilandfrom
thelegaldep
artm
ent
ofth
eMinistryofStateastoho
wth
eCo
deofC
ondu
ctfo
rthe
mem
bersofthe
governmen
tistobe
implem
entedinpractice.
261
TheMinisterfo
rthe
CivilServiceandAd
ministrativ
eRe
form
issuescircularsfor
civilservantsthatcandrawatten
tiontoth
erequ
iremen
tsand
obligationsinth
efie
ldofe
thicsa
ndintegrity
and
also
toth
eruleso
fcon
duct.26
2 The
headsof
person
nelineachm
inistryand
theMinistryfo
rthe
CivilServiceand
CONFIDEN
TIAL
69
Administrativ
eRe
form
also
actasc
ontactpointsforth
oseseekinginform
ation.
263
Thene
wpolicerecruitsre
ceiveabasic
trainingatthe
PoliceAcadem
ythat
includ
esacou
rseon
ethicalcon
duct.2
64Itiscom
pulso
ryand
isone
ofthe
subjects
thatm
ustb
estud
iedinpreparatio
nforthe
finalexamfo
radm
issiontoth
epo
lice.
265 P
oliceofficersm
ayre
fertotheirsup
eriorsortothelegaldep
artm
ento
ftheDirectorateGe
neralofP
oliceiftheywish
toobtainadviceonapprop
riate
cond
uct.2
66GRE
COevaluationteam
hascon
firmed
theregularp
ublicationof
stud
ymaterialson
theIntranetofthe
Grand
DucalPoliceasagoo
dpracticeand
hasfou
ndth
ebasic
ethicalcon
ducttrainingarrangemen
tssa
tisfactory.
267
Gap
s
Accordingtoth
eGR
ECOre
port,in-servicetrainingfo
rthe
lawenforcemen
tofficialsdo
esnotcurrentlyinclud
eanycourseso
nethicalcon
duct:“the
governmen
tasa
ninstitu
tionne
edstobe
moreproactiveindevelop
ingthe
awaren
esso
fitsm
embe
rsand
otherpersonsentrusted
with
topexecutive
functio
nsofthe
irspecificintegrity
challengesand
inprovidingth
emwith
the
necessarytrainingand
guidanceincon
creteethicaldilemmas”.26
8 The
present
Repo
rtre
iteratedGR
ECO’sfo
regoingrecommen
datio
n.
11.3Doe
sthe
statehavesy
stem
sinplacetom
onito
ren
forcem
enta
ndim
plem
entatio
nofth
eselawsa
nd
regulatio
ns?
TheInter-ministeria
lCorruptionPreven
tionCo
mmittee(C
omité
interm
inistériel
déno
mméCo
mité
dePréventio
ndelaCorruption-C
OPR
ECO)isrespo
nsiblein
particularfo
rpreparin
gandprop
osingtoth
eGo
vernmen
tmeasurestocombat
corrup
tionandforco-ordinatin
gwith
inth
epu
blicadm
inistratio
ntheen
forcem
ent
ofanym
easuresa
dopted
.COPR
ECOalso
raise
sawaren
essa
mon
gthesectors
concerne
dthroughpu
blicationsorsem
inars.
Therearevario
usre
gulatoryre
quire
men
tsinLuxem
bourgforcom
paniesofthe
bankingandfin
ancialse
ctorto
haveanti-briberypo
liciesa
ndprocedu
resin
CONFIDEN
TIAL
70
place.
269 T
heCom
mission
deSurveilla
ncedu
SecteurFinan
cier(C
SSF)is
respon
siblefo
rfinancialre
gulatio
ninLuxem
bourg.
Gap
s
Thereareno
form
alre
quire
men
tsfo
rcom
paniesinse
ctorso
therth
anth
efin
ancialse
ctorto
haveanti-briberycomplianceproced
uresinplace.The
Go
vernmen
tsho
uldconsiderexten
dingsu
chre
quire
men
tsto
otherse
ctors.
11.4.A
reth
erepu
bliclyre
ported
casesofadversehum
an
rightsimpactsstemmingfrom
corruptionbybusiness
whe
nop
eratingathom
eorabroad?
ThePanamaPape
rssc
andaluncovered
inApril20
16bytheICIJrevealed
that
Luxembo
urgbanksa
ndta
xadvisers(law
yers,aud
itorsetc.)hadplayed
aleading
roleinm
anyofth
eoffsho
resc
hemesdesigne
dtocon
cealth
eirclients’m
oney.A
nu
mbe
rofind
ividualsandcompaniesinLuxem
bourgrefusedtoapp
earb
eforeor
didno
trep
lyto
theEurope
anParliamen
t’sinqu
irycom
mitteere
gardingthe
case.27
0 The
CSSFhasc
ondu
cted
are
view
ofcorpo
rateaccou
ntsa
ndissued
administrativ
esanctio
nsto
9entities(including4banks)intheform
ofafine
,am
ountingtoto
talofE
UR2,01
2,00
0.27
1 12. H
UMAN
RIGHT
SDE
FENDE
RSAN
DWHISTLEBLOWER
SGuidingQue
stions
Statusand
Gap
s12
.1.H
asth
estatepu
tinplacelawsa
ndre
gulatio
ns
aimed
atsup
portingbu
sinessrespe
ctfo
rthe
rightsof
humanrightsdefen
dersand
/orw
histle-blowers?
Humanrightsdefen
dersplayacriticalroleinpromotingcorporaterespectfor
humanrights.27
2 Throughtheirw
ork,defen
dershelptoiden
tify,prevent,
mitigate,and
ensureaccoun
tabilityforcorpo
ratehum
anrightsabu
ses.27
3 Internationallaw
provide
sprovisio
nsprotectinghu
manrightsdefen
dersand
/or
whistleblow
ersthrou
ghuniversaland
region
alinstrumen
ts.Luxem
bourghas
endo
rsed
orratified
,and
implem
ented(throu
ghdom
esticlegisla
tionwhe
re
approp
riate)relevantinternatio
nalinstrum
entsre
latedtohum
anrightsdefen
ce
(seeSectio
n1).
Inadd
ition
,the
Law
of1
3Februa
ry201
1introd
ucessp
ecificprovision
sinthe
Labo
urCod
eprotectin
gem
ployeeso
rpub
licagentsw
hoalertth
eirsup
eriorsor
CONFIDEN
TIAL
71
compe
tentautho
ritiestotheexisten
ceofcorruptionorth
eabuseofinflu
ence.
AccordingtoArticleL271
-1ofthe
Labou
rCod
e,anem
ployeewho
ingoo
dfaith
hasa
lerted
hisorhersu
perio
rs,colleague
s,ora
nyth
irdparty,canno
tbesubject
tore
prisa
land
hisorheragreemen
tcanno
tbeterm
inated
becauseofthisa
lert.27
4 Gap
s
• Arepo
rtpub
lishe
dbyTransparencyinternationalin2013
onlegalprotections
forw
histle-blowersintheEU
hasra
tedLuxembo
urgam
ongthecoun
triesw
ith
advanced
legalprovisio
nsand
procedu
resforwhistleblow
ers.27
5 Non
ethe
less,
thesamerepo
rtstated
that;
“whistleblow
ing–know
nasdenun
ciationinLuxem
bourg–isno
tpositively
perceivedwith
ingovernm
enta
gencies,priv
atecompa
niesorthegeneral
public.W
histleblow
ingdo
esnoteasilytran
slateintoanyofthecou
ntry’s
threead
ministrativelang
uages,so
lang
uagebarrie
rsperha
psalso
add
to
misc
onceptionsabo
utth
epractice”.27
6 Thesamerepo
rtalso
stated
that;
“Eventhou
ghcivilservan
tsarelega
llyre
quire
dtore
portcrim
esto
the
publicprosecutor,thisprovision
hasra
relybeenap
plied,and
inonlyafew
know
ncasesh
asacivilservan
tcom
eforw
ardwith
adisc
losure”.
277
•
Luxembo
urg’sa
pproachtoth
eprotectio
nofwhistleblow
ersa
ppearsto
be
piecem
eal.Therecentdecision
ofthe
Cou
rtofC
assatio
non
whistleblow
er
protectio
nreliedon
thecaselawofthe
Europ
eanCo
urto
fHum
anRightsto
protectw
histle-blowersa
ndth
eirfreed
omofe
xpression(seeSectio
n12
.4.).
Thesamede
cisio
nno
tedthelackofh
orizo
ntallegisla
tionforw
histleblow
ers
inLuxem
bourg.
278 E
xpertshavealsoargue
dthatth
ecurren
tsitu
ationof
whistleblow
ersinLuxembo
urgremainsvague
despiteth
esectorallegisla
tions
andtheyhaveargued
fora
horizo
ntallegisla
tionapplicableacrosssectors.27
9
CONFIDEN
TIAL
72
12.2.H
asth
estateprovided
lawenforcemen
tand
relevantautho
ritiesw
ithinform
ationandtrainingon
issue
srelated
toth
especificne
edsa
ndchallengesfaced
byhum
anrightsdefen
dersand
whistle-blowers?
Seethegene
ralrespo
nseon
trainingissuesinSectio
n5.2.
12.3.D
oesthe
statehavesy
stem
sinplacetom
onito
ren
forcem
enta
ndim
plem
entatio
nofth
eselawsa
nd
regulatio
ns?Fore
xample,th
roughestablish
inga
governmen
tfocalpointre
spon
siblefo
rmon
itorin
gadverseim
pactso
nhu
manrightsdefen
dersand
whistleblow
ers?
Aho
tline
hasbeensetu
pbyTransparencyInternationalLuxem
bourgforp
rivate
andlegalpersonsto
den
ounceinstanceso
fcorruptionandsupp
ortw
histle-
blow
ers.28
0 The
hotlinereceivesstatesubsidy.
281
12.4.A
reth
erepu
bliclyre
ported
casesofadversehum
an
rightsimpactso
nhu
manrightsdefen
dersand
/orw
histle-
blow
ersb
ybu
sinessw
henop
eratingathom
eorabroad?
Inacasecommon
lyre
ferred
toasthe
LuxLeaksT
rialtwoform
eremployeeso
fauditcom
panyPwC,Antoine
Deltour,R
aphaëlHalet,and
aFrenchjournalist
Edou
ardPe
rrin,w
ereconvictedofleakingconfiden
tialdocum
entsre
vealingthe
taxde
alsc
onclud
edbylargemultin
ationalcom
panieswith
theLuxembo
urgfiscal
authorities(seeSectio
n9.4.fo
rdetailsconcerningth
etaxaspe
ctofthe
case).28
2 De
ltourand
Haletwerecond
emne
don
chargesofd
omesticth
eft,fraudu
lent
accessto
adatabase,breachofprofessionalsecrecy,violatio
noftradesecrets,
andlaun
derin
gandpo
ssessio
nofillegallyobtaine
dmaterial.
Theircon
victionsweresubseq
uentlyoverturne
dbyLuxem
bourg’sC
ourtof
Cassationwhichre
liedon
thejurisprud
enceofthe
ECtHR
.The
Cou
rtofC
assatio
nruledthatth
eCo
urto
fApp
ealviolatedArticle10EC
HRbyno
tapp
lyingthe
‘whistleblow
er’justificationtoallincrim
inatingfactsw
hichto
getherincon
textled
toth
erevelatio
nofth
econfiden
tialdocum
ents,alto
gethercon
stitu
tingtheacto
fwhistleblow
ing.
283 With
regardto
Halet,the
Cou
rtofC
assatio
nfoun
dthatth
eCo
urto
fApp
ealjud
gmen
twassu
fficien
tlym
otivated
initsfindingth
atHaletdid
notfulfilth
eprop
ortio
nalityrequ
iremen
tofthe
Article10EC
HRjurisprud
enceand
couldthereforeno
tben
efitfrom
thewhistleblow
erjustificatio
n,and
thatth
einterpretatio
nofth
esefactsisw
ithinth
ediscretio
nofth
eCo
urto
fApp
eal.
CONFIDEN
TIAL
73
13. INFO
RMAT
IONANDCO
MMUNICAT
ION
GuidingQue
stions
Statusand
Gap
s13
.1.H
asth
estatepu
tinplacelawsa
ndre
gulatio
nsto
en
sureth
eprotectio
nofaccesstoinform
ation,freedo
m
ofexpression,priv
acy,and
otherrightsre
levantto
inform
ationandcommun
ication,bothon
and
offline?
Thefollowingisano
n-exhaustiv
elisto
frelevantinformationandcommun
ication
lawsa
ndre
gulatio
nsinLuxem
bourg;
284
• TheCo
nstitutionofLuxem
bourgguaranteesfreedo
mofe
xpression,includ
ing
therig
htto
freedo
mofp
ress(A
rticle24)and
righttoprivacy(Article28)
• Asam
embe
rofthe
EU,the
Gen
eralDataProtectio
nRe
gulatio
n(Regulation
(EU)2
016/67
9)(G
DPR)isdire
ctlyapp
licableinLuxem
bourgsin
ceM
ay25,
2018
.Luxem
bourghase
nacted
thefollowingtw
olawstoim
plem
entthe
GD
PR:
o TheLawof1
Aug
ust2
018on
theOrganisa
tionofth
eCo
mmission
Nationalepou
rlaProtectio
nde
sDon
nées(“CN
PD”)[theLuxembo
urg
dataprotectionsupe
rviso
ryautho
rity]and
thegene
raldataprotectio
nregime.
285
§ Article70ofth
eLawof1
Aug
ust2
018am
endsth
eTitle
VIof
volumeIIofth
eLabo
urCod
e(ArticleL.261
-1(1)w
ithre
gardsto
theprocessin
gofpersonaldataforthe
purpo
seso
fsurveillance
inth
eem
ploymen
tcon
text.
o TheLawof1
Aug
ust2
018on
theProtectio
nofIndividu
alsw
ithRegard
toth
eProcessin
gofPersonalD
atainCrim
inaland
NationalSecurity
Matters;28
6 •
TheLawof1
4Septem
ber2
018on
aTransparentand
Ope
nPu
blic
administratio
n;28
7 •
TheLawof3
0May200
5Re
gardingtheSpecificRu
lesforth
eProtectio
nof
Privacyinth
eSectorofE
lectronicCo
mmun
icationsIm
plem
entin
gthe
Directive20
02/58/EC
;
• TheLawof1
1Au
gust198
2on
theProtectio
nofPriv
ateLife.28
8
CONFIDEN
TIAL
74
Luxembo
urgmadeconsiderableeffo
rtstodiversifyth
eecon
omyoverth
epast
years,accordingto
the“SmartS
pecializa
tionStrategy”form
allyado
pted
bythe
Governmen
tin20
17.28
9 With
inth
isstrategy,the
ICTsectoroccup
iesa
special
positionas“itservesacom
mon
strategiclayero
nwhichallothe
rsectorsto
be
grou
nded
”.29
0 Digita
lisationison
eofth
epo
licyreform
sforth
e20
18-2023
legisla
tivepe
riodanno
uncedinth
e20
18CoalitionAg
reem
ent.2
91
TheNAP
2018-29
hasiden
tifiedcorrectly
the“ICT
sector–includ
ingthefie
ldof
artificialintelligen
ce”am
ongthesectorsw
ithpoten
tialadversehum
anrights
risks.29
2 InM
ay201
9,th
eGo
vernmen
treleaseditsnationalA
Istrategy:“Artificial
Intellige
nce:AStrateg
icVisionforLuxem
bourg”.29
3 The
docum
entu
nderlinesth
e“hum
ancen
tricfo
cus”ofthe
nationalstrategy.Itado
ptsa
ratherpositivevision
of
theAI,largelyfo
cusin
gon
theabilityofthe
disrup
tivetechno
logyto
createne
w
oppo
rtun
itiesinhealth
,edu
catio
n,and
transportatio
n,and
gen
erateecon
omic
activ
ityand
novelre
search.The
docum
ent,ho
wever,also
und
erlinesth
e“far-
reachingcon
sequ
encesa
ndso
megrow
ingpains”th
atincreasin
gintegrationofAI
intoexistingworkflowsw
illbrin
gabou
t,suchasq
uestionsinte
rmso
fworking
cond
ition
s,employmen
tlaw
and
labo
rrelations.29
4 Thedo
cumen
texplicitlyno
tes
thatth
eGo
vernmen
t“remainsaccou
ntableand
transparen
tinitsapp
licationsof
AIand
digita
ltoo
ls”.29
5 Impo
rtantly
,the
docum
entp
ropo
sesseveralkeyactions
“inorde
rtoen
sureth
atlegaland
ethicalguide
linesareim
plem
entedtoprotect
fund
amentalrightsa
ndfreedo
ms”includ
ingsettingup
agovernm
ental
techno
logyand
adviso
rycom
mitteeand
“collabo
ratin
gwith
keybod
ieso
nde
velopingand
safeguardingcorpo
rategovernancetoacceleratetheadop
tionof
prop
erAIcorpo
rategovernance”.29
6 Gap
s
CONFIDEN
TIAL
75
Thenatio
nalA
Istrategydo
esnotre
fere
xplicitlytoth
edirectim
pactth
at
busin
essesc
anhaveon
hum
anrightsinth
efaceofincreasingAIintegrationand
therespon
sibilitie
splacedup
onth
emto
preventand
mitigatesu
chim
pact.In
orde
rtoen
hancecohe
renceacrossallpo
licyde
partmen
ts,the
Governm
entis
advisedtoinsertre
ferencesto
respon
siblebusinessc
ondu
ctinitsn
ationalA
Istrategybyreferringtoth
eNAP
onbu
sinessa
ndhum
anrightsand
otherre
levant
documen
ts.
Inre
gardstothecurren
tNAP
2018-19,notethat,duringthede
liberations,the
Luxembo
urgAssociationforthe
UnitedNations(U
NLA),hadsuggestedtoinclud
emoreexplicitreferencesto
theim
pactofartificialintelligenceandhu
manrights.
13.2.H
asth
estateprovided
lawenforcemen
tand
relevantautho
ritiesw
ithinform
ationandtrainingre
lated
toinform
ationandcommun
ication-basedrig
hts?
Seethegene
ralrespo
nseon
trainingissuesinSectio
n5.2.
13.3.D
oesthe
statehavesy
stem
sinplacetom
onito
ren
forcem
enta
ndim
plem
entatio
nofth
eselawsa
nd
regulatio
ns?
InLuxem
bourg,M
inistryofDigita
lization(M
inistèredelaDigita
lisation)is
chargedwith
simplificatio
nanddigitalizationofth
eadministrativ
eprocesses.
Thesupe
rviso
ryautho
rityregardingGD
PRisLuxem
bourgda
taprotection
regu
lator(Co
mmissionna
tiona
lepou
rlaprotectio
ndesd
onnées-CN
PD).The
CNDP
hasvariousinvestigative,correctiveandadvisorypow
ersincludingissuing
penaltiesfo
rinfrin
gemen
tsetoutbytheGD
PRand
impo
singpe
nalty
paym
ents(a
streintes)ofd
elayto
com
plywith
anorde
rbytheCN
PDto
provide
inform
ationorwith
acorrectivemeasureissued
bytheCN
PD.29
7 Th
eCo
mmission
onAc
cessto
Docum
ents(C
ommissiond'accèsa
uxdocum
ents-
CAD)isaninde
pend
enta
dministrativ
ebo
dycreated
bythelawof1
4Septem
ber
2018
topromotetransparen
tand
ope
nadministratio
n.29
8 Accordingto
theArticle
9ofth
elaw,the
CAD
ensuresth
erig
htofaccesstodo
cumen
tsinth
econd
ition
sforeseen
bythelaw,and
givesadvicetore
levantentitiesonanyqu
estio
n
CONFIDEN
TIAL
76
regardingtheapplicationofth
elaw.
14. C
ONSU
MER
PRO
TECT
ION
GuidingQue
stions
Statusand
Gap
s14
.1.H
asth
estatepu
tinplaceconsum
erlawsa
nd
regulatio
nsto
ensurebu
sinessrespe
ctfo
rhum
anrights?
Thefollowingisano
n-exhaustiv
elisto
fnationallegislationandregulatio
nsin
Luxembo
urginth
efie
ldofcon
sumerprotection;
• Acompe
ndiumofthe
nationallegislationapplicableinth
efie
ldofcon
sumer
protectio
nisavailablewith
inth
eCo
nsum
erCod
e(Cod
edelacon
sommation)
enteredintofo
rceon
April18
,201
1.29
9 •
TheLawof2
April20
14transposed
theCo
nsum
erRightsD
irective
2011
/83/EU
intodom
esticlawand
amen
dedtheCo
nsum
erCod
einth
edirectionofgreatercon
sumerprotection.LatestreformstotheCo
dewere
introd
uced
bytheLawof1
7Februa
ry201
6(in
trod
ucingou
t-of-cou
rt
settlemen
tforcon
sumerdisp
utesand
amen
dingcertainotherprovisio
nsof
theCo
nsum
erCod
e)30
0 and
theGrand
-DucalReg
ulationof5Ju
ly2016
(amen
dingth
eregulatoryparto
fthe
Con
sumerCod
e).30
1 •
Accordingtoth
eCo
nsum
erCod
e(L-320-1bis),anindividu
al,professional
grou
poraccreditedconsum
erassociatio
ncanbringtheclaimfo
rthe
cessationofanyinfringemen
tofthe
Law
,rep
resented
bytheUnion
Luxembo
urgeoisedesCon
sommateurs(U
LC).
Gap
s
Curren
tly,the
onlycertifiedentity
allowed
tofileagroup
actionistheULCwhich
isfin
anciallyassisted
bytheState(notethat,dep
endingontherulese
tconcerne
d,se
ctoralsu
perviso
ryautho
ritiesa
ndindividu
alsa
ndbusinessesc
an
initiateanactionforcessatio
nofaninfringemen
t).
14.2.H
asth
estateprovided
lawenforcemen
tand
relevantautho
ritiesw
ithinform
ationandtrainingon
Seethegene
ralrespo
nseon
trainingissuesinSectio
n5.2.
CONFIDEN
TIAL
77
humanrightsissuesre
latedtocon
sumerprotection,su
ch
asprodu
ctsa
fetyand
labe
llingpractices?
14.3.D
oesthe
statehavesy
stem
sinplacetom
onito
ren
forcem
enta
ndim
plem
entatio
nofth
eselawsa
nd
regulatio
ns?
InLuxem
bourg,th
eMinistryofCon
sumerProtection(m
inistèredelaProtection
desc
onsommateurs)chairsth
eCo
nseildelacon
sommation.
Thisforum
isa
form
alplaceofe
xchangebe
tweentheministrie
s,con
sumerorganisa
tionsand
professio
nalorganisa
tions.30
2 Inadditio
n,M
inistryofCon
sumerProtectionhas
compe
tencywith
regardstoconsum
erlegalprotectionandfood
safety.30
3
TheNationa
lserviceofthe
Med
iatoro
fcon
sumption(Servicenationa
ldu
Médiateurdelacon
sommation)isaninde
pend
entb
odyofferin
gavoluntaryand
confiden
tialprocedu
redesigne
dtore
solveconsum
erdisp
utesderivingfrom
a
salecon
tracto
rase
rvicecontractentered
intobetweenaconsum
er(w
hoisa
naturalpersonlivinginLuxem
bourgorinano
therEurop
eanUnion
cou
ntry)and
a
traderestablishe
dinLuxem
bourg.
304
TheLuxembo
urgCo
nsum
erProtectionAssociation(Union
Luxem
bourgeoisedes
Consom
mateurs-ULC)isa
non
-profitorganisa
tionwith
theob
jectiveof
protectin
g,defen
ding,informinganded
ucatingLuxembo
urgconsum
ers.The
ULC
hassigne
danagreemen
twith
theLuxembo
urggovernmen
t,whe
rebyitre
ceives
annu
alfinancialaidinexchangeforp
erform
inganu
mbe
roftasksonbe
halfof
consum
ers,assigne
dtoitbytheMinistryofthe
Econo
my(M
inistèrede
l'Econo
mie).3
05
TheEu
rope
anCon
sumerCen
treLuxembo
urg(CentreEuropéendes
Consom
mateurs–ECC
)isp
arto
fanEU
-widene
tworkof30Europe
anCon
sumer
Centressetupbyth
eEurope
anCom
missionwho
offe
rcon
sumerhelpand
advice.30
6 The
ECC
Luxem
bourginform
sEurop
eanconsum
ersa
boutth
eirrightsin
theEurope
anUnion
,Norwayand
Iceland.The
ECC
Luxem
bourgadvicesa
nd
CONFIDEN
TIAL
78
assistscon
sumersincrossb
orde
rdisp
uteswith
tradersb
ased
inano
therEU
coun
try,NorwayorIceland
.307
TheLuxembo
urgFina
ncialSectorS
upervisoryCom
mission
(Com
missionde
Surveillancedu
SecteurFinancier-CSSF)actsinitscapacity
asd
isputeresolutio
nbo
dy,notablypursuanttotheEurope
anlegisla
tionrelatin
gtoth
eou
t-of-cou
rt
resolutio
nofcon
sumerdisp
utesth
atweretransposed
intoLuxem
bourgnatio
nal
lawand
introd
uced
intoth
eCo
nsum
erCod
ein201
6.
ThefirstEurop
eanCo
nsum
erLaw
Clin
icope
ntopub
licisestablishe
datth
eUniversity
ofLuxem
bourg.
308Atthe
Clinic,stude
ntso
fmastero
fEurop
eanPrivate
Lawprovide
legaladviceon
thequ
estio
nsofcon
sumerlawund
erth
esupe
rvision
oflawyersand
acade
micstaff.
TheMinistryofcon
sumerprotectionisalsocoo
peratin
gwith
theMaxPlanck
Institu
teonim
provingen
forcem
ento
fCon
sumerlawinLuxem
bourg.
309
14.4.A
reth
erepu
bliclyre
ported
casesofadversehum
an
rightsimpactso
nconsum
ersb
ybu
sinessesd
omiciledin
thestate’sterritoryorjurisdictionwhe
nop
eratingat
homeorabroad?
Thepresen
tstudydidnotfind
anypub
liclyre
ported
casesofadversehum
an
rightsimpactso
nconsum
ersb
ybu
sinessesd
omiciledinth
eLuxembo
urgwhe
nop
eratingathom
eorabroad.
15. A
NTI-DISCR
IMINAT
ION
GuidingQue
stions
Statusand
Gap
s15
.1.H
asth
estatepu
tinplaceanti-discrim
inationlaws
andregulatio
nsto
supp
ortb
usinessrespe
ctfo
rhum
an
rights?
Thefollowingisano
n-exhaustiv
elisto
fexistinganti-discrim
inationlawsa
nd
regulatio
nsinplaceinLuxem
bourg:
310
• Th
eCo
nstitution;
o Article10bis:“Luxembo
urgersareequ
albeforethelaw”.
311
o Article111
:“An
yforeigne
rontheterrito
ryofthe
Grand
Duchysh
all
CONFIDEN
TIAL
79
enjoytheprotectio
naccorded
topersonsand
prope
rty,with
out
prejud
icetoexcep
tionsestablishe
dbylaw”.
o Article11(2):“Wom
enand
men
areequ
alinrightsand
duties.The
Stateseesto
activeprom
otionofelim
inationofim
pedimen
tswhich
mayexistinm
attersofe
quality
betweenwom
enand
men
”.
• Articles4
54to
457
ofthe
Pen
alCod
ecrim
inalize
sdisc
rimination(prohibitin
gindividu
aland
collectivediscrim
inationagainstreligion,ra
ceand
ethnicorigin,
disability,se
xualorie
ntationandage);
• Theprincipleofnon
-disc
riminationinth
eworkplaceisdealtinth
eLabo
ur
Code
,TitleVofBoo
kII,ArticlesL
.241
-1to
L.251
-1to
L.254
-1asintrodu
cedby
theLawof2
8Novem
ber2
006on
Equ
alTreatmen
t(transposingEU
Dire
ctives
2000
43CE
and
200
078C
E,definingbo
thdire
ctand
indirectdisc
riminationand
harassmen
t,with
inand
outsid
etheem
ploymen
tfield,onthegrou
ndso
freligionorbelief,age,disa
bility,se
xualorie
ntationandraceand
ethnic
origin);3
12The
lawisapp
licableto
;313
o cond
ition
sforaccesstoem
ploymen
t,tose
lf-em
ploymen
tand
to
occupatio
n,includ
ingselectioncrite
riaand
recruitm
entcon
ditio
ns,
whateverthe
branchofactivity
and
ata
lllevelsofth
eprofessio
nal
hierarchy,includ
ingprom
otion;
o accessto
alltype
sand
toalllevelsofvocationalguidance,vocational
training,advancedvocatio
naltrainingandretraining,including
practicalworkexpe
rience;
o em
ploymen
tand
workingcon
ditio
ns,includingdism
issalsa
ndpay;
o mem
bershipofand
involvem
entinanorganisa
tionofworkersor
employers,ora
nyorganisa
tionwho
sem
embe
rscarryonaparticular
professio
n,includ
ingthebe
nefitsprovided
forb
ysuchorganisa
tions;
o socialprotection,includ
ingsocialse
curityandhe
althcare,social
advantages,ed
ucationandaccessto
and
supp
lyofgoo
dsand
services
CONFIDEN
TIAL
80
whichareavailabletoth
epu
blic,includinghou
sing.
• Theprincipleofnon
-disc
riminationbe
tweenmen
and
wom
enaredealtinth
eLabo
urCod
e,title
IVofB
ookII,articlesL
.241
-1to
L.245
-8asintrodu
cedbyth
eLawofM
ay13,200
8on
Equ
alTreatmen
tforM
enand
Wom
en(p
rohibitin
g“anydisc
riminationbasedon
sex,eith
erdire
ctlyorind
irectlybyreference,
intera
lia,m
arita
lorfam
ilystatus”);31
4
• Inadd
ition
,the
MinistryofEqu
ality
betweenWom
enand
Men
(Ministèrede
l'Éga
litéentrelesF
emmesetlesHom
mes–M
EGA)hasaded
icated
portalfor
gend
erequ
ality
atw
orkandsupp
ortsa“po
sitiveactio
nprogram”which
coversth
efollowingthem
es:31
5 o
eq
ualtreatmen
tofw
omen
and
men
(recruitm
ent,trainingand
qu
alificatio
ns,rem
uneration,corpo
rateculture,sexualand
moral
harassmen
t),
o eq
ualityofwom
enand
men
indecision
-making(vocationaltraining
andprom
otion,equ
alparticipationindecision
-making),
o theeq
ualityofwom
enand
men
inth
ereconciliationofprofessional
andprivatelife(w
orkorganizatio
n,professionalreintegratio
n,
reconciliationofaleadingpo
sitionandprivatelife).
•
TheLëtzeb
uergDiversityCha
rter(C
hartedeladiversité-Lëtzebuerg)isa
short
commitm
enttextp
ropo
sedforthe
com
paniesofLuxem
bourgtosigninorder
tocom
mitthem
selvesto
promotingdiversity
throughconcreteactionsgoing
beyond
theob
ligationsoflegaland
regulatoryprovisio
nsfo
rnon
-discrim
ination.
316 Itissup
ported
,amon
gothe
rs,bytheEurope
anCom
mission,
theMinistrie
sofFam
ilyand
IntegrationandEqualO
pportunitie
sand
theCE
T.
Gap
s
CONFIDEN
TIAL
81
With
regardto
theprincipleofequ
ality
,the
form
ulationinth
ecurren
tCo
nstitution(“Luxembo
urgersareequ
albeforethelaw”)strictose
nsuappliesto
Luxembo
urgnatio
nalson
ly.Thisn
arrowlydrafted
prin
cipleassumesparticular
impo
rtanceinth
econtexto
fLuxem
bourgwhe
realm
ostfiftype
rcen
tofthe
resid
entp
opulationismadeup
offoreigners.31
7 Expe
rts,how
ever,haveno
ted
thatth
eCo
nstitutionalCou
rthasexten
dedtheapplicationofth
eprincipleto
foreigne
rsholdingth
at“theprincipleofequ
ality
‘isa
pplicableto
eachindividu
al
concerne
dbyLuxem
bourglaw,ifrightso
rpersonalityareconcerne
d’”.
318
Therepo
rtdrafted
bytheEurope
annetworkoflegalexpertsingen
dere
quality
andno
n-discrim
inationno
testhatinLuxembo
urg,th
eLawof2
8Novem
ber2
006,
whichisth
egene
ralnon
-disc
riminationlawtransposingtheEU
Dire
ctives,doe
sno
tdefinedisability.
319 T
helawre
fersto
theLawonDisabled
Personsof1
2Septem
ber2
003whichprovide
sadefinition
whichre
latestoredu
cedworking
capacity,w
hetherth
ecauseisnaturalora
cciden
tal,du
etoawork-related
accide
ntorw
ar-related
events.The
Rep
orth
asre
commen
dedthatth
ede
finition
shou
ldalso
app
lyfo
rthe
purpo
seofn
on-disc
riminationlaw.32
0 Ingen
eral,ith
asbeenno
tedthatth
eLawof2
8Novem
ber2
006do
esnotprovide
anyde
finition
ofthe
groun
dsofd
iscrim
ination(religion,age,sexualorie
ntation,
race,ethnicorigin,disa
bility)covered
bythedirectivesand
thatth
ecourts,thu
sfar,havenotdefined
theseconcep
ts.32
1 TheLawof2
8Novem
ber2
006do
esnotdoe
snotdefinehand
icapto
includ
epe
rson
swith
men
taldiso
rder.
Asstated
abo
ve,the
crim
inalcod
eproh
ibitsagainstdisc
rimination,includ
ing
religion,ra
ceand
ethnicorigin,disa
bility,se
xualorie
ntationandageinArticles
CONFIDEN
TIAL
82
454to457
.Ind
ividualand
collectivediscrim
inationarethusprohibitedandcan
leadto
afine
orimpriso
nmen
tforuptotw
oyears.How
ever,onlydirect
discrim
inationisforbidde
n;indirectdisc
rimination,harassm
enta
ndinstructionto
discrim
inatearebe
haviou
rsth
atarenotprohibitedincrim
inallaw.32
2 Accordingtoth
e20
18Activity
repo
rtofthe
CET,Europ
eandirectives,asw
ellas
Luxembo
urglegisla
tion,re
cognize
groun
dsofd
iscrim
inationmayoverla
p,butan
explicitproh
ibition
ofm
ultip
ledisc
riminationdo
esnotexist.32
3 TheLabo
urCod
eprovidesfo
rpen
altie
sbased
ongend
er-based
disc
rimination
pursuantto
Articles2
41-11.
324 T
heCEThasnoted
thatth
eothe
rgroun
dsof
discrim
ination,whicharefo
undun
derA
rticle254-1ofthe
Labou
rCod
e,dono
tcontainsim
ilarp
enaltie
s.325The
CEThasre
commen
ded,th
atth
eGo
vernmen
tgrou
psto
getherallgrou
ndso
fdisc
riminationinone
chapter,and
provide
sfor
sanctio
nsonothe
rgroun
dsofd
iscrim
inationaswellasg
ende
r.32
6
One
ofthe
com
panyre
presen
tativ
esinterviewed
forthisstudystated
that,
accordingtoher,one
ofthe
biggestchallengewasth
elackofclarityin
Luxembo
urgwith
regardstothediscrim
inationandharassmen
tlaw
s:“clear
detailsand
indicatio
nismissingasto
whata
ctionsareth
ere,and
whatw
ill
happ
en”.
TheCE
TRe
portcon
vincinglysuggeststh
eGo
vernmen
ttoam
endtheexistinglaws
inorderto
add
ressth
eforegoingissue
s.The
Governm
entisa
lsoadvise
dtoissuea
guidancefo
rbusinessesc
larifyingth
eexpe
ctationsfrom
thecompanieswhe
ntheyarecon
fron
tedwith
businessrelated
disc
riminationcases.
15.2.D
oesthe
statehavesy
stem
sinplacetom
onito
ren
forcem
enta
ndim
plem
entatio
nofth
eselawsa
nd
Thefollowingorganizatio
nsinLuxem
bourgmon
itorthe
enforcemen
tand
im
plem
entatio
nofanti-d
iscrim
inationlawsa
ndre
gulatio
ns:
CONFIDEN
TIAL
83
regulatio
ns,suchasananti-discrim
inationorequ
al
oppo
rtun
itybod
y?
• Centrepou
rl’éga
litéde
traitemen
t(Centrefo
rEqu
alTreatment-CET)isa
ninde
pend
entb
odycreatedbyth
eLawof2
8Novem
ber2
006.Itsm
ission
includ
espromoting,analysin
gandmon
itorin
geq
ualtreatmen
tbetweenall
person
swith
outd
iscrim
inationbasedon
raceore
thnicorigin,sex,sexual
orientation,re
ligionorbeliefs,disa
bilityandage.
327 T
heCETpub
lishe
srep
orts,
issue
sopinion
sand
recommen
datio
nsand
carrie
soutstud
ieso
nallm
atters
relatin
gtodisc
rimination.The
CETalso
assistsa
llegedvictim
sofd
iscrim
ination
by“providingthem
with
anadvisoryand
orie
ntationserviceintend
edto
inform
victim
sregardingth
eirind
ividualrights,th
elegisla
tion,caselawand
themeansfo
rclaim
ingtheirrights”.32
8 •
L'Officeluxembo
urge
oisd
el'accue
iletdel'intég
ratio
n(Luxem
bourg
Receptionan
dIntegrationAg
ency-OLAI)wascreated
bytheLawof1
6De
cembe
r200
8on
theRe
ceptionandIntegrationofForeignersintheGrand
DuchyofLuxem
bourg.
329 T
heOLAIprovide
sforcreationofaNationalA
ction
Planfo
rIntegratio
nandAg
ainstD
iscrim
ination.The
OLAIhasbeenleadingan
annu
alactionandinform
ationprogrammetora
iseawaren
essa
gainst
discrim
inationsin
ce200
2.
• TheOmbu
dsman
(deMédiateurduGran
d-Du
chédeLuxem
bourg),establishe
dbyth
elawof2
2Au
gust200
3,m
aybeaskedtoactonbe
halfofavictim
of
discrim
inationprovidingthatsu
chdisc
riminationoccurswith
inth
eadministratio
n.
• TheInspectorateofthe
MinistryofLab
our(l’Inspectiondu
Travailetdes
Mines)actsa
sawatchdo
ginre
latio
ntoanti-d
iscrim
inationlegisla
tionun
der
theDirective20
00/78/EC
.330
• TheCh
ambrede
sSalariés(Ch
ambero
fEmployees-CSL),createdbyth
eLaw
of13May200
8,re
presen
tsallem
ployees,app
renticesand
pen
sione
rs
workingorh
avingworkedinLuxem
bourg,apartfrom
civilservantsand
pub
lic
CONFIDEN
TIAL
84
employees.33
1 The
CSLhasaded
icated
web
sitetodisc
riminationatwork.
332
Gap
s
TheCE
Thasn
olegalstand
ingtobrin
gdiscrim
inationcomplaintso
rtointerven
ein
legalcasescon
cerningdiscrim
ination.
Thede
cisio
nsofthe
CETarenotbinding,and
expertshaveno
tedthatth
erecommen
datio
nsofthe
bod
yareno
tfollowed
bythelegisla
tureand
other
institu
tions.33
3 IntheActiv
ityRep
ort2
018,th
eCE
Tno
tesitslackofp
owersto
compe
lthirdpartie
stocollabo
ratewith
theirinvestig
ationshinde
rsth
eCe
nter’s
mission,despitebeinggranted
therig
htto
requ
estinformationbylawfrom
the
institu
tionsand
priv
atepe
rson
s.The
CETdrawsa
tten
tiontoth
ede
laysinth
erespon
sesreceivedbycertainM
inistrie
sand
urgesth
eGo
vernmen
ttoleadby
exam
ple.The
CETalso
urgesitsinvestig
ativepo
werstobe
strengthen
ed.33
4 TheLawof2
8Novem
ber2
006refersto
thefullinde
pend
enceofthe
CET.
However,intheo
ry,thisind
epen
dencemaybecurtailedbyth
efactth
atth
eGo
vernmen
talone
decidesonthebu
dgetth
atwillbeallocatedtoth
eCe
nter.33
5 The20
18Activity
Rep
orto
fthe
CETcon
firmsthatthe
ann
ualbud
geto
fthe
CET
hasd
ecreased
from
200
.000
Eurosin200
8,whe
nthebo
dystarteditsope
ratio
ns,
to88.00
0Eurosin20
18.
Itisadvisedthatth
eGo
vernmen
texten
dsth
eCE
T’sm
andateinorderto
add
ress
theforegoingissue
s.The
Governm
entisa
dvise
dtoinclud
especificreferenceto
investigationofbusinessrelated
disc
riminationcasesb
ytheCE
T.
15.3.A
reth
erepu
bliclyre
ported
casesofd
iscrim
ination
athom
eorabroadbybusinessesd
omiciledinth
estate’s
territo
ryorjurisd
ictio
n?
Thediscrim
inationcasesa
renotre
gistered
assuchbynationalcou
rtsin
Luxembo
urg.
336 T
heCETre
gistersn
umbe
rofcom
plaints,re
commen
datio
nsand
solved
cases.Itm
akesth
edataavailabletoth
epu
blic.The
irlatestactivity
repo
rt
registered
126
new
casesin201
8.33
7 The
groun
dswere:disa
bility39
cases(2
6%),
CONFIDEN
TIAL
85
gend
er24cases(16
%),race21cases(14
%),age11
cases(7
%),religion8cases
(5%),sexualorie
ntation6cases(4%
),multip
ledisc
rimination14
cases(9
%)and
othe
rs27cases(18
%).
16. N
ATIONAL
HUMAN
RIGHT
SINSTITUTION(N
HRI)
GuidingQue
stions
Statusand
Gap
s16.1Hasth
estateestablish
edaNationalH
umanRights
Institu
tion(NHR
I)?Ifso
,isitcom
pliantwith
theParis
Principles?Do
esth
eNHR
I’sm
andateinclud
ebu
sinessa
nd
humanrights?Do
esth
eNHR
Ihavesufficien
tfun
dingto
carryou
titsm
andate?
Theintrod
uctio
nofth
eNAP
201
8-19
refersto
,interalia,fou
rnationalhum
an
rightsinstitutionsth
athavebe
enre
gularly
con
tacted
duringtheprep
arationof
thedo
cumen
t.Theseinclud
e;LaCo
mmissionconsultativedesD
roitsdel'H
omme
(CCD
H),the
CET(seeSectio
n15
.),th
eORK
(seeSectio
n26
.3.)andthe
Ombu
dsman(seeSectio
ns27.2.and
15.2.).To
avoidre
petitionandoverlapwith
theothe
rsectio
nsth
epresen
tsectio
nwillfo
cuso
ntheCC
DH.33
8
TheCC
DHisaninde
pend
entn
ationalhum
anrightsinstitu
tionofLuxem
bourgin
fullcompliancewith
theParisPrin
ciples.33
9 Ba
sedon
toth
einform
ationreceived
bytheCC
DH,the
organiza
tionhasa
gen
eral
andratherbroadm
andatere
gardinghu
manrights.A
rticle1(2
)ofthe
lawof2
1Novem
ber2
008on
thecreatio
nofth
eCo
nsultativ
eHu
manRightsC
ommissionof
theGrandDu
chyofLuxem
bourg,provide
sthatthe
missionofth
eCC
DHisto
prom
oteandprotecth
umanrightsinLuxem
bourg.
340
Gap
sTheCC
DHhascon
firmed
thatth
eorganizatio
n“doe
snothaveanexplicitmandate
todealw
ithbusinessa
ndhum
anrights”issue
s.34
1 How
ever,the
mandatecovers
thetopicofbusinessa
ndhum
anrightsso
fara
s;
“violatio
nso
fhu
man
rightsbyb
usinessesoften
seem
to
man
ifest
them
selvesoutsid
eofLuxem
bourg,th
esourcesofth
eseviolationsm
ay
CONFIDEN
TIAL
86
betracedbacktoLuxem
bourg.In
deed,b
usinessesan
dthego
vernment
maya
ctivelyorp
assiv
ely,d
irectlyo
rindirectly,allow,facilitateor
contrib
ute
tothe
human
rig
hts
violationsthatoccur
eitherin
Luxembo
urg
orab
road
.The
absence
ofad
equa
tesafegu
ards,
proceduresand
rem
ediescanthusbean
integralpart,ifno
teventhe
origin,o
fsuchhu
man
rightsviolations.M
oreover,theob
ligationsand
respon
sibilitie
sderiv
ing
from
theU
NGP
ared
irectedtow
ardsthe
governmenta
ndbusinessesu
nderitsjurisd
ictio
n”.34
2
CC
DHhascon
firmed
that;
“[it]m
anag
esto
carryoutitsm
issionswith
thefin
ancialand
hum
an
resourcesa
llocatedtoit.H
owever,itm
ustb
esaidth
atth
eCC
DH
cann
otdealw
itheveryhum
anrigh
tsre
latedtopicthatoccursin
Luxembo
urg–ithasto
carefullyse
lectth
emostp
ressingtopics.
