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Global responsible investment research specialist EIRIS, Centre for Australian Ethical Research (CAER) and Survival International are supporting a United Nations Principles for Responsible Investment (UN PRI) programme to facilitate engagement between investors and their investee companies to promote and respect the rights of indigenous peoples around the world.

The UN PRI collaborative engagement draws on latest research from EIRIS which explores the challenges and opportunities faced by major companies operating in parts of the world where the rights of indigenous peoples are threatened.

According to the United Nations there are 370 million indigenous people in the world and 5,000 distinct indigenous cultural identities in more than 70 countries. There are believed to be more than 100 uncontacted groups in the world. Although indigenous people only account for 5% of the world’s population, they account for over 15% of the world’s poor.

Companies engaging in activities that may infringe the rights of indigenous peoples, as enshrined within the UN Declaration on the Rights of Indigenous Peoples, face increasing reputational risks potentially leading to issues with access to capital, damage to brand, licence to operate, and operational risks such as the threat of litigation and increased regulation.

The EIRIS report Indigenous rights: risks and opportunities for investors highlights the rights of indigenous peoples as a key human rights issue that companies and their investors should take into account. It covers companies operating in sectors (mining, oil & gas, agricultural producers, forestry and paper) and in countries considered to be high risk for indigenous peoples. The research also highlights key risks areas which investors should consider when engaging with companies on indigenous rights issues such as access to investment capital; increased regulation; litigation and reputational risk.

Big companies at risk: 250 companies (with a total market value of GBP 1.7 trillion) have been identified as having an exposure to indigenous rights. 17% of companies have a high risk exposure to indigenous rights issues.
Few companies report on indigenous rights issues: The quality of reporting is generally poor: whilst most companies provide a response to allegations of breaches of indigenous rights few report voluntarily on areas of non-compliance.
Fewer than 20% of companies have adopted a policy supporting free prior informed consent2 for indigenous peoples: 19% of these companies have a corporate-wide indigenous rights policy. Only 15% of companies have a corporate-wide policy supporting free prior informed consultation.
Only a fifth of companies disclose employment data on indigenous people: 19% of companies disclose employment data on indigenous peoples.
Fewer than 10% of companies have a policy for involuntary resettlement: Just over 6% of companies have a policy covering involuntary resettlement.

Given the level of NGO and media attention to the issue of indigenous peoples’ rights and the
introduction of laws and regulation in many countries, companies with strong commitments and effective engagement processes will undoubtedly benefit in an environment where access to land and resources is becoming increasingly restricted.

Stephanie Maier, Head of Research at EIRIS said ‘Indigenous rights is a complex issue that companies and their investors need to address and is especially important for extractive companies as they seek to expand and gain access to land. Our research explores the challenges and opportunities faced by major companies operating in parts of the world where the rights of indigenous peoples are threatened. We are very pleased to be working with the UN PRI and Survival International on this important area of engagement.’

Stephen Corry, Director at Survival International ‘Investors must use their considerable power to persuade companies to respect and protect the rights of indigenous peoples, otherwise they risk being charged with complicity in abuses they bankroll. As EIRIS has shown, this vital issue is chronically under-reported by companies. The United Nations Declaration on the Rights of Indigenous Peoples and ILO convention 169 should be used as benchmarks for the development of company policies on indigenous rights. Companies that fail to gain the free, prior informed consent of indigenous communities affected by their projects are in flagrant breach of international law.’

Bob Walker VP Sustainability at the Ethical Funds of Canada said ‘The risks from indigenous
Peoples’ opposition to specific projects is real and material for investors. But corporations also have an enormous opportunity to contribute to both economic and community development in the regions where they operate. This new research from EIRIS is a useful addition to our toolkit for encouraging greater corporate transparency that will undoubtedly benefit companies in an environment where access to land and resources is coming under increasing pressure globally.’

Click here (http://www.eiris.org/files/research%20publications/indigenousrightsjun09.pdf) to download a copy of the research report.


