Source: United States Department of State – Press Release/Statement:
Headline: Reports and Other Major Publications: 2015 Annual Report of the Government of the United States of America for the Voluntary Principles on Security and Human Rights Initiative
No. 1: Commitment to the Voluntary Principles
The U.S. government is a founding member of the Voluntary Principles on Security and Human Rights (VPs) Initiative. We joined the Steering Committee in March 2014 and are the Government Chair for the March 2015-March 2016 term. We also served on the Steering Committee from March 2009-March 2013, and as Government Chair from March 2010 to March 2011. We aspire to set the standard for excellence for government participation in the VPs Initiative, and remain committed to its mission – to guide oil, gas, and mining companies on providing security for their operations in a manner that respects human rights; to strengthen implementation, accountability, and transparency within the Initiative; and to strengthen participation of VPs Initiative participants in all pillars. This year, we have made progress on all of these fronts – strengthening implementation through cooperation with partners on the ground, seeking more opportunities to expand dialogue and shared learning among participants, and broadening the Initiative’s participant base.
2015 was a significant year for the VPs Initiative, as participants worked together to advance the strategy outlined in the “Voluntary Principles Strategy 2014-2016”, a document developed collaboratively by participants that provides concrete objectives and action participants can take to achieve stated goals. Throughout the year, government participants increased coordination with participants in other pillars as well as with their own embassies in countries designated as priority countries to engage governments and help implement the Principles on the ground. To strengthen accountability and transparency, participants worked together to implement the verification frameworks, and strengthen the reporting guideines and entry frameworks. The corporate pillar framework includes a commitment to utilize a set of performance indicators, including previously developed Key Performance Indicators (“KPIs”), to validate implementation of their commitments to the VPs Initiative. The U.S. government has devoted substantial time and resources to these efforts.
We were able to achieve many of our goals for 2015 and refocus our energy on others:
• Outreach and Implementation: Implementation of the VPs is a core priority for all participants, as the VPs exist to foster concrete improvements on the ground. To support implementation by host governments, we have strengthened our outreach efforts (examples are detailed below under “Country Implementation”). We are committed to recruiting new governments to join the VPs Initiative. In 2014, Ghana became the first African government to join the VPs Initiative. The U.S. government leads outreach in Ghana and continues to work closely with the government of Ghana as it develops its VPs National Plan. The U.S. Department of State’s Bureau of Democracy, Human Rights, and Labor (“DRL”) is also funding programs to promote implementation of the VPs in various countries. DRL is currently funding a program to build civil society capacity to support VPs implementation in Ghana as the government develops its VPs National Plan. DRL recently solicited proposals to empower civil society in East Africa to meaningfully participate in business and human rights initiatives, including the VPs. In 2012-2014, DRL dedicated approximately $800,000 in programmatic funding to increase the knowledge and understanding of the VPs in both Nigeria and Ghana; $650,000 in programmatic funds to improve the consultative process with marginalized communities and other stakeholders in Panama, Peru, and Guatemala on issues related to natural resource extraction – in which the VPs is a fundamental element.
• Implementing the VPs Initiative Strategy: In June of 2015, the U.S. government organized a Steering Committee Strategy Retreat, where VPs Initiative participants collaborated to agree to an action plan for the coming year to implement the VPs Straegy Goals for 2014-2016. The action plan focuses on three baskets of objectives – outreach, implementation, and verification. Key action items include: developing a NGO outreach strategy plan; reviewing and updating the entry frameworks to improve transparency, consistency and efficiency; reviewing and updating the VPs reporting guidelines; implementing a robust verification process; improving in-country VPs implementation; and improved engagement with the International Code of Conduct Association (“ICoCA”);
Accountability and Verification: All VPs Initiative participants take seriously their commitment to human rights. Upon joining the VPs Initiative, corporate pillar participants pledge to uphold a set of commitments in their business practices. At the 2015 Plenary, VPs participants approved verification frameworks for companies, NGOs, and governments which will demonstrate their commitments to the VPs. The development of such frameworks is an important step to enhance transparency and accountability within the VPs Initiative.
One component of the verification framework is presentations to a VPs working group and/or the Plenary on VPs implementation. This year participants developed an initial framework for their verification presentations, bearing in mind the following key elements agreed upon at the 2015 Steering Committee Retreat:
o best practices, challenges, and steps forward
o maximizing the sharing of information
o confidentiality
o maximizing transparency
o importance of encouraging Corporate Participants to opt-in
o considerations related to feasibility and consistency of participation by engaged Participants
Participants have begun the presentation process, with six participants slotted to present to the VPs Working Group, and several others presenting at the 2016 VPs Plenary. The U.S. government would like to recognize the six VPs companies that have agreed to participate in the initial rounds for their leadership in this important initiative: Newmont, BP, Freeport McMoran, Exxon, and Rio Tinto.