Busin
essa
ndhum
anrigh
tsisoneoftheseto
pics”.
Furthe
r,ithasstatedthatits2
1bo
ardmem
bersarevolun
teersa
ndth
atithasa
secretariatcom
posedofapermanen
tstaffof3and
ahalfp
ersons:
“Itisa
lsonotew
orthythatneitherth
eperm
anentstaffno
rthe
mem
bersoftheCCD
Harededicatedexclusivelytoonesp
ecifictopic:
Thereisno
departm
enttha
tise
xclusiv
elydealingwith
businessa
nd
human
righ
ts.M
ostm
embersalso
workinm
anydiffe
rentfieldssu
chas
therig
htso
fpersonswith
disa
bilities,equ
ality,you
thprotection,
asylum
and
migratio
n,figh
taga
insthum
antrafficking
,dataprotectio
n,
etc.–depending
onthedevelopm
entsinth
ecoun
tryan
dtheneedso
ftheCC
DH.Thisfactm
ayintera
liabelinkedtoth
eavailabilityof
finan
cialand
hum
anre
sources”.
TheGo
vernmen
tisa
dvise
dtocon
siderexpandingth
emandateofthe
CCD
Hto
CONFIDEN
TIAL
87
includ
especificreferencetoth
emon
itorin
gim
plem
entatio
nofbusinessa
nd
humanrightsfram
eworksinLuxem
bourg.
16.2.D
oesthe
statefin
anceNHR
Iactivitieswith
inth
efie
ldofb
usinessa
ndhum
anrights?Do
esth
estate
supp
ortthe
NHR
Iinprovidingguidanceonhu
manrights
tobusinesse
nterprise
s?
Accordingtoth
ewritteninpu
treceivedbyth
eCC
DH;
“Sofar,theCC
DHhasnotdon
ean
ypa
rticular“activity”with
inth
efieldof
busin
essa
ndhum
anrigh
ts,thu
sith
asnotre
ceivedanyfu
ndinginth
isrega
rd”.
Inth
ewritteninpu
t,theCC
DHhaslisted
variousactivitiesth
atth
eorganizatio
nhastaken
part,includ
ingthemeetin
gsatthe
inter-ministerialand
themulti-
stakeh
olde
rworkinggroup
s,and
businessa
ndhum
anrightscon
ferenceorganized
byth
egovernmen
tonthe7t
h ofJun
e20
19(astaffo
fthe
CCD
Hhastaken
theflo
or
with
theothe
rlocalstakeh
olde
rs).The
CCD
Halsonoted
thatithasbeeninvited
asa“invitéd’hon
neur”toth
econferen
ceonthe22
ndofO
ctob
er,w
hichis
organizedbyth
eUELand
theINDR
inpartnershipwith
theMinistryofE
cono
my
andincollabo
ratio
nwith
theMinistryofForeignand
Europ
eanAffairs.
16.3.D
oesthe
statesupp
ortthe
NHR
Iinmon
itorin
gthe
humanrightsim
pactso
fbusiness?
Accordingtoth
ewritteninpu
treceivedbyth
eCC
DH;
“sinceth
eCC
DHhasnot(yet)u
ndertakenan
ypa
rticularm
onito
ringactivity
onth
ehu
man
righ
tsim
pactofb
usinesses,italso
hasnotre
ceivedany
specific“sup
port”inth
isrega
rd.H
owever,[…]thegovernm
entg
enerally
welcomesand
encou
ragesa
nyinpu
torcon
tributionbyth
eCC
DH”.
17.STA
TE-BUSINESSNEX
US
GuidingPrin
ciple4:Statessho
uldtakeadd
ition
alstep
stoprotecta
gainsthum
anrightsabu
sesb
ybu
sinesse
nterprise
sthata
reowne
dor
controlledbyth
eState,orthatreceivesu
bstantialsup
portand
servicesfrom
Stateagenciessuchasexportcredita
genciesa
ndofficial
investmen
tinsuranceorg
uaranteeagencies,includ
ing,whe
reapp
ropriate,byrequ
iringhum
anrightsdue
diligence.
GuidingPrin
ciple5:Statessho
uldexerciseade
quateoversig
htinorderto
meetthe
irinternationalhum
anrightsobligationswhe
nthey
CONFIDEN
TIAL
88
contractwith
,orlegislatefor,bu
sinesse
nterprise
stoprovideservicesth
atm
ayim
pactupo
ntheen
joym
ento
fhum
anrights.
GuidingPrin
ciple6:Statessho
uldprom
oterespectforhum
anrightsbybu
sinesse
nterprise
swith
whichth
eycon
ductcom
mercialtransactions.
RelevantSustainab
leDevelop
men
tGoa
lsand
Targets
• Go
al12:Respo
nsiblecon
sumptionandprod
uctio
n(Target1
2.7)
• Go
al17:Partnershipsforth
eGo
als(Target17.17
)
• Sectorsthata
rety
picallypriv
atise
dinclud
eed
ucation(Goal4),waterand
sanitatio
ns(G
oal6),en
ergy(G
oal7),infrastructure(G
oal
9)and
security(Goal16)
GuidingQue
stions
Statusand
Gap
s17
.1W
hattypesofh
umanrightsdue
diligencemeasuresb
ystate-
owne
dorcon
trolledbu
sinesse
nterprise
sorb
usinessesreceiving
substantialsup
portfrom
stateagen
ciesarere
quire
dbyth
estate?
Therearenu
merou
sstateowne
dorcon
trolledcompaniesand
administratorsinLuxem
bourg.Acom
preh
ensiv
elistisp
rovide
dinth
eweb
siteofth
eStateTreasury.34
3 Atpresent,the
reisnospecificdu
ediligen
cere
quire
men
timpo
sedon
State-owne
dorcon
trolledbu
sinesse
nterprise
sorb
usinesses
receivingsubstantialsup
portfrom
Stateagencies(SeeSection3.1.)
17.2W
hattypesofsup
plychainmanagem
entm
easuresb
ystate-
owne
dorcon
trolledbu
sinesse
nterprise
sorb
usinessesreceiving
substantialsup
portfrom
stateagen
ciesarere
quire
dbyth
estate?
Thepresen
tstudyhasnotiden
tifiedanyrequ
iremen
tsonsu
pply
chainmanagem
entm
easuresb
ystate-owne
dorcon
trolledbu
siness
enterprisesorb
usinessesreceivingsu
bstantialsup
portfrom
state
agen
cies.
Onsupp
lychaindue
diligenceob
ligationsfo
rselectedEU
impo
rterso
fcertainconflictm
inerals,se
eSection10
.4..
17.3.A
reth
erepu
bliclyre
ported
instanceso
fadversehum
anrights
impactsa
ssociatedwith
businessesthata
reowne
dorcon
trolledby
thestate?
Thepresen
tstudyhasnotiden
tifiedinstanceso
fadversehum
an
rightsimpactsa
ssociatedwith
businessesthata
reowne
dor
controlledbyth
estate.
17.4.H
asth
estatepu
tinplacemeasurestoen
sureth
atbusinesses
bene
fittin
gfrom
supp
ortfromth
estatethroughexpo
rtcredit
agen
ciesofficialinvestmen
tinsurance,guaranteeagencieso
r
TheLuxembo
urgExpo
rtCreditA
gency(OfficeduDu
croire–“ODL
”),
supp
ortsLuxem
bourgcompaniesbyprovidingfin
ancialsu
pporta
nd
insurancefore
xporta
ndinvestmen
trisk
s.34
4 The
web
siteofth
eODL
CONFIDEN
TIAL
89
receivingothe
rtypeofsu
pportfromth
estatearerespectin
ghu
man
rights?
hasa
ded
icated
portaltosocialre
spon
sibility:
“ODL
hasestab
lishedenvironm
entaland
socialguidelinesfo
rtheselectionofprojectse
ligiblefo
rofficialsu
pporta
swellasa
tw
o-stepprocessinth
epreventio
noftran
sactionsinvolving
bribery”.34
5 AccordingtheODL
web
site;
“Poten
tialsocialimpa
ctsm
ayinclud
e,butarenotlimite
dto,
labo
urand
working
con
ditio
ns,com
mun
ityhealth
,safety,and
security,land
acquisitionan
dinvoluntaryresettlement,
indigeno
uspeoples,culturalherita
ge,and
project-related
human
righ
tsim
pacts,includ
ingforcedlabo
ur,childlabo
ur,
andlife-threateningoccupa
tiona
lhealth
and
safety
situa
tions”.
Theen
vironm
entaland
socialguide
linesofO
DLarebased
onthe
OEC
DRe
commen
datio
nofth
eCo
uncilonCo
mmon
App
roache
sfor
OfficiallySup
ported
ExportC
reditsand
Enviro
nmen
taland
SocialD
ue
Diligen
ce(the
“Co
mmon
App
roache
s”).3
46
Theen
vironm
entaland
socialguide
linesofO
DLiden
tifyprincipal
environm
entaland
socialim
pactsa
nddefinetherequ
iremen
tsofO
DL
supp
ort.Theim
pactside
ntified
determinetheeligibilityofthe
project
foro
fficialsu
pport,inadd
ition
toth
eecon
omicand
financial
aspe
cts.34
7 ODL
app
liesthe
followingproced
uretoth
eprojectsth
atapp
lyfo
rinsuranceandfin
ancialsu
pport;
• Afterthe
initialsc
reen
ing(aque
stionn
aire),theODL
classifies
theprojectsbased
ontheguidanceprovide
dbyth
eOEC
D.The
projectsclassified
ash
avingsig
nificanta
dverseenviro
nmen
tal
and/orso
cialim
pactsa
rere
quire
dtocarryoutan
CONFIDEN
TIAL
90
Environm
entaland
SocialImpa
ctAssessm
ent(ESIA).
• TheODL
ben
chmarksth
eprojecte
nviro
nmen
taland
social
performanceagainstinternationalstand
ardsapp
licableto
the
project,andifitde
emsn
ecessary,callsfora
ninde
pend
ent
expe
rtto
assessthe
poten
tialenviro
nmen
taland
social
impacts.
o Ifthereisahighlikelihoo
dofse
vereproject-related
hu
manrightsim
pact,the
enviro
nmen
taland
social
review
ofthe
projectm
ayneedtobecomplem
ented
byasp
ecifichu
manrightsdue
diligence.
348
o TheODL
also
assessesa
nd“considersa
nystatem
ents
orre
portsm
adepu
bliclyavailablebyth
eNational
ContactP
oint(N
CP)”.34
9 •
TheODL
requ
iresthe
mon
itorin
gofth
esupp
ortedprojectsat
leasto
nanann
ualbasisifthe“ESIAofthesu
pportedproject
indicatestheneedtoputinplacem
itiga
tionmeasuresa
nd,
whenODL
includ
escon
ditio
nsinitsinsuran
cepolicy”.35
0
TheNationa
lCredita
ndIn
vestmen
tInstitutioninLuxem
bourg
(SociétéNationa
ledeCréditetd'Investissem
entinLuxembo
urg–
SNCI)isa
pub
lic-la
wbankinginstitu
tionspecialized
inm
ediumand
longte
rmfinancingofLuxem
bourgbasedcompanies.SNCI’sfinancing
instrumen
tsareinvestmen
tsinfixedassets,inn
ovationsand
expo
rts.35
1 Gap
s
Accordingtoth
eODL
’sweb
site“allprojectshavetocom
plywith
host
coun
trystandards”.35
2 Thisstatemen
tisp
roblem
atic(seealso
Sectio
n
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CONFIDEN
TIAL
92
privatisa
tionofprovisio
nofpub
licse
rvices,prio
rtotheprovision
of
suchse
rvices?Do
pub
licprocuremen
tcon
tractsclarifythestate’s
expe
ctationthatbusinessesrespe
cthum
anrightsindelivering
servicesand
com
plywith
hum
anrightsstandards?
certainminim
umcon
ditio
nssu
chasq
ualitystandardsa
nd
transparen
cyse
toutinArticle2.35
4
Forinformationon
pub
licprocuremen
t,seeSection19
.18
.2Isth
estateapartytoth
eMon
treu
xDo
cumen
tonPe
rtinen
tInternationalLegalObligationsand
Goo
dPracticesfo
rstatesR
elated
toOpe
ratio
nsofP
rivateMilitaryand
Security
Com
paniesDuring
Armed
Con
flict?Ifso,how
doe
sitincorpo
ratecom
mitm
entsinto
natio
nallaw
s?Isth
estatepartytoth
eInternationalCod
eofCon
duct
forP
rivateSecurityProvidersA
ssociatio
n(IC
oCA),and
ifso
,how
doe
sitincorporatecommitm
entsintonationallaw
sand
procuremen
tprocesses?Isth
estatepartytoth
eVo
luntaryPrinciplesonSecurity
andHu
manRights?Ifso
,how
doe
sitincorpo
ratecom
mitm
entsinto
natio
nallaw
s,includ
ingarou
ndth
eprovision
ofp
ublicse
curity?
Mon
treu
xDo
cumen
tonPe
rtinen
tInterna
tiona
lLeg
alObligations
andGoo
dPracticesfo
rStatesR
elated
toOpe
ratio
nsofP
rivate
Militaryand
Security
Com
paniesDuringArmed
Con
flictre
affirmsthe
existingob
ligationsofstatesu
nderinternationallaw
,inparticular
internationalhum
anita
rianlaw(IHL
)and
hum
anrightslaw,relatingto
theactiv
itiesofp
rivatemilitaryand
securitycompanies(P
MSCs)in
situatio
nsofarm
edcon
flict.35
5 The
Mon
treu
xDo
cumen
tpromotes
respectforinternationalhum
anita
rianlawand
hum
anrightslawand
providesabluep
rintforgovernm
entsto
effe
ctivelyregulatePMSCs.It
isno
talegallybindingdocum
entb
utse
ekstoprovideguidanceon
thebasisofe
xistinginternationallaw
.The
Mon
treu
xdo
cumen
tis
finalize
din200
8.Luxem
bourgisapartytoth
eMon
treu
xDo
cumen
tsin
ce27Novem
ber2
013.
Gap
s
Luxembo
urgisno
tpartyto
theInternationa
lCod
eofCon
ductfo
rPrivateSecurityProvidersA
ssociatio
n(IC
oCA),am
ulti-stakeh
olde
rinitiativewith
theover-archingobjectiv
esto
articulatehu
manrights
respon
sibilitie
sofp
rivatesecuritycompanies(P
SCs),and
tose
tout
internationalprin
ciplesand
standardsforth
erespon
sibleprovisio
nof
privatesecurityservices,particularlywhe
nop
eratingincom
plex
environm
ents.35
6
Luxembo
urgisno
tpartyto
theVo
luntaryPrinciplesonSecurityan
d
CONFIDEN
TIAL
93
Human
Rights,ase
tofp
rinciplesdesigne
dtoguide
com
paniesin
maintainingth
esafetyand
securityofth
eiro
peratio
nswith
inan
operatingfram
eworkthatencou
ragesrespe
ctfo
rhum
anrights.35
7 18
.3.W
hatk
indofsc
reen
ingprocessesd
oesthe
statehaveinplaceto
prom
otebu
sinessrespe
ctfo
rhum
anrights,suchasbyproviding
preferen
tialtreatmen
ttobu
sinesse
nterprise
sthatd
emon
strate
respectforhum
anrights?Do
esth
estateexclud
efrom
thebidd
ing
processtho
sebusinessesthath
avede
mon
stratedpo
orre
spectfor
humanrights(suchaspoo
rand
hazardo
usworkingcon
ditio
ns,asw
ell
asexcessiv
euseoffo
rceorm
altreatm
ento
find
ividualsreceiving
care)?
Thisstud
yhasn
otiden
tifiedanyspecificscreen
ingprocessesthata
re
inplaceto
promotebu
sinessrespe
ctfo
rhum
anrights.
18.5.A
reth
erepu
bliclyre
ported
adversehum
anrightsim
pacts
associated
with
thede
liveryofpub
licse
rvicesbyprivateen
terprises,
includ
ing,fo
rexample,inth
eareaofe
ducatio
n,health
care,hou
sing,
security,etc.?
Thisstud
yhasn
otiden
tifiedanycaseofadversehum
anrights
impactsa
ssociatedwith
thede
liveryofpub
licse
rvicesbyprivate
enterprises.
19. B
USINESSESFR
OMW
HICH
THE
STA
TEPRO
CURE
SGOODS
ORSERV
ICESORCO
NDU
CTSOTH
ERCOMMER
CIAL
ACT
IVITIES
GuidingQue
stions
Statusand
Gap
s19
.1.D
ostateagen
ciesexplicitlyrequ
irecon
tractorsto
com
plywith
specifichu
manrightsprotections?Ifso,havestateagen
ciesprodu
ced
guidancefo
rcon
tractorsto
add
ressre
quire
men
ttocomplywith
hu
manrightsprotections?
Thefollowingisano
n-exhaustiv
elisto
frelevante
xistingLuxembo
urg
procurem
entlaw
sand
regulatio
ns:35
8 •
TheLawof8
April20
18onPu
blicProcuremen
timplem
entin
gthe
Directives201
4/24
/EU(the
Pub
licSectorD
irective)and
20
14/25.EU
(the
UtilitiesSectorD
irective);3
59
• TheGrand
-DucalReg
ulationof8April20
18im
plem
entin
gthe
LawonPu
blicProcuremen
tand
providingth
ede
tailsgoverning
diffe
rentprocuremen
tprocedu
res;360
• theGrand
-DucalReg
ulationof25Janu
ary20
19amen
ding
the
CONFIDEN
TIAL
94
Grand-Du
calRegulationof27Au
gust201
3on
theuseofelectronic
meansinpub
licprocuremen
tprocedu
resa
men
dingth
eam
ende
dGrand-Du
calRegulationof3August2
009im
plem
entin
gthelawof
25Ju
ne200
9on
pub
licprocuremen
tand
mod
ifyingthethreshold
provided
forinarticle106
point10°o
fthe
mun
icipallawof1
3De
cembe
r198
8;th
eGrand-Du
calRegulationim
plem
entin
gthe
Procurem
entA
ctof8
April20
18.
• theMinisteria
lReg
ulationof2Decem
ber2
013establish
ingthe
cond
ition
sofu
seofthe
pub
licprocuremen
tportal;3
61
• theGrand
-DucalReg
ulationof24March201
4establishing
Standardize
dSpecialChartersforPub
licProcuremen
tand
am
endingArticle103
ofthe
Grand
-DucalRegulationof3August
2009
implem
entin
gtheMarketsActof2
5June
200
9pu
blic;36
2 •
theMinisteria
lReg
ulationof31July201
8establish
ingspecial
specificatio
nsfo
rstand
ardizedchargesforcon
structionand
buildingclosure,te
chnicalinstallatio
nandcompletion
contracts;36
3 •
theMinisteria
lReg
ulationof20Ap
ril201
8establish
inga
standardsp
ecificatio
nsfo
rgen
eralcon
tractualclauses,app
licable
toallpu
blicworkscon
tractsre
latin
gtoth
ebu
ildingsector;36
4 •
theLawof1
0Novem
ber2
010institu
tingremed
iesinpu
blic
procurem
ent;3
65
• theGrand
-DucalReg
ulationof3Aug
ust2
009im
plem
entin
gthe
lawof2
5June
200
9on
pub
licprocuremen
t.(M
emorialA
n°18
0ofAugust1
1,200
9).36
6 Luxembo
urgispartytoth
eAg
reem
ento
nGovernm
entP
rocuremen
t(GPA
),aplurilateralagreemen
twith
inth
efram
eworkofth
eWTO
.367
CONFIDEN
TIAL
95
Transparen
cy,fairtreatmen
tand
equ
alopp
ortunitie
sareamon
gthe
basic
prin
ciplesofp
ublicprocuremen
tlegislationpu
rsuantto
theEU
Directives.Inadditio
n,inLuxem
bourg,th
eLawof8
April20
18on
PublicProcuremen
t,Article12(2)re
quire
sthe
con
tractin
gauthorities
tota
keintoaccou
nt,aspectsand
problem
srelatingtoth
een
vironm
enta
ndth
eprom
otionofsu
stainablede
velopm
entw
hen
awardingpub
liccon
tracts.
Institu
tionalsystemgoverningth
epu
blicprocuremen
tinclude
:ThePu
blicProcuremen
tDire
ctorate(LeDé
partem
entd
estravau
xpu
blics)with
inth
eDe
partmen
tofP
ublicW
orksofthe
Ministryof
Mob
ilityand
Pub
licW
orks(M
MTP)isthe
prim
arypo
licybo
dyfo
rpu
blicprocuremen
t.36
8 Itisrespo
nsiblefo
rthe
regulatoryfram
ework,
draftin
glegisla
tion,m
onito
ringitsim
plem
entatio
nandon
linepo
sting
ofpub
licprocuremen
tprocedu
res.
TheTend
erCom
mission
(LaCo
mmissiondesS
oumissions)isa
consultativ
ebo
dyestablishe
dpu
rsuantto
Articles1
59etseq
und
er
theam
ende
dLawof8
April20
18with
inth
eMMTP.36
9 Itisc
ompo
sed
of9m
embe
rs,includingre
presen
tativ
esfrom
con
tractin
gauthorities
(achairm
anand
4m
embe
rs)and
professionalchambe
rs(4
mem
bers).
Anadm
inistrativ
eun
itwith
inth
eMMTPm
anagesth
eTend
er
Commission.The
Ten
derC
ommissioncanacta
sasu
perviso
rybod
y,
ensurin
gthatpub
licprocuremen
trulesareapp
liedprop
erlyby
contractingauthorities.Ith
asalso
com
petencytore
ceivecomplaints
from
tend
erers.The
noticesand
opinion
sissue
dbyth
eTend
er
Commissionareno
tbindingbutarecom
mon
lyado
pted
by
CONFIDEN
TIAL
96
contractingauthorities.37
0 Thepu
blicprocuremen
tlaw
form
allyencou
ragesc
ontractin
gauthoritiesto
makeuseofte
nderprocedu
restoprom
ote
sustaina
blede
velopm
enta
ndso
cialobjectiv
es:
• AccordingtoArticle12ofth
eLawof8
April20
18;
“con
tractin
gau
thoritiessh
alltakeintoaccou
nt,w
hen
awarding
pub
liccon
tracts,aspectsand
problem
srelatingto
theenvironm
enta
ndth
eprom
otionofsu
staina
ble
developm
ent”
• Accordingtoth
eArticle35(1),the
con
tractsho
uldbe
awarde
dto
the“m
oste
cono
micallyadvantageou
s”te
nder.The
most
econ
omicallyadvantageou
sten
der,from
thepo
into
fviewofthe
contractingauthority
,canbede
term
ined
based
onthe“best
quality
/priceratio
,whichisassessedaccordingtoth
ecrite
ria
includ
ingqu
alita
tive,enviro
nmen
talorsocialaspectsre
latedto
thesubjecto
fthe
pub
liccon
tractcon
cerned
”(Art35(2)).
• Article42furthe
rsetso
utth
econd
ition
sforcom
pliancewith
applicableru
lesinthefie
ldofe
nviro
nmen
tal,socialand
labo
ur
law: “Econo
micoperatorsarere
quire
dtore
specta
ndenforceby
anyperson
actingassu
bcon
tractora
tanystag
ean
dbyany
person
makingavailableperson
nelforth
eperforman
ceofthe
contractallob
ligationsapp
licab
leinth
efieldse
nviro
nmental,
socialand
labo
rlaw
estab
lishedbyth
eEuropean
Union
,na
tiona
llaw
,collectiveag
reem
entsorinterna
tiona
lprovisio
ns
onenviro
nmental,socialand
labo
rlaw
[…]”
CONFIDEN
TIAL
97
• Und
erArticle15(1);con
tractin
gauthoritiesm
ayre
strictten
dersto
socialenterprise
s,ortoen
terprisesth
atfavourth
einclusionof
disabled
personsorthatp
articipateinlabo
urinclusion
programmes.
TheLuxD
evisLuxem
bourg'sD
evelop
men
tCoo
peratio
nAg
encyin
whichth
eStateisthemajority
shareh
olde
r.371A
ccordingto
their
web
site,th
eAg
encyinterven
esinth
efram
eworkofbilateral
developm
entcoo
peratio
nprojecto
rprogram
meprotocols,signed
by
theGo
vernmen
tand
theGo
vernmen
tsofthe
partnercou
ntrie
s.37
2 TheLuxD
evlistsrespe
ctfo
rhum
anrightsaso
neofthe
ethicsc
lauses
thatth
econtractorand
itsstaffmustcom
plywith
duringthedu
ratio
nofth
econtract.37
3 TheNAP
201
8-19indicatedtora
iseawaren
esso
fcon
tractin
gauthoritiesasp
arto
fthe
irpu
blicprocuremen
tprocedu
res.
TheNationa
lPlanforS
ustainab
leDevelop
men
t(20
18)e
xplicitlysets
thetargetofp
romotinggreenandsocialcriteriainpub
lic
procurem
ent.3
74Im
plem
entatio
nofth
eseprojectsand
program
mes
involvesprocuremen
tofgoo
ds,servicesa
ndworks,financedbyth
econtrib
utionsofthe
Governm
ento
rotherDon
orsa
ndfo
rwhich
LuxD
evactsa
sAwardingAutho
rity.
375
TheLuxembo
urgUnion
forthe
Socialand
Solidarity
Econo
my(Union
luxembo
urgeoisedel'écono
mieso
cialeetso
lidaire-ULESS),ano
n-profitorganizatio
nthataim
stode
fend
and
topromotethesocialand
solidarity
econo
my,haspub
lishe
dapracticalguidancefor
CONFIDEN
TIAL
98
implem
entatio
nofso
cialclausesinpub
licprocuremen
twith
the
supp
orto
fthe
MinistryofLabou
r,Em
ploymen
tand
theSocial
Solidarity
Econo
my(‘M
TEESS’).3
76
Thesecond
que
stioninth
issub-sectionrelateto
theguidance
provided
forthe
con
tractorsto
add
ressre
quire
men
ttocomplywith
hu
manrightsprotections:InLuxembo
urg,th
ee-procurem
entp
ortal
servesasa
ninform
ationandcommun
icationplatform
onpu
blic
procurem
ent.Itprovidescon
tractin
gauthoritiesand
econo
mic
operatorsw
ithinform
ationon
gen
eralprin
ciplesand
guide
lines,
applicablelegisla
tion,notificatio
nofcon
tractsand
guidanceon
proced
uresinclud
ingapplicableth
resholds,sub
missioncond
ition
sandtim
elinesasw
ellasstand
ardisedtend
ersp
ecificatio
nswhichhave
been
recentlyintrod
uced
forp
ublicworks.37
7 Gap
s
ThereisalegalbasisinLuxem
bourgforp
ublicautho
ritiesto
implem
enth
umanrightscon
siderationsinth
ecourseofp
urchasing
activ
ities.N
onethe
less,gapsrem
aininth
eprotectio
nofbusiness-
relatedhu
manrightsabu
sesu
nderLuxem
bourgprocurem
entlaw
sandpo
licies:
• Thereisno
explicitreferenceinth
ecurren
tlegislationandpo
licy
onhow
hum
anrightsareto
beop
erationalised
bycontracting
authoritiesinpub
licprocuremen
tprocesses.N
eitheristh
ere
referencetobusinessesrespo
nsibilitie
storespecth
umanrightsas
prescribed
bytheUNGP
s.
• TheGu
idanceprovide
dbyth
ePu
blicProcuremen
tDire
ctorate
doesnothaveanyexplicitreferencetohum
anrights.
CONFIDEN
TIAL
99
• Thereferencetocon
tractor’sre
spectforhum
anrightsinth
eprocurem
entp
ortalofthe
LuxDe
viswelcomed
.How
ever,itisa
gene
ralstatemen
tthatd
oesn
otprescrib
eanyconcreteactionor
guidancefo
rthe
con
tractors.M
oreo
ver,theen
tiretyofth
estatem
entreads:
“Forth
edu
ratio
nofth
econtract,theCon
tractora
ndhisstaff
mustrespecthum
anrigh
tsand
und
ertakenotto
offe
ndth
epo
litical,culturaland
religiousm
oresofthebeneficiary
coun
try”.
Thelatterparto
fthe
statem
entisp
roblem
aticinth
esensethat
contractorsm
ightfind
them
selvesinsituationswhe
renationallaw
sdirectlycon
flictsw
ithinternationalhum
anrightsstandardso
rdono
tfullycom
plywith
them
.Accordingto
theUNGP
s,corpo
rate
respon
sibilityto
respecth
umanrightsexistsa
boveand
beyon
dthe
need
tocom
plywith
nationallaw
sand
regulatio
nsprotectinghu
man
rights.Itapp
liese
venwhe
nrelevantdom
esticlawisweak,absen
tor
note
nforced.Ifth
enatio
nallegislativeen
vironm
entm
akesit
impo
ssiblefo
racom
panyto
fullym
eetitsre
spon
sibilityto
respect
humanrights,the
com
panyisexpectedtose
ekwaystoho
nourth
eprinciplesofinternatio
nallyre
cognize
dhu
manrightsand
to
continuallydem
onstrateitse
ffortstodo
so.37
8 •
Atth
etim
eofwriting,hum
anrightsawaren
essraisin
gof
contactin
gauthoritiesstated
inth
eNAP
201
8-19
hasnotbeen
implem
ented.
• Noreferencetohum
anrightscanbefoun
dinth
eguidanceto
ol
prep
ared
bytheULESS.
19.2.Canstateagen
ciesusehum
anrightscriteriaasa
con
sideration
SeeSection19
.1.
CONFIDEN
TIAL
100
inprocuremen
tprocesses?Atwhatstageofthe
procuremen
tprocess
canhu
manrightscriteriabeinclud
ed(canhum
anrightsprotections
beincorporated
beyon
dtheinitialprocuremen
tphaseand
inth
elife-
cycleofth
econtract,includingth
emon
itorin
gandreview
phases)?
Noteagene
rallackofhum
anrightsre
latedconten
tinthe
fram
eworksfo
rpub
licprocuremen
t.
19.3Havestateagen
ciesta
kenstep
stoclarifyhow
hum
ancriteriacan
beincorporated
inpub
licprocuremen
t?Doe
ssuchguidancecoverth
efullprocurem
entlife
-cycle?
SeeSection19
.1.
Noteagene
rallackofhum
anrightssp
ecificconten
tinthe
fram
eworksfo
rpub
licprocuremen
t.19
.4.D
ostateagen
ciescon
ductahum
anarightsriskassessm
entto
iden
tifytheriskofhum
anrightsviolatio
nsand
abu
sesinprocurem
ent
contractso
rcategorieso
fprocuremen
tcon
tracts?Ifsuchassessm
ents
occur,whata
ctionistakenbystateagen
ciesinre
latio
ntoth
econtractsd
eemed
tobeinacategoryofhighe
rrisk
ofp
oten
tial
humanrightsviolatio
nsand
abu
ses?
SeeSection19
.1.
Noteagene
rallackofhum
anrightssp
ecificconten
tinthe
fram
eworksfo
rpub
licprocuremen
t.
19.5.Candue
diligencerequ
iremen
tsbeinclud
edwith
inapub
lic
procurem
entcon
tract?Dostateagen
ciesre
quire
con
tractorsto
un
dertakehu
manrightsdue
diligence(in
clud
inghu
manrightsrisk
assessmen
ts)?Dostateagen
ciesprovide
guidancetobusinesseso
nho
wto
con
ducthum
anrightsdue
diligenceinclud
inghu
manrights
impactassessm
ents?
SeeSection19
.1.
Noteagene
rallackofhum
anrightssp
ecificconten
tinthe
fram
eworksfo
rpub
licprocuremen
t.
19.6.D
ostateagen
ciesre
quire
con
tactorstodiscloseinform
ationon
theirsup
plychain,includ
ingspecificsubcon
tractorsand
theaddresses
offactorieso
rsite
sofsup
ply?Dostateagen
ciesre
quire
con
tractors
tocertifythatth
eykno
wth
eirsub
contractors,includ
ingspecific
locatio
nsofp
rodu
ctionorsu
pply,and
thatth
eyhavemanagem
ent
system
stoen
surecom
pliance?Dostateagen
ciescon
firma
contractor’sassurancesa
ndre
quire
develop
men
tofcom
plianceplans
durin
gtheaw
ardstage?
SeeSection19
.1.,inparticular,parto
nArticle42ofth
eLawof8
April
2018
,seealso
Sectio
n10
.4.onCo
nflictM
ineralsR
egulation.
CONFIDEN
TIAL
101
19.7.D
ostateagen
ciesengageinse
lectiveorta
rgeted
pub
lic
procurem
ent,suchasp
referentialawardtovulne
rablegrou
ps(for
exam
ple,ethnicminoritiesorp
ersonswith
disa
bilities)orto
busin
essesw
orkingto
achievesp
ecifichu
manrighto
bjectiv
es(for
exam
ple,gen
dere
quality
orp
ost-conflictreintegratio
n)?
SeeSection19
.1.,inparticular,parto
nArticle15(1)ofthe
Law
of8
Ap
ril2018.
19.8.H
avestateagen
ciesputanyotherm
easuresinplacetoensure
thatpub
licprocuremen
tcom
pliesw
ithhum
anrightsprotectionorto
prom
oterespectforhum
anrightsamon
gothe
rbusinessesw
ithwhich
iten
gagesincommercialre
latio
nships,suchasth
roughbu
siness
partne
rshipsfo
recono
micdevelop
men
tand
inno
vatio
n(fo
rexample,
grow
thfu
nds,orstrategicsu
pportforinno
vatio
nincertainse
ctors,
suchasg
reen
ene
rgyorm
edicalte
chno
logy,orreq
uirin
gbu
sinesses
toim
plem
entsector-widestandardsw
hichinclud
ehu
manrights
protectio
ns)?
SeeSection19
.1.
Noteagene
rallackofhum
anrightssp
ecificconten
tinthe
fram
eworksfo
rpub
licprocuremen
t.
19.9.W
hatrem
edialprocedu
reso
rmechanism
sareinplaceto
addressh
umanrightsabu
sesb
ycontractors?W
hatrem
edial
proced
uresorm
echanism
sareinplacefo
rvictim
sofh
umanrights
abusesbycontractors?
SeeSection24
.onremed
ies.
19.20.W
hatp
ercentageofre
sourcesisd
edicated
tocon
tract
managem
ent?Dostateagen
cieshaveinform
ationsystem
sand
de
dicatedstafftomon
itorcon
tractorcom
pliancewith
hum
anrights
requ
iremen
ts?Do
stateagen
ciesre
quire
con
tractorsto
regularly
repo
rtonthepe
rformanceofthe
con
tract?Dotheserepo
rtsinclude
hu
manrightsissues?
SeeSection19
.1.N
otethegene
rallackofhum
anrightssp
ecific
conten
tinthefram
eworksfo
rpub
licprocuremen
tinLuxembo
urg.
19.21.Areth
erepu
bliclyre
ported
casesofadversehum
anrights
impactsa
ssociatedwith
businessesfromwhichth
estateprocuresor
cond
uctsothercom
mercialactivitieswith
?
Thisresearchhasnotiden
tifiedanycaseso
fadversehum
anrights
impactsa
ssociatedwith
businessesfromwhichth
estateprocuresor
cond
uctsothercom
mercialactivitieswith
.
CONFIDEN
TIAL
102
STAT
ES’R
OLEIN
RELAT
IONTOTHE
BUSINESSCO
NDU
CTED
INCONFLICT-AF
FECT
EDARE
AS
GuidingPrin
ciple7:
Becausetheriskofgrosshum
anrightsabu
sesish
eightene
dincon
flict-affe
cted
areas,Statessho
uldhe
lpensurethatbusinesse
nterprise
sop
eratinginth
osecontextsarenotinvolved
with
suchabu
ses,includ
ingby:
(a) Engagingatthe
earlieststagepo
ssiblewith
businesse
nterprise
stohe
lpth
emiden
tify,preventand
mitigateth
ehu
manrights-related
risksofthe
iractiv
itiesand
businessrelationships;
(b) Providingadeq
uateassistanceto
businesse
nterprise
stoassessand
add
ressth
ehe
ighten
edriskso
fabu
ses,payingspecialatten
tionto
bothgen
der-basedandsexualviolence;
(c) De
nyingaccessto
pub
licsu
pporta
ndse
rvicesfo
rabusinesse
nterprise
thatisinvolved
with
grosshum
anrightsabu
sesa
ndre
fusesto
coop
erateinadd
ressingthesituatio
n;
Ensurin
gthatth
eircurrentpractices,legislation,re
gulatio
nsand
enforcemen
tmeasuresa
reeffe
ctiveinadd
ressingtheriskofbusiness
involvem
entingrossh
umanrightsabu
ses.
RelevantSustainab
leDevelop
men
tGoa
lsand
Targets
• Go
al16:Promotepe
acefuland
inclusivesocietiesforsu
stainablede
velopm
ent,provideaccessto
justicefora
llandbu
ildeffe
ctive,
accoun
tableandinclusiveinstitu
tionsata
lllevels(Target1
6.1)
20. LEG
ALANDPO
LICY
CONSIDE
RATIONSINCONFLICT-AF
FECT
EDARE
AS
GuidingQue
stions
Statusand
Gap
s20
.1.H
asth
estatesig
nedrelevantinternationaland
region
altreatie
s,
directives,etc.inrelatio
ntoth
ebu
sinessroleincon
flict-affe
cted
areas,su
chasthe
Gen
evaCo
nven
tions,A
rmsT
rade
Treaty,re
gion
al
directives,etc.?
TheUNGP
7con
cernsthe
measurestaken
bytheGo
vernmen
tin
orde
rtoen
sureth
atbusinesse
nterprise
sope
ratin
gincon
flict-
affected
areasarenotinvolved
with
hum
anrightsabu
ses.Ithastw
obroaddimen
sions:Firstcon
cernsthe
Governm
ent’sinteractionwith
theho
stStatesa
ndth
esecond
con
cernsthe
guidanceprovided
bythe
CONFIDEN
TIAL
103
Governmen
ttobu
sinesseso
peratin
gincon
flict-affe
cted
areas.The
Co
mmen
taryto
theUNGP
7asksstatesto“w
arnbu
sinesse
nterprise
softh
ehe
ighten
edriskofb
einginvolved
with
grossabu
seso
fhum
an
rightsinconflict-affected
areas”.
379
TheCo
mmen
taryto
theUNGP
7statesth
at:
“Toachievegreaterp
olicycoherencean
dassistb
usiness
enterprisesadequ
atelyin[con
flict-affe
cted]situ
ations,hom
eStatessh
ouldfo
sterclosercoo
peratio
nam
ongtheir
developm
enta
ssistan
ceagencies,fo
reignan
dtrad
eministrie
s,
andexpo
rtfina
nceinstitu
tionsinth
eircap
italsan
dwith
inth
eir
emba
ssies,asw
ellasb
etweentheseag
enciesand
host
Governmenta
ctors;develop
early-w
arning
indicatorsto
alert
Governmenta
genciesa
ndbusinesse
nterprise
stoprob
lems;
andattachapp
ropriatecon
sequ
encestoan
yfailureby
enterprisesto
coo
perateinth
esecontexts,including
by
denyingorwith
draw
ingexistingpu
blicsu
pporto
rservices,or
whereth
atisnotpossib
le,denying
theirfutureprovision
”.38
0 Luxembo
urgratifiedallfou
rGen
evaCo
nven
tions,includingGeneva
Conventio
n(I)onWou
ndedand
SickinArm
edForcesintheField,
1949;G
enevaCo
nventio
n(II)o
nWou
nded,Sickan
dShipwreckedof
ArmedForcesa
tSea,194
9;GenevaCo
nventio
n(III)on
Prison
erso
fWar,194
9;GenevaCo
nventio
n(IV
)onCivilians,194
9on
July1,
1953.38
1 Luxembo
urgratifiedtheArmsT
rade
Treatyon
June
3,201
4.38
2 20
.2.D
oesthe
stateparticipateinre
levantinitiatives(forexample,
theVP
s,ICOC,EITI,theKimbe
rleyProcess,etc.)?
SeeaboveSection1.5.
20.3.A
reth
erepu
blicallyavailableexam
plesofthe
effe
ctiven
esso
fThepresen
tstudyhasnotiden
tifiedanysuchexamples.H
owever,
!"#$%&'#
(%)*
+! !
"+%!
%)$)#&5$.)+0+5$)+('&+'&.#
"#1$')&+'+)+$)+1#%&(.&#
8$,5"#%&(3&%*(
.)0(,+'6%&
+'&.#
"#1$')&+'+)+$)+1#%&+'&.#
"$)+(
'&)(&/5*("-+'6&)*
#+.&,
+%%+('&(3&
5.(,
()+'6&*/,$'&.+6*)%&+'&0('
3"+0)[$33#
0)#-&$.#$%&
5/2"+0&(33+0+$"%&0('
%/")#
-&3(.&)*+%&%)/-7&*$1#&%)$)#-&)*
$)&gL$M&4A#$"7'
8*1'*
'"&-*0,+&-J'-,780'=#
#0%",/0',/'="*7,-&'*/(':#/=-,:0S*==&
:0&('*"&*1;'
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$--.#%%&$
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T && C'&$&%)$)#,
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#-&$)&)*#&
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#$'&W33$+.%@&*$%&
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.$)#-&:/8#,2(
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.)&)(
&)*#&CYY&$'-&0(,,+),
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5.(,
()#&)*#&/'+1#.%$"+)7&(3&)*
#&Q(
,#&=)$)/)#9
LMO
KP9N9&U
$%&)*
#&%)$)#&+').(-
/0#-&0+1+"&(.&0.+,
+'$"&"+$2+"+)7&3(
.&#')#.5.+%#
%&-(
,+0+"#-&(.&(5#.$)+'
6&+'&)*
#+.&)#..+)(.7&(.&?/.+%-+0)+('&)*$)&0(,
,+)&(.&
0(').+2
/)#&)(&6.(%%&*/,
$'&.+6*)%&$2/%#%@&+'0"/-+'6&$2/%#%&0(,
,+))#-&
$2.($-V&C%&+)&5(%%+2
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=##&=#0)+('&KJ9I9&
&
CONFIDEN
TIAL
105
20.6.A
reth
erelaws,policies,and
regulatio
nsinplaceto
ensurethat
materialsandresourcessou
rced
from
con
flict-affe
cted
areasarenot
conn
ectedtoore
xacerbatingconflict?
SeeSection10
.4.
20.7.D
oesthe
statehaveaprocedu
refo
rinvestig
atingbu
siness
activ
itiesincon
flict-affe
cted
areas(e
.g.throu
ghth
eappo
intm
ento
fa
specialm
issionassig
nmen
ttothelocalembassiestoinvestigateinth
eho
ststateandrepo
rtto
relevantautho
ritiesintheho
mestate)?
TheMinistryofForeignAffa
irsofLuxem
bourghasa
designatedde
sk
toensurethefullim
plem
entatio
nsofU
Nand
EUsa
nctio
nsre
gimes
insid
etheDirectorateofEurop
eanAffairsand
InternationalEcono
mic
Relatio
ns.38
8 The
implem
entatio
nisalsom
onito
redbyth
eMinistryof
Finance.DiplomaticM
issionsarenotgen
erallyta
sked
with
investigativeassig
nmen
ts.38
9 20
.8.H
asth
estateestablish
edprocedu
resforcom
mun
icatingwith
ho
ststatesre
gardingbu
sinesso
peratio
nsincon
flict-affe
cted
areas?
Publicofficialsc
onsulte
dforthe
presentstud
yconfirm
edth
at
commun
icationswith
otherstatesgothroughofficialdiplomatic
channe
ls.39
0 20
.9.H
asth
estatepu
tinplaceeffortsw
ithth
eaimoffosterin
gcloser
coop
erationam
ongitsdevelop
men
tassistanceagencies,fo
reignand
tradeministrie
s,and
exportfinanceinstitu
tionsinitsc
apita
land
with
initse
mbassies,asw
ellasb
etweentheseagen
ciesand
hoststate
actorsto
add
ressth
eriskofbusinessinvolvemen
tingrossh
uman
rightsa
buses?
Publicofficialsc
onsulte
dforthisstudycon
firmed
thatth
ereare
regularcon
sulta
tionsonexpo
rtcon
trolsissue
sbetweenall
governmen
tagenciesc
oncerned
,asw
ellasa
dho
cinter-ministerial
consultatio
nsonbu
sinessa
ndhum
anrightsissuesbetweenthe
relevantM
inistrie
s(allcon
cerned
dep
artm
entsofthe
Ministryof
ForeignAffairs,the
MinistryofFinanceand
theMinistryofthe
Econ
omy.