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News Index Search for news: Advanced Search	Investors Urged to Focus attention on rights of indigenous peoples Date: June 18, 2009 Global responsible investment research specialist EIRIS, Centre for Australian Ethical Research (CAER) and Survival International are supporting a United Nations Principles for Responsible Investment (UN PRI) programme to facilitate engagement between investors and their investee companies to promote and respect the rights of indigenous peoples around the world. The UN PRI collaborative engagement draws on latest research from EIRIS which explores the challenges and opportunities faced by major companies operating in parts of the world where the rights of indigenous peoples are threatened. According to the United Nations there are 370 million indigenous people in the world and 5,000 distinct indigenous cultural identities in more than 70 countries. There are believed to be more than 100 uncontacted groups in the world. Although indigenous people only account for 5% of the world’s population, they account for over 15% of the world’s poor. Companies engaging in activities that may infringe the rights of indigenous peoples, as enshrined within the UN Declaration on the Rights of Indigenous Peoples, face increasing reputational risks potentially leading to issues with access to capital, damage to brand, licence to operate, and operational risks such as the threat of litigation and increased regulation. The EIRIS report Indigenous rights: risks and opportunities for investors highlights the rights of indigenous peoples as a key human rights issue that companies and their investors should take into account. It covers companies operating in sectors (mining, oil & gas, agricultural producers, forestry and paper) and in countries considered to be high risk for indigenous peoples. The research also highlights key risks areas which investors should consider when engaging with companies on indigenous rights issues such as access to investment capital; increased regulation; litigation and reputational risk. Key findings: Big companies at risk: 250 companies (with a total market value of GBP 1.7 trillion) have been identified as having an exposure to indigenous rights. 17% of companies have a high risk exposure to indigenous rights issues. Few companies report on indigenous rights issues: The quality of reporting is generally poor: whilst most companies provide a response to allegations of breaches of indigenous rights few report voluntarily on areas of non-compliance. Fewer than 20% of companies have adopted a policy supporting free prior informed consent2 for indigenous peoples: 19% of these companies have a corporate-wide indigenous rights policy. Only 15% of companies have a corporate-wide policy supporting free prior informed consultation. Only a fifth of companies disclose employment data on indigenous people: 19% of companies disclose employment data on indigenous peoples. Fewer than 10% of companies have a policy for involuntary resettlement: Just over 6% of companies have a policy covering involuntary resettlement. Given the level of NGO and media attention to the issue of indigenous peoples’ rights and the introduction of laws and regulation in many countries, companies with strong commitments and effective engagement processes will undoubtedly benefit in an environment where access to land and resources is becoming increasingly restricted. Stephanie Maier, Head of Research at EIRIS said ‘Indigenous rights is a complex issue that companies and their investors need to address and is especially important for extractive companies as they seek to expand and gain access to land. Our research explores the challenges and opportunities faced by major companies operating in parts of the world where the rights of indigenous peoples are threatened. We are very pleased to be working with the UN PRI and Survival International on this important area of engagement.’ Stephen Corry, Director at Survival International ‘Investors must use their considerable power to persuade companies to respect and protect the rights of indigenous peoples, otherwise they risk being charged with complicity in abuses they bankroll. As EIRIS has shown, this vital issue is chronically under-reported by companies. The United Nations Declaration on the Rights of Indigenous Peoples and ILO convention 169 should be used as benchmarks for the development of company policies on indigenous rights. Companies that fail to gain the free, prior informed consent of indigenous communities affected by their projects are in flagrant breach of international law.’ Bob Walker VP Sustainability at the Ethical Funds of Canada said ‘The risks from indigenous Peoples’ opposition to specific projects is real and material for investors. But corporations also have an enormous opportunity to contribute to both economic and community development in the regions where they operate. This new research from EIRIS is a useful addition to our toolkit for encouraging greater corporate transparency that will undoubtedly benefit companies in an environment where access to land and resources is coming under increasing pressure globally.’ Click here (http://www.eiris.org/files/research%20publications/indigenousrightsjun09.pdf) to download a copy of the research report.