Background on the Corporate Pillar Verification Process
Upon joining the VPs Initiative, corporate participants pledge to uphold a set of commitments in their business practices. In the Corporate Pillar Verification Framework, companies committed to select and use a set of organizationally appropriate Key Performance Indicators (KPIs) in assessing implementation of the VPs.
We are eager to work with companies to learn how they measure their implementation of the VPs. Several corporate pillar members have already committed to implementing a set of KPIs to validate their commitments to the VPs, while others may use a different set of performance indicators. In developing the KPIs, these companies engaged with a number of VPs Initiative participants from the NGO and government pillars, including the U.S. government, and also worked closely with Professor John Ruggie. Since that time, the KPIs have been utilized by many VPs Initiative companies (and non VPs companies) whereby implementation has been measured internally by the companies or in some cases by outside groups.
The full corporate pillar verification framework includes an annual report to the Plenary with a review of assessment procedures, an invitation to publish a public version of individual company VPs Annual Reports on the VPs Initiative Website, and company presentation of the KPIs, or other indicators used, and headline results at the VPs Annual Plenary Meeting and to a specially designated working group (“Verification Working Group”) within the VPs Initiative throughout the year. While corporate pillar participants can opt out of the process under the Corporate Pillar Verification Framework, the U.S. government encourages all companies to participate in the verification process, and publicly indicate their intent to do so.
The U.S. government looks forward to continuing to work with VPs participants to develop a credible, practical system to support and validate corporate participants’ effective implementation of the VPs, and to find the right formula to communicate their findings to all stakeholders.
• Updating the Entry Frameworks and the Reporting Guidelines: Reviewing and updating the Entry Frameworks and Reporting Guidelines are elements of the VPs Strategy Goals for 2014-2016. This year, we have conducted a thorough review of both sets of documents are are upating them to clarify participant commitments as members of the VPs Initiative in light of the recent adoption of Roles and Responsibilities documents and Verification Frameworks for each pillar. Updating the Reporting Guidelines will also help to provide more guidance to participants on the type of information they should include in their Annual Reports with the end objective of stronger and more consistent reports.
General Participation in the VPs Initiative
As stated at the outset, the U.S. government has participated vigorously in the VPs Initiative. Our commitment is demonstrated by our serving as government chair from March 2015 through April 2016, leading government pillar and Steering Committee calls, active participation in working groups, leading the governance review, participating in in-country meetings, and as evidenced by the resources we have devoted to the VPs Initiative.
U.S. government team
DRL leads U.S. government engagement in the VPs Initiative – in cooperation with the State Department’s Bureau of Economic and Business Affairs and Bureau of Energy Resources. Work on the VPs and related efforts within DRL are led by the Business and Human Rights and Internet Freedom (BHR) Team within the Multilateral and Global Affairs directorate. Our VPs team also includes representatives of the Department’s Office of the Legal Adviser as well as regular engagement with regional bureau colleagues, the Bureau of Diplomatic Security, officers at U.S. embassies around the world, officers at Defense Department Geographic Combatant Commands, and officers at other U.S. agencies such as the Department of Commerce, Department of Labor, Department of Defense, and Overseas Private Investment Corporation.
Participation in VPs Initiative working groups and meetings in 2015
1) The U.S. government participated in the VPs Initiative Annual Plenary Meeting in March 2015 where we presented as part of the verification process, and participated on panels.
2) The U.S. government led the Steering Committee Retreat in June 2015, to develop an implementation plan for the VPs Strategy during the U.S. government chairmanship. We have diligently worked toward accomplishment of objectives over the last year including review and update of the Reporting Guidelines and Entry Frameworks, and clarifying the linkage between the U.N. Guiding Principles on Business and Human Rights and the VPs. At the retreat, it was also decided that VPs participants would undertake a governance structure review. The U.S. government has been leading the process which is well underway; next steps will be discussed at the 2016 VPs Annual Plenary Meeting.
3) The U.S. government led all monthly VPs Steering Committee (STC) meetings.
4) The U.S. government led all monthly calls with the VPs Initiative government pillar to discuss issues, including but not limited to, government outreach, in-country implementation efforts, and governance review.
5) The U.S. government participated regularly in all active VPs Initiative working groups: the Verification Working Group; the Outreach and Implementation Working Group; the Implementation Sub-Working Group; and the Governance Review (unofficial) Working Group.