391 Thelatteralso
hoststh
eOEC
DNationalCon
tactPoint
(seebelow
,Sectio
n27
.1.)
20.10.Areth
erepu
bliclyre
ported
instanceso
fadversehum
anrights
impactsc
ausedbybusiness-en
titiesd
omiciledinth
estatebu
top
eratingabroadincon
flict-affe
cted
areas?Do
theseexam
ples
includ
eastatefailureto
investigate,actupo
n,and
provide
remed
y?
Thisstud
yhasn
otfo
undanyexam
plesofstatefailureto
investigate,
actu
pon,and
provide
remed
ylinkedtoth
eop
erationsofcom
panies
thatareope
ratin
gincon
flict-affe
cted
region
s.
Thestud
y,how
ever,ide
ntified
agen
erallackofguidanceon
hum
an
rightsissue
sforbusinesseso
peratin
gabroadinparticularinth
ose
areasa
ffected
byconflictw
herehum
anrightsrisksa
reheightene
d.A
CONFIDEN
TIAL
106
companyre
presen
tativ
einterviewed
forthisstudycon
firmed
thatth
ebu
sinessesc
aneasilyaccesstosuchinform
ationthroughinform
al
channe
ls“bysim
plypickingup
theph
oneandasking”atth
erelevant
deskatthe
MAE
E.Non
ethe
less,the
Governm
entisa
dvise
dto
form
alize
theadviseoffe
redtobusinesseso
peratin
gabroad,that
wou
ldcon
taininform
ationabou
thigh-riskareasa
ndhum
anrights
issue
sinho
st-cou
ntrie
s.The
Governm
entisa
lsoadvise
dtoissue
Guidanceonho
wLuxem
bourgEm
bassiesc
anpromoterespon
sible
busin
essc
ondu
ctinclud
ingbyworkingwith
hostg
overnm
entsto
prom
otehu
manrightsand
raisingawaren
ess.
POLICY
COHE
RENCE
ACR
OSSSTA
TEACT
IVITY
GuidingPrin
ciple8:
Statessh
ouldensurethatgovernm
entaldep
artm
ents,agenciesa
ndotherState-based
institu
tionsth
atsh
apebu
sinessp
racticesareawareof
andob
servetheState’sh
umanrightsobligationswhe
nfulfillingth
eirrespe
ctivemandates,includ
ingbyprovidingth
emwith
relevant
inform
ation,trainingand
supp
ort.
GuidingPrin
ciple9:
Statessh
ouldm
aintainadeq
uatedom
esticpolicyspacetom
eetthe
irhu
manrightsobligationswhe
npu
rsuingbusiness-relatedpo
licy
objectiveswith
otherStateso
rbusinesse
nterprise
s,fo
rinstancethroughinvestmen
ttreatieso
rcon
tracts.
GuidingPrin
ciple10
:States,w
henactin
gasm
embe
rsofm
ultilateralinstitu
tionsth
atdealw
ithbusiness-relatedissue
s,sh
ould:
(a) Seekto
ensurethatth
oseinstitu
tionsneitherre
strainth
eabilityofthe
irmem
berS
tatestomeetthe
irdu
tyto
protectnorhinde
r
CONFIDEN
TIAL
107
busin
esse
nterprise
sfromre
spectin
ghu
manrights;
(b) Encouragethoseinstitu
tions,w
ithinth
eirrespe
ctivemandatesa
ndcapacities,toprom
otebu
sinessrespe
ctfo
rhum
anrightsand
,whe
rere
quested,to
helpStatesm
eetthe
irdu
tyto
protectagainsthum
anrightsabu
sebybu
sinesse
nterprise
s,includ
ingthrough
technicalassistance,capacity
-buildingandaw
aren
ess-raising;
(c) Draw
ontheseGu
idingPrinciplesto
promoteshared
und
erstandingand
advanceinternationalcoo
peratio
ninth
emanagem
ento
fbu
sinessa
ndhum
anrightschallenges.
RelevantSustainab
leDevelop
men
tGoa
lsand
Targets
• Go
al17:Stren
gthe
nthemeansofimplem
entatio
nandrevitalizetheGlob
alPartnershipfo
rSustainableDevelop
men
t.(Target1
7.14)
21. H
ORIZO
NTA
LAN
DVE
RTICAL
POLICY
COHE
RENCE
GuidingQue
stions
Statusand
Gap
s21
.1.Hasth
estatepu
blish
edawrittencommitm
enttobu
sinessa
nd
humanrights?Ifso,(1)hasth
iscommitm
entb
eencommun
icated
to
governmen
taldep
artm
entsand
(2)d
oesthisc
ommitm
enth
elpto
clarifyth
eroleofd
ifferen
tdep
artm
ents(forexample,labo
ur,
busin
ess,develop
men
t,foreignaffairs,finance,orjustice)?
Luxembo
urghasp
ublishe
ditsfirstN
APonbu
sinessa
ndrightsinJu
ne
22nd,2018(NAP
2018-19
).TheNAP
ispreparedbyth
eGo
vernmen
t,un
derthe
coo
rdinationofth
eMinistryofForeignand
Europ
ean
Affairs,w
ithinth
efram
eworkofth
eInter-ministerialCom
mitteeon
HumanRightsinclosecoop
erationbe
tweenpu
blicautho
rities,
represen
tativ
esofthe
priv
atesectorand
civilsociety.
TheInter-MinisterialCom
mitteewascreated
inM
ay201
5byth
eCo
uncilofG
overnm
enttoim
proveinter-ministerialcoo
peratio
nand
coordinatio
non
hum
anrightsissues,tostreng
thenth
ecoherence
betw
eenLuxembo
urg‘sinterna
land
externa
lhum
anrigh
tspolicies
andtom
onito
rLuxem
bourg’sh
umanrightsobligations.39
2 Im
plem
entatio
nandfollow-upofth
eNAP
201
8-19
isare
gularitem
onth
eagen
daofthe
Inter-MinisterialCom
mittee.D
ialoguewith
all
publicand
non
-governm
entalactorsiso
rganize
dandcoordinatedby
theInter-ministerialCom
mittee.39
3
CONFIDEN
TIAL
108
Bothth
eoriginalFrenchversionaswellasthe
Englishtransla
tionof
theNAP
ispub
lishe
don
theGo
vernmen
t’sweb
site.
Gap
TheNAP
2018-19con
tainsv
ariousactionpo
intsth
atfallun
derthe
compe
tencesofd
ifferen
tministrie
sand
governm
entaldep
artm
ents.
However,the
NAP
doe
snotclearlyiden
tifythespecificen
tity
respon
siblefo
rthe
implem
entatio
nandfollow-upofth
eactio
npo
ints.
21.2.H
asth
estatede
velope
dacleard
ivision
ofrespo
nsibilitie
sto
helpcoo
rdinatehu
manrightsand
businessissue
sbetweenandacross
diffe
rentgovernm
enta
genciesa
nddep
artm
ents?
Seeabove,Sectio
n21
.1.
21.3.H
asth
estatede
velope
dguidancem
aterialand
trainingto
help
clarifyth
eroleso
fdifferen
tdep
artm
entsinpromotingandprotectin
ghu
manrightswith
regardto
theroleofb
usiness?Doe
sthisg
uidance
includ
especificinform
ationon
protectionofhum
anrightsand
how
thisrelatestointernationaland
region
alobligationsand
commitm
ents?Do
esth
isguidanceinclud
especificinform
ationon
the
protectio
nofhum
anrightsintrade,with
anem
phasison
theroleof
region
albod
iesa
ndinternationalorganisa
tions,suchasinternational
andregion
alfinanceinstitu
tions?Do
esth
eguidanceprovide
inform
ationon
therolesa
ndre
spon
sibilitie
sacrossm
inistrie
sor
agen
cies?
Thisresearchhasnotiden
tifiedanyguidancem
aterialand
trainingto
he
lpclarifytheroleso
fdifferen
tdep
artm
entsinpromotingand
protectin
ghu
manrightswith
regardto
theroleofb
usinesses.One
of
theactio
npo
intsinth
eNAP
201
8-19
includ
esra
isinghum
anrights
awaren
esso
fcon
tractin
gauthoritiesasp
arto
fpub
licprocuremen
tproced
ures.N
oconcreteactionhasb
eentakenon
thispo
intyet.
22. P
OLICY
COHE
RENCE
INSTA
TEAGRE
EMEN
TSW
ITHBU
SINESSEN
TERP
RISES
GuidingQue
stions
Statusand
Gap
sAretherelawso
rpoliciesinplacetoensurethathum
anrights
considerationsareinclud
edinagreemen
tsbetweenthestateand
Inadd
ition
toalre
adymen
tione
dexam
plesth
isresearchahsnot
iden
tifed
specificlawsa
ndpolicieso
nhu
manrightscon
siderationsin
CONFIDEN
TIAL
109
busin
esse
nterprise
s?
Aretherelawso
rpoliciesinplacetoensurethatbusinesse
nterprise
sdo
miciledinth
estate’sterritoryorjurisdictionrespectthe
prin
ciples
ofre
spon
siblecon
tractin
gwhe
nthosebu
sinessese
nterinto
agreem
entswith
hoststates?
Doesth
estatesupp
orto
radvocateforthe
inclusionofhum
anrights
considerationsand
theprinciplesofrespo
nsiblecon
tractin
gin
agreem
entsbetweenthestateandbu
sinesse
nterprise
sorb
etween
hoststatesand
businessesd
omiciledinth
estate’sterritoryor
jurisdiction?
Aretherepu
blicallyavailableexam
plesofadversehum
anrights
impactsa
ssociatedwith
specificstate-bu
sinessa
greemen
ts?Ifso,
whe
rehum
anrightscon
siderationsinclud
edinth
econtracting
process?
agreem
entsbetweenthestateandbu
sinessesa
tpresent.
23. STA
TEPOLICY
COHE
RENCE
INM
ULTILAT
ERAL
INSTITUTIONS
GuidingQue
stions
Statusand
Gap
s23
.1.H
asth
estateestablish
edprocedu
resa
ndm
easurestoen
sure
supp
ortforbusinessa
ndhum
anrightsfram
eworks,includingth
eUNGP
s,inposition
staken
internationallyand
region
ally(forexample,
onhum
anrightssc
reen
inganddo
cumen
tingofnegotiatin
gpo
sitions,
aswellastrainingoftradeandde
velopm
ento
fficialso
nbu
sinessa
nd
humanrightsfram
eworks)?
Thereareno
establishe
dproced
uresatthe
mom
ent,bu
tLuxem
bourg
hastaken
position
infavourofthe
implem
entatio
nofth
eUNGP
sina
numbe
rofm
ultilateralfo
ra,includingth
eEU
’sre
levantworkingparty
andtheHu
manRightsC
ouncil.
394
23.2.D
oesthe
stateprom
oteitsdutytoprotectand
thecorporate
respon
sibilityto
respectinmultilateralinstitu
tions,including
internationaltrade
and
financialinstitutions,the
UNsy
stem
,regional
institu
tions,and
with
businesso
rganisa
tionandworkers’
associations?Ha
sthe
statetakenmeasurestoprom
oteaw
aren
esso
f
Seeabove,Sectio
ns20.9.and
21.1.
CONFIDEN
TIAL
110
theUNGP
sand
thebroade
rbusinessa
ndhum
anrightsagend
a?
23.3.W
hath
avebe
enth
eim
pactso
fstateeffo
rtstoprom
otethe
UNGP
sand
otherbusinessa
ndhum
anrightsfram
eworksin
multilateralinstitu
tionsto
whichitisam
embe
r?
Itisdifficulttoiden
tifythespecificim
pactofLuxem
bourg’se
fforts.
Publicofficialsh
averemarkedthatLuxem
bourghasb
eenavocal
advocateinsid
etheEU
fortakingaconstructiv
eapproachto
en
gagemen
twith
theOEIWGon
hum
anrightsand
transnational
corporationsasw
ellaso
therbusinesse
ntities.39
5 AC
CESSTOSTA
TE-BAS
EDREM
EDY
GuidingPrin
ciple25
:Asp
arto
fthe
irdu
tyto
protectagainstbusiness-relatedhu
manrightsabu
se,statesm
usttakeapprop
riatestep
sto
ensure,throu
ghjudicial,adm
inistrativ
e,legisla
tiveorotherapp
ropriatem
eans,thatw
hensuchabu
seso
ccurwith
inth
eirterritoryand/or
jurisdictionthoseaffected
haveaccessto
effe
ctiveremed
y.
RelevantSustainab
leDevelop
men
tGoa
lsand
Targets
• Go
al16:Promotepe
acefuland
inclusivesocietiesforsu
stainablede
velopm
ent,provideaccessto
justicefora
llandbu
ildeffe
ctive,
accoun
tableandinclusiveinstitu
tionsata
lllevels(Target1
6.3)
24. R
EDRE
SSFORBU
SINESSRE
LATEDHU
MAN
RIGHT
S
GuidingQue
stions
Statusand
Gap
s24
.1.H
asth
estatepu
tinplacelaws,policies,and
regulatio
nsth
at
introd
ucecivilliability,crim
inalliability,and
adm
inistrativ
esanctio
ns,
suchasfinesorlim
itedaccessto
statefund
ing,fo
rbusiness-related
adversehu
manrightsim
pacts,includ
ingforimpactsthattakeplace
abroad?Do
thesemechanism
sapp
lyto
individu
alsa
nd/or
busin
esses?
Belowisanon
-exhaustivelisto
flaw
s,policies,and
regulatio
nsth
at
introd
ucecivilliability,crim
inalliabilityand
adm
inistrativ
esanctio
ns
inLuxem
bourg.
• TheCivilCod
estatesth
at;
• An
alien,evenifno
tresidinginLuxem
bourg,m
aybe
summon
edbeforeLuxembo
urgcourtsfo
rthe
perform
anceof
obligationscon
tractedbyhim
inLuxem
bourgwith
a
Luxembo
urger;he
maybecalledbe
foreth
ecourtsof
CONFIDEN
TIAL
111
Luxembo
urgforo
bligationscon
tractedbyhim
inacou
ntry
towardsLuxem
bourgers(A
rticle14);
• ALuxembo
urgerm
aybecalledbe
foreacou
rtofLuxem
bourg
foro
bligationscon
tractedbyhim
inafo
reigncoun
try,even
with
analien(Article15).39
6 •
TheLawof3
March201
0introd
ucesth
ecrim
inalliabilityoflegal
person
sintheCrim
inalCod
eandCo
deofC
riminalProcedu
reand
am
endsth
eCrim
inalCod
e,th
eCo
deofC
riminalProcedu
reand
certainothe
rlegislativeprovision
s.39
7 The
201
0Lawapp
liesto
mosttypesoflegalentities,apartfrom
theStateandmun
icipalities
whichareexpresslyexclude
d(Article34).The
Law
furthe
rprovide
sthatth
ecrim
inalliabilityofthe
legalentity
doe
snotpreclud
ethe
crim
inalliabilityofthe
naturalpersons,autho
rs,ora
ccom
plices
who
com
mitted
therelevantoffe
nses.Crim
inalliabilityofthe
legal
entitywillarisewhe
nevera
felonyora
lesseroffe
nse(délit)is
committed
byon
eorm
oreofth
een
tity'slegalre
presen
tativ
esor
oneorm
oreofitslegalord
efactodirectorso
nbe
halfofand
for
thebe
nefitofthe
entity
.The
cou
rtsm
ayapp
lyth
efollowing
penaltiesincasethecorporateen
tityisfoun
dliablefora
crim
eor
anoffe
nse:
398
• Pe
cuniaryfin
es:M
inim
umofE
UR50
0andmaxim
umofE
UR
750,00
0foro
ffensesofm
inim
umofE
UR50
0andmaxim
um
correspo
ndingtotw
icethemaxim
umra
teprovide
dinth
eCrim
inalCod
eforthe
com
missionofanoffensecommitted
by
anaturalperson(Art36,Crim
inalCod
e).
• Forthe
followingcrim
esand
offe
nses,the
minim
umand
maxim
umfine
swillbemultip
liedbyfive(A
rt37,Crim
inal
Code
):
CONFIDEN
TIAL
112
• Crim
esoro
ffensesagainstStatese
curity;
• Actsofterrorismand
terroristfinancing;
• Violationoflawsrelatingtodeten
tionofarm
s;
• Traffickingofh
umanbeings;
• Drugtrafficking;
• Mon
eylaun
derin
g;
• Misu
seofp
ublicfu
nds
• Co
rrup
tionandbribery;
• Assistin
gun
authorize
den
trytoth
ecoun
tryand
resid
ence;
• Illegalemploymen
tofthirdcou
ntrynationals.
• Specificconfisc
ation(Con
fiscatio
nspéciale)
• Exclusionfrom
participationinpub
licprocuremen
t•
Dissolutionofth
een
tity
• Exam
plesofsom
eofth
ead
ministrativesanctio
nsinclud
e:39
9
• TheCSSFhasth
epo
werto
issuesanctio
nsagainstpersons
subjecttoitssu
pervision
pursuanttotheLawof5
April1993
onth
efin
ancialse
ctor,asa
men
ded,includ
ing;injunctio
nand
suspen
sionun
derA
rticle59andadministrativ
efin
eof
betw
een12
5and12
500
eurosund
erArticle63.
400
• TheCA
A(Com
missariata
uxassurances)
401 canautho
rizefin
es
ofam
axim
umof2
,500
EUR,asw
ellaso
therm
easures,
includ
ingwarnings,blame,th
eproh
ibition
tocarryoutcertain
operationsand
allothe
rlim
itatio
nsinth
eexerciseofthe
activ
ityand
tempo
rarysu
spen
sionofone
orm
oreofficers
pursuantto
theLawof6
Decem
ber1
991,Article101
.402If
CONFIDEN
TIAL
113
afterseveralwarning,the
com
panydoe
snotre
med
ythe
prob
lem,the
Ministrycanwith
draw
itsa
pprovalw
hichwou
ld
effectivelymeantliqu
idationofth
ecompany.
• TheCN
DP,pursuanttoArticles1
2-14,ofthe
Law
of1
Aug
ust
2018establishingth
eNationalCom
missionforD
ata
Protectio
n,hasvariousinvestigative,correctiveandadvisory
powersincluding,amon
gothe
rs,issuingpen
altie
sfor
infringemen
tsetoutbytheGD
PR,impo
singpe
nalty
paym
ents(a
streintes)ofd
elayto
com
plywith
anorde
rbythe
CNPD
toprovide
inform
ationorwith
acorrectivemeasure
issue
dbyth
eCN
PD.40
3 24
.2.H
asth
estatepu
tinplacemechanism
sthatintrodu
ce
compe
nsation,su
chasfinesorrestoratio
noflivelihoo
ds,forbusiness-
relatedadversehu
manrightsim
pacts,includ
ingforimpactsthattake
placeabroad?
TheRo
meIIRe
gulatio
nrequ
iresthatthe
type
ofrem
edies,includ
ing
thecharactera
ndamou
ntofd
amages,areto
bede
term
ined
onthe
basisofthe
lawwhe
reth
eharm
occurred.404 Intheexceptional
circum
stancesw
hereth
eapplicationofth
elawwhe
reth
eharm
occurred
todeterminetheam
ountofd
amageswou
ldleadto
den
ial
ofjustice,th
ecourtsm
ayapp
lyArticle26ofth
eRo
meIIRe
gulatio
n,
whichallowsthe
mto
refuseapp
licationoffo
reignlawifitis
manife
stlyincompatib
lewith
thepu
blicpolicyofth
eforum.40
5
Incasescon
cerningen
vironm
entaldam
age,Article7ofR
omeII
Regulatio
nen
ablesthe
personseekingcompe
nsationford
amageto
choo
seto
basehisc
laim
onthelawofthe
Stateinwhichth
eeven
tgivingriseto
thedamageoccurred
. 406
TheLawof1
2March198
4on
com
pensationtocertainvictim
shaving
suffe
redinjurie
sresultin
gfrom
crim
e,asc
ompleted
bylawso
f14
April199
2and6Octob
er200
9,407 foreseesa
rightforcertainvictim
s
CONFIDEN
TIAL
114
ofcrim
etogetcom
pensationpaidbytheStatebu
dget.Inorde
rto
qualifyfo
rcom
pensation,th
efollowingcond
ition
shavetobemet:
• Thevictim
muste
itherlegallyand
habitu
allyre
sideinLuxem
bourg
orbeanatio
nalofaM
embe
rStateofthe
Europ
eanUnion
orthe
Co
uncilofE
urop
e.Inadd
ition
,atthe
timeofth
ecrim
e,th
evictim
mustb
elawfullypresentinLuxem
bourgorbeavictim
ofthe
crim
ereferred
toinArticle382-1ofthe
Crim
inalCod
e.
• Theinjurysu
fferedmustb
etheresultofintentionalactsthat
constituteacrim
e.
• Theremustb
eaph
ysicalinjuryand
notjustm
aterialdam
age
(whichexclude
s,fo
rexample,com
pensationforsim
pletheft).
• Theinjurym
ustseriouslyaffe
ctyou
rqualityoflife,w
hichm
aybe
duetoalossorred
uctio
nofearnings,increasedcostso
rexceptionalexpen
diture,inabilitytowork,lossofayearo
fscho
oling,physic
alorm
entalharm,m
oraldam
ageor
disfigurem
ent,orphysic
alorm
entalsufferin
g.Ifyou
areth
evictim
ofacrim
ereferred
toinArticles3
72to
376
ofthe
Crim
inalCod
e,
youdo
nothavetoprovephysic
alorm
entalharmasthisis
presum
ed.
• Co
mpe
nsationispayablebyth
eStateon
lyifyou
canno
tobtain
effectiveandadeq
uatecom
pensationinano
therway.
• Thecompe
nsationmaybewith
heldorred
uced
onthebasisofthe
victim
’scon
ductatthe
timeofth
eoffenceorofh
isrelatio
nship
with
theoffend
er.
• An
yone
who
legallyand
habitu
allyre
sidesinLuxem
bourg,butwas
thevictim
ofaviolentintentionalcrim
eabroad,ise
ntitled
toclaim
compe
nsationpayablefrom
theLuxembo
urgbu
dgetifth
eyare
CONFIDEN
TIAL
115
note
ntitled
tobecompe
nsated
bytheothe
rState(A
rt.15,th
eLawof1
2March198
2).
• Inorderfo
rthe
crim
inalcou
rtto
havecausetoru
leon
compe
nsation,th
evictim
mustsue
ford
amagesinth
ecrim
inal
proceedingsa
sacivilpartyandclaimfaircompe
nsationfrom
the
offend
er,w
hereth
elatterisfo
undguilty.
24.3.H
asth
estatepu
tinplacemechanism
sthatintrodu
ceprocesses
forthe
preventionofharm,suchasinjunctio
nsorg
uaranteeso
fnon
-repe
tition,fo
rbusiness-relatedadversehu
manrightsim
pacts,
includ
ingforimpactsthattakeplaceabroad?
TheNCP
CArticle932
givesth
ejudgesittin
ginsu
mmaryproceedings
(procédu
rederéféré)gen
eralpow
erstoorde
r,inurgen
tmatters,any
interim
measurestowhichth
ereisno
com
pellingobjectio
norwhich
arejustified
bytheexisten
ceofadisp
ute.
Thisjudgemayalso
orderanycon
servatoryorre
med
ialm
easuresthat
arene
cessaryeitherto
preventim
minen
tdam
ageorto
putanen
dto
amanife
stlyunlaw
fuldisturbance(NCP
C,Article933
). Luxembo
urglawre
cognise
sseveralkindsofinterim
injunctio
ns:40
8 •
Beforeanytrial,ifthereisalegitim
atereason
tore
tainor
establish
theeviden
ceoffactsth
atm
ightbereliedup
oninth
esolutio
nofadisp
ute,th
ePresiden
tofthe
DistrictC
ourtcanorder
anylegallypermissiblem
easureso
finq
uiry(w
ithou
tthe
needto
show
emergencyorabsen
ceofseriousprotest)(Article350
ofthe
New
Cod
eofCivilProced
ure(NCP
C)).4
09
• Ifade
btorre
sidesinLuxem
bourg,th
ecred
itorcanaskfo
racou
rt
orde
rinstructin
gthede
btorto
payth
ede
btifth
ede
btor's
obligationisno
tseriouslyindisp
ute,whichm
ustb
eproven
bythe
claimantb
eyon
dareason
abledou
bt(A
rticle919
and
the
following,NCP
C).
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CONFIDEN
TIAL
118
25. JUDICIAL
MEC
HANISM
GuidingQue
stions
414
Statusand
Gap
s25
.1.D
othenatio
nalcou
rtsh
avethecompe
tencytoadjud
icate
claimso
fbusinessa
ndhum
anrightsabu
se,includingfo
rabu
sesthat
takeplaceoutsid
eofth
eirterritorialjurisd
ictio
n?
Therig
htto
effe
ctiveremed
yisen
shrin
edinse
veralEurop
eanand
internationaltreatiestowhichLuxem
bourgadhe
res.Itisbotha
Gene
ralPrin
cipleofEUlaw,and
isexplicitlyrecognise
dinArticle47of
theCFRandArticle13ofth
eEC
HR.The
CJEUre
quire
sthatw
here
thereisarig
htund
erUnion
law,M
embe
rStatessho
uldoffera
remed
ytoensureitsenforcemen
t(ub
iiusibirem
edium)‘bo
thinlaw
andinpractice.’4
15
Luxembo
urg’sd
omesticlegalorderisfo
unde
don
theprim
acyof
internationallaw
.AllcourtsinLuxem
bourghaveaccep
tedthefull
suprem
acyanddirecteffe
ctofinternatio
nallaw
asw
ellasE
Ulaw.In
thefie
ldofh
umanrightsth
ereisalongtradition
todire
ctlyapp
lyth
eprovision
softhe
ECH
Randsin
ceth
een
tryintofo
rceofth
eLisbon
treatyth
edo
mesticcou
rtsfrequ
ently
refertotheCFR.Ina201
5case,
theadministrativ
ecourtp
roceed
edto
anexofficioapplicationofth
eCFR.
416
TheBrusselsIR
egulationmakesitm
andatoryfo
rthe
nationalcou
rts
ofEUM
embe
rStatestoacceptjurisdictionincivilliabilitycasesfiled
againstd
efen
dantsd
omiciledinth
eforumState,w
hateverthe
natio
nalityofth
ede
fend
anto
rthe
plaintiffand
,incaseso
fextra-
contractualliability,whe
reverthe
dam
ageoccurred
.417 A
rticle60(1)
ofth
eRe
gulatio
nclarifiesth
at“acompanyoro
therlegalpersonor
associationofnaturalorlegalpersonsisdom
iciledatth
eplacewhe
re
ithasits:a)statutoryse
at,orb
)cen
traladm
inistratio
n,orc)p
rincipal
placeofbusiness”.InLuxembo
urg,itfo
llowsfromarticles1
4and15
CONFIDEN
TIAL
119
ofth
eCivilCod
e(seeabo
ve,Sectio
n24
.1)thatthe
Luxem
bourgcourts
maybecompe
tentfo
ranycivilactio
nbrou
ghta
gainstaLuxem
bourg
natio
nal,inth
eabsenceofanyothergroun
dforjurisd
ictio
n(see
above,Sectio
n24
.1.).
ThecourtsysteminLuxem
bourgistw
ofoldconsistingofjudicialand
administrativ
edivisio
ns.B
othofth
emareoverseenbyth
eCo
nstitutiona
lCou
rt(“Co
urcon
stitu
tionn
elle”)whichiscom
posedof
9mem
bersand
review
sLuxem
bourg’slaw
saposterio
riinth
elightof
theCo
nstitution,with
theexceptionoflawsa
pprovingtreatie
s,which
areexplicitlyexclud
edfrom
judicialre
view
.418
Thejudicialcou
rtssitincivil,com
mercialand
crim
inalm
attersand
are
organizedon
thebasisofath
ree-tie
rstructure:41
9
• TheSuprem
eCo
urto
fJustice(Cou
rsup
érieuredejustice),
consistingof;
o TheCo
urto
fCassatio
n(Cou
rdecassation);h
asjurisdiction
overth
eCo
urto
fApp
ealrulingsasw
ellasjud
gemen
ts
rend
ered
inlastre
sortbythedistrictcou
rtsa
nd
conciliationjudges.The
Cou
rtofC
assatio
nde
cide
squ
estio
nsoflaw
;o
TheCo
urto
fAp
peals(Co
urd’app
el)w
ithajurisdiction
overdecision
shande
ddo
wnatfirstinstancebyth
edistrict
courtsovercivil,com
mercial,crim
inaland
correctional
matters,asw
ellaso
vercasesdecided
bylabo
urtribun
als;
and
o Tw
oDistrictC
ourts(Luxembo
urgCityand
Diekirch),
CONFIDEN
TIAL
120
dealinginbothcivil,commercial(claim
sabo
veEUR10
.000
)andcrim
inal(crim
esand
misd
emeano
rs)m
atters;
o Threemag
istratescou
rts(Justicesdepa
ix)(Luxembo
urg,
Esch-sur-Alze
tteandDiekirch),dealingincivilcommercial
(claim
suptoEUR10
.000
)and
crim
inal(p
ettyoffe
nces)
matters;
o TheEm
ploymen
tTrib
unals(“Trib
unalduTravail”)arealso
organisedatth
elevelofthe
Low
erCou
rts.
Theadministrativ
edivisio
niscompo
sedof;42
0
• theAdm
inistrativeCo
urt(Co
uradm
inistrative),dealingin
administrativ
eandtaxappe
als,and
•
theAdm
inistrativeTribun
al(T
ribun
aladm
inistratif),tribun
alof
firstinstancefo
radm
inistrativ
e(in
dividu
aladm
inistrativ
ede
cisio
nsand
regulatoryacts)and
tax(basicallydire
ctta
xatio
n)
matters.
25.2.D
onatio
nallabou
rtrib
unalsh
avethecompe
tencytoadjud
icate
claimso
fbusiness-relatedhu
manrightsabu
se?
TheLabo
urCou
rt(T
ribun
alduTravail)hasjurisd
ictio
noverindividu
al
disputesbetweenem
ployersa
ndemployeesa
risingfrom
alabo
rcontractora
nappren
ticeshipcontract,com
plem
entarypen
sion
sche
mes,and
insolven
cyinsurance.Arighttoappe
allieswith
the
Courto
fApp
eal.Ifthedisputeconcernsissuesre
latin
gtoth
eapplicationofth
elawth
ecasem
aybereferred
toth
eCo
urto
fCassationwhich,inreality
,isv
eryrarelyused.
25.3.D
oothe
rjud
icialm
echanism
shavethecompe
tencyto
adjudicateclaim
sofb
usiness-relatedhu
manrightsabu
se?
Inadd
ition
toth
eabove,inLuxem
bourg,th
erearetw
osocialse
curity
courtscon
sistin
gofth
eHigh
SocialSecurity
Cou
ncil(Con
seilsupérie
ur
delasé
curitésociale-C
SSS)and
theSocialSecurity
Arbitration
CONFIDEN
TIAL
121
Tribun
al(C
onseilarbitraldelasé
curitésociale-C
ASS).
25.4.H
asth
estatemadeeffortstoprom
otepu
blicawaren
essa
nd
unde
rstand
ingofjudicialm
echanism
s,includ
ingho
wth
eycanbe
accessed
?
WhileexamplesofState’seffo
rtstoprom
otepu
blicawaren
essa
nd
unde
rstand
ingofjudicialm
echanism
sexistingen
eral(seeabo
ve,
Section24
.5.),th
esesourcesd
ono
tcon
tainexplicitreferencesto
grievancemechanism
sforhum
anrightsviolatio
nscom
mitted
by
companies.
25.5.A
reth
ejudiciary,includ
ingcivil,crim
inal,and
com
mercial
courts,asw
ellase
mploymen
tand
otheradm
inistrativ
etribun
alsa
nd
lawenforcemen
t,traine
don
issuesre
latedtobusinessa
ndhum
an
rights?
Theinitialasw
ellaso
ngoingstud
iesa
ndvocationaltrainingof
judiciaryareprovided
inth
eLawof7
June
2012whichalso
establish
esaCom
mission(Art.15)re
spon
siblefo
roverseeingthe
trainingsa
ndre
cruitm
ent(“com
missiondu
recrutem
ente
tdela
form
ationde
sattaché
sdejustice”).4
21
Thevocatio
naltrainingofjudiciarycomprise
sthe
oreticalm
odules
(Art.7)thatlastm
inim
um6m
onths,and
apracticalse
rvice(Art.8).
Gap
s
Luxembo
urghasn
otraininginstitu
tefo
rthe
judiciary.
Thisresearchhasnotiden
tifiedanyeviden
ceoftrainingsonissue
srelatedtobusinessa
ndhum
anrightsoffe
redtoth
emem
bersofthe
judiciary.
25.6.W
hatm
easuresa
reinplaceto
mon
itora
ndensurethatjudicial
mechanism
sareope
ratin
ginawayth
atisim
partial,with
integrity
,andinaccordancewith
due
process?
Theinde
pend
enceofjud
iciaryisguaranteedbyth
eCo
nstitutionand
byth
elawsg
overningand
organisingth
estructureofth
ejudiciary.
Und
erArticle91,judgesareirremovable.A
nadjudicatin
gjudgecan
betransferredon
lybyappo
intin
ghimorh
erto
anew
position
and
on
lywith
hisorhercon
sent.H
owever,intheeven
tofd
isabilityor
misc
ondu
ct,adjud
icatingjudgescanbesuspen
ded,dism
issed
or
transferred,inaccordancewith
thecond
ition
slaiddo
wnbylaw.The
officeofjudgeisincompatib
lewith
beingam
embe
rofthe
governmen
t,mem
bero
fparliamen
t,mayor,aldermanorcom
mun
al
CONFIDEN
TIAL
122
coun
cillor,ho
ldinganypu
blicorp
rivatesalarie
dpo
sition,beinga
notaryorb
ailiff,ho
ldingamilitaryore
cclesia
sticalofficeorb
einga
lawyer.Judgesareim
partialand
arebou
ndto
professionalsecrecy.
26. B
ARRIER
STO
ACC
ESSTO
JUDICIAL
REM
EDY
GuidingQue
stions
Statusand
Gap
s26
.1.H
asth
estatetakenmeasurestoen
sureth
atth
ereareno
legal
barriersto
preventlegitim
atecasesfrombeingbroughtbeforethe
courts?Thisinclud
esensuringthat:
(1)itisp
ossib
leto
holdbu
sinessesa
ccou
ntableund
erdom
estic
crim
inaland
civillaws,m
eaningth
atliabilityfo
rbothnaturaland
legal
person
sexistsu
nderth
elaw;
(2)allmem
bersofsocietycanra
isecom
plaints,includ
ingindigeno
us
peop
les,m
igrants,wom
en,and
children,and
areaffo
rded
thesame
legalprotectionasfo
rthe
widerpop
ulation;
(3)e
xtraterrito
rialharmsc
anbeaddressedwith
inth
ecourts,as
perm
itted
bytheUNGP
sand
internationalhum
anrightslaw;and
(4)legalissuessu
chasc
onflictso
flaw
,statuteso
flim
itatio
ns,paren
tcompanylimite
dliability,fo
rumnon
con
veniensa
ndstandardso
fliabilitydo
notre
sultinbarrie
rsto
victim
sofb
usiness-relatedhu
man
rightsh
armsinaccessingthecourts.
Belowisanon
-exhaustiveoverview
ofm
easuresL
uxem
bourghas
takentoensurethatth
ereareno
legalbarrie
rsto
preventlegitim
ate
casesfrombeingbroughtbeforethecourts:
(1)Seeabo
ve,Sectio
n24
.1.
(2)Seeabo
ve,Sectio
n24
.1.
(3)Seeabove,Sectio
ns24.1and25
.1.
(4)T
heRom
eIIRe
gulatio
nappliestotortliabilityclaim
spresented
to
thenatio
nalcou
rtso
fthe
EUM
embe
rStates.Rom
eIIRe
gulatio
nin
principlede
signatesthe
lawofthe
Stateinwhichth
eharm
occurred
asth
eapplicablelaw.4
22Civilliabilityclaimsa
redecided
onthebasis
ofth
erulesinforceinth
eStatewhe
reth
edamageoccurred
.423 T
he
RomeIIRe
gulatio
ntheo
reticallyallowsc
ourtstoapplythelawofthe
foruminsituationswhe
reth
elawofthe
Stateinwhichth
eharm
occurred
isnotsu
fficien
tlyprotectiveofth
ehu
manrightsofthe
pe
rson
harmed
.424
TheEurope
anCou
rtofJusticehasrejectedtheapplicationofth
eforumnon
con
veniensd
octrineinth
eEU
.425 T
heEurop
eanParliam
ent
notedthatth
eBrusselsIR
egulationmandatesthe
nationalcou
rtsin
theEU
tore
cognize
theirjurisd
ictio
nincaseswhe
rehum
anrights
violationsarecom
mitted
abroad,especiallyindevelop
ingStates
whe
reEurop
eanmultin
ationalsop
erate,asa
resultofth
econd
ucto
f
CONFIDEN
TIAL
123
thesebu
sinesses.42
6 Thestatuteoflimita
tionisgoverned
bytheRo
meIIRe
gulatio
n,which
meansth
atth
epe
riodde
pend
sonthenatio
nallaw
thatisapp
licable
inth
ecase.InLuxembo
urg,com
mon
limita
tionpe
riodis30
years
(Article226
2CivilCod
e).A
specialtim
elim
itofte
nyearsisa
ppliedto
obligationsderived
from
trade,betweenprofessio
nalsandbe
tween
professio
nalsandconsum
ers,unlessthe
yaresubjecttoashorter
timelim
it(Article189,Com
mercialCod
e).
Luxembo
urglawoffe
rsth
erelativ
elyun
common
possib
ilityfo
rNGO
stose
ekre
med
iesincivilcases(intheform
ofp
unitivedam
agesor
awardsfo
rthe
mselves-inno
meprop
rio)w
hencasesa
reinth
epu
blic
interest.42
7 26
.2.H
asth
estatetakenmeasurestoen
sureth
atth
ereareno
practicalorp
rocedu
ralbarrie
rsto
preventlegitim
atecasesfrombeing
brou
ghtb
eforethecourts?Thisinclud
es:
(1)e
nsuringfin
ancialsu
pportincludinglegalaidand
otherty
peso
fassistance;
(2)p
rovidinglegalrep
resentationorguidance;
(3)p
rovidingopp
ortunitie
sforcollectiveredress,class-actions,and
multi-partylitigation;
(4)allowingforrecoveryofattorne
ys’fees;
(5)p
reventingretaliatoryactionsagainstclaim
ants;
(6)reformingaccessto
evide
nce;and
(7)p
rovidingtraining,resou
rcesand
supp
ortforprosecutorsand
judges.
Thequ
estio
ninqu
iresw
hetherth
estatehastaken
measuresto
ensureth
atth
ereareno
practicalorp
rocedu
ralbarrie
rsto
prevent
legitim
atecasesfrombeingbroughtbeforethecourts,including;
(1)Legalaid:The
righttolegalaidisenshrined
inth
eECHR
,Art6
(3)(c
)whichguaranteesthe
righttolegalassistancewhe
reth
ede
fend
anth
asinsufficien
tmeansto
payfo
rlegalassistance,and
to
getfreelegalaidwhe
ntheinterestofjusticesore
quire
s;and
theCFR
ofth
eEU
,Art.47whichstipulatesth
atlegalaidsh
allbemade
availabletoth
osewho
lacksu
fficien
tresou
rcesinso
fara
ssuchaidis
necessarytoensureeffectiveaccessto
justice.
• InLuxem
bourg,legalaidexistsinbo
thcivilandcrim
inal
proceedings;isgranted
inextra-ju
dicialand
judicialproceed
ings,
innon
-con
tentiousorcon
tentiousm
atters,toplaintiffso
rde
fend
ants;and
app
liestoanyactio
nbrou
ghtb
eforetheordinary
CONFIDEN
TIAL
124
courtsorthe
adm
inistrativ
ecourts.42
8 •
Luxembo
urgnatio
nals,fo
reignnatio
nalsauthorise
dtose
ttleinth
ecoun
try,nationalsofaEUM
embe
rState,orforeignnationals
deem
edequ
ivalen
ttoLuxembo
urgnatio
nalsforlegalaid
purposesbyvirtue
ofaninternationaltreaty.Foreignnationals
who
sehom
eorre
siden
ceisinano
therEUM
embe
rStatem
ayalso
be
granted
legalaid,w
ithth
eexceptionofDen
mark,fo
ranycivil
orcom
mercialproceed
ingsinre
latio
ntocross-borde
rcaseswith
in
thescop
eofCou
ncilDirective20
03/8/ECof27Janu
ary20
03.42
9 •
Entitlemen
tforlegalaidwillbede
term
ined
based
onthetotal
grossincom
eandwealth
and
thatofthe
mem
bersofthe
ho
useh
old,inaccordancewith
theam
ende
dLawof2
9Ap
ril199
9establish
ingtherig
htto
aguaranteedminim
umincome.
430
• TheLuxembo
urgBa
rAssociatio
n(Barreau
deLuxembo
urg)
decide
swhe
therto
assignlegalaid.43
1 •
Third
-partyfu
ndingisun
know
ninLuxem
bourg,how
evernolegal
orre
gulatoryprovisio
nsprohibitsath
irdpartyfrom
fund
inga
claim.
(2)ForLegalre
presen
tatio
norguida
nce;se
eabove,Sectio
n24
.5.
(3)O
pportunitie
sforcollectiveredress,class-a
ctions,and
multi-
partylitigation:Currentlegalframew
orkinLuxem
bourgdo
esnot
allowfo
rclassaction(‘recou
rscollectif’)forclaim
sarisingfrom
the
sameeven
t.Age
neraljoind
erm
echa
nism
exists.Und
erArt206
of
theNCP
C,claim
smaybejoined
and
itispossib
leto
askth
ecourtto
ruleonthem
together.The
joiningofth
ecasesisp
rocedu
ral,and
eachclaim
antind
ividuallyneedsto
havebo
thsu
fficien
tstand
ing
(qua
litéd'ag
ir)and
alegitim
ateanddirectinterest(intérêtd'agir).
CONFIDEN
TIAL
125
Curren
tly,the
ULC('Union
Luxem
bourgeoisedesCon
sommateurs'),
whichisfinanciallyassisted
bytheState,isth
eon
lycertifieden
tity
whichhasbeenallowed
tofileagroup
action(notethat,dep
ending
onth
erulese
tcon
cerned
,sectoralsup
ervisoryautho
ritiesa
nd
individu
alsa
ndbusinessesc
aninitiateanactionforcessatio
nofan
infringemen
t).
The20
18CoalitionAg
reem
ente
nvisa
gesa
lawonclassa
ction;“abill
oflawonconsum
erclassactionssh
ouldbeadop
tedshortly
”.43
2 (4)R
ecoveryofattorne
ys’fees:Ingen
eral,eachpartybe
arsitsown
legalcosts.A
successfulparty’sfe
esand
expen
sesa
renotusually
recoverablefrom
theun
successfulparty.H
owever,und
erarticle240
NCP
C,th
esuccessfulpartym
ayre
covera
lumpsumofm
oneybyway
ofprocedu
ralind
emnity(ind
emnitédeprocedure)from
thelosin
gpartytheam
ountofw
hichisdetermined
bythejudge.Ju
dicialcosts,
suchasb
ailiff’scosts,arepaidbyth
eun
successfulparty,or
prop
ortio
nallybyallpartie
sinvolved,dep
endingontheou
tcom
eof
themattera
ndth
ede
cisio
nofth
ecourt.
Article2.4.5.3ofthe
InternalRegulationofth
eLuxembo
urgBa
rAssociation(Règlementintérieurdel’ordredesAvocatsduBa
rreaude
Luxembo
urg)prohibitscon
tingencyfees.H
owever,anagreem
ent
providingfora
maxim
umorm
inim
umfo
raportio
nofth
elawyer's
fees,ora
supp
lemen
taryfe
etobede
term
ined
onthebasisofthe
resultsobtaine
dorse
rvicesprovide
dwou
ldbepe
rmitted
. (5)P
reventingretaliatoryactionsagainstclaim
ants:A
rticle4and
CONFIDEN
TIAL
126
Article18(in
trod
ucingArticleL-253
(1)o
fthe
Labou
rCod
e)ofthe
Law
of28Novem
ber2
006on
equ
altreatm
entintrodu
ceaprotection
mechanism
againstre
taliatio
n.43
3
(6)A
ccesstoeviden
ce:D
isclosureprocedu
resd
ono
texistund
er
Luxembo
urglaw.Inprinciple,th
ebu
rden
ofp
roofliesonthepe
rson
who
allegesa
fact.Excep
tionally,ajudgecanorde
rthe
disc
losureof
specificpiecesofe
vide
nce,eith
eratthe
requ
esto
faninterested
partyoratitsowninitiative,ifsh
eorhede
emsitn
ecessaryand
only
ifacommen
cemen
tofp
roofhasbeenestablish
edbytheparty
requ
estin
gsuchm
easure.W
itnessd
eposition
sarepermitted
und
er
thegene
rallegalinvestigationmeasuresinarticle350
NCP
C.In
additio
n,apartym
aygathe
rwrittenwitn
essstatemen
tsprio
rtotrial.
