HRIA in Business - Background Information

The topic of impact assessment is not new to business. Over thirty years, private enterprises have been involved in environmental impact assessments (EIA’s) and social impact assessments (SIA’s). ESIA’s and SIA’s are quite common especially within the financial sector and extractive industries. Some national laws do require such impact assessments.

Recently, there is an increasing interest from the business community, civil society and international organisations to develop and use Human Rights Impact Assessments (HRIA). International standards such as the Voluntary Principles on Security and Human Rights (extractive and energy sectors) and the Equator Principles (financial industry) do require such impact assessments for specific projects.

The HRIA is the younger sibling of the environmental and social impact assessments. A HRIA is based on the normative framework of international human rights law laid down in the Universal Declaration of Human Rights, the international Covenants on Civil and Political Rights, and on Economic, Social and Cultural Rights. It focuses on each human right from a corporate perspective.

While private enterprises could use HRIA’s within the company, subsidiaries or partner businesses, the corporate stakeholders (civil society organisations, community) could also apply a HRIA on the private enterprise and its activities.