6) The U.S. government engaged in outreach efforts in coordination with VPs Initiative government pillar participants in official priority countries, as well as in other countries to encourage implementation of the VPs in-country and to encourage interested parties to join the VPs Initiative. In March 2014, Ghana, a VPs priority country for which the U.S. government had the lead in coordinating outreach efforts, announced its intention to join the VPs Initiative, and officially joined as an engaged government soon after. Since that time, we have been working closely with the government as it seeks to develop its VPs National Plan.
7) In the Outreach and Implementation Working Group, the U.S. government contributed to the development of a priority country outreach strategy, contributed to the development of outreach materials, shared our outreach efforts (both on the in-country and international level), and coordinated with other participants to strengthen engagement.
8) The U.S. government also participated in several in-country meetings which will be discussed in more detail in Nos. 9-10 “Overview of Country Operations”.
No. 2: Relevant policies, procedures, and/or guidelines (or any relevant changes thereof from the previous reporting year) to implement the VPs
We are committed to promoting the implementation of the VPs. Moreover, we are party to relevant human rights conventions, such as the International Convention on Civil and Political Rights, and are actively engaged atthe UN Human Rights Council (HRC), which provides a forum to promote States’ fulfillment of their human rights commitments. In June 2011, we co-sponsored the HRC resolution that endorsed the Guiding Principles on Business and Human Rights (GPs) and in June 2014, we co-sponsored a resolution to renew the 2011 mandate and continue facilitating the implementation of the GPs. The GPs provide global guidance regarding business and human rights, providing that States have a duty to protect human rights; corporations have a responsibility to respect human rights; and that those affected by business-related human rights abuse should have access to remedy. The VPs Initiative is the preeminent mechanism implementing aspects of the GPs in the area of human rights-respecting security practice in the extractives industries. Over the course of the last year VPs participants have been working to develop a document that demonstrates the linkage between the VPs Initiative and the GPs.
U.S. National Action Plan on Responsible Investment
With regard to GPs implementation, on September 24, 2014, on the margins of the UN General Assembly, President Obama announced the development of a U.S. National Action Plan (NAP) to promote responsible and transparent business conduct overseas. The NAP will address ways in which the U.S. government can promote, encourage, and enforce established norms of responsible business conduct with respect to human rights, labor rights, anti-corruption, and transparency. The National Action Plan will: help set clear, consistent, and predictable expectations for U.S. firms in their global operations; facilitate internal U.S. government communication and coordination; strengthen the trust and communication among stakeholders; identify U.S. government commitments to assist in creating a rights-respecting enabling environment for businesses operating abroad; and further promote responsible investment and responsible business conduct.
The NAP will, in part, promote transparency about how the U.S. government encourages companies to live up to high standards. Responsible business conduct is about more than agreeing to abide by a set of principles or guidelines. It is about integrating responsible investment and business practice into corporate management decision-making, consistent with U.S. laws and international standards, in a manner that promotes the rule of law and respects the rights of stakeholders within a company’s workforce and value chain. It is also about working to ensure transparency and accountability regarding the monitoring of conduct, verifying success stories, and identifying areas for improvement through the help of stakeholders, including those on the ground in countries where U.S. businesses and their supply chain partners are engaged abroad.
Multi-stakeholder initiatives, like the VPs Initiative, are an important tool to engaging with business abroad, and have been a key consideration in developing our NAP. During the U.S. government chairmanship of the VPs Initiative, we have sought to strengthen the VPs Initiative in line with our vision for promoting responsible investment and look forward to continued engagement with VPs participants in the NAP process.
The U.S. government has held several dialogues with stakeholders throughout the year to provide input into the NAP process. The April 2, 2015 dialogue in Norman, Oklahoma, focused on the extractives sector. At the dialogue, the VPs were highlighted as a useful tool for: sharing best practices; addressing security and human rights challenges; enhancing accountability; and clarifying expecations for extractives companies on security and human rights.
GPs-Related Workshops
We have held several meetings with external stakeholders to identify and discuss best practices and challenges in order to best frame our policies and practices. To this end, we hosted various GPs implementation workshops over the last few years: one targeted the general business community and focused on respecting human rights in business operations; another targeted members of civil society, academia, and think tanks, and focused on strategies and priority-setting with regard to U.S. government implementation of the GPs; another with investors focused on strategies for investment firms to incorporate the GPs into their regular business practices as well as the use of non-financial factors in decision-making; and another focused on U.S. government procurement and human rights.