Ifadisputerequ
iresspe
cificte
chnicalexpertise,th
ejudgecanappo
int
anexpertw
itness.
(7)T
raining,re
sourcesa
ndsu
pportforprosecutorsand
judges:
Thereiscompu
lsorytrainingfo
rcou
rtstaffp
ursuanttotheLawof1
8Februa
ry188
5on
judicialorganiza
tionasamen
ded.
434 T
heGrand
-Du
calR
egulationof17May199
0laysdow
nthecond
ition
sof
appo
intm
enta
ndpromotionofofficials.43
5 The
Grand
-Ducal
Regu
latio
nof14Ap
ril199
9laysdow
ntheterm
sand
con
ditio
nsof
theen
d-of-probatio
nandprom
otionexam
inationsand
laysdow
nthe
specialrecruitm
enta
ndpromotioncond
ition
sforre
gistryofficestaff
ofth
eadministrativ
ecourts.43
6 TheMinistryofJusticeincoo
peratio
nwith
theOfficeofthe
ProsecutorGen
eralisre
spon
siblefo
rjud
icialtrainingforjud
geso
fthe
ordinaryjudicialorder,prosecutorsand
traine
esinLuxem
bourg.
CONFIDEN
TIAL
127
Gap
s
Und
erArticle257
ofthe
New
Cod
eofCivilProced
ure,analienis
subjecttocautiojudicatumso
lvi,ifhe
orshe
wantsto
initiateaclaim
againsta
Luxem
bourgishdefen
dant,w
henthisisrequ
estedbyth
ede
fend
anta
ndth
erequ
estisg
ranted
bythejudge.The
purpo
seof
suchse
curitypaym
entistocoverthe
cou
rtfe
esasw
ellasa
ny
damagesarisingfrom
theproceedings.
Luxembo
urghadratifiedthe19
54Hague
Con
ventionon
Civil
Proced
urewhichexemptsn
ationalsofth
ecoun
triesw
hichhad
ratifiedtheCo
nven
tionfrom
thepaym
ento
fthe
cau
tiojudicatum
solviinLuxembo
urg.EUand
CoE
mem
bercou
ntrynationalsarealso
exem
ptfrom
paymen
tofthe
cau
tiojudicatumso
lvi.
Thecautiojudicatumso
lvireq
uiremen
tcanpoten
tiallylimitthe
accessto
cou
rtinLuxem
bourgforforeignersw
howanttolitigatea
caseagainstaLuxem
bourgishdefen
dant,butdono
thavethemeans
topayth
esecurityde
posit.
26.3.H
asth
estatetakenmeasurestoen
sureth
atth
ereareno
social
barriersto
preventlegitim
atecasesfrombeingbroughtbeforethe
courts?Thisinclud
es:
(1)add
ressingpo
werim
balancesbetweentheparties;
(2)targetedaw
aren
ess-raisingamon
gvulnerablegroup
s(fore
xample,
wom
en,ind
igen
ousp
eople,and
children);
(3)availabilityofchild-sen
sitiveproced
uresto
childrenandtheir
represen
tativ
es;
(4)e
ffortstocombatcorruption;and
(5)p
rotectionofhum
anrightsdefen
ders.
Belowisanon
-exhaustiveoverview
ofm
easuresL
uxem
bourghas
takentoensurethatth
ereareno
socialbarrie
rsto
preventlegitim
ate
casesfrombeingbroughtbeforethecourts:
(1) Co
ncerningim
balancesbetweentheparties,th
epresen
tresearch
didno
tfindanysuchm
easureapartfrom
whath
asbeen
describ
edabo
ve(m
ainly,inth
eSection15
.onanti-
discrim
ination);
(2) Ontargeted
awaren
essraisin
g,se
eabove,Sectio
n24
.5.;
(3) Thefollowingisano
n-exhaustiv
elisto
fchild-sen
sitivelegisla
tion
andproced
uresth
atexistinLuxem
bourg.
• Am
ende
dan
dRe
visedLawof8
Sep
tembe
r199
8regulatin
g
CONFIDEN
TIAL
128
relatio
nsbetweentheStateandorganizatio
nsworkinginth
esocial,fam
ilyand
therapeu
ticfields;43
7 •
Amen
dedLawof1
6De
cembe
r200
8on
childand
familycare;
438
• Eachdistrictcou
rtinLuxem
bourghasa
sectioncalledyouthan
dgu
ardian
shiptribun
al(trib
unaldelajeun
esseetd
estu
telles)in
chargeofapp
lyingtheyouthprotectio
nlegisla
tion;
439
• TheNationa
lyou
thoffice(Officenationa
ldel’enfan
ce-ONE)an
administrativ
ebo
dyund
erth
eauspicesofthe
MinistryofE
ducatio
n,ChildrenandYo
uththatoffe
rshelpto
childrenandyouth;
440
• TheOmbu
ds-Com
itteefo
rChildren'sR
ights(l'O
mbu
dsCom
ité
pourlesd
roitsdesenfan
ts-ORK
),am
ongothe
rtasks,carrie
sout
thefollowing:
441
o giveso
pinion
ondraftlaw
sand
regulatio
nscon
cerning
children'srightsa
ndsu
ggesta
men
dmen
ts.
o inform
sabo
utth
echildren’ssitu
ationanden
sureth
eapplicationofth
eCo
nven
tionon
theRightsofthe
Child.
o repo
rtsa
nnuallyto
theGo
vernmen
tand
toth
eCh
ambe
rof
depu
tieso
nthesituatio
nofchildren’srightsin
Luxembo
urg.
o receivesinform
ationandcomplainsre
gardingoffences
againstchildren’srights,trytom
ediateand
giveadvicesin
orde
rtoen
sureth
ebe
stpossib
leprotectionforchildren.
Notethatchildrenrig
htsa
ndjuvenilejusticearetopicalissue
sin
Luxembo
urg.The
Luxem
bourgNationalResearchFund
hasfu
nded
a
serie
soflectureso
rganize
dbyth
eUniversity
ofLuxem
bourgon
the
topicdu
ringthecourseof2
019.
442
(4) Fore
ffortstocombatcorruption,se
eabove,Sectio
n11
.
CONFIDEN
TIAL
129
(5) Forp
rotectionofhum
anrightsdefen
ders,seeabo
ve,Sectio
n12
.26
.4.H
asth
estatetakenmeasurestoincreaseund
erstandingof
barriersamon
gstm
embe
rsofthe
judicial,otherjudicialm
echanism
s,
andlawenforcemen
t,includ
ingthroughtrainingand
edu
catio
nal
materials?
Seeabove,Sectio
n25.5.
26.5.A
reth
erepu
bliclyre
ported
examplesand
caseswhe
revictim
sof
busin
ess-relatedhu
manrightsabu
sehavebe
enunabletoaccess
effectivejudicialre
med
ydu
etoth
epresen
ceoflegal,procedu
ral,
and/orso
cialbarrie
rs?
Thepresen
tstudyhasnotfo
undanyeviden
ceofe
xamplesand
cases
whe
revictim
sofb
usiness-relatedhu
manrightsabu
sehavebe
en
unableto
accesse
ffectivejudicialre
med
ydu
etoth
epresen
ceof
legal,proced
ural,and
/orsocialbarrie
rs.
NON-JUDICIAL
MEC
HANISMS
GuidingPrin
ciple27
:Statessho
uldprovideeffectiveandapprop
riatenon
-judicialgrie
vancemechanism
s,alongsid
ejudicialm
echanism
s,as
partofacom
preh
ensiv
estate-basedsystem
forthe
remed
yofbusiness-relatedhu
manrightsabu
se.
GuidingPrin
ciple28
:Statessho
uldconsiderwaystofacilitateaccessto
effe
ctiveno
n-state-basedgrievancemechanism
sdealingwith
bu
siness-relatedhu
manrightsharms.
GuidingPrin
ciple31
:Effe
ctiven
essC
riteria.
Effectiven
essC
riteria
Inorderto
ensuretheire
ffectiven
ess,non
-judicialgrie
vancemechanism
s,bothstate-basedandno
n-state-based,sh
ouldbe:
(a) Legitim
ate:enablingtrustfromth
estakeh
olde
rgroup
sforwho
seuseth
eyareintend
ed,and
beingaccou
ntablefo
rthe
faircon
ductof
grievanceprocesses;
(b) Ac
cessible:b
eingkno
wntoallstakeh
olde
rgroup
sforwho
seuseth
eyareintend
ed,and
providingade
quateassistancefo
rtho
sewho
mayfaceparticularbarrie
rsto
access;
CONFIDEN
TIAL
130
(c) Pred
ictable:providingaclearand
kno
wnproced
urewith
anindicativ
etim
efram
efore
achstage,and
clarityon
thety
peso
fprocess
andou
tcom
eavailableandmeansofm
onito
ringim
plem
entatio
n;
(d) Eq
uitable:se
ekingtoensurethataggrie
vedpartiesh
avereason
ableaccesstosourceso
finformation,adviceandexpertisene
cessary
toengageinagrie
vanceprocesso
nfair,inform
edand
respectfulte
rms;
(e) Tran
sparen
t:keep
ingpartiestoagrievanceinform
edabo
utitsp
rogress,and
providingsu
fficien
tinformationabou
tthe
mechanism
’s
performanceto
buildcon
fiden
ceinitse
ffectiven
essa
ndm
eeta
nypub
licinterestatstake;
(f) R
ights-compa
tible:ensuringthatoutcomesand
remed
iesa
ccordwith
internationallyre
cognise
dhu
manrights;
(g) Asourceofcon
tinuo
uslearning:d
rawingon
relevantm
easurestoiden
tifylesson
sforim
provingthemechanism
and
preventingfuture
grievancesand
harms.
27. N
ON-JUDICIAL
MEC
HANISMS
GuidingQue
stions
Statusand
Gap
s27
.1.D
oesthe
stateprovidemed
iatio
n-basedno
n-judicial
mechanism
ssuchasNationalCon
tactPoints(NCP
)und
erth
eOEC
DGu
idelines?Canthesemechanism
sbeused
forrem
edyingbusiness-
relatedhu
manrightsabu
ses?
Accordingtoth
eCo
mmen
taryto
theUNGP
27:
“Adm
inistrative,legisla
tivean
dothern
on-ju
dicialm
echa
nism
splayanessentialroleincom
plem
entin
gan
dsupp
lementin
gjudicialm
echa
nism
s.Evenwherejudicialsy
stem
sareeffe
ctive
andwell-resou
rced,theycann
otcarryth
ebu
rdenofa
ddressing
allallegedab
uses;jud
icialrem
edyisno
talwaysrequired;nor
isitalwaysthefa
vouredapp
roachfora
llclaiman
ts.G
apsin
theprovision
ofrem
edyforb
usiness-relatedhu
man
righ
ts
abusescou
ldbefilled,whereapp
ropriate,byexpa
ndingthe
man
dateso
fexistingno
n-judicialm
echa
nism
sand
/orb
yad
ding
new
mecha
nism
s.Thesem
aybemediatio
n-ba
sed,
adjudicativeorfo
llowotherculturallyapp
ropriateand
righ
ts-
compa
tibleprocesses–orinvolveso
mecombina
tionofth
ese–
depend
ingon
theissuesc
oncerned,anypub
licinterest
involved,and
thepo
tentialneedsofthepartie
s”.
CONFIDEN
TIAL
131
Aprim
arydiffe
rencebe
tweentheagreem
entb
ased
non
-judicial
mechanism
sand
theadjudicativ
eno
n-judicialm
echanism
sisthatthe
latterhaveamandateto
hearcases,issue
adjud
icationandde
term
ine
sanctio
nsand
otherfo
rmso
frem
edy(e.g.arbitration),w
hereas
agreem
entb
ased
mechanism
sprim
arilyoffe
ranon
-adversaria
lforum
ofm
ediatio
nbe
tweentheparties(e.g.m
ediatio
nandconciliation).
Thissectionaddressesthe
structureandworkofth
eLuxembo
urgNCP
(Pointdecontactn
ationa
lluxem
bourgeois-PCN
)(seeabove,Sectio
n1.4.).4
43The
otherexistingno
n-judicialm
echanism
s(bo
thagreemen
tandadjudicatio
nbased)willbelistedinth
ene
xtse
ction(27.2.).4
44
• Go
vernmen
tsadh
eringtoth
eOEC
DGu
idelinesareund
erth
eob
ligationtoestablishanatio
nalcon
tactpoint(N
CP).Theyhave
thefle
xibilityasto
how
tostructuretheirN
CP.44
5 Luxem
bourgNCP
hasa
nindividu
alise
ddecisio
n-makingstructure.
446 Ind
ividualised
de
cisio
n-makingmeansdecision
sareta
keneitherbyon
eindividu
alinasinglem
inistry,orb
yagrou
pofindividu
als
belongingtoth
esameserviceinth
esameministry.44
7 The
Luxembo
urgNCP
isbased
,managed
and
coo
rdinated
inand
by
theMinistryofE
cono
my.
448
• Theweb
siteofth
eLuxembo
urgNCP
statesth
atth
eNCP
ben
efits
from
atripartitestructureofth
eGo
vernmen
t,tradeun
ionand
employerre
presen
tativ
esfo
rthe
implem
entatio
nofth
eOEC
DGu
idelines.The
represen
tativ
esofthe
Luxem
bourgNCP
have
brou
ghtfurtherclarificationtoth
isinanem
ailexchange.
449 T
he
referencetoth
etripartitecharactero
fthe
NCP
isstem
mingfrom
the“Com
itédeCo
njon
cture”to
whichth
eLuxembo
urgNCP
is
attached
to.H
owever,thisd
oesn
otden
otethatth
eLuxembo
urg
CONFIDEN
TIAL
132
NCP
itselforitsw
orkingm
etho
distripartiteincharacter.
Accordingtoth
erepresen
tativ
esofthe
NCP
,the
bod
yis
inhe
rentlytripartiteasit“en
couragesarrangemen
ts”be
tweenthe
busin
essa
ndtradeun
ions,the
Governm
ent“actin
gasth
eho
nest
broker”.
450 T
hisinstallatio
n,accordingto
theNCP
represen
tativ
es,
canbe
seen
inth
ene
wlogoofthe
NCP
,whichre
flectsthe
tripartitecharactero
fthe
bod
y.The
represen
tativ
esofthe
NCP
havestated
thatcurrently,the
yareinth
eprocesso
fassessin
gand
comparin
gtheirstructureand
workingm
etho
dswith
otherNCP
sandtryingto
iden
tifythebe
stpractices.
• Accordingtoth
eDe
cisio
nofth
eCo
uncilontheOEC
DGu
idelines
forM
ultin
ationalEnterprise
s,governm
entsareexpectedto
ensureth
atth
eirN
CPcanope
rateinaccordancewith
thecore
crite
riaofvisibility,accessibility,tran
sparen
cyand
accoun
tability.
451 T
hesa
meCo
uncilD
ecision
ontheGu
idelines
alsoprescrib
esNCP
srespo
nsibilitie
s,includ
ing;“un
dertaking
prom
otiona
lactivitiesand
han
dlingen
quiriesand
con
tributingto
theresolutio
nofissuesth
atariserelatin
gtoth
eim
plem
entatio
nofth
eGuide
lines”.45
2
• Accordingtoitsw
ebsite,th
eNCP
implem
entsth
efollowing
activ
itiesinorderto
promotetheGu
idelines:45
3 o
Managingandmaintainingth
eweb
siteofth
eNCP
;
o Seizingand
processingspecificinstances;
o Re
spon
dingto
inqu
iriesfrom
thepu
blicand
local
busin
esses;
o Sharingandexchanginggoo
dpracticeswith
otherNCP
s;
o Re
portingannu
allyto
theInvestmen
tCom
mittee.
CONFIDEN
TIAL
133
Regardingprom
otiona
lactivities,m
orespecifically:
• TheNCP
hasaded
icated
web
site.
454The
web
siteaddsto
its
visib
ility.ItisinFren
chand
con
tainslinksto
anum
bero
fuseful
resources.45
5 Ita
lsocon
tainsthe
NCP
srulesofp
rocedu
re,anad
-ho
cform
forsub
mittingcomplaints,listofclosedandon
going
specificinstancesw
ithre
levantdocum
ents,and
thecontact
detailsofaded
icated
person.
• TheNCP
,togethe
rwith
UELand
theINDR
,iso
rganizinga
conferen
ceon“businessa
ndhum
anrights”inOctob
er201
9,in
orde
rtoprom
otethediscussio
non
businessa
ndhum
anrights
andrespon
siblebusinessc
ondu
ct.
• Re
presen
tativ
esofthe
NCP
havepresen
tedtheNCP
and
their
activ
itiesand
haveinteracted
with
therepresen
tativ
esof
busin
ess,tradeun
ionsand
NGO
sduringtheNAP
WG/
TG
meetin
gs.
• Inadd
ition
toth
emeetin
gsofthe
Inter-MinisterialCom
mitteefo
rHu
manRightsa
ndth
eWG/
TG,the
NCP
hasorganize
dorco-
organizedvario
usotherm
eetin
gswith
thestakeh
olde
rsduringthe
courseof2
018,includ
ing;am
eetin
ginFeb
ruary20
18with
NGO
son
“fairpo
litics”,am
eetin
ginM
ay201
8with
Trade
and
Investmen
tDep
artm
ento
n“trade
missionsand
hum
anrights”,a
meetin
ginOctob
er201
8with
businessrep
resentativeson
“promotionofth
eGu
idelines”.
456
Regardingha
ndlin
gen
quiriesand
con
tributingtoth
eresolutio
nof
issues,i.e.the
specificinstan
ces:
• TheNCP
haspub
lishe
ditsru
leso
fprocedu
re(inEnglish
)onits
CONFIDEN
TIAL
134
web
site.The
RulesofP
rocedu
recon
tainsinformationabou
tthe
tim
eframe,sc
ope,ru
leso
ntransparen
cyand
con
fiden
tiality,
assistanceavailabletoth
eparties,and
thediffe
rentphaseso
fthe
specificinstance.The
seinclud
ethelaun
chofthe
com
plaint,the
initialassessm
ent,offerin
ggood
offices,and
theconclusio
nofth
eproced
urewith
afinalstatemen
t.
• TheRu
leso
fProcedu
reinclud
esguide
linesonho
wto
laun
cha
complaint,includingan“ad-ho
cform
forsub
mittingcomplaints”
(inEnglish)and
con
tactdetailsofaded
icated
person.
Complainantsa
renotre
quire
dtouseth
equ
estio
nnaireand
can
send
theircom
plainteith
erviaemailorp
ost.Thepartiestoa
complaintm
ayalso
meetinpe
rson
with
theNCP
forthe
purpo
se
ofintrod
ucingaspecificinstanceorsub
stantia
teth
eircase.
457
Thesearepo
sitiveindicatio
nssincetheycon
tributetoth
eaccessibilityofthe
NCP
.•
Theruleso
fprocedu
rehaveclearinformationabou
tthe
tim
eframeofeachSIstage.
• Thescop
eofth
ecomplaintsa
ccep
tedbyth
eNCP
isquitebroad,in
that;“TheLuxembo
urgNCP
willbyprincipleaccepthan
dling
SpecificInstan
cesstemmingfrom
anypartyclaim
ingan
interest–
individu
als,localcom
mun
ities,N
GO’s,w
orkero
rgan
izatio
ns,other
interestedpartie
s–inanallegedbreachofthe[O
ECD]Guidelines
byam
ultin
ationa
lenterprise
,including
non
-for-profitlega
lentities,operatin
ginorfromLuxem
bourg”.45
8 •
One
ano
therpositivenote,th
eRu
leso
fProcedu
restatesth
atth
eNCP
doe
snotdism
isssp
ecificinstancessolelybe
causeparallel
proceedingsa
ddressingsim
ilarissue
sexist.45
9
CONFIDEN
TIAL
135
• Accordingtoth
eRu
leso
fProcedu
re,the
NCP
’sgoo
doffices
includ
e“m
ediatio
n,su
pervision
,investig
ation,fa
ctfind
ing
missionsbytheLuxembo
urgNCP
orb
yan
experto
ranyad-ho
centitycommissionedforthistaskbyth
eLuxembo
urgNCP
,ora
ny
otherp
rocedu
redeemedapp
ropriatefo
rhelping
theresolutio
nof
theraise
dissues”.InFriend
softheEarthagainstArcelorM
ittal,a
casecon
cerningmism
anagem
ento
faso
cio-econ
omic
developm
entfun
dinLiberia,the
NCP
con
ducted
twofactfind
ing
missionsassisted
byamed
iatora
ssigne
dbyth
eNCP
todraft
recommen
datio
ns,w
hichwereaccepted
jointly
bythepartiesa
nd
weresubseq
uentlysu
bmitted
toth
eLibe
riangovernmen
tto
improvethemanagem
ento
fthe
fund
inque
stion.
460 Ingene
ral,
theOEC
Drecognize
sthatfactfindingm
issionscou
ldim
pose
considerableburde
non
NCP
resources,and
assuchdo
esnot
requ
ireNCP
stocond
ucto
ne.46
1 The
factth
atth
eLuxembo
urgNCP
allocateditsfinancialresou
rcesto
establishthefactsinthe
foregoingcasecanbeconsidered
asa
positiveexampleam
ongthe
OEC
DNCP
sworkingm
etho
dsand
practice.
• Thede
cisio
nsta
kenbyth
eNCP
(includinginitialassessm
entsand
thefin
alstatem
ents)and
certainwrittencommun
icationis
publish
edinth
eweb
siteofth
eNCP
,whichcon
tributesto
wards
thetran
sparencyofthe
bod
y.
Gap
s
• TheCSOsh
avestated
thatth
eydono
tperceivetheNCP
tobe
impartialdue
toitsp
osition
atthe
“Co
mité
deCo
njon
cture”with
in
theMinistryofE
cono
my.
462Som
estakeh
olde
rsstated
thatth
ey
“takeconsciou
sdecision
notto
app
roachthisbo
dy”du
etoth
e
CONFIDEN
TIAL
136
percep
tionoflackofimpartiality.
463 T
hestakeh
olde
rsnoted
the
lackofcollabo
ratio
nbe
tweentheNCP
and
thecivilsociety.46
4 Itisno
tedthatth
epo
sitionofth
eNCP
with
inth
eMinistryof
econ
omycontrib
utesto
thepe
rcep
tionoflackofimpartiality.A
distinctionne
edstobe
drawnbe
tweentheno
tionsof
“impartiality”and
“inde
pend
ence”.Itisgen
erallyaccep
tedthat
thetw
oconcep
tsaredistinctbutcloselylinked
.465 Inde
pend
ence
isassociated
with
certaininstitu
tionalguaranteeso
rsafeguards
thatallowdecision
makerstofreeth
emselvesto
someextent
from
externalpressureswhe
nmakingtheird
ecision
s.46
6 Im
partiality,ontheothe
rhand,“isusuallyassociatedwith
the
objectivity
ofthe
decision
orthe
absen
ceofp
rejudiceto
wardon
eorotherofthe
partie
s”.46
7 Asm
entio
nedabove,broadlysp
eaking,the
NCP
shavetw
o-fold
mandate:toprom
otetheOEC
DGu
idelinesand
tohandlespecific
instances.W
ithre
gardstothefirstm
ission,th
eNCP
’slocatio
n
with
inth
eMinistryofE
cono
mycanproveusefulasthe
NCP
can
useleverageand
exertinflu
enceto
thestakeh
olde
rson
respon
siblebusinessc
ondu
ct.H
owever,con
cerninghand
lingof
specificinstances,th
eNCP
’slocatio
ninagovernm
ente
ntity
in
chargeofp
romotingecon
omicactivity
cancreateape
rcep
tionof
lackofimpartiality.Inorderto
con
clud
ethatth
eNCP
lacks
impartiality,asd
efined
abo
ve,one
hasto
analyzeth
eou
tcom
esof
thecomplaintsh
andled
bytheNCP
.The
secom
plaintsa
tpresent
aretoofew(w
ithdivergentstagesand
outcomes)468to
suggest
thatth
eLuxembo
urgNCP
lacksimpartiality.
Non
ethe
less,itisrecom
men
dedthatth
eNCP
establishe
sand
CONFIDEN
TIAL
137
maintainsare
gulard
ialoguewith
abroaderse
tofstakeho
lders,
includ
ingCSOs,to
improvetheircon
fiden
ce.
TheOEC
DGu
idelinesre
commen
dthat,“theNCP
sestablishmulti-
stakeh
olde
radviso
ryand
/oro
versightbod
ies”to
promote
impartiality.
469 W
hileth
esedo
notnormallyfo
rmparto
fthe
NCP
anddo
nothavede
cisio
n-makingpo
weronacceptingor
concludingsp
ecificinstances,th
eycanprovide
impo
rtanta
dvice
toth
eNCP
onarangeofissues.47
0 Stakeho
ldersc
analso
be
form
allyintegrated
intoth
einstitu
tionalarrangemen
tsofthe
NCP
asm
embe
rsofthe
NCP
ash
asbeendo
nebysomeothe
rNCP
s.47
1 •
Asm
entio
nedabove,th
escop
eofth
eNCP
’sjurisdictionisqu
ite
broad.Forexample,to
ourkno
wledge,th
eLuxembo
urgNCP
is
amon
gthefewNCP
swhichaccep
tscom
plaintsa
gainstnon
-profit
organizatio
ns,alth
oughnosuchcasehasb
eenbrou
ghtb
eforethe
NCP
yet.47
2 Notwith
standingth
ebroadmandate,and
despiteth
epresen
ceofm
anycompaniesinLuxem
bourg,onlyfivecomplaints
havebeenfiled
with
theNCP
sofar.4
73Thism
aybepartially
explaine
dwith
lackofgen
eralawaren
esso
ntheroleofthe
NCP
.TheNCP
isadvise
dtodevelop
am
oreactiv
eprom
otionalstrategy
whichra
isesa
waren
esso
ntheroleofthe
NCP
asa
grie
vance
mechanism
.
• TheLuxembo
urgNCP
,likeanyothe
rNCP
,rep
ortsann
uallyto
the
OEC
DInvestmen
tCom
mittee.Inorde
rtoen
hanceits
transparen
cy,the
NCP
isadvise
dtom
aketheserepo
rtsa
vailable
onitsw
ebsite.
• Itappe
arsthatcurrentlyth
ereisno
form
alre
portingrequ
iremen
twith
inth
egovernmen
tontheactiv
itiesofthe
NCP
.The
represen
tativ
esofthe
NCP
haveconfirm
edth
atth
eactiv
iteso
f
CONFIDEN
TIAL
138
theNCP
areaparto
fthe
activity
ofthe
MinistryofE
cono
my,and
isrepo
rted
assuch.
474 Inorde
rtoen
hanceaccoun
tability,itis
advisedtocreateaninternalre
portingmechanism
with
inth
eGo
vernmen
tforth
eNCP
.TheNCP
cou
ldre
questa
regularb
udget
forthise
xercise
.•
TheNCP
hascon
firmed
thatitdoe
snothaveade
dicatedbu
dget,
butisfun
dedthroughthebu
dgetofthe
MinistryofE
cono
my.
475
Adhe
ringgovernmen
tsto
theGu
idelinesareund
eranob
ligation
tom
akeavailablehu
manand
financialresou
rcesto
theirN
CPsin
orde
rforth
emto
effe
ctivelyfulfilltheirrespo
nsibilitie
s.47
6 Itis
impo
rtantthatthe
NCP
hassu
fficien
tfinancialre
sourcesa
tits
disposalto
con
ductitsm
andate.
• Co
ncernswereraise
dbycom
plainantNGO
sregardingth
ede
lays
inprodu
cinganinitialassessm
entb
ytheNCP
.Inacasehandled
jointly
byLuxembo
urgandBe
lgiumNCP
s,th
ecomplainantNGO
ssentanop
enletterto
bothNCP
sraisin
gtheissue
thattw
elve
mon
thsa
fterth
esubm
issionofth
ecomplaint,the
initial
assessmen
tofthe
casehadno
tyetbeencompleted
.477 T
he
complainantsh
avestated
that“thede
laycreatesthe
impressio
nthatth
ecomplaintisnotbeingta
kenserio
usly”.
478 T
heinitial
assessmen
twaspub
lishe
datth
een
dofJu
ne201
8whe
reth
eLuxembo
urgNCP
offe
redvario
usexplanatio
nsre
gardingthe
delay.
479
TheCo
mmen
taryontheIm
plem
entatio
nProced
uresofthe
OEC
DGu
idelinesprovide
sanindicativ
etim
eframeofth
reemon
thsfor
completingtheinitialassessm
ent.4
80Thisisa
lsoth
etim
efram
eseto
utinth
eRu
leso
fProcedu
reofthe
Luxem
bourgNCP
.481 In
orde
rtocomplywith
itsR
ulesofP
rocedu
reand
theOEC
D
CONFIDEN
TIAL
139
Proced
uralGuidance,th
eNCP
isadvise
dtostriv
etom
eetw
ithth
etim
elinessc
riteriase
toutth
erein.
• TheOEC
Dalsoencou
ragesN
CPstoun
dergope
erre
view
s.48
2 The
Luxembo
urgNCP
hasnotyetund
ergone
apeerreview.TheNCP
represen
tativ
es,how
ever,haveconfirm
edth
atitisplann
edto
happ
enin202
1or202
2.
• TheNCP
isadvise
dtocon
sidertransla
tingitsweb
sitetoother
locallanguageswhichwou
ldadd
toitsa
ccessib
ility.
27.2.D
oesthe
stateprovideadjudicativ
emechanism
ssuchasstate-
runcomplaintso
ffices(e.g.ombu
dsmanoffices)?Canthese
mechanism
sbeused
forrem
edyingbusiness-relatedhu
manrights
abuses,includingfo
rabu
sesthattakeplaceou
tsideofth
eirterritorial
jurisdiction?
Doesth
estateprovideothe
rtypesofn
on-ju
dicialm
echanism
s?Can
thesemechanism
sbeused
forrem
edyingbusiness-relatedhu
man
rightsa
buses,includ
ingfora
busesthattakeplaceou
tsideofth
eir
territo
rialjurisd
ictio
n?
InLuxem
bourg,th
eLawof2
4Februa
ry201
2transposesth
eDirective
2008
/52/EC
oncertainaspe
ctso
fmed
iatio
nincivilandcommercial
mattersintodom
esticlaw.Itintrodu
cesm
ediatio
ninciviland
commercialm
attersinth
eNew
Cod
eofCivilProced
ure(Articles1
251-
1to125
1-24
ofthe
new
Cod
eofCivilProced
ure.).4
83Notethe
distinctionbe
tweenconven
tionalm
ediatio
n(“médiatio
nconventio
nnelle”)(A
rticle125
1-8)and
judicialm
ediatio
n(“médiatio
njudiciaire”)(A
rticle125
2-12
),thelatterbeingordered
byajudge.
Thefollowingisano
n-exha
ustiv
elisto
fcon
ventionalm
ediatio
nmechanism
sand
institu
tionsth
atexistinLuxem
bourg;
484
• TheCentrefo
rCivilan
dCo
mmercialM
ediatio
n(Centrede
Médiatio
ncivileetcom
merciale-C
MCC
)offe
rsvolun
tary
andam
icableprocessto
settlecivil,com
mercialorsocial
disputes.48
5 The
servicesofthe
CMCC
canbeused
ford
omesticor
crossb
orde
rcom
plaintsinwhichone
orb
othpartiesa
refo
reign
natio
nals.
486 T
heCMCC
canhandlemed
iatio
nrequ
estswhe
reth
econd
uctinqu
estio
nhastaken
placeoutsid
eofLuxem
bourg.In
principle,th
ereisno
obstacleforC
MCC
tohandlerequ
estsfo
rmed
iatio
non
business-relatedhu
manrightsabu
ses.Inpractice,
CONFIDEN
TIAL
140
however,nosuchre
questh
asbeenfiled
with
theinstitu
tion
yet.4
87
• TheOmbu
dsman
orm
ediatorreceivesc
omplaintsfrom
busin
essesa
ndindividu
alsincasesinvolvingth
emand
linked
to
thefunctio
ningofLuxem
bourgadministratio
ns.
• TheLuxembo
urgFina
ncialSectorS
upervisoryCom
mission
(Com
missionde
SurveillanceduSecteu
rFinancier-CSSF)is
compe
tentto
receivecomplaintsfromcustomerso
ftheprofessio
nalssubjecttoitssu
pervision
and
toactasa
ninterm
ediaryinorderto
seekanam
icablese
ttlemen
tofthe
se
complaints.48
8 The
procedu
reissu
bjecttothecond
ition
thatth
ecomplainthasbeende
altw
ithbythemanagem
ento
fthe
relevant
professio
nalbeforeh
and.
• TheEn
vironm
entalA
dministration'sC
ontroland
Inspectio
nUnit
(Unitécon
trôlesetinspe
ctions)isrespo
nsiblefo
rthe
managem
ent
andhand
lingofcom
plaintsinareasinwhichth
eEnvironm
ental
Administratio
nhasthe
pow
erofcon
trol,including:the
fight
againstn
oise;the
fighta
gainstairpo
llutio
n;wastem
anagem
ent;
classifiedestablish
men
ts;the
placingonthemarketa
nd/orth
euseofche
micalsu
bstancesand
mixtures;biocidalprodu
cts.
• TheNationa
lCon
cilia
tionOffice(OfficeNationaldeCo
nciliation–
ONC)re
solvescollectivedisputesre
gardingworkingcon
ditio
ns,
amon
gothe
rtasks.
• TheLuxembo
urgRe
gulatoryIn
stitu
te(InstitutLuxem
bourgeoisd
eRé
gulatio
n-ILR)m
ediatesd
isputesinth
efie
ldso
felectronic
commun
ications,electricity
,naturalgas,postalservices,transport
andradiofreq
uencies.
• SO
LVITLuxem
bourgispartofaninform
alcoo
perativ
ene
twork
CONFIDEN
TIAL
141
establish
edinth
eEU
and
EEA
thataim
storesolvescon
flicts
betw
eenLuxembo
urgcitizen
sand
foreignadministratorsinth
emattersofsocialsecurity
,taxation,employmen
tlaw
,residen
ce
perm
its,etc.
Gap
s
Luxembo
urgoffersvariousnon
-judicialdisp
uteresolutio
nmechanism
s.Inprin
ciplethesemechanism
scanbeused
toadd
ress
busin
essrelated
hum
anrightsabu
sesincludingth
eon
esth
at
occurred
abroad.Ingen
eral,the
sem
echanism
sarenotbou
ndbythe
natio
nalityofth
epartiesn
eitherbythelocatio
nofth
econd
uctw
hich
givesthe
mawidescop
eofapp
licability.Luxem
bourgoffersother
advantagessu
chasg
eographicalaccessib
ilityand
linguisticdiversity,
asre
iteratedbyare
presen
tativ
eofth
eCM
CC.48
9
Despite
theforegoingadvantages,how
ever,toou
rkno
wledgethe
existingproced
ureshaveno
tbeenused
toadd
ressbusinessrelated
hu
manrightsabu
ses.Thism
ightbedu
etolackofawaren
essa
bout
thepo
tentialuseofthe
mechanism
s.
Nolegalaidexistsforcon
ventionalm
ediatio
ninLuxem
bourgwhich
cancreateanob
staclefo
rpartie
stoaccessm
ediatio
nbasedno
n-judicialm
echanism
s.Note,how
ever,thatthe
201
8Co
alition
Ag
reem
ente
nvisa
gesp
ossib
lyto
exten
dlegalaidto
con
ventional
med
iatio
n.49
0 27
.3.W
hatm
easuresd
oesthe
statetaketo
promoteaw
aren
esso
fstate-basedno
n-judicialm
echanism
swith
thepu
blicand
poten
tially
impacted
com
mun
ities?
TheGo
vernmen
t’sofficialinform
ationpo
rtalGuichet.lu
hasded
icated
pagesforeachofth
emechanism
smen
tione
dabove(Sectio
n27
.2.).
Thepagesd
escribeinplainlanguageth
escop
e,prerequ
isites,
deadlines,costs(ifapp
licable),proced
ure,con
tactdetailsaswellas
CONFIDEN
TIAL
142
form
sand
onlineservicesre
levantto
themechanism
s.
The20
18CoalitionAg
reem
entp
ropo
sestoprom
otemed
iatio
nasan
alternativemetho
dofdisp
uteresolutio
n.The
Agreemen
tenvisa
gesa
“one
stop
”(“gu
ichetu
niqu
e”)m
ediatio
nservicetofacilitatecitizen
s’
accessto
med
iaionservices.49
1
Gap
s
Thereareno
explicitreferencesorg
uidanceasto
whe
therth
ese
mechanism
scanbeused
tose
ekre
dressforcorpo
ratehum
anrights
abuses.
27.4.D
oesthe
stateprovidestaffo
fstate-based
non
-judicial
mechanism
swith
supp
ort,ed
ucation,and
trainingonissue
srelated
to
busin
essa
ndhum
anrights?
Seethegene
ralrespo
nseon
trainingissuesinSectio
n5.2.
27.5.D
othesemechanism
smeetthe
effe
ctiven
essc
riteriase
toutin
UNGP
31?W
hatm
easuresa
reinplaceto
mon
itorthe
ongoing
effectiven
esso
fstate-based
non
-judicialm
echanism
s?
Ithasn
otbeenpo
ssibleto
asseseachofth
eexistingmechanism
sagainstU
NGP
’seffe
ctiven
essc
riteriase
toutinGP31
due
tolackof
time.
Itisno
tedthataccordingto
theLawof2
4Februa
ry201
2inorderto
ob
tainapp
rovalasa
med
iator,thepe
rson
mustp
rovide
guaranteeso
f“goo
drepu
te,com
petence,training,ind
epen
denceandim
partiality”
(Art.125
1-3.(1
).Itisalsonoted
thatCSSFRe
gulatio
nNo16
-07relatin
gtoout-of-c
ourt
complaintre
solutio
nstatesth
at:49
2 “TheCSSF'sinterventionshallbesubjecttotheprinciplesof
impa
rtiality,inde
pend
ence,transpa
rency,expertise,
effectiven
essa
ndfa
irness,re
ferredto
inDire
ctive20
13/11/EU
ofth
eEuropean
Parliamenta
ndoftheCou
ncilof21May201
3
CONFIDEN
TIAL
143
onalte
rnativedisputeresolutio
nforcon
sumerdisp
utesand
am
ending
Regulation(EC)No20
06/200
4an
dDirective
2009
/22/EC(D
irectiveon
con
sumerADR
)”.
28. R
OLEOFNHR
IGuidingQue
stions
Statusand
Gap
s28
.1.H
asth
estategiventheNHR
Iam
andateth
atallowsitto:
(1)receiveand
handlecomplaintsrelatingtobusiness-relatedadverse
humanrightsim
pacts;
(2)b
einasu
pportiv
eroleto
claim
ants,suchasth
roughmed
iatio
n,
conciliation,expertsup
port,orlegalaid;
(3)p
romoteaw
aren
esso
nremed
ytoand
redressforbusiness-related
adversehu
manrightsim
pacts;
(4)p
rovide
trainingofrelevantstakeho
lderso
ntheira
ccesstoremed
yforb
usiness-relatedadversehu
manrightsim
pacts;and
/or
(5)p
rovide
cou
nsellingon
whichre
med
ytoaccess?
The
CCD
H,doe
snothaveamandateto
receiveandhand
le
complaintsregardingallegedhu
manrightsabu
sesa
ndth
erefore,
“mustg
iveacollectivene
gativ
eansw
er”tosu
chinqu
ires.49
3 Accordingtoth
ewritteninpu
treceivedbyth
eCC
DH,how
ever;
“thisd
oesn
otm
eanthatvictim
sseeking
aidorsup
portare
neversoliciting
theCC
DH.Infact,theCCD
Hisfrom
timeto
timecontactedviae-mail,teleph
oneorinpersonbypersons
claimingthatth
eirrightsh
avebeenviolated.Inth
esecases,
theCC
DHta
kesn
oteofth
eircom
plaint,explainstha
tthisd
oes
notfallw
ithinitsm
anda
teand
triestoad
viseand
redirectth
eperson
stothecompetentautho
ritieso
rNGO
s.
Inadd
ition
,theCCD
Hperhap
scon
tributes,inamoregeneral
man
ner,tora
ising
awarenesso
nno
n-judicialre
mediesinits
opinions,reportsorp
osition
pap
erstha
tarepub
lishedon
line
onitsw
ebsitean
dgenerallypresentedduringpress
conferences”.4
94
28.2.W
hatm
easuresa
reinplaceto
mon
itorthe
effe
ctiven
esso
fthe
NHR
Iinaccordancewith
UNGP
31?
TheCC
DHhasacon
sulta
tivefunctio
non
lyand
doe
snothavea
mandateto
handlecomplaints(seeSection28
.1).
28
.3.A
reth
erepu
bliclyre
ported
examplesand
caseswhe
reth
eNHR
Ihasfailedtoperform
itsroleasanon
-judicialm
echanism
for
addressin
ggrievances?
TheCC
DHhasacon
sulta
tivefunctio
non
lyand
doe
snothavea
mandateto
handlecomplaints(seeSection28
.1).
CONFIDEN
TIAL
144
29. B
ARRIER
STO
ACC
ESSTO
NON-JUDICIAL
REM
EDY
GuidingQue
stions
Statusand
Gap
s29
.1.H
asth
estatetakenmeasurestoen
sureth
atth
ereareno
barriersto
preventlegitim
atecasesfrombeingheardbyno
n-judicial
mechanism
s?M
easurestopreven
tbarrie
rsinclud
e:
(1)add
ressingim
balancesbetweentheparties;
(2)targetedaw
aren
ess-raisingamon
gvulnerablegroup
s(suchas
wom
en,ind
igen
ousp
eoples,orchildren);
(3)e
xperta
dviceorotherty
peso
fassistance;
(4)e
ffortstocombatcorruption;and
(5)p
rotectionofhum
anrightsdefen
ders.
SeeSections27.1.to
27.3.
29.2.H
asth
estatetakenmeasurestoincreaseund
erstandingof
barriersamon
gststaffofstate-basedno
n-judicialgrie
vance
mechanism
s,includ
ingthroughtrainingand
edu
catio
nalm
aterials?
Seethegene
ralrespo
nseon
trainingissuesinSectio
n5.2.
29.3.A
reth
erepu
bliclyre
ported
examplesand
caseswhe
revictim
sof
busin
ess-relatedhu
manrightsabu
sehavebe
enunabletoaccess
effectiveno
n-judicialre
med
ydu
etoth
epresen
ceofb
arrie
rs?
Thisstud
yhasn
otiden
tifiedanypu
bliclyre
ported
examplesand
cases
whe
revictim
sofb
usiness-relatedhu
manrightsabu
sehavebe
en
unableto
accesse
ffectiveno
n-judicialre
med
ydu
etoth
epresen
ceof
barriers.
30. FAC
ILITAT
INGACC
ESSTO
NON-STA
TE-BAS
EDM
ECHA
NISMS
GuidingQue
stions
Statusand
Gap
s30
.1.H
asth
estatesupp
ortedaccessto
(1)b
usiness-basedgrievancemechanism
s(suchasw
histle-blower
mechanism
sorp
roject-le
velgrie
vancemechanism
s);
(2)m
ulti-stakeh
olde
rgrie
vancemechanism
s;
(3)o
rganisa
tional-b
ased
grie
vancemechanism
s(includ
ingtheun
ion
system
s);
(4)internatio
nalgrie
vancemechanism
s;and
/or
• Luxembo
urgprovidessu
bsidyfora
hotlinesetu
pbyTransparency
InternationalLuxem
bourgforp
rivateandlegalpersonsto
de
noun
ceinstanceso
fcorruptionandsupp
ortw
histle-blowers,
seeSection12
.3..
• Fora
listofm
ulti-stakeh
olde
rinitia
tivesth
atLuxem
bourgsupp
orts
seeSection1.5..
