Six Steps to Human Rights Due Diligence

In developing and implementing policies and practices, Statkraft takes direction from the OECD’s Due Diligence Guidance for Responsible Business Conduct. The six steps, and the manner in which Statkraft implements each, are described in greater detail below.

#1: Embedding responsible business conduct into policies and management systems
Examples of Statkraft’s efforts to fully embed responsible business conduct in the company’s operations include the Sustainability and HSSE policy; Code of Conduct; Supplier Code of Conduct; Procurement Policy; People, Leadership, and Organisation Policy; as well as other relevant operational requirements.

#2: Identifying and assessing adverse impacts in operations, supply chains, and business relationships
Statkraft continues to evolve its impact assessment processes that consist of a twofold focus on environmental impacts on ecosystems and social impacts on communities stemming from the company’s projects and operations. Assessments are often carried out by external consulting firms or other independent third parties, and are closely monitored by qualified experts and national authorities.

Technical, economic, social, and environmental issues are all examined as part of this process, which may include: considerations of threatened species in the area; possible conflicts with the rights of indigenous peoples; the interests of the local population; the necessity of relocating people owing to things like flooding; and damage to flora and fauna stemming from dams, technical installations, and power grids.

Statkraft is currently working to similarly develop a robust framework to identify and assess potential human rights risks and impacts for employees as well as among the workforce of suppliers and contractors .

#3: Ceasing, preventing, or mitigating adverse impacts
Statkraft sees this as an important step in ensuring that the company’s stated commitments come to life and that respect for human rights is integrated in day-to-day operations. Here, Statkraft works to integrate the previously described efforts to adequately identify potential and actual impacts with the way in which the company operates in reality.

A wide range of policies, processes, and procedures are in place or under development to move Statkraft’s human rights due diligence systems forward. These include Environmental and Social Management Plans (ESMPs) for projects; Human Rights action plans for operations; an independent reporting (whistleblowing) channel; and HSSE reports and investigations.

#4: Tracking implementation and results
Statkraft recognises that more work is needed to ensure related initiatives are systematically tracked and monitored, and is actively working to improve the company’s approach to reviewing, following up on, and auditing human rights practices .

#5: Communicating how impacts are addressed
Statkraft collects information yearly in its Annual Report, and also completes the Modern Slavery disclosure .

#6: Providing for or cooperating in remediation when appropriate
While Statkraft makes every effort to ensure that potential negative impacts are avoided, it recognises that there are instances where this has not been achieved in reality. In these cases, Statkraft participates in judicial and non-judicial grievance processes and provides appropriate and mutually-acceptable remedies.

Statkraft is also committed to learning from these processes and further improving the management of human rights issues as a result.

Statkraft has established a strategy based on the principle that remedial measures should, as much as possible, make environmental and social conditions as good as or even better than they originally were. For example, in the development of a hydropower facility in the Indian Himalayas, established plans focus on minimising the number of threatened pine tree species cut down, implementing a programme to plant two trees for every one removed, and offering compensation for communities affected by the loss of production for a period of 40 years.