Support for Related Initiatives
We support and participate in the Montreux Document on Pertinent International Legal Obligations and Good Practices for States related to Operations of Private Military and Security Companies during Armed Conflict (“Montreux Document”), and the International Code of Conduct for Private Security Service Providers (“ICoC”). The U.S. government was deeply involved in developing the ICoC’s governance and oversight mechanism—the ICoC Association—and, actively participated on the temporary steering committee, which was tasked with moving the process forward. The U.S. government joined the ICoC Association as a founding member in September 2013. The U.S. government also funded and participated in the establishment of a set of management standards for private security companies based on the Code through the American National Standards Institute (ANSI). The Department of Defense requires demonstrated compliance with the ANSI PSC.1 for its private security contractors; the Department of State’s Bureau of Diplomatic Security incorporates membership in good standing in the International Code of Conduct Association as a requirement in its successor to the Worldwide Protective Services (WPS) contract. Diplomatic Security requires WPS II contractors to confirm conformance with ANSI PSC.1 throughout the duration of their contract. http://www.state.gov/r/pa/prs/ps/2013/08/213212.htm
The U.S. government was pleased to see the ICoCA join the VPs Initiative as an observer this year as the two initiatives continue to build synergies.
Training for Public Security Providers
With regard to training, both the U.S. Department of State and Department of Defense require security service providers contracting with the U.S. government to provide training addressing both U.S. and international law, including human rights and humanitarian law, prior to deployment. In addition, consistent with U.S. law and policy, the Department of State vets units or individuals in foreign security forces who may receive assistance or training from the Department of State or the Department of Defense, and when the vetting process uncovers credible information that an individual or unit has committed a gross violation of human rights, U.S. assistance or training is withheld.
No. 7: Examples of promoting awareness of the VPs throughout the organization or government
Over the past year, we have promoted awareness of the VPs within the government in various ways:
1) DRL colloaborated closely with U.S. Africa Command (AFRICOM) and the Bureau of International Narcotics and Law Enforcement Affiars (INL) on opportunities to include VPs training in AFRICOM and INL public security trainings.
2) Assistant Secretary of State for DRL Tom Malinowski, Deputy Assistant Secretary of State Scott Busby meet regularly with government officials from relevant U.S. Department of State regional and functional bureaus, Ambassadors and embassy VPs action officers to brief them on and encourage their engagement with the VPs Initiative.
3) DRL officers met with U.S. ambassadors to VPs Initiative participant Governments, Engaged Governments, and priority and non-priority countries to brief them on the VPs, so that U.S. government officials could more effectively raise awareness of the VPs with host governments.
4) The VPs are featured at the Department of State Human Rights and Labor Officers Training as well as the training for Economic Officers posted at U.S. embassies around the world.
5) DRL officers have requested embassies in VPs Initiative official and unofficial priority countries to create and maintain a mission action plan on the VPs Initiative, which includes a strategy for: determining the host government lead agency and point of contact for the VPs Initiative, including additional government agencies that should be involved (if any); coordinating with other VPs Initiative participants in country; and a plan for engagement. The engagement plan involves determining relevant supporters to enlist in the engagement effort, demarching host government officials to persuade them to join the VPs, and determining options for convening multi-stakeholder conversations focused on host government implementation of the VPs.
6) DRL officers regularly engage with embassies on VPs implementation efforts. The U.S. Government leads VPs engagement in Ghana, Chile, and Iraq.
7) DRL officers led numerous conversations with desk officers, and economic, political, and human rights officers in Washington and at embassies in priority and non-priority countries to educate them about the VPs and the VPs Initiative and respond to questions. For example, DRL officers held calls with embassies to debrief them on the VPs Initiative Annual Plenary Meeting, and to feature best practices and lessons learned by various embassy officers in their VPs outreach and implementation efforts. This has helped increase the flow of information between Washington and embassies, and the VPs Initiative at the international-level and the country-level regarding human rights and security challenges in the extractives industry. It has also created outreach and implementation opportunities and helped raise the profile of the VPs on-the-ground.
No. 8: Examples of promoting and advancing implementation of the VPs internationally
The U.S. Government pursued opportunities to promote the VPs publicly in a variety of international fora, meetings, and public and written statements, including, for example:
International Meetings, Fora, and Public Statements
1) In April 2015, Deputy Assistant Secretary Busby raised the VPs in remarks and in conversation during the U.S. government dialogue on the National Action Plan on Responsible Busines Conduct at the University Oklahoma College of Law in Norman, Oklahoma.