• TheUNHum
anRightsC
ouncilCo
mplaintProcedu
readd
resses
CONFIDEN
TIAL
145
(5)regionalgrie
vancemechanism
sthrou
gheffo
rtssuchas
dissem
inationofinform
ationorlegalaid?
complaintsfromindividu
als,group
s,orN
GOsthatclaim
tobe
victim
sofh
umanrightsviolatio
nsorthath
avedirect,reliable
know
ledgeofsu
chviolatio
ns.49
5 Luxem
bourghasa
ppliedfor
mem
bershipofth
eUNHum
anRightsC
ouncilforthe
periodof
2022
to202
4.
• Europe
anCou
rtofH
umanRights(EC
tHR)isare
gion
aljudicial
organchargedwith
supe
rvisingth
een
forcem
ento
fthe
Europ
ean
Conven
tionon
Hum
anRights(EC
HR).Luxembo
urgratifiedthe
ECHR
in195
3.
II.PILLA
RSII&III:BU
SINESSRE
SPONSIBILITY
TORESPE
CT&REM
EDY*
HUMAN
RIGHT
SPO
LICY
COMMITMEN
T GuidingPrin
ciple11
:Businesse
nterprise
ssho
uldrespecth
umanrights.Thism
eansth
atth
eysh
ouldavoidinfringingonthehu
manrightsof
othe
rsand
shou
ldadd
ressadversehum
anrightsim
pactsw
ithwhichth
eyareinvolved
. GuidingPrin
ciple12
:The
respon
sibilityofb
usinesse
nterprise
storespecth
umanrightsre
fersto
internationallyre
cognize
dhu
manrights–
unde
rstood
,ata
minim
um,astho
seexpressed
inth
eInternationalBillofH
umanRightsa
ndth
eprinciplescon
cerningfund
amen
talrightsset
outintheInternationalLabou
rOrganiza
tion’sD
eclaratio
non
Fun
damen
talPrin
ciplesand
Rightsa
tWork.
* The
inform
ationinth
issectionprovidesalimite
daccoun
tofthe
businessrespo
nsibilityto
respecth
uman
rightsinLuxem
bourg.Itisbased
onasurveyque
stionn
aire
completed
bytw
elveofthe
largestthirtybu
sinesse
nterprise
sinLuxembo
urg(defined
bythesiz
eofth
eire
mployees).Forfu
rthe
rlim
itatio
nsofthe
com
panyse
lectionan
dthemetho
dology,seeth
eSectionon
“Metho
dologyand
Lim
itatio
ns”inth
emaintext.
CONFIDEN
TIAL
146
GuidingPrin
ciple13
:The
respon
sibilityto
respecth
umanrightsre
quire
sthatb
usinesse
nterprise
s:
(a)A
voidcausin
gorcon
tributingtoadversehum
anrightsim
pactsthrou
ghth
eiro
wnactiv
ities,and
add
resssu
chim
pactsw
hentheyoccur;
(b)Seektopreventorm
itigateadversehum
anrightsim
pactsthata
redire
ctlylinked
toth
eiro
peratio
ns,produ
ctso
rservicesb
ytheirb
usiness
relatio
nships,eveniftheyhaveno
tcon
tributed
toth
oseim
pacts.
GuidingPrin
ciple14
:The
respon
sibilityofb
usinesse
nterprise
storespecth
umanrightsapp
liestoallenterprise
sregardlesso
fthe
irsiz
e,
sector,ope
ratio
nalcon
text,owne
rshipandstructure.Nevertheless,th
escaleandcomplexity
ofthe
meansth
roughwhichenterprise
smeet
thatre
spon
sibilitym
ayvaryaccordingtoth
esefactorsa
ndwith
theseverityofth
een
terprise’sa
dversehum
anrightsim
pacts.
GuidingPrin
ciple15
:Inorde
rtomeetthe
irrespon
sibilityto
respecth
umanrights,businesse
nterprise
ssho
uldhaveinplacepoliciesa
nd
processesa
ppropriateto
theirsize
and
circum
stances,includ
ing:
(a)A
policycommitm
enttomeetthe
irrespon
sibilityto
respecth
umanrights;
(b)A
hum
anrightsdue
diligenceprocesstoiden
tify,prevent,m
itigateand
accou
ntfo
rhow
theyadd
ressth
eirimpactso
nhu
manrights;
(c)P
rocessesto
enabletheremed
iatio
nofanyadversehum
anrightsim
pactsthe
ycauseorto
whichth
eycon
tribute.
GuidingPrin
ciple16
:Asthe
basisfore
mbe
ddingtheirrespo
nsibilityto
respecth
umanrights,businesse
nterprise
ssho
uld
expressthe
ircommitm
enttomeetthisrespo
nsibilityth
roughastatem
ento
fpolicythat:
(a)Isa
pprovedatth
emostsen
iorlevelofthe
businesse
nterprise
;(b)Isinformed
byrelevantinternaland
/ore
xternalexpertise;
(c)Stip
ulatesth
een
terprise’sh
umanrightsexpectatio
nsofp
ersonn
el,businessp
artnersa
ndotherpartie
sdire
ctlylinked
toitso
peratio
ns,
prod
uctsorservices;
(d)Isp
ubliclyavailableandcommun
icated
internallyand
externallyto
allpe
rson
nel,bu
sinessp
artnersa
ndotherre
levantpartie
s;
(e)Isreflected
inope
ratio
nalpoliciesa
ndprocedu
resn
ecessaryto
embe
ditthrougho
utth
ebu
sinesse
nterprise
.Re
levantSustainab
leDevelop
men
tGoa
ls
• AllG
oals
31.H
UMAN
RIGHT
SPO
LICY
COMMITMEN
TS
CONFIDEN
TIAL
147
GuidingQue
stions
Statusand
Gap
s31
.1.Towhate
xten
tbusinesse
nterprise
scon
siderhum
anrights
relevantto
theiro
peratio
ns?4
96Havebu
sinesse
nterprise
sexplored
whath
umanrightsissuesm
ightberelevantfo
rthe
mand
/orthe
irsupp
liers? W
hatcategorieso
fhum
anrightsdobu
sinesse
nterprise
sconsiderre
levantto
theiro
peratio
ns?
Arebu
sinesse
nterprise
sfam
iliarwith
theUNGP
s?Havebu
siness
enterprisesm
adeuseofanypub
lishe
dguidanceontheUNGuiding
PrinciplesonBu
sinessa
ndHum
anRights?
Busin
essesinLuxembo
urgthathaverespon
dedtooursu
rvey(twelve
companiesamon
gthirtylargeste
nterprise
s)agreewith
thefollowing
statem
ent:
• “H
umanrightsarere
levantto
everybusiness,re
gardlessof
theirsize
”:11(92%
)com
paniesagreed,one
com
pany(8
%)
chose“notsu
re”;
anddisagreedwith
thefollowingstatem
ents:
•
“Respe
ctinghu
manrightsisam
atterforgovernm
ents,notfo
rbu
siness”:11(92%
)com
panies“disagree”,one
(8%)“no
tsure;
• “H
umanrightsarem
ainlyaconsiderationfortho
seope
ratin
goverseasorw
ithoverseassup
pliers”:Ten
(84%
)“disagree”,
one(8%)“agree”and
one
(8%)“no
tsure”.
•
Eleven
com
paniesstated
thatth
eyhaveexplored
whatissue
smightberelevantfo
rthe
morthe
irsupp
liers.
•
Thecompanieswerefurthe
rasked
tocho
osefrom
categorieso
fhu
man
rightsre
latedissuesth
atm
ayberelevantto
theirb
usiness
operations.49
7 The
secategoriesinclude
d;grosshum
anrights
abuses,ade
quatestandardofliving,priv
atelife,rightsre
latedto
land
,civiclifeand
,accesstojustice,intellectual,spiritualand
cultu
rallife
,rightsrelated
toth
een
vironm
ent,ed
ucationand
accessto
techno
logy,con
ditio
nsofw
orkandem
ploymen
t,and
workplacedialogue.The
irrespon
sesrevealedmixed
results:
CONFIDEN
TIAL
148
• Tw
ocompanies(1
6%)cho
seallthecategorie
sofh
umanrights
relatedissue
stobe
app
licableto
theiro
peratio
ns,w
hile
anothe
rtwochoseno
ne.A
llofth
esecompanies,how
ever,
havehum
anrightspolicycommitm
entsinplaceinclud
ingthe
oneswhichcho
sehum
anrightsissuesnotto
berelevantto
theiro
peratio
ns.
• Theremainingsu
rveyre
spon
sesrevealthatb
usinessesthat
wereconsultedforthisstudygen
erallycon
sidercon
ditio
nsof
workan
dem
ployment(e.g.health
and
safetyatw
ork,
discrim
ination,fairwageandeq
ualpay,childlabo
ur,periods
ofre
stand
/orh
olidayleave)and
workplacedialogu
e(e.g.
freedo
mofassociatio
n,collectivebargaining,rightto
joina
tradeun
ion)to
behu
manrightsissuesre
levantto
their
operations(b
othcategorie
swerechosen
byeightcom
panies
makingup
84%
ofthe
respon
dingcom
panies).Privatelife(e.g.
rightto
priv
acyandrig
htto
familylife)and
edu
catio
nan
daccessto
techno
logy(e
.g.rightto
edu
catio
n,rightto
enjoym
ento
ftechn
ologicalprocess,accesstotrainingand
de
velopm
ent)arealso
con
sidered
issuesre
levantto
bu
sinesseso
peratio
nsbythebu
sinesses(Ch
osen
by66
%
respon
dents).
• Grossh
uman
righ
tsabu
sessuchasto
rture,crueland
inhu
manetreatm
ent,sla
veryand
gen
ocide,arenotcon
sidered
ashum
anrightsissuesapp
licableto
theiro
peratio
nsbythe
busin
essesingene
ral(on
lyfo
urcom
paniesinto
tal(34
%)
stated
thatitm
ayberelevantto
theiro
peratio
ns).
•
Sixcompaniesstated
thatth
eyhavebe
enasked
abo
utth
eir
CONFIDEN
TIAL
149
practicesre
latedtohum
anrightsissueseith
erbytheirclientso
rsupp
liers.Som
eofth
equ
estio
nsth
atwereraise
dinclud
ed,orig
ins
ofso
urcedmaterials,con
ditio
nsofe
mploymen
t,freedo
mof
associations,health
and
safety,enviro
nmen
talimpacts,
respon
siblelabe
ling,“respon
siblesu
pply”.
• Sixcompanieshaveaskedtheirclientso
rsup
pliersabo
utth
eir
busine
sspracticesre
latedtohum
anrights.The
yinqu
iredabou
the
althand
safety,enviro
nmen
tmanagem
enta
nd“hu
manrights
impact”.
o
One
com
panystated
thatth
eird
uediligenceprocess
includ
esque
stionsonhu
manrights.
o An
othe
rcom
panystated
thatth
eyposequ
estio
nsto
theirsup
pliersduringtheevaluatio
nprocesso
n“respe
ctfo
rworkingcon
ditio
nsin[the
supp
lier’s]
company:childlabo
ur,the
health
and
safetyofthe
em
ployees,th
erespecto
fthe
standardso
fthe
ILO,the
respectforth
een
vironm
ent,thepracticeofdiversity
andrespectforth
ecode
ofcon
ductofthe
[com
pany]”.
o An
othe
rcom
panystated
thatth
eyaskque
stionson
humanrightsissues,forexample,duringcallsfo
rtend
ers,butalso
toth
eircustomersd
uringtheirinitia
lcontact,andfin
ancingope
ratio
ns.
• Wealsoasked
businessesw
hetherth
eyarefa
miliarwith
the
UNGPs.Ten
(84%
)com
paniesre
plied“yes”.Fiveofth
oseten
companieshavemadeuseofpub
lishe
dguidanceontheUNGP
swhileth
eream
inghavenot.
CONFIDEN
TIAL
150
Bearinginm
indthelim
itedparameterso
foursu
rvey(lim
itednu
mbe
roflargeste
nterprise
s)anargumen
tcanbemadethatth
ereisalevel
ofawaren
essa
ndengagem
entw
ithhum
anrightsissuesamon
gthe
largestb
usinesse
nterprise
sinLuxembo
urg.How
ever,thisa
waren
ess
anden
gagemen
trem
ainsverylim
ited.
TheUNGP
sprescrib
ethat“therespon
sibilityto
respecth
uman
righ
ts
isaglob
alstan
dardofexpectedcond
uctforallbu
sinesse
nterprise
swherevertheyop
erate.Itexistsind
ependentlyofStates’abilities
and/orwillingn
esstofulfiltheirow
nhu
man
righ
tsobligations,and
do
esnotdim
inish
thoseob
ligations”.
Bu
sinesse
nterprise
sthata
rebased
and
/oro
peratin
ginLuxem
bourg
areadvisedtofu
lfilltheirrespo
nsibilityto
respecth
umanrightsinall
circum
stances.
31.2.D
obu
sinessesh
avespecificandpu
blicly-availablehu
manrights
policycommitm
entsinplace,detailingthebu
sinessesrespo
nsibilitie
s,
commitm
entsand
expectatio
nswith
regardto
hum
anrights,and
applicableth
rougho
utth
eiro
peratio
ns?Do
com
paniesdissem
inate
theirh
umanrightspolicycommitm
entsexternallyto
relevant
stakeh
olde
rsand
toth
eirb
usinessrelationshipsth
roughproviding
adeq
uatetraining,guidance?
TheUNGP
sprescrib
ethatbusinesse
nterprise
sneedtokno
wand
show
thatth
eyre
specth
umanrightsand
theycanonlydo
soifth
ey
havecertainpoliciesa
ndprocessesinplace.49
8 Ofthe
twelvebusinesse
nterprise
sthatrespo
nded
tooursu
rvey,
sevenofth
em(6
0%)o
fthe
mcon
firmed
thatth
eyhaveahu
man
rig
htsp
olicycommitm
ent.One
othercom
panystated
thatitis“in
theprocess”ofapp
rovingit.Ofthe
sehum
anrightspolicy
commitm
ents,fiveofth
emwerepu
bliclyavailable,sixofth
emwere
commun
icated
toentitieswith
whichth
ecompa
nyhascon
tractual
relatio
nships.
Companieswerealsoasked
whe
therth
ehu
man
rightspolicywas
“reflected
inorgan
ization’so
peratio
nalpoliciesa
ndprocedu
restha
t
CONFIDEN
TIAL
151
governwiderbusinessa
ctivitiesand
relatio
nships”,to
whichall
respon
dingcom
panieswith
ahum
anrightspolicyansw
ered
“yes”.
Accordingtoth
eUNGP
s,havingapo
licycommitm
enttorespect
humanrightsisth
efirststep
defined
forb
usinesse
nterprise
stomeet
theirrespo
nsibilityto
respecth
umanrights.The
abo
venum
berssh
ow
that,evenam
ongthelargeste
nterprise
sinLuxembo
urg,whichwou
ld
presum
ablyhavemoreresourcesa
tthe
irdisposal,the
reisaro
omfo
rim
provem
enttow
ardsm
eetin
gtheirrespo
nsibilityto
putinplace
humanrightspolicycommitm
ents.
31.3.D
obu
sinesse
nterprise
s’policycommitm
entsinclud
e,ata
minim
um,the
internationallyre
cognise
dhu
manrightsexpressed
in
theInternationalBillofR
ights,and
theprinciplescon
cerning
fund
amen
talrightssetoutinth
eInternationalLabou
rOrganiza
tion’s
Declarationon
Fun
damen
talPrin
ciplesand
Rightsa
tWork?Do
busin
essp
olicycommitm
entreferto
thefullconten
tofh
umanrights
andtosp
ecificinstrumen
tsofp
articularre
levancetoth
eirind
ustry?
Dopolicycommitm
entsre
fertotheUNGP
sand
/orthe
OEC
DGu
idelinesfo
rMultin
ationalEnterprise
s?
Amon
gthesevenbu
sinesse
nterprise
swith
hum
anrightspolicy
commitm
entsinplace,onlyfivestated
thatth
eirp
olicycommitm
ent
“referstointernationa
llyre
cognized
hum
anrightsstan
dards(fo
rexam
ple,internationalhum
anrightsinstrumen
ts,ILO
’sDeclaratio
non
Fund
amen
talPrin
ciplesand
Rightsa
tWork,th
eUNGP
s,th
eOEC
DGu
idelinesfo
rMultin
ationalEnterprise
s),and
/oro
therstandards
relatedtoCSR”.
Accordingtoth
eUNGP
s,th
erespon
sibilityto
respecta
pplies,ata
minim
um,toallinternatio
nallyre
cognize
dhu
manrightsexpressed
in
theInternationalBillofH
umanRightsa
ndth
eILODeclaratio
non
Fund
amen
talPrin
ciplesand
Rightsa
tWork.Businesse
nterprise
sbasedinLuxem
bourgshou
lddrawguidancefrom
theUNGP
s,and
othe
rinternatio
nalinstrum
entsonhu
manrightsprotectionwhe
nde
velopingth
eirh
umanrightspolicycommitm
ents.
31.4.D
obu
sinesse
nterprise
sparticipateininitiativesre
levantto
the
corporaterespon
sibilityto
respecth
umanrights?
Busin
esse
nterprise
swereaskedwhe
therth
eydoparticipatein
initiativesre
levantto
corpo
ratere
spon
sibilityto
respecth
umanrights
andifsoto
specifywhichone
s.Ninebu
sinessesstatedthatth
eydo
CONFIDEN
TIAL
152
participateininitiativesre
levantto
thecorporaterespon
sibilityto
respecth
umanrights,twoofth
emstated
thatth
eydono
t,andon
eof
them
wasnotsu
re.
CSR,trad
ition
allyund
erstoo
d,fo
cuseso
ncompanies’volun
tary
contrib
utionsto
com
mun
itydevelop
men
t,charity
and
otherso
cial
anden
vironm
entaleffo
rts.49
9 The
examplesofinitia
tivesofcorpo
rate
respon
sibilityto
respecth
umanrightsgiven
bythecompanies
respon
dingto
oursu
rveysh
owth
atcom
paniesoften
con
flateth
erespon
sibilityto
respecth
umanrightswith
thetradition
alcon
ceptions
ofCSR: o
One
com
panyre
spon
dingto
oursu
rveystated
that:“In
additio
ntofina
ncialcon
tributionsm
adeby[theCom
pany]
anditspeople,m
anyofourpeoplealsovolun
teerth
eir
timetoworthwhilecau
ses.W
eencourag
ean
dsupp
ort
volunteerismasc
ommun
ity-involvementisa
man
ifestationofoursh
aredvalues”.
o An
othe
rcom
panystated
thatitgivessu
pportto“non
-profita
bleassociationsactiveinso
cialarea”givingfurthe
rtheexam
pleofanassociationprovidingapsycho
-socio-
educationalsup
portto
children,you
ngadu
ltsand
families
indistresswho
havesuffe
redph
ysical,psychologicaland
/orse
xualviolence.
o Spon
sorin
ganinitiativeworkingto
wardsend
ingsexual
violen
ceinfragileenviro
nmen
tswasamon
gtheexam
ples
givenbyano
thercom
pany.
o Tw
ocompaniescon
firmed
thatth
eyparticipateinth
eWorkingGroup
onBu
sinessa
ndHum
anRightsc
onvene
d
CONFIDEN
TIAL
153
byth
eGo
vernmen
t.
o One
com
panystated
thatitisam
embe
rofthe
IMS,has
signe
dthe“D
iversityCh
arterLëtzebu
erg”and
hasacod
eofcon
duct.
o An
othe
rcom
panystated
thatitisam
embe
rofthe
Thu
nGrou
pandtheED
H(Entreprise
spou
rlesDroitsde
l'Hom
me-B
usinessesforhum
anrights).
Sucheffo
rtsa
rere
levantfo
rbusinessa
ndhum
anrights.H
owever,a
fund
amen
taldifferen
cebetweenthem
and
thecorporate
respon
sibilityto
respectu
nderth
eUNGP
sisthatimplem
entatio
nof
thelatterisaglobalexpectatio
nofallcompaniesra
therth
ana
voluntaryeffortacom
panym
aydecidetoengageinsu
bjecttoits
othe
robjectiv
esand
prio
ritiesa
nd/ora
sparto
fitsso
cialorlegal
licen
ceto
ope
rateinparticularsituations.50
0 The
refore,itisimpo
rtant
forb
usinessesinLuxembo
urgtobeaw
areofth
ediffe
rencebe
tween
thetradition
alCSRand
respectforhum
anrights,and
und
erstandthat
havingCSRpoliciesinplacedo
esnotoffsetafailureto
respecth
uman
rights.
32.M
ANAG
EMEN
TCO
MMITMEN
TAN
DEM
BEDD
INGOFHU
MAN
RIGHT
SINTO
THE
COMPA
NY
GuidingQue
stions
Statusand
Gap
s32.1Havebu
sinesse
nterprise
s’policycommitm
entsbeeninform
ed
byinsig
htand
/ora
dvicefrom
internalso
urceso
fexpertise,su
chas
keyfunctio
nalstaff?
Havebu
sinesse
nterprise
s’policycommitm
ents
been
inform
edbyinsig
htand
/ora
dvicefrom
externalsou
rcesof
expe
rtise
,suchasgovernm
ent,hu
manrightspractition
ers,civil
societycirclesa
ndacade
mia,etc.?
Accordingtooursu
rvey,fivecompaniesre
lyonbo
thinternaland
externalexpertisewhileth
eothe
rtworelyoneitherinternalor
externalexpertise.
Thechallengesfo
rcom
paniesre
gardinghu
manrightspolicy
commitm
enta
re:translatin
gpo
licycommitm
entintorelevant
CONFIDEN
TIAL
154
operationalprocedu
res(selected
threetim
es),lackofm
aterialm
eans
tofo
rmulatepo
licycommitm
ents(selectedtw
ice)and
difficultie
sin
commun
icatingthepo
licytore
levantexternalpartie
s(selected
once).
Anyaw
aren
essraisin
gandguidanceto
olsh
ouldadd
ressth
ese
challenges.
Thebu
sinesse
nterprise
sinLuxembo
urgshou
ldse
ekinternaland
externalexpertiseindraftingtheirp
olicycommitm
ents.Expertscan
alsoassistfacingth
echallengescon
cerningform
ulationofhum
an
rightsp
olicycommitm
ents.
32.2.H
avebu
sinesse
nterprise
s’policycommitm
entsbeenapproved
anden
dorsed
atthe
mostsen
iorlevelofthe
business,fo
rexampleby
theCE
O,boardofd
irectors,orsen
iorm
anagem
ent?Dothebo
ardof
directorsa
nd/orsen
iorm
anagem
entreceiveincentiveslinked
toth
eim
plem
entatio
nofth
ehu
manrightspolicycommitm
ents?
Dobusinessesh
aveaprocessforupd
atingtheirh
umanrightspolicies
andprocesses?
Companiesth
atcon
firmed
thatth
eyhavehu
manrightspolicy
commitm
entswereaskedwho
hasth
erespon
sibilityinth
ecompany’s
governancefo
rthe
hum
anrightspolicy,includ
ingen
surin
gcompliancewith
it:
o Managingdirector/CEO
–tw
ocompanies;
o Bo
ard/seniorm
anagem
ent–
one
com
pany;
o Bo
thboard/sen
iorm
anagem
enta
ndhum
anre
source
manager–one
com
pany(the
samecompanyalso
add
ed
“designatedworker”and
“de
legatefo
rsecurity
”;
o Internationalgroup
–one
com
pany.
• Re
gardingincentiveslinked
toth
eim
plem
entatio
nofth
ehu
man
rightsp
olicycommitm
ents:
o Bo
ardofdire
ctorsa
nd/orsen
iorm
anagem
entd
ono
treceiveanyincentives–fo
urcom
panies
o Bo
ardofdire
ctorsa
nd/orsen
iorm
anagem
entd
oreceive
incentives–tw
ocompanies
o One
com
panydidnotre
ply.
• Fivecom
paniescon
firmed
thatth
eyhadaprocessfo
rupd
ating
CONFIDEN
TIAL
155
thepo
licycommitm
ent,andtw
oofth
emwereno
tsure.
Inorderto
meetthe
irob
ligationsund
erth
eUNGP
s,businessesin
Luxembo
urgshou
ldensurethatth
eirh
umanrightspolicyisapproved
atth
emostsen
iorlevelofthe
businesse
nterprise
and
thatitsh
ould
beth
esubjecto
fperiodicreview
.
32.3.D
obu
sinesse
nterprise
scom
mun
icatetheirh
umanrightspolicy
commitm
entsinternallyto
allstaff?
Havebusinesse
nterprise
sorganize
dinternaltrainingse
ssionson
humanrights?
Sixcompaniesstated
thatth
eycom
mun
icatetheirh
umanrights
policycommitm
entsinternallyto
allpe
rson
nel.Onlyfourofthe
m
stated
thatth
eirh
umanrightspolicycommitm
entsweresupp
orted
byatrainingfo
rpersonn
elinre
levantbusinessfun
ctions.
Companieswereaskedwhe
therth
eyhave“evero
rganize
dinternal
trainingse
ssionsonhu
manrights”andwhatw
ouldth
eycon
sideras
the“biggestchallengeconcerningtrainingso
nsocialissuesingen
eral
andhu
manrightsinparticular”.Forth
elatterque
stion,com
panies
wereofferedchoicesincluding;“lackofresou
rces(p
ersonn
el,
material,etc.),lackoftim
etocon
ducteffe
ctivetraining,lackof
exam
plesofgoo
dpractice,lackoftem
platesorp
ublicinform
ationto
guidetrainingeffo
rts,and
other.The
ywereaskedtose
lectallthat
applies.
Threecompaniesstated
thatth
eyhaveorganizedinternalhum
an
rightstrainings:O
neofthe
secom
paniesstated
thatth
eyhave
mandatoryhum
anrightstrainingm
odulesfo
llowed
everyth
reeyears
byallem
ployees.Inth
esamecompany,ata
group
level,94
%ofthe
totalnum
bero
femployeesh
avefollowed
thesemod
ules.The
companyiden
tified“m
akingeffectivetopeo
ple”asthe
biggest
challengeconcerningth
ehu
manrightstrainings.
CONFIDEN
TIAL
156
Anothe
rcom
panywith
trainingm
oduleslisted
variousexamples,
includ
inge-learning,informationcampaignon
intranet,m
odules
offeredbyth
eIM
S,and
one
-to-on
etrainingon‘riskgroup
s’to
pe
rson
nelinchargeofsocialand
enviro
nmen
talissue
s.Forth
iscompany,hum
anrightstrainingsa
reamon
gtheindicatorsinclud
edin
thecalculationofvariablede
ferred
com
pensationforthe
irkey
employees.Thisc
ompanyiden
tifiedlackoftim
etocon
ducteffe
ctive
trainingasthe
biggestchallengewhilenotingthatth
eem
ployees
bene
fitfrom
num
erou
ssectorspe
cificso
cialtrainingsb
utnot
necessarilyexclusiv
elyon
hum
anrights.
Thethird
com
panywho
repliedthatithashum
anrightstrainings
stated
thatits“
overallcom
pliancetraininginclud
esse
veralaspects
concerningdire
ctlyorind
irectlyhum
anrights”.Forth
iscompanyth
ebiggestchallengeis“the
extremediversity
of[its]o
peratio
nsand
moreparticularlyth
esituatio
nsofcou
ntrie
sinwhich[it]canno
tguaranteethesecurityofanystaffw
howou
ldope
nlydiscusso
ver
theseissue
sand
evenmoreofth
osewho
wou
ldparticipateinth
ediscussio
n”.
One
ofthe
com
paniesstated
thatithasnotiden
tifiedthene
edto
cond
ucth
umanrightstraining.Forth
erestofthe
eightcom
panies
who
haverespon
ded,th
echallengesinclud
elackoftem
platesor
publicinform
ationtoguide
trainingeffo
rts(selected
fivetimes),lack
ofexamplesofgoo
dpractice(selectedfourtimes),lackofresou
rces
(personn
el,m
aterial,etc.)(selected
fourtimes),lackoftim
eto
cond
ucte
ffectivetraining(selectedtw
otim
es).
Thereappe
arstobe
asignificantdifferen
ceamon
gtheattitud
esof
CONFIDEN
TIAL
157
thelargeste
nterprise
sinLuxembo
urgtowardshum
anrightstrainings.
Inorderto
com
plywith
theUNGP
sthe
businessessho
uldob
serve
thatinternalcom
mun
icationofhum
anrightsand
ofrelated
policies
andproced
uressh
ouldbesupp
ortedbynecessarytrainingfo
rpe
rson
nelinrelevantbusinessfun
ctions.
32.4.D
obu
sinesse
nterprise
sensurethatinternalte
amsa
re
supp
ortedbyhum
anrightsexpertise,and
therolesa
nd
respon
sibilitie
sforassessin
g,m
itigatio
nandmanagem
enta
re
assig
nedandadeq
uatelyre
sourced?
SeeSection32
.1.
HUMAN
RIGHT
SDU
EDILIGEN
CE
GuidingPrin
ciple17
:Inorde
rtoiden
tify,prevent,m
itigateand
accou
ntfo
rhow
theyadd
ressth
eira
dversehum
anrightsim
pacts,business
enterprisessh
ouldcarryouthum
anrightsdue
diligence.The
processsh
ouldinclud
eassessingactualand
poten
tialhum
anrightsim
pacts,
integratingandactin
gup
onth
efin
dings,trackingre
spon
ses,and
com
mun
icatingho
wim
pactsa
readd
ressed
.Hum
anrightsdue
diligence:
(a)Sho
uldcovera
dversehum
anrightsim
pactsthatthe
businesse
nterprise
maycauseorcon
tributetoth
roughitsownactiv
ities,orw
hich
maybedirectlylinked
toitso
peratio
ns,produ
ctso
rservicesb
yitsbusinessrelationships;
(b)W
illvaryincom
plexity
with
thesiz
eofth
ebu
sinesse
nterprise
,the
riskofseverehu
manrightsim
pacts,and
thenatureand
con
textofits
operations;
(c)Sho
uldbe
ongoing,recognizin
gthatth
ehu
manrightsrisksm
aychangeovertimeasth
ebu
sinesse
nterprise
’sope
ratio
nsand
ope
ratin
gcontexte
volve.
GuidingPrin
ciple18
:Inorde
rtogaugehu
manrightsrisks,businesse
nterprise
ssho
uldiden
tifyandassessanyactualorp
oten
tialadverse
humanrightsim
pactsw
ithwhichth
eym
aybeinvolved
eith
erth
roughtheiro
wnactiv
itiesora
sare
sultofth
eirb
usinessrelationships.This
processsho
uld:
(a)D
rawoninternaland
/orind
epen
dentexternalhum
anrightsexpertise;
CONFIDEN
TIAL
158
(b)Involvem
eaningfulcon
sulta
tionwith
poten
tiallyaffe
cted
group
sand
otherre
levantstakeh
olde
rs,asa
ppropriateto
thesiz
eofth
ebu
siness
enterpriseandthenatureand
con
textofthe
ope
ratio
n.
GuidingPrin
ciple19
:Inorde
rtopreven
tand
mitigateadversehum
anrightsim
pacts,businesse
nterprise
ssho
uldintegratethefin
dingsfrom
theirimpactassessm
entsacrossrelevantinternalfun
ctionsand
processes,and
takeapp
ropriateaction.
(a)E
ffectiveintegrationrequ
iresthat:
(i)Respo
nsibilityfo
radd
ressingsuchim
pactsisa
ssigne
dtoth
eapprop
riateleveland
functio
nwith
inth
ebu
sinesse
nterprise;
(ii)Internaldecision
-making,bud
geta
llocatio
nsand
oversightprocessesenableeffectiverespon
sestosuchim
pacts.
(b)A
ppropriateactionwillvaryaccordingto:
(i)W
hetherth
ebu
sinesse
nterprise
causeso
rcon
tributesto
anadverseim
pact,orw
hetheritisinvolved
solelybecauseth
eim
pactis
directlylinked
toitso
peratio
ns,produ
ctso
rservicesb
yabu
sinessrelationship;
(ii)T
heexten
tofitsleverageinadd
ressingtheadverseim
pact.
GuidingPrin
ciple20
:Inorde
rtoverifywhe
theradversehum
anrightsim
pactsa
rebeingadd
ressed
,businesse
nterprise
ssho
uldtrackthe
effectiven
esso
fthe
irrespon
se.Trackingshou
ld:
(a)B
ebasedon
app
ropriatequalitativeandqu
antitativeindicators;
(b)D
rawonfeed
backfrom
bothinternaland
externalsou
rces,includingaffe
cted
stakeh
olde
rs.
GuidingPrin
ciple21
:Inorde
rtoaccoun
tforhow
theyadd
ressth
eirh
umanrightsim
pacts,businesse
nterprise
ssho
uldbe
preparedto
commun
icatethisexternally,particularlywhe
nconcernsarera
isedbyoro
nbe
halfofaffe
cted
stakeh
olde
rs.B
usinesse
nterprise
swho
se
operationsoro
peratin
gcontextsposerisksofseverehu
manrightsim
pactssho
uldrepo
rtfo
rmallyonho
wth
eyadd
ressth
em.Inallinstances,
commun
icationssh
ould:
(a)B
eofafo
rmand
freq
uencythatre
flectanen
terprise’sh
umanrightsim
pactsa
ndth
atareaccessib
leto
itsinten
dedaudien
ces;
(b)P
rovide
inform
ationthatissu
fficien
ttoevaluateth
eadeq
uacyofanen
terprise’srespo
nsetoth
eparticularhum
anrightsim
pactinvolved
;(c)Inturnnotposerisksto
affe
cted
stakeh
olde
rs,personn
elortolegitim
aterequ
iremen
tsofcom
mercialcon
fiden
tiality
GuidingPrin
ciple23
:Inallcon
texts,businesse
nterprise
ssho
uld:
(a)C
omplywith
allapplicablelawsa
ndre
spectinternatio
nallyre
cognize
dhu
manrights,w
hereverthe
yop
erate;
CONFIDEN
TIAL
159
(b)Seekwaystoho
northe
prin
ciplesofinternatio
nallyre
cognize
dhu
manrightswhe
nfacedwith
con
flictingrequ
iremen
ts;
(c)T
reatth
eriskofcausin
gorcon
tributingtogrosshum
anrightsabu
sesa
salegalcom
plianceissue
whe
reverthe
yop
erate.
GuidingPrin
ciple24
:Whe
reitisnecessaryto
prio
ritize
actionsto
add
ressactualand
poten
tialadversehum
anrightsim
pacts,business
enterprisessh
ouldfirstseektopreventand
mitigateth
osethatarem
ostsevereorwhe
redelayed
respon
sewou
ldm
akethem
irremed
iable.
RelevantSustainab
leDevelop
men
tGoa
lsand
Targets
• AllG
oals
• Target12.6:Encou
ragecom
panies,especiallylargeandtransnationalcom
panies,toadop
tsustainablepracticesand
tointegrate
sustainabilityinform
ationintoth
eirrep
ortin
gcycle
33.A
SSESSENTOFAD
VERS
EHU
MAN
RIGHT
SIM
PACT
SGuidingQue
stions
Statusand
Gap
sDo
businesse
nterprise
scarryouthum
anrightsim
pactassessm
ents
onse
rvices/produ
cts/supp
lychains?
Dobusinesse
nterprise
shaveprocessesinplacetoiden
tifyandassess
anyne
gativ
eim
pactonindividu
alsa
ndcom
mun
itieswhichitm
aybe
involved
?–Thesemayinclud
eactualim
pacts(pastand
current)and
po
tentialimpacts(thoselikelytooccurinth
efuture);im
pactsfrom
thecompany'sow
nactiv
itieswhe
therdire
ctlyorthrou
gh
contrib
ution;asw
ellasimpactsw
hichm
aybedirectlylinked
to
companyope
ratio
ns,produ
ctso
rservicesb
yitsbusiness
relatio
nships.
Dobusinesse
nterprise
sassessh
umanrightsim
pactsa
tkeym
omen
ts
ofope
ratio
nsand
businessd
evelop
men
tssu
chase
nteringne
w
marketsorrelationshipsore
xpandingope
ratio
ns?
Accordingtoth
esurveyre
spon
ses,onlyfivecompaniescarryout
humanrightsim
pactassessm
ents(fou
rrou
tinely,one
occasionally).
Thebu
sinessesthatcon
ductre
gularimpactassessm
entsstated
that
theirimpactassessm
entide
ntified
and
assessedanyne
gativ
eim
pact
onindividu
alsa
ndcom
mun
ities.The
remainingone
stated
thatitwas
notsureifitsim
pactassessm
enta
ddressed
negativeim
pacton
individu
als.
Inone
com
pany’swordsth
eim
pactassessm
entcon
sistedof“du
ediligenceth
anim
pactstud
ies.Theideaispreciselyth
roug
hthesedu
ediligencestoallowto
anticipatean
dpreventtherisk,and
thusavoid
potentialimpa
ct”.Ano
thercom
panyse
esim
pactassessm
entsas
“externalaud
itsinse
curity,health
,etc.”.
Ofthe
fivebusinessesw
ithhum
anrightsim
pactassessm
ents,fou
rstated
thatth
eycon
ducthum
anrightsim
pactsa
tkeym
omen
tsof
operationsand
businessd
evelop
men
tssu
chase
nteringne
wm
arkets
CONFIDEN
TIAL
160
Dobusinesse
nterprise
scon
ducthum
anrightsim
pactassessm
enta
tprojectlevel?
Docom
paniespayparticularatten
tiontohum
anrightsim
pacts
affectingmarginalised
ora
t-riskgrou
ps,and
ongend
er?
orre
latio
nshipsore
xpandingope
ratio
ns.O
nlytw
ocompanycon
duct
humanrightsim
pactassessm
enta
tprojectleveland
threepay
particularatten
tiontohum
anrightsim
pactsa
ffectingmarginalised
or
at-risk
group
s,and
ongend
er.
Thecommen
taryto
theUNGP
18makesitclearth
at“theinitialstepin
cond
uctin
ghu
man
righ
tsduediligenceistoidentifyan
dassessth
ena
tureoftheactua
land
potentia
ladversehum
anrigh
tsim
pactsw
ith
whichabusinesse
nterprise
maybeinvolved”.Thisinclude
s“assessing
thehu
man
righ
tscon
textprio
rtoaprop
osedbusinessa
ctivity,w
here
possible;identifyingwho
maybeaffected;catalog
uing
therelevant
human
righ
tsstan
dardsa
ndissues;and
projectingho
wth
eprop
osed
activityand
associatedbu
sinessrelationshipscou
ldhavead
verse
human
righ
tsim
pactso
nthoseidentified”.The
UNGP
smakeitclear
thatth
e“businesse
nterprise
ssho
uldpa
yspecialattentio
ntoany
particularhum
anrigh
tsim
pactso
nindividu
alsfromgroup
sor
popu
latio
nsth
atm
aybeatheigh
tenedriskofvulnerabilityor
margina
lization,and
bearinmindthediffe
rentriskstha
tmaybefaced
bywom
enand
men”.
Theassessmen
tofh
umanrightsim
pacts,accordingto
theUNGP
s,
inform
ssub
sequ
entstepsinth
ehu
manrightsdue
diligenceprocess.
Bearingtheforegoinginm
ind,businesse
nterprise
sinLuxembo
urg
areadvisedtocarryouthum
anrightsim
pactassessm
entsonservices,
prod
ucts,sup
plychains,atk
eym
omen
tsofo
peratio
nsand
business
developm
entsand
atp
rojectlevel.Whilecarryingou
tthe
irhu
man
rightsimpactassessm
ent,companiessh
ouldpaysp
ecialatten
tionto
CONFIDEN
TIAL
161
humanrightsim
pactsa
ffectingmarginalized
ora
t-riskgrou
ps,and
on
gend
er.
34.INTEGRA
TINGANDAC
TINGUPO
NFINDINGSAN
DPR
IORITISINGRESPO
NSES
GuidingQue
stions
Statusand
Gap
sDo
businesse
nterprise
sintegrateth
efin
dingsfromim
pact
assessmen
tacrossrelevantinternalfun
ctionsand
processes,throu
gh
commitm
entfromse
niorm
anagem
enta
ndcollabo
ratio
nam
ong
relevantdep
artm
ents?
Dobusinesse
nterprise
sintegrateth
efin
dingsfromim
pact
assessmen
tacrossrelevantinternalfun
ctionsand
processes,throu
gh
assig
ningre
sources,includ
ingfin
ancialand
hum
anre
sources,fo
rintegratingandactin
gup
onfind
ings?
Dobusinesse
nterprise
sintegrateth
efin
dingsfromim
pact
assessmen
tacrossrelevantinternalfun
ctionsand
processesth
rough
consideringtheseverityofhum
anrightsim
pactsa
ndprio
ritizing
actio
nsaccordingly?
Amon
gthebu
sinesse
nterprise
sthatrespo
nded
tooursu
rveyonly
threestated
thatth
eyintegratethefin
dingsfromim
pactassessm
ent
acrossre
levantinternalfu
nctio
nsand
processesth
roughcommitm
ent
from
seniorlevel,throughassig
ningnecessaryre
sourcesa
nd,throu
gh
consideringtheseverityofhum
anrightsim
pactsa
ndprio
ritizing
actio
nsaccordingly.
Tom
eetthe
irhu
manrightsobligations,businesse
nterprise
sin
Luxembo
urgshou
ldintegratethefin
ding
sfromth
eirimpa
ct
assessmentsacrossrelevan
tinterna
lfun
ctionsand
processes,and
takeactionsaccrdingly.
35.TRA
CKINGANDCO
MMUNICAT
ING
GuidingQue
stions
Statusand
Gap
s
CONFIDEN
TIAL
162
Dobusinesse
nterprise
susequalitativeandqu
antitativeindicators,
includ
ingsector-spe
cificand
keyperform
anceindicators,inorde
rto
tracktheirh
umanrightsperform
ance?
Dobusinesse
nterprise
sseekexternalfe
edback(inparticularfrom
affected
rights-holde
rs)and
internalfe
edback(includingfrom
repo
rtingprocessesa
ndlesson
slearned
from
grie
vancemechanism
s)
whe
ntrackingth
eirh
umanrightsperform
ance?
Dobusinesse
nterprise
spub
liclycom
mun
icateon
how
theyadd
ress
adversehu
manrightsim
pacts?
Dobusinesse
nterprise
sseekinde
pend
entverificatio
nofth
eirh
uman
rightsrep
ortin
g,fo
rexample,th
roughthird
-partyaud
iting?
Dobusinesse
nterprise
stakestep
stoen
surecom
mun
icationson
humanrightsareaccessib
leto
itsinten
dedaudien
ces,includ
ingto
marginalised
ora
t-riskgrou
ps,ind
ividualsorgroup
swho
maybe
impacted
,and
otherre
levantstakeh
olde
rs,includinginvestors?
Oursu
rveyre
sultssh
owth
atonlytw
ocompaniestracktheirh
uman
rightsp
erform
ancebyqu
alita
tiveandqu
antitativeindicators,
includ
ingsector-spe
cificand
keyperform
anceindicators.
Whe
naskedwhe
therth
een
terpriseseekse
xternalfeedb
ack(in
particularfrom
affe
cted
rights-holde
rs)and
internalfe
edback
(includ
ingfrom
repo
rtingprocessesa
ndlesson
slearned
from
grievancemechanism
s)whe
ntrackingth
eirh
umanrights
performance,onlythreecompaniescon
firmed
thatth
eydo.
Onlythreecompaniespub
liclycom
mun
icateon
how
theyadd
ress
adversehu
manrightsim
pacts.Twocompaniesse
ekinde
pend
ent
verificationofth
eirh
umanrightsre
portingandthesametw
ocompaniesalso
takestep
stoen
sureth
eirh
umanrights
commun
icationsareaccessib
leto
theintend
edaud
iences.
Inorderto
meetthe
standardsp
rescrib
edbytheUNGP
s,Luxem
bourg
busin
essessho
uldtrackhu
manrightsim
pactbyusingne
cessary
indicators.The
yshou
ldse
ekexternaland
internalfe
edbackontheir
humanrightsim
pact.The
com
paniessh
ouldalso
com
mun
icatethe
findingso
fthe
trackingto
theintend
edaud
iences.
36.R
EPORT
EDADV
ERSEIM
PACT
SONHUMAN
RIGHT
S
GuidingQue
stions
Statusand
Gap
sAretherepu
bliclyre
ported
casesofb
usinesse
nterprise
s’involvem
ent
inadverseim
pactsintheareaoflabou
rrights?E.g.relatingto
discrim
ination,fo
rced
labo
ur,childlabo
ur,freed
omofassociatio
nand
collectivebargaining,w
orkingcon
ditio
ns,health
and
safetyetc.?
SeeSections5.,6.and
7..
CONFIDEN
TIAL
163
Aretherepu
bliclyre
ported
casesofb
usinesse
nterprise
s’involvem
ent
inadverseim
pactsa
ffectinglocalcom
mun
ities?E.g.inre
latio
nto
land
,hou
sing,enviro
nmen
t,discrim
inationetc.
