RE: As usual confusing the issue16 Oct 2018 21:16
Also Page 15 supporting statement
Overview
The principle of free, prior and informed consent (FPIC) is recognised in international law, and “represents the highest standard possible for the involvement of Indigenous Peoples in decision-making processes about large extractive projects.”4 Respect for FPIC is recognised as central to discharging the corporate responsibility to respect human rights under the UN Guiding Principles on Business and Human Rights (UNGPs), where companies interact with Indigenous Peoples. Under principle 13(a) of the UNGPs, companies must “avoid causing or contributing to adverse human rights impacts in their own activities.” This responsibility “exists over and above compliance with national laws and regulations protecting human rights” - that is, where local laws are inadequate, it is incumbent upon companies to look to international standards.5
We commend our company’s statement that “our activities will be guided by” the UNGPs as well as the UN Declaration on the Rights of Indigenous Peoples (UNDRIP).6 Our company has also committed to “more thoughtfully and meaningfully work with Aboriginal and Torres Strait Islander peoples”7 through its Reconciliation Action Plan.
The Australasian Centre for Corporate Responsibility (ACCR) favours policies and practices that protect the long term value of our investments. Where companies in which we invest interact with Indigenous Peoples, obtaining genuine FPIC is an important measure in protecting shareholder value. In support of this position, we note the following:
• Globally speaking, “[i]n the last decade, the time taken to bring oil projects online has doubled, with 73% of delays due to non-technical problems – including resistance from Indigenous stakeholders.”8
• Denouncements by Indigenous peoples of corporate non-compliance with UNDRIP before enacting projects on their land have increased in recent times9. According to Hermes Investment Management, 10“[s]uch tumult has prompted investors to engage with companies about FPIC.”
• Our company frequently states its commitment to consent, which is commendable, however, we emphasise that a commitment to consent does not necessarily deliver consent, and that “[d]espite good intentions, good laws and progressive human rights instruments, there [may still remain] a gap between words and actions.” 11
FPIC and risk concerns
• Our company holds petroleum exploration permits on Aboriginal land in the Northern Territory (NT). We plan to undertake exploration and, ultimately, hydraulic fracturing (fracking) activities on that land.
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