2) In July 2015, Jenny Stein, Foreign Affairs Officer in the Bureau of Democracy, Human Rights, and Labor raised the U.S. government’s VPs Chairmanship priorities in her remarks at the Ghana VPs Multi-Stakeholder Roundtable in Accra, Ghana.
3) In October 2015, Under Secretary Sarah Sewall raised the VPs in a multistakeholder roundtable discussion in the Democratic Republic of the Congo. The roundtable included representatives from several local mining companies, NGOs, and local government representatives.
4) In November 2015, Lynn Sicade, Deputy Director in the Bureau of Democracy, Human Rights and Labor, Office of Multilateral and Global Affairs, took part in a round table discussion on security and human rights at the University of Oklahoma Law Symposium in Norman, Oklahoma.
5) In November 2015, in Geneva, Switzerland at the UN Business and Human Rights Annual Forum, U.S. representatives raised the VPs in remarks and conversations with stakeholders.
Written Statements
1) In line with our commitment to make the VPs Initiative as transparent as possible, the U.S. government published, for the third time, a public report on VPs implementation on March 17, 2015. The report can also be found on the VPs website, here.
2) In March 2015, the State Department issued a press release following the 2015 Annual Plenary Meeting in London, which includes remarks by Deputy Assistant Secretary Scott Busby setting out the U.S. government priorities for our chairmanship.
3) The U.S. government Approach to Business and Human Rights highlights the VPs Initiative as a key tool to address human rights and security challenges in the extractives industry.
4) The U.S. Burma Responsible Investment Reporting Requirements (“Burma Reporting Requirements”) cite the VPs as a key source of guidance for the extractives industry on questions regarding arrangements with security providers. The Appendix to the Burma Reporting Requirements also cites the VPs Initiative as important guidance tool.
5) The White House published a fact sheet on the Obama Administration’s leadership on International Human Rights which mentions the VPs Initiative as a key example of how the U.S. government partners with other governments, civil society, and companies to promote human rights and security in the extractives industry.
6) DRL mentioned the VPs as a key priority for DRL’s Business and Human Rights team in its Business and Human Rights Fact Sheet. This fact sheet has been provided to all participants at business and human rights workshops hosted by the US government, and is provided to the Business and Human Rights teams’ contacts regularly during meetings.
7) The U.S. government has published the VPs fact sheet on the U.S. Department of State website, and on HumanRights.gov, the U.S. government-wide website on U.S. government engagement on international human rights.
Overview of In-Country VPs Process
U.S. embassies facilitate VPs outreach and implementation through various mechanisms, including by: asesseing which VPs participants are operating in country; identifying and building relationships with host government officials and local partners; convening multi-stakeholder meetings with VPs participants, local communities, and host government officials; and facilitating communication between DRL and embassy officers to report developments and identify opportunities.
No. 14: Lessons or issues from this reporting year, as well as plans or opportunities to advance the VPs for the organization
The VPs Initiative has been considerably strengthened over the last several years. In order to build accountability, credibility and effectiveness of the VPs Initiative, we will continue to focus on support for verification of implementation. Verification is important to ensure to the satisfaction of both VPs Initiative participants and the public that companies are meeting their commitments under the VPs. It is a key component of VPs implementation and critical to making the VPs Initiative sustainable long-term. A robust verification framework is an essential ingredient to a successful multi-stakeholder initiative. We are pleased to see several coorporate pillar participants interested in presenting on verification under the corporate pillar verification framework, and encourage all corporate pillar participants to publicly demonstrate commitment to it and participate in it moving forward.
The U.S. government continues to be encouraged by the advancement of dialogue and trust-building across pillars. Despite some challenges, participants have made enormous strides in communicating candidly with one another. Through our outreach, on phone calls, and in our meetings in Washington and abroad, the U.S. government continues to re-emphasize that the VPs Initiative’s greatest strength lies in its ability to serve as a platform for candid discussion and collaboration around shared objectives, including successes and challenges experienced during implementation. We will keep reiterating this message.
In our role as Government Chair the past year, we sought to strengthen the VPs Initiative by helping to advance implementation of the principles on the ground, strengthen participation, and improve accountability and transparency. Given the importance of multi-stakeholder initiatives to the U.S. government’s engagement with companies abroad, we have the opportunity to shine a light on the good work being undertaken by VPs companies, and to continue to strengthen the VPs Initiative in line with U.S. objectives for responsible business conduct.
The U.S. government remains deeply committed to the VPs Initiative. We are energized by the work we did this year to enhance the stability of the VPs, and look forward to continued success and collaboration with all participants.