Howhavetherelevantbusinessesrespo
nded
tore
ported
casesof
adversehu
manrightsim
pacts?Havetherelevantbusinessesself-
repo
rted
onthesecases?How
dotheserepo
rtsc
ompare?
37.H
UMAN
RIGHT
SRE
SPEC
TINCOMPLEX
ENVIRO
NMEN
TSSUCH
ASCO
NFLICT-AF
FECT
EDARE
AS
GuidingQue
stions
Statusand
Gap
sDo
businesse
nterprise
shavespecificpo
liciesa
ndprocessesinplace
toensurerespectforhum
anrightsincom
plexenviro
nmen
ts,suchas
conflict-affected
areas?
Dobusinesse
nterprise
shavesystem
sand
processesinplaceto
deal
with
con
flictingrequ
iremen
tsbetweennatio
nallaw
sand
regulatio
ns
andinternationallyre
cognise
dhu
manrights?
Dobusinesse
nterprise
streatriskso
fcausin
gorcon
tributingtogross
humanrightsabu
sesa
sam
attero
flegalcom
pliance?Dobu
sinesses
considerbothdirectand
indirectcon
tributionsto
grosshum
anrights
abuses?
Dobusinesse
nterprise
sprovide
positiveand
/orn
egativeincentives,
adeq
uatere
sources,guidanceandtraining,and
clearexpectatio
nsto
allrelevante
mployees,dep
artm
ents,and
businessrelationshipin
relatio
ntore
spectin
ghu
manrightsincom
plexenviro
nmen
ts?Do
bu
sinessese
stablishclearlinesand
system
sofaccou
ntabilityand
respon
sibilityinth
esecontexts?
Ofthe
12companiesth
atre
spon
dedtooursu
rvey,onlytw
oofth
em
stated
thatth
eydohavesp
ecificpo
liciesa
ndprocessesinplaceto
en
surere
spectforhum
anrightsincom
plexenviro
nmen
ts,suchas
conflict-affected
areas.O
necom
panystated
thatitwasinth
eprocess
ofado
ptingon
e.
Fiveofthe
twelvecom
paniesstated
thatth
eyhavesystem
sand
processesinplacetodealw
ithcon
flictingrequ
iremen
tsbetween
natio
nallaw
sand
regulatio
nsand
internationallyre
cognise
dhu
man
rightsstand
ards.D
uringafollow-upph
oneinterview,one
com
pany
stated
thatwhe
ntheyaredealingwith
overseessup
pliersth
eym
ake
sureth
at“rig
htfrom
thestart”th
esupp
lierskno
wth
at“atleastw
hat
concernsourcom
pany,w
ewillapp
lyLuxem
bourgishstandards”.
Onlyfourofthe
businessesthatp
articipated
inoursu
rveystated
that
theytreatrisk
sofcausin
gorcon
tributingtogrosshum
anrights
abusesasa
mattero
flegalcom
pliance.The
totalnum
berthat
considersd
irectand
indirectcon
tributionsto
hum
anrightsabu
sesis
alsofo
uraccordingto
oursu
rveyre
sults.
CONFIDEN
TIAL
164
REMED
IATION
GuidingPrin
ciple22
:Whe
rebusinesse
nterprise
side
ntifyth
atth
eyhavecaused
orcon
tributed
toadverseim
pacts,th
eysh
ouldprovide
foro
rcoop
erateinth
eirrem
ediatio
nthroughlegitim
ateprocesses.
GuidingPrin
ciple29
:Tomakeitpo
ssiblefo
rgrie
vancesto
beaddressedearly
and
remed
iateddirectly,businesse
nterprise
ssho
uldestablish
or
participateineffe
ctiveop
erational-levelgrie
vancemechanism
sforindividu
alsa
ndcom
mun
itieswho
maybeadverselyim
pacted
. GuidingPrin
ciple30
:Ind
ustry,m
ulti-stakeh
olde
rand
othercollabo
rativ
einitiativesth
atarebased
onrespectforhum
anrights-related
standardssho
ulden
sureth
ateffe
ctivegrievancemechanism
sareavailable.
GuidingPrin
ciple31
:Inorde
rtoen
sureth
eire
ffectiven
ess,non
-judicialgrie
vancemechanism
s,bothState-basedandno
n-State-based
,sho
uld
be:
Dobusinesse
nterprise
scoo
peratewith
and
regularly
con
sultwith
cred
ibleand
inde
pend
ente
xpertsand
relevantwhe
nassessingand
addressin
ghu
manrightsrisksp
resentinope
ratin
gorsu
staining
busin
essrelationshipsincom
plexenviro
nmen
ts?
Inre
gardto
thequ
estio
nofincentives,onlytw
oofth
eparticipating
companiesstated
tohaveincentivesinplace.O
nebusinessc
hose“no
tsure”andalsoadd
ed“wetryou
rbest”.
Finallyonlythreebu
sinesse
nterprise
srep
liedaffirmativelywhe
naskediftheycoo
perateand
regularly
con
sultwith
credibleand
inde
pend
ente
xpertswhe
nassessingandaddressin
ghu
manrights
riskspresentincom
plexenviro
nmen
ts.
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CONFIDEN
TIAL
166
relatio
nships,includingth
roughtheuseofleverage?
Dore
med
iatio
nmechanism
sand
processesth
atbusinessesh
ave
establish
edorw
ithwhichth
eycoo
peratewith
com
plywith
the
effectiven
essc
riterialaidoutinUNGP
31(i.e.th
eyarelegitim
ate,
accessible,predictable,equ
itable,rights-com
patib
le,aso
urceof
continuo
uslearning,based
onen
gagemen
tand
dialogue)?
Dore
med
iatio
nmechanism
sand
processesth
atbusinessesh
ave
establish
edorw
ithwhichth
eycoo
peratere
quire
thatcom
plainants
signlegalw
aiversinorderto
receivereparatio
ns?
Dobusinesse
nterprise
stakemeasuresa
gainstanyfo
rmofretaliatio
nagainstind
ividualsandgrou
psra
isingcom
plaints?
Dobusinesse
nterprise
scon
sultwith
relevantstakeh
olde
rs,in
particularwith
affe
cted
rights-holde
rs,duringtheprocesso
fde
signing,ope
ratin
g,m
onito
ring,and
improvingthegrievance
mechanism
s?
Dobusinesse
nterprise
smon
itorthe
effe
ctiven
esso
fgrie
vance
mechanism
sand
processes,includingbyseekinginternaland
external
feed
backand
throughtheuseofbothqu
alita
tiveandqu
antitative
indicators?
Dobusinesse
nterprise
sprovide
internalguidance,training,
incentives,and
sufficien
tresou
rcesto
relevantdep
artm
entsand
em
ployees,and
establishclearlinesand
system
sofrespo
nsibilityand
busin
essesthatrep
liedtooursu
rveystated
thatth
eyhave
establish
edprocedu
resforhearin
gprocessin
gandsettlinginternal
andexternalcon
cerns/complaintsa
ndalltenbu
sinessesstatedthat
thisproced
urewasclearand
easilyaccessib
le.O
necom
panyre
plied
thatitwas“no
tsure”,how
ever,furtherstated
thatth
eyhave
“internalw
histleblow
ingfore
mployeesa
ndhavevario
usto
olsfor
dialogue
thatallowsrecep
tionofcom
plaintsfromother
stakeh
olde
rs”.
Thecompanylevelgrie
vanceproced
uresinLuxem
bourggene
rally
appe
arto
beinth
eform
of“consultatio
nde
sks”and
“whistleblowing
system
s”.O
necom
panystated
thatth
eyhavea“con
sulta
tionde
sk”
whichis“no
tano
nymou
sand
isavailabletoallem
ployees,customers
andsupp
liersand
a“whistleblow
ingsystem
”with
anexternal
supp
lier”whichisano
nymou
s.
Durin
gafollow-upinterview,ano
thercom
panystated
thatitdoe
shaveaninternalprocedu
rewhichisclearand
easytound
erstandfor
employeesw
howanttofileacomplaintinternally:“itisa‘bigre
dbu
tton
’whe
nyougointoourinternalweb
site.You
canno
tmissit.”.
Thesamecompanyre
presen
tativ
ealsostated
thatth
eydohavean
external“ho
tline
”toensurequ
ality
network,whichallowsa
ccessto
theglob
alofficeincaseofissueswith
thelocalbranch.
Onlythreecompaniesstated
thatth
eyprovide
foro
rcoo
peratein
remed
iatio
nincasesofadversehum
anrightsim
pactsthatthe
yare
linkedtoth
roughtheiro
peratio
nsorp
rodu
cts,orservicesb
ytheir
busin
essrelationships,includingth
roughtheuseofleverage.
CONFIDEN
TIAL
167
accoun
tabilityforrem
ediatio
n,includ
ingatse
niorm
anagem
entlevel?
Onlytw
obu
sinessesc
onfirmed
thatth
eyta
kem
easuresa
gainstfo
rms
ofre
taliatio
nagainstind
ividualsandgrou
psra
isingcom
plaints.One
of
thesecompaniesnoted
that“ho
weversu
chm
easuresa
renotvalid/
cred
ibleinm
anycoun
triesintheworld”.Duringafollow-upinterview
thecompanyclarifiedthestatem
entb
ysayingth
at,the
ysometim
es
receivecomplaintsfromemployeeso
fthe
irsupp
liers(spe
cific
exam
plewasth
atth
esupp
lierw
asnotpayingthesalaryofthe
em
ployeefo
rthe
pastthreem
onths).The
com
panycon
firmed
thatin
manyinstancesthe
ycaninterven
eandusetheirleveragetore
med
ythesituatio
n.How
ever,certaincou
ntrie
sthatthe
yop
eratewere
“culturallyse
nsitiveand
differen
t”.A
ccordingto
thecompany
represen
tativ
e,th
esupp
liersinth
atcou
ntrywou
ldte
rminatethe
employeesc
ontracta
ndriskloosingbu
sinessrathe
rthanbe
ingtold
whattodo
.
Whe
naskediftheirg
rievancemechanism
scom
plywith
the
effectiven
essc
riterialaidoutinUNGP
31,non
eofth
ecompanies
chose“yes”.The
yeithercho
se“no
tsure”(6
);“notapp
licable”(3)o
r“no”(1
).
Onlytw
obu
sinessesstatedthatre
med
iatio
nmechanism
sand
processesthatthe
yhaveestablishe
dorwith
whichth
eycoo
perate
with
doe
snotre
quire
thatcom
plainantssignlegalw
aiversinorderto
receivereparatio
ns.The
remainingbusinessesw
ereeither“no
tsure”
(5)o
rstatedthatitwasnotapp
licable(2
). Fivebusinessesstatedthatth
eycon
sultwith
relevantstakeh
olde
rs,in
particularwith
affe
cted
rights-holde
rs,duringtheprocesso
f
CONFIDEN
TIAL
168
desig
ning,ope
ratin
g,m
onito
ring,and
improvingthegrievance
mechanism
s.
Allbusinessesthatrespo
nded
tooursu
rveystated
thatth
eym
onito
rtheeffectiven
esso
fgrie
vancemechanism
sand
processes,including
byse
ekinginternaland
externalfeedb
ackandthroughtheuseofboth
qualita
tiveandqu
antitativeindicators.A
llbu
tone
businessstated
thatth
eyprovide
internalguidance,training,incen
tives,and
sufficien
tresourcestorelevantdep
artm
entsand
employees,and
establishclear
linesand
system
sofrespo
nsibilityand
accou
ntabilityfo
rrem
ediatio
n,
includ
ingatse
niorm
anagem
entlevel.
1 The
presentte
mplateismod
ified
from
theoriginalDIHR/ICA
Rversion;<https://www.hum
anrig
hts.dk/pub
lications/nationa
l-action-plan
s-bu
siness-hu
man
-rights-toolkit-
2 “Untraitéin
ternationa
l,incorporéda
nsla
législa
tioninternepa
run
eloia
pproba
tive,estune
loid
'essen
cesup
érieureayan
tun
eorigineplushau
teque
lavolon
téd'un
organe
interne.Ils'ensuitqu
'encasde
con
flite
ntrelesdisposition
sd'un
traitéin
ternationa
letc
ellesd'un
eloin
ationalepostérie
ure,lalo
iinterna
tiona
ledoitp
révaloirsur
laloinationa
le”.(C
onseild'Etat,28juillet195
1,Pas.15,p.263
;Cou
r(cass.),8juin195
0,Pas.15,p.41;Cou
r(cass.),14juillet195
4,Pas.16,p.151
).3 <
https://www.ilo.org/dyn/no
rmlex/en
/f?p=1
000:11
200:0::NO:112
00:P11
200_
COUNTR
Y_ID:102
757>
4 S
ee,<https://tbinterne
t.ohchr.org/_layouts/15
/TreatyBod
yExterna
l/Treaty.aspx?Cou
ntryID=1
87&Lang=EN>
5 Foranup
-to-da
telistofC
onventionsand
ProtocolsratifiedbyLuxem
bourg,se
e;
<https://w
ww.ilo.org/dyn/no
rmlex/en
/f?p=1
000:11
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10:P11
210_
COUNTR
Y_ID:102
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6 T
heAdd
ition
alProtocolp
rovidingasystemofcollectivecomplaintsof199
5ison
eofm
easuresde
signa
tedtoim
provetheeffectiveen
forcem
entofthe
socialrights
guaran
teed
bytheCh
arter.Th
eProtocolentitlessocialp
artnersan
dNGOstolo
dgecollectivecomplaintsofviolatio
nsofthe
Cha
rterin
Stateswhichhaveratifiedit.The
complaintisexamined
bytheEu
rope
anCom
mitteeofS
ocialR
ightswhichdeclaresitad
miss
ibleifthe
form
alreq
uiremen
tshavebe
enm
et.T
heCom
mitteethe
ntakesa
decisio
non
themeritsofthe
com
plaint,w
hichitfo
rwardsto
thepa
rtiesconcerne
dan
dtoth
eCo
mmitteeofM
inistersinare
port,w
hichism
adepu
blicwith
info
urm
onths
ofitsbe
ingforw
arde
d.O
ntheba
sisoftherepo
rtoftheEu
rope
anCom
mitteeofSocialRights,the
Com
mitteeofMinistersad
optsaresolution.Ifapp
ropriate,itmay
recommen
dthatth
eStateconcerne
dtakesp
ecificmeasurestobringthesitua
tionintoline
with
theCh
arter.
<https://w
ww.coe
.int/en
/web
/con
ventions/search-on
-states/-/conven
tions/treaty/15
8>
7 The
ratificationinstrumen
thasbeende
posited
with
Parliamen
tand
iscurrentlyund
erre
view
bytherelevantparliamen
tarycom
mittee[cf.chd.lu]
CONFIDEN
TIAL
169
8 ThisCo
nven
tionisconcerne
dwith
the
prin
cipa
laspectsofthelegalsitu
ationofm
igrantw
orkers,inpa
rticularrecruitm
ent,med
icalexaminations,o
ccup
ationa
ltests,
travel,residen
cepermits,w
orkpe
rmits,the
reun
itingoffam
ilies,w
orkingcon
ditio
ns,the
tran
sferofsavingsand
socialsecurity
,socialand
med
icalassistan
ce,the
expiry
of
workcontracts,dism
issaland
re-employmen
t<https://www.coe
.int/en
/web
/con
ventions/search-on
-states/-/conven
tions/treaty/09
3>
9 Fordetails;<http://in
dicators.ohchr.org/>
10Nationa
lActionPlan
ofLuxem
bourgforthe
Implem
entatio
nofth
eUnitedNationsGuidingPrin
ciplesonBu
sinessan
dHum
anRights-2
018-20
19,Englishversion(herein
afterNAP
201
8-19
)p
20,(page
numbe
rsreferto
the
English
versio
nofthe
NAP
)available;<
https://maee.go
uverne
men
t.lu/en
/dire
ctions-du-ministere/affaire
s-po
litique
s/droits-de-l-h
omme/NAP
-Hum
an-Rights.html>
11D
raft“1e
rRap
portauCo
nseildego
uverne
mne
t”,p
9.
12NAP
201
8-19
,p30.
13<https://maee.go
uverne
men
t.lu/en
/dire
ctions-du-ministere/affaire
s-po
litique
s/droits-de-l-h
omme/NAP
-Hum
an-Rights.html>
14BBağlayan,ILand
au,M
McVeyand
KW
odajo,“Goo
dBu
siness:TheEcono
micCaseforProtectin
gHum
anRights”(Janu
ary20
19)<h
ttps://corpo
ratejustice.org/eccj-
publications/121
24-goo
d-bu
siness-the-econ
omic-case-for-protectin
g-hu
man
-rights>.
15<https://ue
l.lu/fr/article/con
ference-en
trep
rises-et-droits-de-lhom
me-organisee-pa
r-luel-et-lindr-en-collabo
ratio
n-avec-le
-ministere-de
-lecono
mie/>
16<https://www.uiane
t.org/en/even
ts/63rd-congress?backlist>
17Upd
atesre
ceived
duringWG/G
Tmeetin
gs.
18Con
sulta
tionswith
UELand
INDR
represen
tativ
es,variousdates.
19<https://charlesm
uller.lu/pa
ge/finan
ce-and
-hum
an-rights/>
20NAP
201
8-19
,30
21Ibid
22Cop
yofth
eletterdated
28.08
.201
9,infilewith
theau
thor.
23<https://coop
eration.go
uverne
men
t.lu/en
.htm
l>
24EU’sposition
can
beaccessed
throughthefollowinglink:<https://www.ohchr.org/EN/H
RBod
ies/HRC
/WGTran
sCorp/Session1
/Pages/Sessio
n1.aspx>.
25<https://www.ohchr.org/D
ocum
ents/H
RBod
ies/HRC
ouncil/WGTran
sCorp/OEIGWG_R
evise
dDraft_LBI.pdf>
26Con
sulta
tionwith
theofficialsatth
eMinistryofForeignand
Europ
eanAffairs,w
rittenfeed
backre
ceived
inOctob
er3,201
9[hereina
fter“Co
nsultatio
ns,p
ublicofficials”]
27OEC
D,Governa
nceasanSD
GAccelerator:C
ountryExperiencesand
Too
ls(O
ECDPu
blish
ing20
19),11
128NAP
201
8-19
,9
29<https://cdc.go
uverne
men
t.lu/fr/service/attrib
utions/point-con
tact-nationa
l-luxem
bourgeois.html>
30Forfu
rthe
rinformationseebe
low,Sectio
n11
onAn
ti-Briberyan
dCo
rrup
tion.
31OEC
D,OEC
DEcon
omicSurveys:Luxem
bourg20
19(1
0July201
9)[h
ereafter“OEC
DSurvey”]
32<https://www.ungloba
lcom
pact.org>
33<https://www.iso.org/stan
dard/425
46.htm
l>
34<https://iso
2600
0.info/is
o260
00/>
CONFIDEN
TIAL
170
35<https://w
ww.ifc.org/>
36<https://www.ifc.org/wps/w
cm/con
nect/7cc48
86b-c0df-4e8
6-afd6
-54d
138a07
96c/IFC+
and+
Luxembo
urg+FY18
.pdf?M
OD=
AJPE
RES&
CVID=m
u42P
AZ>
37<https://eq
uator-principles.com
>38<https://www.globa
lrepo
rting.org>
39<https://www.kim
berle
yprocess.com
/>
40<https://guiche
t.pub
lic.lu
/en/en
trep
rises/urban
isme-en
vironn
emen
t/en
trep
rise-respon
sable/respon
sabilite-sociale/en
trep
rise-socialem
ent-respon
sable.html>
41“[EITI]supp
ortsim
proved
governa
ncean
dtran
sparen
cyin
resou
rce-ric
hcoun
triesthroughthefullpu
blicationan
dverificationofcom
panypaymen
tsand
governm
ent
revenu
esfrom
oil,gasand
miningactiv
ities”,<https://www.worldba
nk.org/en/prog
rams/eitim
dtf>
Curren
tlyato
talof5
1coun
triesa
reim
plem
entin
gEITIStand
ard,ofw
hich31arecompliant,<https://eiti.org/fo
rfurtherinform
ation>
42The
Volun
taryPrin
ciplesonSecurityan
dHum
anRightsa
rease
tofp
rinciplesdesigne
dtoguide
com
paniesinm
aintainingth
esafetyand
securityofth
eiro
peratio
ns
with
inanop
eratingfram
eworkthatencou
ragesrespe
ctfo
rhum
anrights.h
ttps://w
ww.volun
taryprinciples.org
43<https://www.ungloba
lcom
pact.org/w
hat-is-gc/participan
ts/110
17>.Emailinq
uirie
stotheCSRdivisio
nofth
ecompa
nyweresenton27
Julyand
29Septem
ber2
019
requ
estin
ginform
ationon
theirw
ithdraw
aldecision
.Norespon
sewasre
ceived
aso
f10Octob
er201
9.
44ISO260
00isanInternationa
lStand
ardofferin
gvoluntaryguidan
ceonsocialre
spon
sibilityto
anyorgan
isatio
nregardlessoftype,sizeorp
lace<https://www.iso.org/iso
-26
000-social-respo
nsibility.htm
l>
45Foralistofthe
mem
bers,see;<https://eq
uator-principles.com
/mem
bers-rep
ortin
g/>
46<https://glob
alne
tworkinitia
tive.org>
47UNH
uman
RightsCo
uncil,UNH
uman
RightsCo
uncil:
Repo
rto
fthe
Working
Group
on
the
UniversalP
eriodicRe
view
,Luxembo
urg
Addend
um,6
June
201
8,
A/HRC
/38/11
/Add
.1(h
ereina
fterUPR
OutcomeRe
port201
8),p
ara22
48UPR
OutcomeRe
port201
8,Recom
men
datio
nNo.106
.71,Emph
asisad
ded.
49W
G/G
Tmeetin
gdiscussio
n,held16
Sep
tembe
r201
9,interven
tionbyth
eCh
air.
50<https://gallery.m
ailchimp.com/c26
eebc43
3757
d98fdf42
bbd0
/files/4af23f11
-41e
9-49
58-bf8c-23
468f6b
9d65
/PNDD
.pdf>
51<https://maee.go
uverne
men
t.lu/en
/dire
ctions-du-ministere/affaire
s-po
litique
s/femmes-paix-securite.html>
52<http://m
ega.pu
blic.lu
/fr/pu
blications/pub
lications-m
inistere/20
15/pan
-egalite-20
15/062
44_B
roch_P
lan_
Egalite
_Fem
mes_H
ommes_2
015-20
18_0
4-20
15-W
eb.pdf>
53<http://m
j.pub
lic.lu
/services_citoyens/stop_
traite/Plan_
actio
n_na
tiona
l_traite.pdf>
54<http://w
ww.olai.p
ublic.lu
/en/pu
blications/program
mes-plana
ctions-cam
pagnes/PAN
/01a-PAN
-integration-20
18-FR.pd
f>
55<http://m
ega.pu
blic.lu
/fr/pu
blications/pub
lications-m
inistere/20
16/plan-da
ction-na
tiona
l-prostitu
tion/PA
N-Prostitu
tion.pd
f>
56<https://mfamigr.g
ouvernem
ent.lu/da
m-assets/campa
gnes/personn
es_intersexes/PA
N-LGBT
I-web
-upd
ate.pd
f>
57<http://san
te.pub
lic.lu
/fr/pu
blications/p/plan-actio
n-lux-conv-nation-un
ies-pe
rs-han
dicape
es-fr-de/plan
-action-lux-conv-nation-un
ies-pe
rs-han
dicape
es-fr.pdf>
58<http://san
te.pub
lic.lu
/fr/pu
blications/p/plan-actio
n-na
tiona
l-sida-20
18-202
2/plan
-action-na
tiona
l-sida-20
18-202
2.pd
f>
59<https://www.ope
ngovpa
rtne
rship.org/wp-conten
t/up
load
s/20
19/08/Luxembo
urg_Ac
tion-Plan
_201
9-20
21_FR.pd
f>
60NAP
201
8-19
,17
CONFIDEN
TIAL
171
61Con
sulta
tions,p
ublicofficials,su
pran26
62<https://www.ohchr.org/D
ocum
ents/Issue
s/Bu
siness/UNWG_%
20NAP
Guida
nce.pd
f>7[e
mph
asisad
ded]
63Ibid,[em
phasisad
ded]
64NAP
201
8-19
,p28(emph
asisad
ded).
65W
rittenfeed
backre
ceived
from
theCSOs,April5,201
9[hereina
fter,“CSOs’writtenfeed
back”].C
SOsha
vesuggested
thatth
ereferencetoth
e“extractiveindu
strie
s”in
thecurren
tNAP
,sho
uldbe
replaced
by“ind
ustry”)
66Alth
oughLuxem
bourgisaland
locked
cou
ntryithasitsow
nfle
et.Inad
ditio
n,335
shipp
ingcompa
niesareregistered
inLuxem
bourg.In
201
5,th
erewere23
0shipson
the
Luxembo
urg
PublicMaritime
Register.
The
sectoraccoun
tsfor
arou
nd40
0on
shore
jobsinad
ditio
ntothe
4,00
0merchan
tseam
en.
See,
<http://luxembo
urg.pu
blic.lu
/en/pu
blications/k/cc-econ
omie-lu
xembo
urg/cc-econo
mie-lu
xembo
urg-en
-pdf.pdf>
67NAP
201
8-19
,28
68Ibid
69Accordde
coa
lition20
18-202
3(201
8),p
218
<https://go
uverne
men
t.lu/en
/pub
lications/accord-coalition
/201
8-20
23.htm
l>[h
ereina
fter“20
18Coa
litionAg
reem
ent”]
70NAP
201
8-20
19,26
71Ibid,31
72Forfu
rthe
rdetails,se
e:<https://w
ww.in
itiative-de
voird
evigilance.org/>.Forth
eprop
osalofthe
initiativeissee;<http://astm.lu
/wp-
conten
t/up
load
s/20
18/03/Prop
osition
-devoir-de
-vigilance_pa
rtis.pd
f>
73Con
sulta
tionwith
CSO
s,20March201
974Pub
licinterven
tionbyth
erepresen
tativ
eofSMEsinLuxem
bourg,Con
ferenceon
Businessa
ndHum
anRights(June
7,201
9)
75UNGP14
,Com
men
tary.
76CSO
con
sulta
tions,20March201
9,interven
tionbyatrad
eun
ionrepresen
tativ
e.
77UnitedNations,G
eneralAssem
bly,Promotionan
dprotectio
nofhum
anrights:hum
anrightsqu
estio
ns,including
alte
rnativeap
proa
chesforim
provingtheeffective
enjoym
ento
fhum
anrigh
tsand
fund
amentalfreedom
s,A/73/16
3(16July201
8).Foralistoflargebusinessesan
dassociationswith
pub
licstatemen
tsand
end
orsemen
tsin
supp
ort
ofhu
man
rig
hts
due
diligen
ceregulatio
n,see;<h
ttps://w
ww.business-hu
man
rights.org/en
/list-of-large-businesses-associations-w
ith-pub
lic-statemen
ts-
endo
rsem
ents-in
-sup
port-of-h
uman
-rights-du
e-diligen
ce-regulation>
78Disc
ussio
nswith
experts,variousdates,U
niversity
ofLuxem
bourg.
79<https://www.lu
xembo
urgforfin
ance.com
/en/fin
ancial-cen
tre/sustaina
ble-fin
ance/>
80Seesu
pran77
81Jo
hnRuggie,Lettera
ddressed
toBusinessa
ndHum
anRightsR
esou
rceCe
nter,19Septem
ber2
019,
<https://w
ww.businesshum
anrig
hts.org/sites/defau
lt/files/docum
ents/190
9201
9_Letter_Joh
n_Ru
ggie.pdf>.
82B
Baglayan
,I
Land
au,
M
McVey
and
KWod
ajo
“Goo
dBu
siness:
The
Econ
omic
Case
for
Protectin
gHum
an
Righ
ts”
(Jan
uary
2019
),<h
ttps://w
ww.icar.ngo
/pub
lications/201
8/11
/26/go
od-business-the-econ
omic-case-for-protectin
g-hu
man
-rights>
CONFIDEN
TIAL
172
83Luxem
bourg
Stock
Exchan
ge,
Les
XPrincipes
dego
uverna
nce
d'entreprisedelaBo
ursedu
Luxem
bourg,4t
h ed
ition
-revise
dversion
(Decem
ber
2017
)<h
ttps://w
ww.bou
rse.lu/le
gisla
tion#
1468
8535
9466
48>
84The
German
Governm
ent’sapp
roachisno
teworthy,whichinitsN
APcom
mitted
tocon
sideringman
datoryre
quire
men
tsifatleast50pe
rcen
tofG
erman
business
enterpriseswith
morethan
500
employeesfailedtoputpoliciesa
ndprocessesinplaceto
con
ducthum
anrightsdue
diligenceby202
0.
85The
NAP
209
-202
0(EnglishVe
rsion),p
26
86ICo
rbisierand
P-HCon
ac,‘Luxembo
urg.Corpo
rateGoverna
nceoflisted
com
panies’inA.Fleckerand
K.H
opt,Co
mpa
rativ
eCo
rporateGoverna
nce:AFun
ctiona
land
Internationa
lAna
lysis
,Interna
tiona
lCorpo
rateLaw
and
Finan
cialM
arketR
egulation(CUP20
13)6
04-647
,606
87<https://guiche
t.pub
lic.lu
/en/en
trep
rises/creation-de
velopp
emen
t/form
e-jurid
ique
/societe-cap
itaux/sarl.h
tml>
88PeterM
uchlinski,‘Lim
itedliabilityan
dMultin
ationa
lEnterprise
s:ACaseforR
eform?’[2
010]34Ca
mb.J.Econ.915
,915
;Gwynne
Skinn
er,‘Re
thinkingLim
itedLiab
ilityof
ParentCorpo
ratio
nsfo
rForeignSub
sidiarie
s’Violatio
nsofInterna
tiona
lHum
anRightsLaw’[20
15]7
2Wash.&LeeL.R
ev.1
769;Rad
uMares,‘ARejoind
erto
G.Skinn
er's
RethinkingLim
itedLiab
ilityofParentCorpo
ratio
nsforForeignSub
sidiarie
s'ViolationsofInternationa
lHum
anRightsLaw’[201
6]73Wash.&
LeeL.Re
v.;OlivierDe
Schu
tter,‘To
wardsaNew
Treatyon
Businessa
ndHum
anRights’[2
006]1BHRJ41.
89See,M
uchlinski,id.
90GSkinn
er,R
McCorqu
odale,ODeSchu
tter,TheThirdPillar:A
ccesstoJudicialRem
ediesforHum
anRightsV
iolatio
nsbyTran
snationa
lBusiness,Decem
ber2
013,81
91Ibid
92Ibid
93Ibid
94Foradetailedan
alysisofth
ereform
smod
fyingtheCo
mpa
niesLaw
,see;Isabe
lleCorbisie
r,“Laréform
edu
droitluxembo
urgeoisd
esso
cieties”[2
016]4TRV
-RPS416
95<http://le
gilux.pu
blic.lu
/eli/etat/le
g/loi/2
002/12
/19/n1
/jo>
96<http://le
gilux.pu
blic.lu
/eli/etat/le
g/loi/2
005/07
/10/n1
/jo>
97<http://le
gilux.pu
blic.lu
/eli/etat/le
g/loi/2
016/12
/12/n1
//jo>
98Ibid,A
rticle2.
99“Co
mmiss
ion
refersLuxembo
urg
tothe
Court
ofJustice
for
not
completely
implem
entin
gEU
an
ti-mon
eylaun
derin
grules”,
8Novem
ber
2018
,<h
ttps://europ
a.eu
/rap
id/press-release_IP-18
-625
1_en
.htm
>
100 D
irective20
15/849
of2
0May201
5on
thepreven
tionofth
euseofth
efin
ancialsy
stem
forthe
purpo
seso
fmon
eylaun
derin
gorte
rroristfina
ncing.
101 D
irective20
18/843
of3
0May201
8am
endingth
e4thEU
AMLDirective.
102 <
http://le
gilux.pu
blic.lu
/eli/etat/le
g/loi/2
019/01
/13/a15/jo>
103 Luxem
bourgStockExchan
ge,LesXPrin
cipesd
ego
uverna
nced'entreprisedelaBou
rsedu
Luxem
bourg,4
theditio
n-revisedversion(Decem
ber2
017)
<https://w
ww.bou
rse.lu/le
gisla
tion#
1468
8535
9466
48>
104 P
rinciple9ofth
eXPrinciplesre
ads:“Th
ecompa
nysha
lldefin
eitscorpo
ratesocialrespo
nsibilitypolicywith
respect,includ
ingtoitth
oserespon
sibilitie
srelatedtosocial
andenvironm
entalaspects.Itsha
llseto
utth
emeasurestakenfo
ritsim
plem
entatio
nofth
atpolicyan
dshallprovidefo
rtheseto
bead
equa
telypub
lished”.
CONFIDEN
TIAL
173
105 T
heguide
linetoth
erecommen
datio
n9.2ofth
eXPrinciplesre
ads:“Th
ecompa
nyisencou
ragedtouseafram
eworkrecogn
isedatin
ternationa
llevel(G
loba
lReportin
gInitiative,Interna
tiona
lIntegratedR
eportin
gFram
ework,SAS
Bsustaina
bilitystan
dards,FSBTC
FDC
limate-related
Fina
ncialDisclosuresan
d/orsim
ilarstan
dards)in
preparingsuchare
port.Itisinvite
dtoalignitselfw
ithth
e17
UNSustainab
leDevelop
mentG
oals”
.10
6 XPrinciples,R
ecom
men
datio
n9.4,p28.
107 S
ee,<https://www.cssf.lu>
10
8 <https://www.lu
xflag.org/>
109 <
https://w
ww.alfi.lu
/>
110 O
nLuxembo
urgleakss
cand
al,seealso
thesectionson“tax”an
d“w
histle-blowers”inth
isan
nex.
111See,
Zuzann
aRe
da-Jakim
a,
“Deadline
delayed
as
firms
leave
list
to
shed
light
on
owne
rs
vacant”
(29.08
.201
9)
in
Luxembo
urg
Times
<https://lu
xtim
es.lu
/luxembo
urg/38
303-de
adline-de
layed-as-firm
s-leave-list-to-she
d-light-on-ow
ners-vacan
t>,
quoted
in
<https://www.icij.org/investigations/lu
xembo
urg-leaks/luxembo
urg-falls-fu
rthe
r-be
hind
-eu-am
l-rules-as-compa
nies-fa
il-to-disc
lose-owne
rship/>
112 <https://www.lb
r.lu/mjrc
slbr/jsp/Inde
xActionN
otSecured.actio
n?FR
OM_LAN
GUAG
E_CH
ANGE=true
&loop
=3&tim
e=15
6871
3880
99>
113 <
http://legilux.pu
blic.lu
/eli/etat/le
g/loi/2
016/07
/23/n1
9/jo>
114 S
eeabo
ve,respo
nse4.2.
115 <
https://www.ilo.org/dyn/no
rmlex/en
/f?p=1
000:11
200:0::NO:112
00:P11
200_
COUNTR
Y_ID:102
757>
11
6 <http://legilux.pu
blic.lu
/eli/etat/le
g/code
/travail/20
1902
01>
117 S
ee,S
TATEC,Rap
porttravailetcoh
ésionsociale(201
8),h
ereina
fterRTC
S20
18,8
2:“Po
urcalculerletau
xde
risq
uedepa
uvretéautravail,on
add
ition
ned’abo
rdle
srevenu
sbrutsdetouslesm
embresd’unmén
age,ycom
prislestransfertss
ociauxetlesre
venu
slocatifs,lesre
venu
sfon
cierse
tceu
xproven
antd
’investiss
emen
tsencapital
etondé
duitlescotisationssociales,l’im
pôtsurlereven
uretenu
àla
sou
rceetl’im
pôtfoncier,dé
term
inan
tainsilerevenu
disp
onibledumén
age.Suivantla
con
vention
europé
enne
,le"reven
udispon
ibleéqu
ivalen
t"dumén
ageestc
alculéenaccordan
tunpo
idsde
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evivantdan
slem
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idsde
0.5àcha
que
autrepe
rson
neâgéede
14an
sou
plusetde0.3àchaq
ueenfan
tâgédemoinsde14
ans.Laméd
iane
durevenu
disp
onibleéqu
ivalen
tainsichiffréeestm
ultip
liéepa
r0.6
pourfixerleseu
ilde
pau
vreté.Tou
slesmén
agesdon
tlerevenu
équ
ivalen
testin
férie
uràceseuilson
tcon
sidérés"en
risq
uedepa
uvreté".Lacatégo
riedes"travailleurs
pauvres"regroup
etouteslespersonn
esâgéesde18
ansetplusquionttravaillépe
ndan
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moins7m
oisd’un
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née,soiten
tan
tqu
’employésoit
entan
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ontlemén
agede
meu
reenrisqu
ede
pau
vreté.L’in
dicateurs’exprim
een
pou
rcen
tagedestravailleurs”.
118 S
TATEC,RTC
S20
18,82.
119 S
TATEC,RTC
S20
18,82
120 E
urop
eanSocialPolicyNetwork(ESPN),In-w
orkpo
vertyinEurop
e:Astud
yofnationa
lpolicies(20
19);R.Urbé,In-w
orkpo
vertyinLuxem
bourg,ESPN,(20
19).See,also
;Ch
ambrede
Com
merce(2
019),Pau
vreté:delajustemesureau
xmesuresapp
ropriées,A
ctua
lité&Ten
dances,N
o21
121 S
TATEC,RTC
S20
18,85
122 O
ECDSurvey,sup
ran31,15
123 O
ECD(201
9),G
ende
rwagegap(in
dicator),<https://da
ta.oecd.org/earnwage/gend
er-w
age-gap.htm>11
-12
124 E
urop
eanCo
mmitteeofSocialR
ights,Con
clusionsXX1
-3(2
018)Luxem
bourg(M
arch201
9)
CONFIDEN
TIAL
174
125 G
roup
ofE
xpertsonAc
tionagainstT
raffickinginHum
anBeings(GRE
TA),Re
portcon
cerningtheim
plem
entatio
nofth
eCo
uncilo
fEurop
eCo
nventio
non
Actionag
ainst
Trafficking
inHum
anBeing
sbyLuxembo
urg,(2
018)18
12
6 ibid,7
127 <
https://inap
.gou
vernem
ent.lu/fr.htm
l>
128 <
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gilux.pu
blic.lu
/eli/etat/le
g/rgd/20
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12
9 <https://fonctio
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-1-sujad
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05-1-1-33.html>
130 T
elep
hone
interviewcon
ducted
byarepresen
tativ
eofIN
APon10
Sep
tembe
r201
9.
131 <
https://mteess.go
uverne
men
t.lu/fr.htm
l>
132 <
https://itm
.pub
lic.lu
/fr.h
tmland
https://guichet.pub
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es/organ
ismes_cito
yens/in
spectio
n-travail-m
ines.htm
l>
133 <
https://guiche
t.pub
lic.lu
/fr/citoyens/travail-em
ploi/activite
-professionn
elle/relations-collectives-travail/roles-de
legues-securite
-san
te-egalite.html>
134 <
https://www.csl.lu/fr/vos-droits/droit-du
-travail/les-conven
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tiona
l-de-conciliation-on
c>
135 <
https://cdc.go
uverne
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t.lu/fr/service.htm
l>
136 <
https://cdc.go
uverne
men
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utions.htm
l>
137 E
urofou
nd,E
urop
eanFoun
datio
nforIm
provingLivingand
WorkingCon
ditio
ns(2
008),W
orking
Con
ditio
nsand
SocialD
ialogu
einLuxem
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tedinN.Schne
ider,
OHSWiki,OSH
system
atn
ationa
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urg
138 T
ernium
201
8An
nualRep
ort,5
139 <
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ww.business-hu
man
rights.org/en
/gua
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orld-cou
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-un
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s-rig
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398>
14
0 Caseup
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Luxem
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Sep
tembe
r201
9.Com
mun
icationinfilewith
theau
thor.
141 <
http://legilux.pu
blic.lu
/eli/etat/le
g/code
/enviro
nnem
ent/20
1908
09>.Com
preh
ensiv
elisto
falllawsa
ndre
gulatio
nspertainingtoLuxem
bourg,with
brie
fexplana
tions
ofth
eircon
texts,can
befoun
dinth
eweb
siteofUN’sFoo
dan
dAg
ricultureOrgan
ization(“FA
O”),available;<http://w
ww.fa
o.org/faolex/cou
ntry-profiles/gen
eral-
profile/en/?iso3=
LUX>
14
2 <https://en
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IE.pdf>
143 <
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/eli/etat/le
g/rgd/20
18/05/15
/a39
9/jo>
144 <
http://le
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blic.lu
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g/loi/2
012/03
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/jo>
14
5 <http://le
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14
6 <http://le
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14
7 <http://le
gilux.pu
blic.lu
/eli/etat/le
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016/03
/29/n6
/jo>
14
8 UNEP
Finan
ceIn
itiative,Luxem
bourgSustaina
bleFina
nceRo
admap
(Octob
er201
8)<https://go
uverne
men
t.lu/da
m-assets/do
cumen
ts/actua
lites/201
8/10
-octob
re/04-
sustaina
ble-fin
ance/Luxem
bourg-Sustaina
ble-Fina
nce-Ro
admap
-WEB
.pdf>,7
149 <
http://le
gilux.pu
blic.lu
/eli/etat/le
g/loi/2
018/06
/22/a521
/jo>
CONFIDEN
TIAL
175
150 G
overnm
ento
fGrand
DuchyofL
uxem
bourg,“Nationa
lplanforsmart,sustaina
blean
dinclusivegrow
thLuxem
bourg20
20-Nationa
lReformProgram
meofth
eGrand
Du
chyofLuxem
bourgun
dertheEurop
eansemester2
019”available,<http://w
ww.in
novatio
n.pu
blic.lu
/en/brochu
res-rapp
orts/p/pnr-201
4/inde
x.html>
151 <
https://ec.europ
a.eu
/enviro
nmen
t/eir/pd
f/repo
rt_lu_
en.pdf>
152 C
ouncilRe
commen
datio
nof9Ju
ly201
9on
the20
19Nationa
lReformProgram
meofLuxem
bourgan
dde
liveringaCo
uncilopinion
onthe20
19StabilityProg
rammeof
Luxembo
urgBrussels,5.6.201
9CO
M(201
9)516
fina
l<https://eu
r-lex.eu
ropa
.eu/legal-con
tent/EN/TXT
/?uri=CE
LEX:32
019H
0905
(16)>pa
ra12
153 O
ECDSurvey,sup
ran31,53
154 <
https://www.itf-o
ecd.org/sites/defau
lt/files/docs/02
greenh
ousee.pd
f>
155 <
https://en
vironn
emen
t.pub
lic.lu
/dam
-assets/do
cumen
ts/l%
C3%A9
gisla
tion/15
-mai-201
8-loi-E
IE.pdf>
156 <
http://le
gilux.pu
blic.lu
/eli/etat/le
g/rgd/20
18/05/15
/a39
9/jo>
157 <
http://le
gilux.pu
blic.lu
/eli/etat/le
g/rgd/20
18/05/15
/a40
0/jo>
158 <
http://le
gilux.pu
blic.lu
/eli/etat/le
g/rect/201
8/05
/15/a409
/jo>
15
9 <http://le
gilux.pu
blic.lu
/eli/etat/le
g/tc/200
3/11
/26/n1
/jo>
16
0 See,<https://guiche
t.pub
lic.lu
/en/en
trep
rises/urban
isme-en
vironn
emen
t/incide
nces-enviro
nnem
entales/evalua
tion-en
vironn
emen
tale/in
cide
nces-enviro
nnem
ent-
eie.html#blou
b-4>
16
1 <https://guiche
t.pub
lic.lu
/en/en
trep
rises/urban
isme-en
vironn
emen
t/en
trep
rise-respon
sable/respon
sabilite-sociale/en
trep
rise-socialem
ent-respon
sable.html>
162 <
https://aev.gou
vernem
ent.lu/fr/adm
inistratio
n/attributions.htm
l>
163 G
reen
peace,‘M
enacessurle
sforêtsafricaine
s:Enq
uêtesurle
sinvestiss
emen
tsdugrou
peBolloréetde
son
partena
irebelgeHub
ertFabri,’Paris,Feb
ruary20
16,
quoted
in,S
.Borras,etal,“Land
grabb
ingan
dhu
man
rights:thein
volvem
entofEurop
eancorporatean
dfin
ancialentitiesin
land
grabb
ingou
tsidetheEu
ropean
Union
”(Europ
ean
Parliam
ent
2016
),23
.Herein
after
“Borras
2016
”<h
ttp://www.europ
arl.europ
a.eu
/RegDa
ta/etude
s/STUD/
2016
/578
007/EX
PO_STU
%28
2016
%29
5780
07_EN.pdf>
164 U
nitedNations,‘Hum
anRightsinLiberia’sRub
berPlan
tatio
ns:T
appingin
tothe
future,’Mon
rovia,200
6;Oakland
Institu
te,‘SO
CFINLan
dinvestmen
tinSierraLeon
e,
land
dealb
rief,’April20
12;a
ndFIDH.‘Land
cleared
forrub
ber,Rightsbulldozed
-Th
eim
pactofrub
berp
lantationsbySO
CFIN-KCD
onindigeno
uscom
mun
itiesin
Bou
sra,
Mon
dulkiri,’Octob
er201
1,quo
tedinBorras2
016.
165FIANBe
lgium,“Lan
dGrabb
ing
forPa
lmOil
inSierraLeon
e:An
alysis
ofthe
SocfinCa
sefrom
a
Hum
anRigh
tsPerspective”(Feb
ruary
2019
),available
<https://w
ww.fian
.be/IM
G/pdf/fian_
b_repo
rt_lan
dgrab_
in_sl_malen
_201
9_full_web
low.pdf>,with
furthe
rreferencesth
erein.S
OCFINalso
hasbeenaccusedofviolatin
gland
rightsthroughitssub
sidiarie
sinLiberia,see;B
read
ForA
ll,“Strugg
leforLife
and
Lan
dSocfin'sRu
bberPlantationsinLiberia
and
theR
espo
nsibilityofSw
iss
Compa
nies”(Feb
ruary20
19)
166 Ibid
167 S
OCFIN,Socfin
’sre
spon
seto
Fian’s“
Draftreporte
xtractsm
adeavailabletoSocfin
beforepu
blication–Provision
altitle
:Lan
dCo
nflictinMalen–Ana
lysis
and
lesson
slearnedfrom
ahum
anperspectiv
e”(2
019),available<https://www.business-hu
man
rights.org/sites/defau
lt/files/docum
ents/201
9-01
-09-Socfin-respo
nse-to-
Fian
_Final.pdf>
168 <
http://m
neguidelines.oecd.org/da
taba
se/in
stan
ces/be
0018
.htm
>
CONFIDEN
TIAL
176
169 Ibid
170 <
https://www.woxx.lu/accap
arem
ent-de
s-terres-la
-holding
-luxembo
urgeoise-socfin
asia-dan
s-le-vise
ur/>Accordingto
thesource,the
hearin
gtookplaceonOctob
er1,
2019
.Atthe
timeofth
ewriting,nofurthe
rinformationcouldbe
foun
d.
171 B
orras2
016,28
172 Ibid
173 Ibid
174 Ibid
175 <
https://www.klim
abue
ndnis.org/fileadm
in/Inh
alte/7_D
ownloa
ds/Pen
sionsfond
s_un
d_Men
sche
nrechte.pd
f>
176 <
https://www.in
ternationa
lrivers.org/cam
paigns/belo-mon
te-dam
>17
7 <https://astm
.lu/w
p-conten
t/up
load
s/20
18/12/20
18_1
2_Be
loMon
te_O
debrecht_Luxem
bourg-Co
nnectio
n_EN
.pdf>
178 <
https://multin
ationa
les.org/IM
G/pdf/enco_
aatif_d
ef.pdf>
179 ILO
,“Indigeno
usand
Trib
alPeo
plesCon
vention,198
9(No.169
)Con
ventionconcerning
Indigeno
usand
Trib
alPeoplesinIn
depend
entC
ountrie
s”(E
ntryintofo
rce:05Sep
1991
)18
0 <http://le
gilux.pu
blic.lu
/eli/etat/le
g/rgd/20
04/09/27
/n5/jo>
181 <
http://le
gilux.pu
blic.lu
/eli/etat/le
g/rgd/20
18/07/20
/a68
4/jo>
182 <
http://le
gilux.pu
blic.lu
/eli/etat/le
g/mem
orial/1
995/90
>18
3 <http://le
gilux.pu
blic.lu
/eli/etat/le
g/loi/2
017/04
/28/a459
/jo>
18
4 <https://visio
nzero.lu/vision
-zero-ursprung/>
185 N
otethatLuxem
bourgha
sasp
ecificmen
talhealth
legisla
tionof10De
cembe
r200
9whichre
gulatesthe
adm
ission,placemen
tand
resid
encefo
rinvolun
tarilyad
mitted
pe
rson
swith
men
taldiso
rdersinapsychiatric
hospitalorinaspecialized
psychiatricfa
cility,<http://legilux.pu
blic.lu
/eli/etat/le
g/loi/2
009/12
/10/n1
/jo>
.18
6 <https://w
ww.csl.lu/fr/travail-san
te-et-bien
-etre/qu
ality
-of-w
ork-inde
x-luxembo
urg/en
quetes-et-rapp
orts>
187 <
https://pap
erjam.lu
/article/que
stions-encore-trop
-daccide
nts-graves-dan
s-la-con
struction>
;<http://www.lessen
tiel.lu/fr/lu
xembo
urg/story/39
-entreprise
s-on
t-ete-
sanctio
nnees-pa
r-l-itm
-286
5747
8>
188 <
https://itm.gou
vernem
ent.lu/fr/actua
lites.gou
vernem
ent%
2Bfr%2B
actualite
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2019
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2B19
-bilan-
itm.htm
l>
189 F
oranoverview
ofm
osttaxlawsa
ndre
gulatio
nsineffe
ctse
e,fo
rexample,Livredesim
pôtsluxembo
urgeois,201
9,Legite
ch.
190 <
http://le
gilux.pu
blic.lu
/eli/etat/le
g/loi/1
931/05
/22/n1
/jo>
19
1 <http://le
gilux.pu
blic.lu
/eli/etat/le
g/loi/1
934/10
/16/n2
/jo>
19
2 <http://le
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19
3 <http://le
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blic.lu
/eli/etat/le
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19
4 <http://le
gilux.pu
blic.lu
/eli/etat/le
g/loi/1
979/02
/12/n1
/jo>
19
5 https://aed
.gou
vernem
ent.lu/en
/service.htm
l
CONFIDEN
TIAL
177
196 h
ttps://im
potsdirects.pu
blic.lu
/fr.h
tml
197 h
ttps://dou
anes.pub
lic.lu
/fr.h
tml
198 F
orth
elegalbasisofEUta
xpo
licy,se
e;th
etaxprovision
scha
pter(A
rticles1
10-113
)ofthe
TFEU(relatingtoth
eha
rmon
isatio
noflegisla
tionconcerningtu
rnoverta
xes,
excisedutiesa
ndotherfo
rmso
find
irectta
xatio
n);the
cha
pterontheap
proxim
ationoflaws(Articles1
14-118
TFEU)(coverin
gtaxestha
thavean
indirecteffe
ctonthe
establish
men
tofthe
internalm
arket,with
fiscalprovisio
nsnotsu
bjecttotheordina
rylegisla
tiveproced
ure);o
therprovision
srelevan
ttotaxpo
licy,re
ferringtoth
efree
movem
ento
fpersons,servicesa
ndcap
ital(Articles4
5-66
TFEU),theen
vironm
ent(Articles1
91-192
TFEU)a
ndcom
petition(Articles1
07-109
TFEU).Forfurther
inform
ation,se
e;<http://w
ww.europ
arl.europ
a.eu
/factshe
ets/en
/she
et/92/gene
ral-tax-policy>
199 S
ee,<https://ec.europ
a.eu
/com
petition/pu
blications/factshe
ets/state_aid_
proced
ures_en.pd
f>
200 S
ee,forinstan
ce;Europ
eanCo
mmiss
ion,Pressre
lease,Com
miss
iondecidess
electiv
etaxad
vantag
esfo
rFiatinLuxembo
urgan
dStarbu
cksintheNetherla
ndsa
reillega
lun
derE
Ustateaidrules,21Octob
er201
5<h
ttps://europ
a.eu
/rap
id/press-release_IP-15
-588
0_en
.htm
>;Europ
eanCo
mmiss
ion,Pressre
lease,Stateaid:C
ommiss
ionfin
ds
Luxembo
urgga
veillega
ltaxbenefitsto
Amazon
wortharoun
d€2
50m
illion,4Octob
er201
7<https://eu
ropa
.eu/rapid/press-release_IP-17-37
01_en.htm>;Europ
ean
Commiss
ion,Pressre
lease,Com
miss
ionfin
dsLuxem
bourgga
veillega
ltaxbenefitsto
Eng
ie;h
asto
recovera
roun
d€1
20m
illion,20June
201
8<
https://eu
ropa
.eu/rapid/press-release_IP-18-42
28_en.htm>;Europ
eanCo
mmiss
ion,Pressre
lease,Stateaid:C
ommiss
ionop
ensin-depthinvestigationintota
xtreatm
ento
fHuh
tamäkiinLuxembo
urg,7M
arch201
9<https://eu
ropa
.eu/rapid/press-release_IP-19-15
91_en.htm>.
201 G
eneralCou
rtofthe
Europ
eanUnion
,PressReleaseNo11
8/19
,24Septem
ber2
019,<https://curia
.europ
a.eu
/jcm
s/up
load
/docs/ap
plication/pd
f/20
19-
09/cp1
9011
8en.pd
f>
202 F
orfurtherin
form
ationsee;https://w
ww.icij.org/investigations/lu
xembo
urg-leaks/.A
longw
ithAntoine
Deltour,R
apha
elHalet,a
notherformerPwCem
ployee,a
nd
Edou
ardPe
rrin,aFrenchjourna
list,wereprosecuted
forthe
irrolesinexpo
singdo
cumen
ts.Forfu
rthe
rdetails,se
ethesectionon
whistleblow
ers.
203 Jim
Brudsen
,“LuxLeaks:Luxem
bourg’srespo
nsetoaninternationa
ltaxsc
anda
l”,Finan
cialTim
es,Jun
e23
201
7.
204 <
https://www.icij.org/investigations/lu
xembo
urg-leaks/>
205 B
rudsen
,ibid
206 ICIJ,“LeakedDo
cumen
tsExposeGloba
lCom
panies’SecretT
axDealsinLuxem
bourg”Novem
ber5
,201
4,<https://www.icij.org/investigations/lu
xembo
urg-leaks/leaked
-do
cumen
ts-expose-glob
al-com
panies-secret-tax-de
als-luxembo
urg/>
207 IBA
HRITaskForceon
IllicitFina
ncialF
lows,Povertyand
Hum
anRights20
13,“
TaxAb
uses,P
overtyand
Hum
anRights:Rep
ortofthe
Internationa
lBarAssociatio
n's
Hum
an
Rights
Institu
te
Taskforce
on
Illicit
Fina
ncial
Flow
s,
Poverty
and
Hum
an
Rights”,
2,
available;
<https://w
ww.ib
anet.org/H
uman
_Rights_Institu
te/TaskForce_IllicitFinan
cialFlow
s_Po
verty_Hum
anRights.aspx>
208 O
HCH
R,In
form
ationno
te,available;<https://www.ohchr.org/D
ocum
ents/Issue
s/RtD/
InfoNote_Taxatio
n.pd
f>
209See,
the
Lawof23
De
cember
2016
im
plem
entin
gthe
tax
reform
20
17<h
ttp://legilux.pu
blic.lu
/eli/etat/le
g/loi/2
016/12
/23/n1
1/jo>.See
also,
http://w
ww.europ
arl.europ
a.eu
/cmsdata/12
4709
/Luxem
bourg%
20fiche
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210 <
http://le
gilux.pu
blic.lu
/eli/etat/le
g/loi/2
019/03
/07/a153
/jo>
CONFIDEN
TIAL
178
211 T
heother6cou
ntrie
sinclud
eBe
lgium,C
yprus,Hun
gary,Ireland
,Maltaand
The
Nethe
rland
s,see;E
urop
eanParliam
ent,“PressRelease:T
axcrim
es:spe
cialcom
mittee
callsfo
raEurop
eanfin
ancialpoliceforce”(2
7Februa
ry201
9),<
http://www.europ
arl.europ
a.eu
/new
s/en
/press-roo
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9022
5IPR
2872
7/tax-crim
es-spe
cial-com
mittee-
calls-fo
r-a-eu
rope
an-fina
ncial-p
olice-force>
212 C
ouncilRe
commen
datio
nof9Ju
ly201
9on
the20
19Nationa
lReformProgram
meofLuxem
bourgan
dde
liveringaCo
uncilopinion
onthe20
19StabilityProg
rammeof
Luxembo
urgBrussels,5.6.201
9CO
M(201
9)516
fina
l<https://eur-le
x.eu
ropa
.eu/legal-con
tent/EN/TXT
/?uri=CE
LEX:32
019H
0905
(16)>pa
ra14
213
See;
<https://w
ww.chd
.lu/w
ps/portal/p
ublic/Accue
il/TravailALaCh
ambre/Re
cherche/Ro
leDe
sAffa
ires?actio
n=do
DocpaD
etails&
backto=/wps/portal/p
ublic/Accue
il/Ac
tualite
&id
=703
3>
214 C
onsolidated
versio
nofth
eTreatyontheFunctio
ningofthe
Europ
eanUnion
(13De
cembe
r200
7),200
8/C11
5/01
21
5 See,<https://m
aee.go
uverne
men
t.lu/fr/dire
ctions-du-ministere/affaire
s-eu
rope
enne
s/affaire
s-eu
rope
enne
s.html>
216 S
ee,<https://ec.europ
a.eu
/trade
/policy/po
licy-making/sustaina
ble-de
velopm
ent/#_hu
man
-rights>
217 Ibid
218 B
Baglayanetal,n82
.21
9 Ibid
220 <
https://ec.europ
a.eu
/trade
/policy/po
licy-making/sustaina
ble-de
velopm
ent/#_hu
man
-rights>
221 <
http://le
gilux.pu
blic.lu
/eli/etat/le
g/loi/2
004/05
/27/n3
/jo>
22
2 See,<https://bruxelles.mae.lu
/fr/Re
latio
ns-belgo
-luxembo
urgeoises/L-Union
-econo
mique
-belgo
-luxembo
urgeoise>
223 F
oranan
alysisofth
emod
elinvestmen
ttreaty,see;D
amienCh
arlotin
and
LukeEricPeterson,“Be
lgiumand
Luxem
bourgUnveilM
odelBilateralInvestm
entT
reatyText,
With
Party-App
ointed
ISDS
Mecha
nism
EnjoyingaTempo
raryFoo
thold”IA
Repo
rter,(Ap
ril201
9)
224 F
orafu
lltextofthe
agreemen
t,see;Cha
mbrede
sRep
résentan
tsdeBe
lgique
,“Ra
pportd
eprog
rès2
019du
vice-prem
ierm
inistreetm
inistredesAffa
iresé
tran
gèrese
teu
ropé
enne
s,cha
rgéde
Belirise
tdesIn
stitu
tionsculturellesféd
érales,relatifau
xtraitésc
ommerciau
x”(2
8March201
9)
<https://w
ww.lacham
bre.be
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f/54
/180
6/54
K180
6007
.pdf>
225 Ibid,Article18(1)
226 Ione
lZam
fir,“EU
Parliamen
tBrie
fingon
‘Hum
anrigh
tsinEUtrad
epo
licyUnilateralm
easuresa
ppliedbyth
eEU
’(May201
8),
<http://www.europ
arl.europ
a.eu
/RegDa
ta/etude
s/BR
IE/201
8/62
1905
/EPR
S_BR
I(201
8)62
1905
_EN.pdf>
227 Ibid
228 N
AP201
8-19
,16
229 <
https://ec.europ
a.eu
/trade
/impo
rt-and
-export-rules/expo
rt-from
-eu/du
al-use-con
trols/>
230 <
https://eu
r-lex.eu
ropa
.eu/resource.htm
l?uri=cellar:1
b8f930
e-86
48-11e
6-b0
76-01aa75e
d71a1.00
13.02/DO
C_1&
form
at=P
DF>
231 <
http://legilux.pu
blic.lu
/eli/etat/le
g/loi/2
018/06
/27/a603
/jo>
23
2 <https://guiche
t.pub
lic.lu
/en/supp
ort/glossaire
/regim
es-non
-proliferation.html>
CONFIDEN
TIAL
179
233 Lettero
fMPWagne
rdated
14Janu
ary,and
theGovernm
ent’sre
spon
secan
beaccessed
here;<https://www.wort.lu/de
/politik/affaere-khasho
ggi-e
ine-spur-fu
ehrt-
nach-lu
xembu
rg-5c6ea89
eda2cc17
84e3
3e51
f>
234 h
ttps://w
ww.nytim
es.com
/201
8/12
/02/world/m
iddleeast/saud
i-kha
shog
gi-spyware-israel.h
tml.See,also
;UNHum
anRightsC
ouncil(19June
201
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/HRC
/41/CR
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ttps://w
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ost.c
om/opinion
s/glob
al-opinion
s/ho
w-a-chilling
-sau
di-cyberwar-ensna
red-jamal-kha
shog
gi/201
8/12
/07/f5f048
fe-f9
75-11e
8-8c9a-
860ce2
a814
8f_story.htm
l.InFeb
ruary20
19,N
SOGroup
ann
ounced
thatth
eman
agem
enta
ndth
efoun
dersacquiredthecompa
nyfrom
theothe
rsha
reho
ldersw
hichwas
finan
cedbyNovalpina
Cap
ital,aprivateeq
uityfirm
specializinginbuyou
tinvestm
entswith
headq
uartersinLuxembo
urg,<https://www.fy
b.de
/en/man
agem
ent-bu
y-ou
t-be
i-der-nso-group
-mit-no
valpina-capital/>
23
6The
Governm
ent’s
respon
se,
dated
19
Februa
ry
2019
,available
<https://w
ww.wort.lu/de
/politik/affaere-khasho
ggi-e
ine-spur-fu
ehrt-nach-luxembu
rg-
5c6e
a89e
da2cc178
4e33
e51f>
237 <
https://eu
r-lex.eu
ropa
.eu/legal-con
tent/EN/TXT
/?qid=
1476
1782
7440
0&uri=CE
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002R
2368
>23
8 <https://eu
r-lex.eu
ropa
.eu/legal-con
tent/EN/TXT
/?uri=CE
LEX:32
017R
0821
>23
9 <https://od
l.lu/en
/finan
cial-sup
port/>
240 <
https://od
l.lu/en
/abo
ut-us/ethics/>
241 <
https://meco.go
uverne
men
t.lu/fr/ann
uaire
.htm
l?idMin=5
394>
24
2 Seeabo
vebox1oninternationa
land
region
allegaland
softlawinstrumen
tsfo
rfurtherdetails.
243 <
http://le
gilux.pu
blic.lu
/eli/etat/le
g/loi/2
001/01
/15/n1
/jo>
24
4 Pleaseseeab
ovebo
x1on
internationa
land
region
allegaland
softlawinstrumen
tsfo
rfurtherdetails.
245 A
dopted
from
,UNODC
,Cou
ntryReviewReporto
fLuxem
bourg,ReviewbySw
itzerland
and
Austriaoftheim
plem
entatio
nbyLuxem
bourgofarticles1
5–42
ofC
hapter
III.“Crim
inalizationan
dlawenforcement”and
articles4
4–50
ofC
hapterIV
.“Internationa
lcoo
peratio
n”oftheUnitedNationsCon
ventionag
ainstC
orruptionforthere
view
cycle20
10–201
5,available<h
ttps://w
ww.uno
dc.org/docum
ents/treaties/UNCA
C/Co
untryV
isitFinalRe
ports/Luxembo
urg_Fina
l_Re
port_2
5-03
-201
5.pd
f>
246 Inthecrim
inalCod
e,th
erelevantprovisio
nsare,A
rt.2
42.,Art.24
4.,A
rt.2
45.,Art.24
6.,A
rt.2
47.,Art.25
2.,A
rt.2
40.,Art.24
1.,A
rt.2
43.,Art.24
8.,A
rt.2
49.,Art.25
0.,
Art.25
1.,A
rt.253
.,Art.310
and
310
-1,A
rt.37.,A
rt.379
.,Art.50
6-1.,
247 A
dopted
bytheGen
eralAssem
blyofth
eUnitedNationsinNew
Yorkon
31Octob
er200
3an
dop
ened
forsigna
tureinM
erida(M
exico)on9De
cembe
r200
3.
248 A
dopted
bytheGen
eralAssem
blyofth
eUnitedNationsin
New
York,on15
Novem
ber2
000,ope
nedfors
igna
tureon12
-15De
cembe
r200
0an
den
teredintofo
rceon
29
Sep
tembe
r200
3.
249 A
rrêtégran
d-du
caldu14
novem
bre20
14fixantlesrèglesd
éontolog
iquesd
esm
embresduGou
vernem
ente
tleursdevoirsetd
roitsdan
sl’exercicedelafu
nctio
n(herein
after“Co
deofC
ondu
ctfo
rthe
Mem
bersofthe
Governe
mtn”),<https://go
uverne
men
t.lu/da
m-assets/fr/systeme-po
litique
/gou
vernem
ent/rb-cod
e-de
ontologie/Arrete-
gran
d-du
cal-d
u-14
-novem
bre-20
14-fixant-le
s-regles-deo
ntolog
ique
s-de
s-mem
bres-du-Gou
vernem
ent-et-le
urs-de
voirs-et-droits-dan
s-lexercice-de
-la-fo
.pdf>
250 O
ECDSurvey,sup
ran31,28
251 G
RECO
,‘Evalua
tionRe
port:Luxem
bourg,FifthEvalua
tionRo
und,Preventingcorrup
tionan
dprom
otingintegrity
incen
tralgovernm
ents(top
executiv
efunctio
ns)a
nd
lawenforcemen
tagencies’(Strasbo
urg,Ju
ne201
8)para2<https://rm
.coe
.int/fifth-evaluation-roun
d-preven
ting-corrup
tion-an
d-prom
oting-integrity
-i/16
808b
7252
>(hereina
fter,G
RECO
Rep
ort)
CONFIDEN
TIAL
180
252 Ibid
253 Ibid,paras2and
13
254 E
urop
eanCo
mmiss
ion,‘FlashEurob
arom
eter374
BusinessA
ttitu
destow
ardsCorruptioninth
eEU
’(20
13)2
6<h
ttps://ec.eu
ropa
.eu/commfron
toffice/pub
licop
inion/fla
sh/fl_37
4_en
.pdf>
255 G
RECO
Rep
ort,citedab
ove,para12
25
6 OEC
DSurvey,sup
ran31,28
257 Ibid
258 Ibid,para52
25
9 Ibid
260 Ibid
261 C
odeofCon
ductform
embe
rsofthego
vernmen
twasado
pted
bytheGrand
Ducalorderof14
Novem
ber20
14(establish
ingrulesofcon
ductform
embe
rsofthe
governmen
tand
theird
utiesa
ndrightswhileinoffice.Ibid,para44
26
2 Ibid
263 Ibid
264 ibid,para16
326
5 ibid
266 Ibid,para16
526
7 Ibid
268 Ibid,para56
26
9 CliffordCha
nce,‘A
nInternationa
lGuide
toAnti-C
orruptionLegisla
tion’(M
arch201
9),42
<https://w
ww.cliffordchan
ce.com
/con
tent/dam
/cliffordchan
ce/hub
/Risk
/An_
internationa
l_guide_to_anti_corrup
tion_
legisla
tion.pd
f>
270 G
RECO
Rep
ort,citedab
ove,n5,q
uotin
g<h
ttp://www.lequ
otidien.lu/a-la
-une
/la-place-fina
nciere-du-luxembo
urg-na
-tire
-aucun
e-conseq
uence-de
s-pan
ama-pa
pers/>
271 C
SSF,‘PressRelease17/44
:Pan
amaPape
rs:R
esultsofthe
CSSF’sA
nalysis
and
Sub
sequ
entE
nforcemen
tProcedu
res’(2
0.12
.201
7)
<https://w
ww.cssf.lu/fileadm
in/files/Pu
blications/Com
mun
ique
s/Co
mmun
ique
s_20
17/PR1
744_
pana
ma_pa
pers_2
0121
7.pd
f>
272 H
uman
rightsdefen
dersaredefined
asan
ype
rson
org
roup
ofp
ersonswho
worksto
promotean
dprotecth
uman
rightsinapeacefulw
ay.D
eclaratio
non
theRighta
nd
Respon
sibilityofInd
ividua
ls,Group
san
dOrgan
sofSocietytoProm
otean
dProtectUniversallyRecog
nizedHum
anRightsan
dFund
amen
talF
reed
oms,G.A.R
es.5
3/14
4(Dec.9,199
8)
273 B
Leatheret.al.,“H
uman
RightsD
efen
dersinNationa
lActionPlan
s(NAP
s)onBu
sinessa
ndHum
anRights”(Jun
e20
16)
<https://m
k0glob
alna
pshvllfq4
.kinstacdn
.com
/wp-conten
t/up
load
s/20
18/01/hu
man
-rights-de
fend
ers-in-nationa
l-action-plan
s-na
ps-on-bu
siness-an
d-hu
man
-rights.pd
f>
274 S
ee,“Th
eAn
ti-briberyan
dAn
ti-corrup
tionRe
view
”,ed.M
arkFMen
delso
hn,Law
and
BusinessR
esearch,5
thEditio
n,201
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275 M
Worth,“Whistleblow
inginEurop
eLegalProtectionsfo
rWhistleblow
ersintheEU
”(201
3)Transpa
rencyInternationa
l<h
ttps://w
ww.tran
sparen
cy.org/w
hatw
edo/pu
blication/whistleblow
ing_in_europ
e_legal_protectio
ns_for_w
histleblow
ers_in_the
_eu>
CONFIDEN
TIAL
181
276 Ibid,61
277 Ibid
278 D
Kafteranis“
Lelancem
entd
’alerteen
interne:d
éfis,perspectiv
esetsolutionsendroitb
ancaire
etfinan
cier”,fo
rthcom
ingpu
blication,infilewith
theau
thor.
279 Ibid,19
280 S
ee,http://w
ww.stopcorrupt.lu
/hotline/whistleblow
ing/.Und
erthe
law
sofLuxem
bourg,“registered
associatio
nsrep
resentingpu
blicinterestshavetherig
htto
participateincrim
inalproceed
ingsin
casesin
volvingtheun
lawfultakingofin
terest,corruptionorth
eab
useofin
fluen
ce.A
nyassociatio
nwish
ingtoexercise
thisrig
htin
a
crim
inalproceed
ingha
stosub
mitarequ
estforap
provaltotheMinistryofJustice.SinceTranspa
rencyInternationa
lLuxem
bourgha
sob
tained
thisstatus,itisab
leto
processcasespresen
ted
tothe
mb
ypo
tentialwhistleblow
ers,and
the
nrepresen
tthepu
blicinterestincrim
inalp
roceed
ings,whilekeepingthe
ide
ntity
ofthe
whistleblow
ercon
fiden
tial”,see,A
nnexLuxem
bourgtoth
eEU
Anti-C
orruptionRe
port,B
russels,03.02.201
4CO
M(2
014)38Fina
l,4.
281 ‘Luxembo
urg:Follow-Uptoth
ePh
ase3Re
port&Recom
men
datio
ns’(Au
gust201
3)14<h
ttps://w
ww.oecd.org/da
f/an
ti-bribery/Luxembo
urgPha
se3W
rittenFollowUpR
eportEN.pdf>
282 F
ordetailedinform
ationan
dan
alysisofth
eLuxLeakstrialsseevario
uspub
licationsofA
nneliesVa
nden
driessche,anexpe
rtre
searcheratthe
University
ofLuxem
bourg.
Theba
ckgrou
ndinformationon
the
LuxLeakscaseinthis
sectionis
largelyde
rived
fromherpub
licationsw
hichcan
beaccessed
throu
ghherinstitutiona
lweb
site
(<https://wwwen
.uni.lu
/fde
f/law/peo
ple/an
nelies_vand
endriessche>)
or
med
ia
law
web
site
of
the
University
of
Luxembo
urg
(<https://wwwen
.uni.lu
/research/fdef/m
edia_law
/texts>).
283Arrêtde
laCo
urde
cassation
concerna
ntlepo
urvoide
Mr
Antoine
Delto
ur/
«LuxLeaks»
(La
Justice,Grand
-Duché
de
Luxembo
urg,11
/01/20
18)
<http://www.ju
stice.pu
blic.lu
/fr/actualite
s/20
18/01/arret-39
12-cassatio
n--deltour/in
dex.html>.A
rrêtdelaCou
rde
cassatio
nconcerna
ntle
pou
rvoideMrRa
phaëlH
alet/
«LuxLeaks»(LaJustice,Grand
-Duché
deLuxembo
urg,11/01
/201
8)<http://w
ww.ju
stice.pu
blic.lu
/fr/actualite
s/20
18/01/arret-n-39
11-cassatio
n-ha
let/inde
x.html>
284 A
selectio
nofla
wson
med
iaand
com
mun
ication,alongw
iththe
irEn
glish
translatio
nscan
beaccessed
atthemed
iala
ww
ebsiteofthe
University
ofLuxembo
urg
<https://w
wwen
.uni.lu
/research/fdef/m
edia_law
/texts>
285 <
http://le
gilux.pu
blic.lu
/eli/etat/le
g/loi/2
018/08
/01/a686
/jo>
28
6 <http://le
gilux.pu
blic.lu
/eli/etat/le
g/loi/2
018/08
/01/a689
/jo>
28
7 <http://le
gilux.pu
blic.lu
/eli/etat/le
g/loi/2
018/09
/14/a883
/jo>
28
8 <http://w
ww.legilux.pu
blic.lu
/leg/a/archives/198
2/00
86/a08
6.pd
f#pa
ge=2
>
289 O
ECDSurvey,sup
ran31,42
290 Ibid
291 20
18Coa
litionAg
reem
ent,supran69
,12-16
29
2 NAP
201
8-19
,28
293 A
rtificialIntelligence:AStrategicVision
forLuxem
bourg(21May201
9)<https://digital-luxem
bourg.pu
blic.lu
/initiatives/artificial-in
telligence-strategic-visio
n-luxembo
urg>,[he
reinafter,“AIStrategy”]
294 ibid,8
295 Ibid,15
CONFIDEN
TIAL
182
296 Ibid,19,emph
asisad
ded.
297 F
oralist,see<https://cnpd
.pub
lic.lu
/en/commiss
ion-na
tiona
le/pou
voirs.htm
l>
298 F
orfu
rthe
rinformation,se
e<h
ttps://cad
.gou
vernem
ent.lu/en
/le-m
inistere.html>
299 A
llexistingcode
sareprofiled
inth
elegalportalofLuxem
bourg,available<h
ttp://legilux.pu
blic.lu
/editoria
l/cod
es>
300 Loidu17
février2
016po
rtan
tintrodu
ctiondu
règlem
ente
xtrajudiciairedeslitig
esdeconsom
mationda
nsleCod
ede
lacon
sommationetm
odifian
tcertainesautres
disposition
sduCo
dedelacon
summation,M
emorialA
60of201
6,<http://le
gilux.pu
blic.lu
/eli/etat/le
g/mem
orial/2
016/60
>30
1 Règlemen
tgrand
-ducaldu5juillet201
6po
rtan
tmod
ificatio
nde
lapartie
réglem
entaire
duCo
dedelacon
summation,M
emorialA
133
of2
016,<
http://le
gilux.pu
blic.lu
/eli/etat/le
g/rgd/20
16/07/05
/n7/jo>
302
See
Art.
L.31
2-1
Consum
er
Code
,an
dMinisterial
decree
of
7de
cembe
r20
17
and
the
following
mod
ificatio
ns
<http://legilux.pu
blic.lu
/search/B/?organ
isatio
n=Co
nseil+de
+la+consom
mation>
30
3 The
com
petencieso
fthe
Ministryinth
efie
ldofcon
sumerlegalprotectioninclud
e:Con
sumerPolicyinth
eInternalM
arketa
ndatN
ationa
lLevel,C
onsumerAffa
irs
Coun
cil,Co
nsum
erCod
e,Legislativean
dEn
forcem
entS
ectio
n-T
ravelers'Rights-Relationswith
theEu
rope
anCon
sumerCen
terE
IG-Re
latio
nswith
theLuxembu
rgUnion
ofCon
sumers.In
regardstofood
safety,the
MinistryoverseesS
afetyofth
efood
cha
in-Establish
men
tofa
neffectivefood
con
troland
sanctio
nsystem
-Inform
ationan
dpu
blicawaren
ess-Coo
rdinationoflabo
ratoryactivitiesincon
trol-Hygiene
barom
eter-Mon
itorin
gfood
estab
lishm
ents,o
fficialcon
troloffoo
dstuffs
and
thefood
cha
in,
aswellasm
aterialsan
dob
jectsc
omingintocon
tactwith
food
stuffs.Forfu
rthe
rinformation,se
e;<https://mpc.gou
vernem
ent.lu/fr/le
-ministere.html>
304 <
https://www.m
ediateurconsom
mation.lu/fr>
305 <
https://guiche
t.pub
lic.lu
/en/organism
es/organ
ismes_cito
yens/union
-luxembo
urgeoise-con
sommateu
rs.htm
l30
6 <https://cecluxem
bourg.lu/m
entio
ns-le
gales/>
307 Ibid
308 <
https://wwwen
.uni.lu
/studies/fde
f/master_in_europ
ean_
private_law_ll_m/clinique
_du_
droit>
309
<https://w
ww.m
pi.lu
/new
s-an
d-even
ts/la
test-new
s/de
tail/de
tail/mpi-lu
xembo
urg-to-und
ertake-study-on-the-en
forcem
ent-of-con
sumer-la
w-fo
r-the-luxembo
urgish-
ministry/>
31
0 Centrepo
urL’Éga
litédeTraite
ment<
http://cet.lu
/en/de
fense-de
s-droits-et-voies-de
-recou
rs/pan
-lgbti/>
31
1 From199
8un
tilJan
uary201
6theCo
nstitutiona
lCou
rtdelivered
aroun
d12
0judgmen
tsm
ostofw
hichcon
cernthe
prin
cipleofequ
altreatmen
ten
shrin
edin
Article
10bisofthe
Con
stitu
tion.See,J.
Gerkrath
(201
8)M
emberStates’Co
nstitutionsa
ndEUIntegratio
nCo
untryrepo
rto
nLuxembo
urg.On
thejurisprud
enceo
fthe
Constitutiona
lCou
rtingen
eral,see;J.G
erkrath(ed.)(20
08),Lajurisprud
encedelaCou
rCon
stitu
tionn
elleduLuxembo
urg19
97–200
7.
312 <
http://le
gilux.pu
blic.lu
/eli/etat/le
g/loi/2
006/11
/29/n1
/jo>
31
3 Tan
iaH
offm
ann,“Co
untryRe
portN
on-disc
riminationLuxembo
urg,201
6”,prep
ared
forthe
Europ
eanCo
mmiss
ion,D
irectorate-Gen
eralforJusticean
dCo
nsum
ers
(hereina
fter;H
offm
ann,Cou
ntryRep
ort2
016)<https://ec.europ
a.eu
/info/site
s/info/files/20
16-lu
-cou
ntry_rep
ort_nd
_final_en.pd
f>
314 <
http://le
gilux.pu
blic.lu
/eli/etat/le
g/mem
orial/2
008/70
>31
5 <http://m
ega.pu
blic.lu
/fr/travail/p
rogram
me-actio
ns-positives/inde
x.html>
316 <
http://w
ww.cha
rted
iversite.lu/en/diversity
-cha
rter-le
tzeb
uerg>
CONFIDEN
TIAL
183
317 Ac
cordingtoStatec,th
etotalnum
bero
fforeignerslivinginLuxem
bourg,aso
fJan
uary201
8,is288
,234
,whichre
presen
ts47.9%
ofthe
totalpop
ulation.
318 C
ourc
onstitu
tionn
elle,13Novem
ber1
998,No.2/98,quo
tedinJGerkrath,‘The
Con
stitu
tionofLuxem
bourginth
eCo
ntexto
fEUand
Internationa
lLaw
as“H
ighe
rLaw
”’
inAlbi(ed
s)Nationa
lCon
stitu
tionsinEurop
eanan
dGloba
lGoverna
nce:Dem
ocracy,R
ights,th
eRu
leofLaw
(Springer2
018),221
-267
.31
9 MBelland
LW
addington,“Th
eEm
ploymen
tEqu
ality
Dire
ctivean
dsupp
ortin
gpe
oplewith
psychosocialdisa
bilitiesintheworkplaceAlegalana
lysis
ofthe
situationin
theEU
Mem
berS
tates”(Europ
eanCo
mmiss
ion20
16),56
<https://pd
fs.sem
anticscho
lar.o
rg/709
c/e1
91dc42
36d6
dad4
9894
aded
969d
cf0f50
cf.pdf>
320 Ibid
321 H
offm
ann,Cou
ntryRep
ort2
016,26
322 Ibid,6-7
323 C
ET,R
appo
rd’acrivité
s201
8,41
324 L’articleL.241
-11du
Cod
edu
travailreads;«
L’employeur,sesp
répo
séso
uman
dataire
soutouteperson
nequidiffuseou
pub
liedesoffresd’emploioudesa
nnon
ces
relativ
esàl’em
ploinon
con
form
esauprincipedel’éga
litédetraitemente
ntrehom
mesetfem
mesetq
ui,m
algrél’injon
ctionécritedel’Ad
ministratio
ndel’em
ploides’y
conformer,persis
tentdan
slemaintiendecesoffresouan
nonces,son
tpun
issab
lesd
’uneamendede25
1à20
00euros.Encasd
erécidive,cettepeinepeutê
trepo
rtéeau
doub
ledumaxim
um.»
325 C
ET,R
appo
rd’acrivité
s201
8,42.
326 Ibid
327 <
http://cet.lu
>
328 <
http://cet.lu
/wp-conten
t/up
load
s/20
19/06/CE
T_EN
.pdf>
329 <
http://w
ww.olai.p
ublic.lu
/en/olai/in
dex.html>
330 H
offm
ann,Cou
ntryRep
ort2
016
331 <
https://www.csl.lu/fr/ho
mep
age>
332 <
http://disc
rimination.csl.lu/>
333 H
offm
ann,Cou
ntryRep
ort2
016,9.Seealso
CET,R
appo
rd’acrivité
s201
8,39<http://cet.lu
/wp-conten
t/up
load
s/20
19/05/Ra
pport-an
nuel-201
8.pd
f>
334 C
ET,R
appo
rd’acrivité
s201
8,38
335 H
offm
ann,Cou
ntryRep
ort2
016
336 H
offm
ann,Cou
ntryRep
ort2
016,46.
337 <
http://cet.lu
/wp-conten
t/up
load
s/20
19/05/Ra
pport-an
nuel-201
8.pd
f>
338 Information
inthissection
isba
sed
onaq
uestionn
airecom
pleted
bythestaffofthe
CCD
H(returned
to
theau
thoro
nAu
gust5,20
19),
hereinafter“CCD
H
questio
nnaire”.
339 S
ee<https://ccdh
.pub
lic.lu
/fr.h
tml>
340 S
ee<https://ccdh
.pub
lic.lu
/dam
-assets/fr/historique
/loi_CC
DH_m
emorial_20
08.pdf>
341 C
CDHque
stionn
aire.
342 C
CDHque
stionn
aire.
CONFIDEN
TIAL
184
343 <
https://te.pub
lic.lu
/fr/pa
rticipations/etabliss
emen
ts_p
ublics.html>
344 <
https://od
l.lu/en
/abo
ut-us/>
345 <
https://od
l.lu/en
/abo
ut-us/ethics/>
346 <
http://w
ww.oecd.org/trad
e/topics/export-cred
its/enviro
nmen
tal-a
nd-social-d
ue-dilligen
ce/>
347 Ibid
348 Ibid
349 Ibid
350 Ibid
351 <
https://www.snci.lu/ab
out-snci/>
352 <
https://od
l.lu/en
/abo
ut-us/ethics/#en
vironm
ental-a
nd-social-d
ue-diligence?
353 G
P23
,<https://www.ohchr.org/docum
ents/pub
lications/G
uidingprinciplesBu
sinesshr_eN
.pdf>
354 <
http://le
gilux.pu
blic.lu
/eli/etat/le
g/loi/1
998/09
/08/n4
/jo>
35
5 Forfu
rthe
rinformation,se
e;https://w
ww.m
dforum
.ch/en
35
6 <https://icoca.ch/en/association>
35
7 <https://www.volun
taryprinciples.org/>
358 F
oracom
pletelisto
flegislation,se
e;<https://marches.pub
lic.lu
/fr/legisla
tion/marches-pub
lics.html>
359 <
http://legilux.pu
blic.lu
/eli/etat/le
g/loi/2
018/04
/08/a243
/jo>
36
0 <http://legilux.pu
blic.lu
/eli/etat/le
g/rgd/20
18/04/08
/a24
4/jo>
361 <
http://le
gilux.pu
blic.lu
/eli/etat/le
g/mem
orial/2
013/21
4>
362 <
http://le
gilux.pu
blic.lu
/eli/etat/le
g/mem
orial/2
014/50
#page=2#
page=2
>36
3 <http://le
gilux.pu
blic.lu
/eli/etat/le
g/rm
in/201
8/07
/31/a672
/jo>
36
4 <http://le
gilux.pu
blic.lu
/eli/etat/le
g/rm
in/201
8/04
/20/a270
/jo>
36
5 <http://le
gilux.pu
blic.lu
/eli/etat/le
g/loi/2
010/11
/10/n1
/jo>
36
6 <http://le
gilux.pu
blic.lu
/eli/etat/le
g/mem
orial/2
009/18
0>
367 <
https://www.wto.org/english/tratop
_e/gproc_e/gp_
gpa_e.htm>
368 <
https://marches.pub
lic.lu
/fr.h
tml>
369 <
https://m
arches.pub
lic.lu
/fr/acteurs/commiss
ion.html>
370 A
ccordingto
theAc
tivity
Rep
ort2
018ofth
eDé
partem
entd
estravau
xpu
blics(20
19),theTend
erCom
miss
ionmet10tim
esduringthecourseof2
018an
diss
ued58
op
inionsinto
tal(55
in201
7)<https://go
uverne
men
t.lu/da
m-assets/fr/pub
lications/rap
port-activite
/minist-m
obilite-travaux-pub
lics/de
partem
ent-travau
x-pu
blics/20
18-
rapp
ort-activ
ites-dtp.pd
f>,89
371 <h
ttps://lu
xdev.lu
/files/do
cumen
ts/RAP
ANN_2
018_
UK_
vF1.pd
f>
372 <
https://luxdev.lu
/en/tend
ers/procurem
ent#procurem
ent>
CONFIDEN
TIAL
185
373 Ibid
374 <
https://en
vironn
emen
t.pub
lic.lu
/dam
-assets/do
cumen
ts/develop
pemen
t-du
rable/3e
me-plan
-du-de
velopp
emen
t-du
rable.pd
f>,28,89
375 Ibid
376 <
https://www.uless.lu
/images/uless/new
s/74
/docs/ULESS_B
rochure_Clau
ses_sociales_d
ans_les_marches_p
ublics_20
16.pdf>
377 <
https://marches.pub
lic.lu
/fr.h
tml>
378 G
P23
,<https://www.ohchr.org/docum
ents/pub
lications/G
uidingprinciplesBu
sinesshr_eN
.pdf>
379 U
NGP7,Com
men
tary
380 Ibid
381 <
https://ih
l-datab
ases.icrc.org/app
lic/ih
l/ihl.nsf/vwTreatie
s194
9.xsp>
38
2 <https://the
armstrade
treaty.org/>
383 C
onsulta
tions,p
ublicofficials,su
pran26
38
4 <https://treatie
s.un
.org/pages/ViewDe
tails.aspx?src=TR
EATY&mtdsg_n
o=XV
III-10&
chap
ter=18
&lang=en#
13>
385 C
onsulta
tions,p
ublicofficials,su
pran26
38
6 Ibid
387 <
https://maee.go
uverne
men
t.lu/en
/actua
lites/articles/20
19/Asselbo
rn-sup
port-IC
C.html>
388 C
onsulta
tions,p
ublicofficials,su
pran26
38
9 Ibid
390 Ibid
391 ibid
392 N
AP201
8-19
,17(emph
asisad
ded)
393 N
AP201
8-19
,29
394 C
onsulta
tions,p
ublicofficials,su
pran26
39
5 Ibid
396 A
rt.14.L'étran
ger,mêm
eno
nrésid
antd
ansleLuxembo
urg,pou
rraêtrecité
devan
tlestribun
auxluxembo
urgeois,pou
rl'exécutio
nde
sobligationsparluicon
tractées
dansleLuxem
bourgavecunLuxembo
urgeois;ilpou
rraêtretrad
uitd
evan
tlestribun
auxluxembo
urgeois,pou
rlesobligationsparluicon
tractéesenpa
ysétran
gere
nvers
desL
uxem
bourgeois.A
rt.15.UnLuxembo
urgeoisp
ourraêtretrad
uitd
evan
tuntribun
alluxembo
urgeois,pou
rdesobligationsparluicon
tractéesenpa
ysétran
ger,mêm
eavecunétranger,<http://le
gilux.pu
blic.lu
/eli/etat/le
g/code
/civil/20
1904
28>,emph
asisad
ded.
397 <
http://le
gilux.pu
blic.lu
/eli/etat/le
g/loi/2
010/03
/03/n1
/jo>
39
8 <http://le
gilux.pu
blic.lu
/eli/etat/le
g/code
/pen
al/201
7040
1>Articles3
4to43
399 O
nthistopic,see,G
.Ravaran
i,“LesSan
ctionsAdm
inistrativ
esauLuxembo
urg”in
Lessan
ctionsadm
inistrativ
esenBe
lgique,a
uLuxembo
urgetauxPays-Ba
sAn
alyse
compa
re(O
ctob
er201
1,Brussels),37-38
CONFIDEN
TIAL
186
400 <
http://legilux.pu
blic.lu
/eli/etat/le
g/tc/200
3/11
/18/n1
/jo>
.Examplesofrecen
tadm
inistrativ
epe
naltiesim
posedbyth
eCSSFisavailablehe
re,
<https://w
ww.cssf.lu/en
/sup
ervisio
n/ba
nks/sanctio
ns-and
-adm
inistrativ
e-measures/>
401 <
https://www.caa.lu
/>
402 <
http://le
gilux.pu
blic.lu
/eli/etat/le
g/loi/1
991/12
/06/n2
/jo>
40
3 <http://legilux.pu
blic.lu
/eli/etat/le
g/loi/2
018/08
/01/a686
/jo>
40
4 Com
miss
ionRe
gulatio
n86
4/20
07,art.4,200
7O.J.(L199
)40.[h
ereina
fterRom
eIIRe
gulatio
n].
405 Ibid,Article26
406 Ibid,Article7
407 <
http://le
gilux.pu
blic.lu
/eli/etat/le
g/loi/1
984/03
/12/n1
/jo>
40
8 Ibid
409 <
http://le
gilux.pu
blic.lu
/eli/etat/le
g/code
/procedu
re_civile/201
9010
1>
410 <
http://m
j.pub
lic.lu
/>
411 <
https://justice.pu
blic.lu
/fr/aide
s-inform
ations/assistan
ce-sociale.htm
l>
412 <
http://le
gilux.pu
blic.lu
/eli/etat/le
g/tc/199
7/09
/12/n1
/jo>
41
3 <https://guiche
t.pub
lic.lu
/en/citoyens/cito
yenn
ete/voies-recours-reglem
ent-litiges.htm
l>
414 H
owever,the
GDP
Ralsohasextra-territorialeffe
ct.A
norganizatio
nthatitisnotestab
lishe
dwith
inth
eEU
willstillb
esubjecttotheGDP
Rifitprocessespe
rson
aldata
ofdatasubjectswho
areinth
eUnion
whe
reth
eprocessin
gactiv
itiesarere
lated"totheofferin
gofgoo
dsorservices"(A
rticle3(2)(a
))(nopa
ymen
tisreq
uired)to
suchda
ta
subjectsinth
eEU
or"themon
itorin
gofth
eirb
ehaviour"(Article3(2)(b
))asfa
rasthe
irbe
haviou
rtakesplacewith
inth
eEU
.41
5 H.C.H.H
ofman
n,“Th
eRighttoan
‘Effe
ctiveJudicialRem
edy’and
theCh
angingCon
ditio
nsofImplem
entin
gEU
Law
”,Law
WorkingPap
erSeriesP
apernum
ber2
013-02
(University
ofLuxem
bourg,Ju
ly201
3),cita
tionsomitted
.41
6 Jud
gmen
tof1
7.12
.201
5,368
93Cqu
oted
inJ.Gerkrath(201
8)M
emberS
tates’Con
stitu
tionsand
EUIntegrationCo
untryrepo
rtonLuxembo
urg.
417 C
ouncilRe
gulatio
n44
/200
1,200
1O.J.(L01
2),[he
reinafterthe
BrusselsIRegulation]
418 Whilenotexpresslyprovide
dforintheLuxembo
urgCo
nstitution,treatie
sha
vesup
remacyoverallexistinglegisla
tion,whe
therena
cted
prio
rorsub
sequ
enttoatreaty
ratifiedbyLuxem
bourg.Con
stitu
tion20
16,A
rt.9
5ter,<
http://data.legilux.pu
blic.lu
/file/eli-etat-le
g-recueil-con
stitu
tion-20
1610
20-fr-pdf.pdf>;and
Loidu27
juillet199
7po
rtan
torgan
isatio
ndelaCou
rcon
stitu
tionn
elle,M
émorialA
-N°5
8,13.08
.199
7,atp
.172
4.
419 C
onstitu
tionofLuxem
bourg,ibid;and
Loidu7mars1
980surl’organ
isatio
njudiciaire,M
émorialA
-N°1
2,14.03
.198
0,atp
.143
,asa
men
ded.
420 C
onstitu
tionofLuxem
bourg,ibid;A
rt.95b
is;and
Luxem
bourg/Loidu7no
vembre19
96portantorgan
isatio
ndesjuridictio
nsdel’ordreadm
inistrativ
e,M
émorialA
-No
79,19.11
.199
6,atp
.226
2,asa
men
ded.
421 <
http://le
gilux.pu
blic.lu
/eli/etat/le
g/loi/2
012/06
/07/n1
/jo>
42
2 GSkinn
er,R
McCorqu
odale,ODeSchu
tter,TheThirdPillar:A
ccesstoJudicialRem
ediesforHum
anRightsV
iolatio
nsbyTran
snationa
lBusiness,Decem
ber2
013
423 Ibid
424 Ibid
CONFIDEN
TIAL
187
425Case
C-28
1/02
,An
drew
Owusu
vN.B.Jackson,trading
as‘Villa
HolidaysBa
l-Inn
Villas’an
dOthers(14
Decembe
r20
04)<h
ttps://eur-le
x.eu
ropa
.eu/legal-
conten
t/EN
/TXT
/?uri=CE
LEX%
3A62
002C
J028
1>para46
.42
6 Skinn
er,ibid
427 S
ee,EU,TrainingMan
ualforJu
dgesand
ProsecutorsonEn
surin
gWom
en’sAccesstoJustice(201
7)
428 <
http://m
j.pub
lic.lu
/services_citoyens/assistan
ce_jud
iciaire
/prestations/in
dex.html>
429 <
http://m
j.pub
lic.lu
/services_citoyens/assistan
ce_jud
iciaire
/ben
eficiaire
s/inde
x.html>
430 <
http://le
gilux.pu
blic.lu
/eli/etat/le
g/loi/1
999/04
/29/n1
1/jo>,Articles1
9(1)and
20>
43
1 <http://m
j.pub
lic.lu
/services_citoyens/assistan
ce_jud
iciaire
/obten
tion/inde
x.html>
432 “[…]u
nprojetdeloipou
rintrodu
irelere
coursc
ollectifendroitluxembo
urgeoiss
eraad
optéra
pidement”,201
8Co
alition
Agreemen
t,supran69
,142
.Seealso
the
interviewcon
ducted
with
Pau
letteLene
rt,M
inisterofC
onsumerProtectionon
8Ja
nuary20
19,available<h
ttps://5minutes.rtl.lu/actu/a/a/128
9393
.htm
l>
433 <
http://le
gilux.pu
blic.lu
/eli/etat/le
g/loi/2
006/11
/28/n1
/jo>
43
4 <http://le
gilux.pu
blic.lu
/eli/etat/le
g/loi/1
885/02
/18/n2
/jo>
43
5 <http://le
gilux.pu
blic.lu
/eli/etat/le
g/rgd/19
90/05/17
/n2/jo>
436 <
http://le
gilux.pu
blic.lu
/eli/etat/le
g/rgd/19
99/04/14
/n5/jo>
437 <
http://le
gilux.pu
blic.lu
/eli/etat/le
g/loi/1
998/09
/08/n4
/jo>
43
8 <http://le
gilux.pu
blic.lu
/eli/etat/le
g/mem
orial/2
008/19
2?highlight=>.ForalistofvariousGrand
-DucalRegulations,see;
<http://www.m
en.pub
lic.lu
/fr/legisla
tion/en
fance-jeun
esse/aide-en
fance/reglem
ents-grand
-ducau
x/inde
x.html>
439 <
https://justice.pu
blic.lu
/fr/organisatio
n-justice/jurid
ictio
ns-ju
diciaires/tribun
aux-arrond
issem
ent/tribun
al-je
unesse.htm
l>
440 <
http://w
ww.m
en.pub
lic.lu
/fr/aide
-assistan
ce/aide-en
fance/inde
x.html>
441 <
http://ork.lu
/inde
x.ph
p/>
442 <
https://www.fn
r.lu/projects/juven
ile-ju
stice-an
d-children-rig
hts-achievem
ents-and
-cha
llenges-ahe
ad/>
443 <
https://cdc.go
uverne
men
t.lu/fr/service/attrib
utions/point-con
tact-nationa
l-luxem
bourgeois.html>
444 F
oracom
preh
ensiv
eoverview
ofthe
med
iatio
ninLuxem
bourg,includ
inghistoricaloverview,existinglaws,re
gulatio
nsand
theroleofd
ifferen
tinstitutiona
lactors,see;
JKayser,Lam
édiatio
nau
Grand
-DuchédeLuxembo
urgDroit,Techniqu
e,Processus,Posture&PaysageInstitu
tionn
el(Larcier201
9)
445 D
ecision
ofthe
Cou
ncilon
theOEC
DGuide
linesfo
rMultin
ationa
lEnterprise
s[OEC
D/LEGAL
/030
7](C
ouncilDe
cisio
non
theGuide
lines).
<https://le
galinstrumen
ts.oecd.org/pu
blic/doc/233
/233
.en.pd
f>I(4)
446 O
ECD,Ann
ualR
eportintheOEC
DGuidelinesfo
rMultin
ationa
lEnterprise
s(201
8)(O
ECDAn
nualRep
ort2
018),35
447 Ibid
448 Luxem
bourgNCP
,RulesofP
rocedu
refo
rHan
dlingSpecificInstan
ces(Lastupd
ate:18.04
.201
8)(R
ulesofP
rocedu
re)
<https://cdc.gou
vernem
ent.lu/fr/service/attrib
utions/point-con
tact-nationa
l-luxem
bourgeois/Re
gles-de-proced
ure-po
ur-le
-traite
men
t-de
s-instan
ces-specifiqu
es.htm
l>
449 C
onsulta
tionwith
theNCP
,emaildated
3Octob
er201
9.
450 Ibid
CONFIDEN
TIAL
188
451 D
ecision
ontheGuide
lines,Procedu
ralG
uida
nce,I.
452 C
ouncilDe
cisio
n,PartI,p
ara1.
453 <
https://cdc.go
uverne
men
t.lu/fr/service/attrib
utions/point-con
tact-nationa
l-luxem
bourgeois.html>
454 Ibid
455 T
hesein
clud
e,the
textofthe
OEC
DGuide
lines,a
nnua
lrep
ortsissued
bytheOEC
Dfortheim
plem
entatio
nofthe
Guide
lines,O
ECD’sgene
ralN
CPw
ebsite,O
ECD
Declarationon
Internationa
lInvestm
enta
ndM
ultin
ationa
lEnterprise
s,and
OEC
DDu
eDiligen
ceGuida
nceforR
espo
nsibleBusinessC
ondu
ct.
456 C
onsulta
tions,N
CP,sup
ran449
.45
7 Forexample,seethe
initialassessm
entinOpenSecretsvvCA
LS/KBC
–KBL(2
8June
201
9),2
,whichdescribestha
ttherepresen
tativ
esofthe
com
plaina
ntsan
dthe
respon
dingpartym
etin
personwith
theNCP
tofu
rthe
rcommen
tand
elabo
rateontheircase.T
heNCP
decided
notto
proceed
with
thefurthe
rexam
inationofth
iscase
(28June
201
9).
458 N
CPLuxem
bourg,RulesofP
rocedu
re(e
mph
asisad
ded)
459 N
otethat,w
hilenormally,the
existen
ceofp
aralleldom
esticorinterna
tiona
lproceed
ingsadd
ressingsim
ilarissue
sisn
otare
ason
fora
nNCP
tore
jectth
ecomplaint,in
allofthe
followingcasesv
ariousNCP
srejectedthecaseso
nthegrou
nds,intera
lia,tha
tparallellegalproceed
ingsexisted
;Transpa
rencyInternationa
lGerman
yv57
German
com
panies,N
CPGerman
y(5Ju
ne201
7);1
1.11
.11etalvBelgo
laise
,NCP
Belgium
(24Novem
ber2
004);C
AVEvFoENetherla
ndsa
ndRoyalDutchShell,NCP
Nethe
rland
s(15
May200
6);FIDHetalvCRC
C-To
nggu
anInvestment(Ca
nada
)Co.,Ltd.,NCP
Can
ada(25July201
3),Initia
lAssessm
ent(26
Novem
ber2
014).
460 F
riend
softheEarthvArcelorM
ittal,N
CPLuxem
bourg(24Janu
ary20
11).
461 O
ECDAn
nualRep
ort(20
11),40
.NorwayNCP
(Framtid
enivårehenderv
IntexRe
sources2
6Janu
ary20
09)a
ndUKNCP
(FoE
vBP(29Ap
ril200
3)areamon
gtherareNCP
sthathavecond
uctedcoun
tryvisitsa
ndfa
ctfind
ingmiss
ions.
462 C
onsulta
tionwith
CSO
s,20March201
946
3 Ibid
464 Ibid
465 E
CtHR,FindlayvTheUnitedKing
dom,A
pplicationNo.221
07/93(25Februa
ry199
7),73
466 F
orad
iscussio
nofthe
secon
ceptsinadjud
ication,see;Diego
M.Papa
yann
is,Ind
ependence,impa
rtialityan
dneutralityinlegala
djud
ication,2
8Journa
lfor
Constitutiona
lTh
eoryand
Philosoph
yofLaw
201
6,33-52
.Papa
yann
isliststhe
institutiona
lsafeguardsgua
ranteeinginde
pend
encetoinclud
e,amon
gothe
rs,“the
ne
utralityofthe
app
ointmen
tproced
ure(i.e.,an
absen
ceofpo
liticalintervention),thestab
ilityofthepo
sition,auton
omyfrom
otherbranche
sofgovernm
ent,
areason
ablesp
hereofimmun
ity,and
theinviolab
ilityofthe
irsalary”.
467 Ibid
468 S
ofar,theNCP
hashan
dled
4cases,w
ithth
efifthone
pen
dingin
itialassessm
ent.Ofthe
sefo
urcases,o
newascon
clud
edwith
am
utua
lagreemen
tofthe
partie
s(FoE
an
dSD
IvArcelorMittal),an
othe
rone
,han
dled
jointly
bytheFren
ch,B
elgium
and
Luxem
bourgNCP
sha
sbe
encon
clud
edwith
afina
lstatemen
tbytheBe
lgiumNCP
,and
is
curren
tlyund
erm
onito
ringstatus(C
EDCam
erou
nvSocapa
lm).Th
eNCP
dism
issed
one
caseafterissuinganinitialassessm
ent(Ope
nSecretsvCA
LS/KBC
-KBL)a
ndone
case
issuspen
dedatth
erequ
esto
fthe
com
plaina
nts(accordingtoth
einform
ationob
tained
bytheNCP
)toallowfo
rnegotiatio
ns(Ind
ustriAllUnion
vTernium
SA).
469 O
ECDAn
nualRep
ort2
018,39
CONFIDEN
TIAL
189
470 Ibid
471 F
inland
and
CzechRep
ublicareamon
gtheexam
ples.
472 T
oou
rkno
wledgetheothe
rNCP
swho
haveaccepted
com
plaintsagainstN
GOsinclud
e;th
eUKNCP
,IDI&othersvBo
nsucro(Initia
lAssesmen
t25Septem
ber2
019)and
tw
oinstan
cesatthe
Swiss
NCP
,SurvivalInterna
tiona
lCha
ritab
leTrustvW
orldW
ideFund
forNatureInternationa
l(WWF)(2
0De
cembe
r20
16);an
dBu
ildingan
dWoo
dWorkers’Interna
tiona
l(BW
I)vFédératio
nInternationa
ledeFootba
llAssociation(FIFA),(28
May201
5).O
nthecontrary,in12
9Ro
mainKosovovNorwegianCh
urchAid,
theNorwegianNCP
foun
dthecomplaintin
admiss
ibleonthegrou
ndsthatitwasnotbrought‘againstanen
terpriseinth
esenseofth
eGuide
lines’,12
9Ro
mainKosovov
NorwegianCh
urchAid,N
CPNorway(2
2June
201
1).
473 C
onsulta
tions,N
CP,sup
ran449
.47
4 Ibid
475 C
onsulta
tions,N
CP,sup
ran449
.47
6 OEC
DAn
nualRep
ort2
018,35.
477 O
penSecretsa
ndCAL
S,Letterd
ated11Ap
ril201
9<h
ttps://w
ww.ope
nsecrets.org.za/site/wp-conten
t/up
load
s/Letter-NCP
s-CA
LS-OS_20
1904
11.pdf>
478 O
penletterto
theNCP
,3
479 Luxem
bourgNCP
,StatementfromLuxem
bourg’sN
ationa
lCon
tactPoint–28June201
9-Initia
lassessm
ento
fthesp
ecificinstan
ceOpenSecretsv
CAL
S/K
BC–KBL
<https://cdc.gou
vernem
ent.lu/conten
t/da
m/gou
v_cdc/pu
blications/Initia
l-assessm
ent-of-the
-spe
cific-in
stan
ce-Ope
n-Secrets-%E2%80
%93
CALS-KBC
-KBL.pdf>3
[hereina
fter“Ope
nletterto
theNCP
”]
480 C
ommen
taryontheIm
plem
entatio
nProced
uresofthe
OEC
DGuide
linesfo
rMultin
ationa
lEnterprise
s,para40
48
1 The
NCP
hasin
serted
anexceptiontoth
ethreemon
thsrule:“ifassessingtheSpecificInstan
cere
quire
sthatth
epa
rtiesinvolved
provide
add
ition
alm
aterial,oraskfo
rreason
abletim
etoseeklegalad
viceorscrutin
y,thisad
ditio
naltim
eshallbe
add
edtosaid3m
onthsfortheLuxembo
urgNCP
toproceedwith
the
assessm
ent”,
Luxembo
urgNCP
,RulesofP
rocedu
refo
rHan
dlingSpecificInstan
ces.
482 O
ECD,ActionPlan
toStrengthenNationa
lCon
tactPointsforRespo
nsibleBusinessC
ondu
ct(2
019-20
21)
483 <
http://le
gilux.pu
blic.lu
/eli/etat/le
g/loi/2
012/02
/24/n1
/jo>
48
4 Forothersectorspecificmed
iatio
n,see:M
ediatio
ninthe
con
textofe
lectroniccommun
ications,u
tilities,p
ostalservices(In
stitu
tLuxembo
urgeoisde
Régulation(ILR);
Med
iatio
ninth
eInsuranceSector<https://www.aca.lu
/fr/med
iateur-assuran
ce>;M
ediatio
ninth
eHealth
sector
<https://m
ediateursante.pu
blic.lu
/fr.h
tml>.See,spe
cificcom
plaintsh
andlingmecha
nism
bytheInsurancesupe
rviso
ryautho
rity(Com
miss
ariata
uxassuran
ces)
https://www.caa.lu
/fr/consom
mateu
rs/resolution-extrajud
iciaire
-des-litig
es>;com
plaintsha
ndlinginthe
travelsector(Co
mmiss
ion
Luxembo
urgeoised
esLitigesde
Vo
yages–
CLLV).
Foralistofalte
rnativedisputeresolutio
nbo
diesinconsum
eraffa
irs,see;<h
ttps://gou
vernem
ent.lu/da
m-assets/do
cumen
ts/actua
lites/201
9/01
-janvier/Liste-de
s-5-
entites-qua
lifiees-au-25
0620
18.pdf>.
Fora
listofa
pprovedmed
iators,see;<http://m
j.pub
lic.lu
/professions/m
ediatio
n_en
_matiere_civile_com
merciale/Liste_de
s_med
iateurs_agrees.pdf>.
Fora
listofa
pprovedmed
iatorsincivilan
dcommercialm
atters,see;
<http://www.cmcc.lu
/site
s/de
fault/files/Liste%
20M%C3
%A9
diateu
rs%20
actuelle%20
au%20
03.07.20
19.pdf>.
CONFIDEN
TIAL
190
TheEu
rope
anCon
sumeren
ter(CEC
luxembo
urg.lu)is
thecontactpo
intofonlinedisputeresolutio
nsand
assistscitizen
sinprepa
ringtheirfilean
dcontactin
gthe
compe
tentdisp
uteresolutio
nbo
dy,see;<https://cecluxem
bourg.lu/sub
jects/resolutio
n-extrajud
icaire-des-litig
es/odr/>.
485 <
http://www.cmcc.lu
/>
486 C
onsulta
tionwith
theCM
CC,telep
hone
interviewonOctob
er7,201
9.
487 Ibid
488 <
https://www.cssf.lu/en
/con
sumer/com
plaints/?fbclid=IwAR
19Pb
jO9-jida1fCgI_X
NMO9Q
I04Ib-aK
aqNllA
gbHDO
fK5s1xQ4ZZsGZQ
>48
9 Con
sulta
tions,C
MCC
,sup
ran486
49
0 “L’assis
tancejudiciairepou
rraégalem
entê
treétendu
eau
dom
ainedelam
édiatio
nconventio
nnelle”,201
8Co
alition
Agreemen
t,supran69
,20.Seealso
,Kayser,supran
444,fo
radetailedtreatm
ento
fthe
referencesinth
e20
18Coa
litionAg
reem
ent.
491 20
18Coa
litionAg
reem
ent,ibid,19
492 C
SSFRe
gulatio
nN°1
6-07
relatin
gtoout-of-c
ourtcom
plaintre
solutio
n,Art,3,<https://www.cssf.lu/fileadm
in/files/Lois_
reglem
ents/Legislation/RG
_CSSF/RC
SSF_No1
6-07
eng.pd
f>
493 C
CDHQue
stionn
aire,seenotesinSectio
n16
.49
4 Ibid
495 <
https://www.ohchr.org/en/hrbo
dies/hrc/com
plaintproced
ure/pa
ges/hrccom
plaintproced
ureind
ex.aspx>
496 T
heque
stionsin
thisbo
xareno
tpa
rtofthe
DIHR/ICAR
tem
plate.The
yaregene
ralq
uestionsw
hichw
erepa
rtofthe
surveyqu
estio
nnairesen
tou
ttocom
paniesin
Luxembo
urgthatwereconsultedforthiss
tudyinorderto
measureth
eira
pproachtohum
anrightsand
theira
waren
esso
fthe
UNGPs.
497 S
eeAnn
exII,q
uestion13
.49
8 UNGP15
,Com
mentary
499 N
otethatanew
und
erstatingofCSR
hasemergedinre
centyearswhichfo
cuseson
thecorporaterespon
sibilityto
und
erstan
dan
dad
dressbu
sinessim
pactonsociety,
toavoidadverseim
pactand
maxim
izethebe
nefits.Thisisalsothe
CSR
app
roachsupp
ortedbythe
EUand
poten
tiallycan
encom
passthe
corpo
raterespo
nsibilityto
respecta
ssetoutinth
eUNGPs.Itisa
lsoth
eap
proa
chado
pted
inth
eNAP
201
819(at2
7).
500 <
https://www.ohchr.org/D
ocum
ents/Pub
lications/FAQ
_Prin
ciplesBu
ssinessH
R.pd
f>
1
BusinessSurveyonCorporateResponsibilitytoRespectHumanRights
March2019In June 2011, theUnitedNationsHumanRights Council unanimously adopted theUnited NationsGuidingPrinciplesonBusinessandHumanRights (UNGPs).1TheUNGPsareasetofprinciplesforStatesandcompaniestoprevent,addressandremedyhumanrightsabusescommitted inbusinessoperations. Three years after their adoption, the UN Human Rights Council called on allMemberStates to develop National Action Plans (NAPs) to support implementation of the UNGPs.2Similarcalls followed at the European level.3The G7, the G20, national human rights institutions andbusinessassociationshavealsoencouragedstatestodevelopNAPsonbusinessandhumanrights.TheGovernmentofLuxembourghasdevelopeditsNationalActionPlanfortheImplementationoftheUnitedNation’sGuidingPrinciplesonBusinessandHumanRights (2018-2019)andadoptediton June 22nd 2018.4In its current NAP, the Government made several commitments under theheading of “A Joint Work Program” which among others include commissioning a study thatanalyzes “the existing situation and mapping of the potential negative impacts of businessactivitiesonhumanrightsononehand,andofexistingeffortstopreventtheserisksortomitigatetheir consequences on the other…” The need for such a study emerged and has been repeatedregularly during the elaboration of the NAP by the multi-stakeholder working group establishedundertheauspicesoftheMinistryofForeignandEuropeanAffairs.Inresponse,theGovernmenthascommissioned an expert to conduct a research and draft a report assessing the current level ofimplementationoftheUNGPsinLuxembourg.Theprimaryobjectivesofthestudyare:
(a) Toidentifyandanalysegapsinlegislationandpolicythatarematerialtobusinessandhumanrights:
(b) To identify business related human rights risks and impacts in Luxembourg, includingpracticesthatexiststoaddresstheseimpactsbybusinesses;
(c) To provide key findings and recommendations that will inform the formulation andprioritizationofactionsfortheupcomingrevisionsoftheNAP.
It isagainstthisbackgroundyouareinvitedtoparticipateinthepresentstudy.Yourresponsesandfeedback will be critical and invaluable not only to understand the current level of business andhuman rights uptake by companies in Luxembourg, but also feed into the future revisions ofLuxembourgishNAPandassisttheGovernmentinformulatingfurtherrelevantactionpoints.Survey questionnaire contains 25 questions which would take approximately 10 minutes tocomplete.Basedonyouranswers,youwillbeasked tocompletesomeadditionalquestions in theannex(takingapproximatelyadditional20minutestocomplete).Youarefreetoomitanyquestion.
1A/HRC/RES/17/4,16June2011.TheUNGuidingPrinciplesonBusinessandHumanRightsareavailableathttps://www.ohchr.org/Documents/Publications/GuidingPrinciplesBusinessHR_EN.pdf.2HumanRightsCouncilRes.26/22,U.N.Doc.A/HRC/RES/26/22,at2(15July2014).3See,e.g.,ArenewedEUstrategy2011–2014forCorporateSocialResponsibility,COM(2011)681final(Oct.25,2011);ResolutionontheReviewoftheEU’sHumanRightsStrategy,EUR.PARL.DOC.2062(INI)(2012);CouncilofEurope,DeclarationoftheCommitteeofMinistersontheUNGuidingPrinciplesonBusinessandHumanRights(Apr.16,2014).4TheGovernmentoftheGrandDuchyofLuxembourg,Pland’actionnationalduLuxembourgsurlamiseenœuvredesPrincipesdirecteursdesNationsUniesrelatifsauxentreprisesetauxdroitsdel’homme(inoriginial),availableat:https://maee.gouvernement.lu/dam-assets/directions/d1/PAN-LU-entreprises-et-DH-2018-2019-EN.pdf.
2
Your participation is entirely voluntary. Information that you provide in thepresentquestionnairewillremainconfidential.Allresponseswillbecompiledandanalysedasagroup.Yourinput will only be used in combination with the responses of others participating in thequestionnaire.Pleaseletusknowwhetheryouintendtoparticipateinthestudytogetherwiththecontactdetailsofa person in charge at the latest 22 March 2019. Thereafter, you will have until 1 April 2019 tocompletethequestionnaireandreturnittous.Kindlyindicate“CompanySurveyonHumanRights”inthesubjectlineinallyourcorrespondences.The study is being conducted by an independent expert on business and human rights from theUniversityofLuxembourg,Dr.BasakBaglayan.Shouldyouhaveanyquestionsorconcernsyoucanreachherthroughthecontactdetailsgivenbelow.BasakBaglayanbiz.hrs.lu@[email protected]:+352621286052Work:+3524666445606Contactinformationanddisclosure
• Pleasekindlyincludeanyrelevantcontactdetailsincasewehavefollow-upquestions.
• Pleaseconfirmwhetherwemayincludeyourorganization’snameinthelistof
respondents.
Yes No
3
BusinessSurveyQuestionnaireonCorporateResponsibilitytoRespectHumanRights
1. Whatisthemainactivityofyourorganization?
Infrastructureconstruction Retailandconsumergoods Financialservices Healthcareandpharmaceutical ITandtechnology Foodandbeverage Manufacturing Professionalservices Transportation,travelandtourism Extractives Other
2. Howmanystaffareemployedinyourorganisation?
Numberofstaff 1-9 10-19 20-49 50-99 100-249 Over250
3. Howfar,geographically,doyouoperate?
Local(inLuxembourgonly)
EU International
4. Isyourorganizationregistered/headquarteredinLuxembourg?
Yes No
5. Doesyourorganizationsourcematerialsfromoverseas?
Yes No Notsure
6. Doesyourorganizationsupplymaterials/products/servicesoverseas?
4
Yes No Notsure
7. Isyourorganizationasubsidiaryofanotherorganization?
Yes No Notsure
8. Whatpositiondoyouholdwithinyourorganization?
ManagingDirector/CEO Board/SeniorManagement HumanResources Finance MarketingCommunication Partner Other(specify)
9. IsyourorganizationfamiliarwiththeUNGuidingPrinciplesonBusinessandHuman
Rights?
Yes No Notsure
10. HaveyoumadeuseofanypublishedguidanceontheUNGuidingPrinciplesonBusiness
andHumanRights?
Yes No Notsure
11. Haveyouexploredwhathumanrightsissuesmightberelevantforyouand/oryour
suppliers?
Yes No Notsure
12. Pleaseselectwhetheryouagreeordisagreewitheachofthefollowingstatements
Agree Disagree Not
sureRespectinghumanrightsisamatterforgovernments,notforbusiness
Humanrightsarerelevanttoeverybusiness,regardlessoftheirsize
Humanrightsaremainlyaconsiderationforthoseoperatingoverseasorwithoverseassuppliers
13. Fromthefollowingcategoriesofhumanrightsrelatedissues,pleaseindicatewhetheryou
thinktheymayberelevanttoyourbusinessoperations.
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Yes No Notsure
GROSSHUMANRIGHTSABUSES(e.g.,freedomfromtorture,cruelandinhumanetreatment,includingslaveryandgenocide)
ADEQUATESTANDARDOFLIVING(e.g.,righttophysicalandmentalhealth,righttofood,righttohousing)
PRIVATELIFE(e.g.,righttoprivacy,righttofamilylife) RIGHTSRELATEDTOLAND(e.g.,righttolivelihood,righttoownproperty,righttoparticipateinculturallife)
CIVICLIFEANDPARTICIPATION(e.g.,freedomofexpression,righttopoliticalexpression,righttopeacefulassembly,righttoinformation)
ACCESSTOJUSTICE(e.g.,righttoeffectiveremedy,righttofairtrialbeforethelaw,righttodueprocess)
INTELLECTUAL,SPIRITUALANDCULTURALLIFE(e.g.,freedomofthoughtandopinion,freedomofreligion,righttoparticipateinculturallife)
RIGHTSRELATEDTOTHEENVIRONMENT(e.g.,righttocleanwaterandsanitation,righttoenvironmentalhealth,righttocleanair)
EDUCATIONANDACCESSTOTECHNOLOGY(e.g.,righttoeducation,righttoenjoymentoftechnologicalprocess,accesstotraininganddevelopment)
CONDITIONSOFWORKANDEMPLOYMENT(e.g.,healthandsafetyatwork,discrimination,fairwageandequalpay,childlabour,periodsofrestand/orholidayleave)
WORKPLACEDIALOGUE(e.g.,freedomofassociation,collectivebargaining,righttojoinatradeunion)
14. Hasaclientorsuppliereveraskedaboutyourbusinesspracticesrelatedtoanyofthe
aboveissues?
Yes(canyoutellusinwhichareasthesequestionswereraised?) NoNotSure
15. Haveyoueveraskedaclientorasupplierabouttheirbusinesspracticesrelatedtoanyof
theaboveissues?
Yes(canyoutellusinwhichareasthesequestionswereraised?) NoNotSure
16. Haveyoueverreceivedanyinternalcomplaintinrelationtoanyoftheaboveissues?
Yes(canyoutellusinwhichareasthesecomplaintswereraised?) NoNotSure
17. Haveyoueverorganizedinternaltrainingsessionsonhumanrights?
Yes(pleasespecify) No Notsure
18. Concerningtrainingsonsocialissuesingeneralandhumanrightsinparticular,whatwould
youconsiderasthebiggestchallenge?Selectallthatapply.
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Lackofresources(personnel,material,etc.) Lackoftimetoconducteffectivetraining Lackofexamplesofgoodpractice Lackoftemplatesorpublicinformationtoguidetrainingefforts Other(pleasespecify)
19. Doyouparticipateininitiativesrelevanttocorporateresponsibilitytorespecthuman
rights?
Yes(pleasespecify) No Notsure
20. Ahumanrightspolicycommitmentreferstoastatementinwhichthecompanysetsoutits
commitmenttomeetitsresponsibilitytorespecthumanrights.Doesyourorganizationcurrentlyhaveahumanrightspolicy?
Yes No Notsure
(Ifyouransweris‘yes‘,pleasealsorespondannexedQuestions26-31)
21. Doesyourorganizationcarryouthumanrightsimpactassessmentsonservices/products/supplychains?
Yes,routinely Yes,occasionally No,never
(Ifyouransweris‘yes‘,pleasealsorespondannexedquestions31-37)
22. Doesyourorganizationhaveaprocedureforhearing,processingandsettlinginternalandexternalconcerns/complaints?
Yes No Notsure
(Ifyouransweris‘yes‘,pleasealsorespondannexedquestions38-46)
23. Thefollowingsetofquestions/statementsconcernhumanrightsrespectincomplexenvironments,suchasconflict-affectedareas.Pleasereplythemifyouthinktheyareapplicabletoyourorganization,otherwisemovetothenextquestion.
Yes No Not
SureN/A
Doesyourorganizationhavepoliciesandprocessesinplacetoensurerespectforhumanrightsincomplexenvironments,suchasconflict-affectedareas?
Doesyourorganizationhavesystemsandprocessesinplacetodealwithconflictingrequirementsbetweennationallawsandregulationsandinternationallyrecognizedhumanrights?
Doesyourorganizationtreatrisksofcausingorcontributingtogrosshumanrightsabusesasamatteroflegalcomplianceissue?
Doesyourorganizationconsiderbothdirectandindirectcontributionstogrosshumanrightsabuses?
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Doesyourorganizationprovidepositiveand/ornegativeincentives,adequateresources,guidanceandtraining,andclearexpectationstorelevantemployees,departments,andbusinessrelationshipinrelationtorespectinghumanrightsincomplexenvironments?Arethereclearlinesandsystemsofaccountabilityandresponsibilityinthesecontexts?
Doesyourorganizationcooperatewithandregularlyconsultwithindependentexpertsandrelevantstakeholderswhenassessingandaddressinghumanrightsriskspresentinoperatingorsustainingbusinessrelationshipsincomplexenvironments?
24. Whatsupportorguidancewouldyouthinkwouldbeusefulforyourorganizationinorder
tohelpitrespecthumanrightsinitsoperations?
Informationmaterial Trainings Conferences,workshops Other(specify)
25. Fromwhomwouldyouliketoreceiveadviceregardingbusinessandhumanrights?Chose
asmanyasapplicable.
Government SectoralprofessionalOrganizatoins
Legaladvisors Consultants Tradeassociations Other(specify)
ANNEXEDQUESTIONSQuestions26-31concernorganization’shumanrightspolicycommitment.5Pleasereplyifyouranswertoquestion20is“yes“.
26. Concerningyourorganization’shumanrightspolicycommitment:
Yes No NotSure
Itisa‘standalone’policy Itispartofapolicyinanotherarea(forexample,CSRorsustainability) Itispubliclyavailable(forexample,publishedonyourorganization’swebsite) Itiscommunicatedinternallytoallpersonnel Itissupportedbytrainingforpersonnelinrelevantbusinessfunctions Itiscommunicatedtoentitieswithwhichthecompanyhascontractualrelationships
5ForfurtherguidancepleaserefertotheUNGuidingPrinciplesonBusinessandHumanRights(2011);Principles11to16andtheaccompanyingcommentaries.
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Itreferstointernationallyrecognizedhumanrightsstandards(forexample,internationalhumanrightsinstruments,ILO’sDeclarationonFundamentalPrinciplesandRightsatWork,theUNGPs,theOECDGuidelinesforMultinationalEnterprises),and/orotherstandardsrelatedtoCSR
Itincludesreferencestocommitmentsthatthecompanyhasmadetorelevantvoluntaryinitiatives
Itisinformedbyinsightand/oradvicefrominternalsourcesofexpertise,suchaskeyfunctionalstaff
Itisinformedbyinsightand/oradvicefromexternalsourcesofexpertise,suchasgovernment,humanrightspractitioners,civilsocietycirclesandacademia,etc.
Itincludessystemofaccountability,includingtheconsequencesforbreaches. Itisreflectedinorganization’soperationalpoliciesandproceduresthatgovernwiderbusinessactivitiesandrelationships
Thereisaprocessforupdatingthehumanrightspolicycommitment
27. Whatareasareincludedinyourhumanrightspolicy?Selectallthatapply.
Righttolife,liberty,andsecurityofperson Forced,bondedorcompulsorylabouraswellaschildlabour Righttoprivacy,righttofamilylife Freedomofassociation,collectivebargaining,righttojoinatradeunion Non-discrimination Workplacehealthandsafety Righttoadequatestandardofliving Righttohealth Fairwageandequalpay Other(pleasespecify)
28. Who(i.e.whatposition)inyourorganization’sgovernancehasresponsibilityforthe
humanrightspolicy,includingensuringcompliancewithit?
ManagingDirector/CEO Board/SeniorManagement HumanResourceManager Other(pleasespecify)
29. Dotheboardofdirectorsand/orseniormanagementreceiveincentiveslinkedtothe
implementationofthehumanrightspolicycommitments?
Yes No Notsure
30. Pleaseindicatethebiggestchallengesthatyouencounterasregardstohumanrightspolicy
commitments,ifany?Selectallthatapply.
Lackofmaterialmeantoformulatepolicycommitment Difficultiesincommunicatingthepolicytorelevantexternalparties Difficultiesintranslatingpolicycommitmentintorelevantoperationalprocedures
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Other(pleasespecify) Questions31-37concernhumanrightsimpactassessments.6Pleasereplythemifyouranswertoquestion21is“yes“.
31. Doesyourorganization…
Yes No Notsure
…haveprocessesinplacetoidentifyandassessanynegativeimpactonindividualsandcommunitieswhichitmaybeinvolved?–Thesemayincludeactualimpacts(pastandcurrent)andpotentialimpacts(thoselikelytooccurinthefuture);impactsfromthecompany'sownactivitieswhetherdirectlyorthroughcontribution;aswellasimpactswhichmaybedirectlylinkedtocompanyoperations,productsorservicesbyitsbusinessrelationships.
…assesshumanrightsimpactsatkeymomentsofoperationsandbusinessdevelopmentssuchasenteringnewmarkets/relationships/expandingoperations?
…conducthumanrightsimpactassessmentatprojectlevel? …payparticularattentiontohumanrightsimpactsaffectingmarginalizedorat-riskgroups,andongender?
32. Doesyourorganizationintegratethefindingsfromimpactassessmentacrossrelevant
internalfunctionsandprocesses,through:
Yes No Notsure
…commitmentfromseniormanagementandcollaborationamongrelevantdepartments?
…assigningresources,includingfinancialandhumanresources,forintegratingandactinguponfindings?
…(whennecessary)consideringtheseverityofhumanrightsimpactsandprioritizingactionsaccordingly?
33. Yourorganizationtrackstheeffectivenessofitsresponsestoadversehumanrights
impacts…
Yes No Notsure
…basedonqualitativeandquantitativeindicators,includingsector-specificandkeyperformanceindicators
…bydrawingonexternalfeedback(inparticularfromaffectedrights-holders)andinternalfeedback(includingfromreportingprocessesandlessonslearnedfromgrievancemechanisms)
6ForfurtherguidancepleaserefertotheUNGuidingPrinciplesonBusinessandHumanRights(2011);Principles17to21,23and24andtheaccompanyingcommentaries.
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34. Doesyourorganizationpubliclycommunicatehowitaddressesadversehumanrightsimpacts?
Yes(pleasespecify) No Notsure
35. Doesyourorganizationseekindependentverificationofitshumanrightsreporting,for
example,throughthird-partyauditing?
Yes No Notsure
36. Doesyourorganizationtakestepstoensurecommunicationsonhumanrightsare
accessibletoitsintendedaudiences,includingtomarginalizedorat-riskgroups,individualsorgroupswhomaybeimpacted,andotherrelevantstakeholders,includinginvestors?
Yes No Notsure
37. Whatdoyouthinkarethebiggestchallengesyoufaceinunderstandingandaddressing
impacts,trackingresponsesandcommunicatingthem?Selectallthatapply.
Weareunsurehowfarintothesupplychainweneedtogoinunderstandingimpacts Itisachallengetoaccesscredibleinformation Thereisalackofprovenmethodologiesandframeworkstohelpassessimpacts Thereisalackofunderstandingastohowtoengagewithstakeholderswheregovernmentsrestrictdialogue
Itisdifficulttomanagesituationswhereourleverageoverbusinesspartnersislimited Wefinditdifficulttobuildleverage Itisdifficulttooperateinsituationswherehumanrightsarenotpartoflocallawornotappliedinpractice
Thereisalackofunderstandingofourresponsibilitiesinsituationswheregovernmentinstitutionsarelacking
Others(pleasespecify) Questions38-46concernproceduresforhearing,processingandsettlinginternalandexternalconcerns/complaints.7Pleasereplythemifyouranswertoquestion22is“yes“.
38. Theprocedureyouhaveinplaceforhearing,processingandsettlinginternalandexternalconcerns/complaints-isclearandeasilyaccessible.
Yes No Notsure
7ForfurtherguidancepleaserefertotheUNGuidingPrinciplesonBusinessandHumanRights(2011);Principles22,29,39and31andtheaccompanyingcommentaries.
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39. Yourorganizationprovidesfororcooperatesinremediationincasesofadversehumanrightsimpactsthatyouarelinkedtothroughyouroperationsorproducts,orservicesbyyourbusinessrelationships,includingthroughtheuseofleverage?
Yes No NotSure NotApplicable
40. Remediationmechanismsandprocessesthatyourorganizationhasestablishedorwith
whichitcooperateswith,complywiththeeffectivenesscriterialaidoutinUNGP31(i.e.theyarelegitimate,accessible,predictable,equitable,rights-compatible,asourceofcontinuouslearning,basedonengagementanddialogue)?
Yes No NotSure NotApplicable
41. Remediationmechanismsandprocessesthatyourorganizationhasestablished,orwith
whichitcooperates,requirethatcomplainantssignlegalwaiversinordertoreceivereparations?
Yes No NotSure NotApplicable
42. Yourorganizationconsultswithrelevantstakeholders,inparticularwithaffectedrights-
holders,duringtheprocessofdesigning,operating,monitoring,andimprovingthegrievancemechanisms?
Yes No NotSure NotApplicable
43. Yourorganizationtakesmeasuresagainstanyformofretaliationagainstindividualsand
groupsraisingcomplaints?
Yes No NotSure NotApplicable
44. Yourorganizationmonitorstheeffectivenessofgrievancemechanismsandprocesses,
includingbyseekinginternalandexternalfeedbackandthroughtheuseofbothqualitativeandquantitativeindicators?
Yes No NotSure NotApplicable
45. Yourorganizationprovidesinternalguidance,training,incentives,andresourcesto
relevantdepartmentsandemployees,andestablishesclearlinesandsystemsofresponsibilityandaccountabilityforremediation,includingatseniormanagementlevel?
Yes No NotSure NotApplicable
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46. Hastherebeenpubliclyreportedcasesagainstyourorganizationforfailingtoprovideadequateremediationforadversehumanrightsimpactsthatyouhavecausedorcontributedto,orforfailingtocooperateinremediationthroughlegitimateprocessesincludingjudicialandstate-basednon-judicialmechanisms?
Yes No NotSure
782919 9537149
ISBN 978-2-9199537-1-4
