How WBA benchmarks are being used as independent monitoring tools by civil society

Civil society organisations and academic institutions are applying our methodologies to companies beyond the 2,000 companies we have already assessed, expanding our reach. Additionally, some non-governmental organisations (NGOs) are utilising our benchmarks as independent tools to monitor and evaluate companies’ performance.

For example, ClientEarth, an environmental law firm and WBA Ally, is suing Shell’s Board of Directors for failing to move away quickly enough from fossil fuels. This is the first-ever case of its kind seeking to hold corporate directors personally liable for mismanaging climate risk and failing to prepare for the energy transition properly. In its capacity as a shareholder, ClientEarth filed a lawsuit against 11 Shell directors for breaching their legal duties under the UK Companies Act. In doing so, it is supported by a group of large pension funds and by other institutional investors that hold more than half a trillion dollars in total assets under management. ClientEarth referenced WBA’s ACT methodology and the WBA Oil and Gas Benchmark in its case. According to ClientEarth, “These were helpful benchmarks to illustrate best practices for robust climate strategies and to provide a third-party assessment of the company’s performance in this respect.”

ClientEarth is supporting another case in France alongside French NGOs Notre Affaire à Tous, Sherpa, and France Nature Environnement against TotalEnergies, an oil and gas company. The case alleges that the company’s marketing breaches consumer law. This case also references the ACT methodology and the WBA assessment of TotalEnergies in our Oil and Gas Benchmark as evidence of the common principles for ‘net zero’ pledges.

Meanwhile, another WBA Ally, Save the Children, is using the Food and Agriculture Benchmark results as part of its corporate due diligence to determine which companies they are comfortable engaging with. It also shares WBA scorecards with its corporate partners.

Our Corporate Human Rights Benchmark (CHRB) supports stakeholders, including civil society, in their efforts to influence human rights policies

• The CHRB methodology was used for a National Baselines Assessment on Business and Human Rights conducted in Kazakhstan by the UN Development Programme. The study utilised the CHRB methodology to assess the extent to which the UN Guiding Principles (UNGP) were incorporated into the business policies of 60 companies. It revealed numerous gaps. Based on this study, UN experts have formulated 20 recommendations to enhance UNGP implementation, including the development of a National Action Plan.
• With the support of the CHRB team, local researchers have completed snapshot studies of the state of corporate respect for human rights in Kenya and Colombia using the CHRB methodology. The two teams of researchers found the CHRB methodology to be an important tool for assessing companies and accelerating conversations on business and human rights at the national level. In Kenya, the assessment provided a basis for increased engagement between civil society, companies and the Kenya National Human Rights Commission. The Commission is exploring the potential establishment of a business and human rights forum to facilitate further engagement with companies, including those outside the scope of the snapshot assessment.
• In December, our Ally ECODES, a not-for-profit engaged in sustainable development, published its third CHRB snapshot in Spain, evaluating the performance of 44 Spanish companies using the CHRB Core UNGP indicators. The report includes an analysis of trends from previous years and recommendations for how companies and the government can better prepare for the implementation of the recently approved EU Corporate Sustainability Due Diligence Directive.
• Action Solidarité Tiers Monde (ASTM), a Luxembourg-based NGO focused on international development, has published a ‘snapshot’ study assessing the human rights policies and practices of 27 state-owned companies in Luxembourg using the CHRB UNGP Core Methodology. The company scope included financial institutions and SMEs. Overall, results were poor, with 18 out of 27 companies scoring zero points. ASTM presented the study during a webinar, which representatives from the government and the private sector attended. The results will include a review of the National Action Plan on Business and Human Rights. • In January 2023, the Programme for Corporate Sustainability of the Catholic University of Chile launched its first ‘snapshot’ study of Chilean companies, and the first of its kind in Latin America, using the CHRB UNGP Core Methodology. WBA spoke at the launch event, which included two panels with company representatives from Global Compact Chile and the International Labour Organization. The study received media attention in national newspapers El Mercurio and El Mostrador.

Our independent evaluation made clear the potential in placing more emphasis on WBA’s engagement with NGOs and civil society organisations. Past experience has shown the value of a dedicated Engagement Lead focused on the needs and interests of a particular stakeholder group. We are exploring a similar approach for civil society organisations. This story is an excerpt from our 2023 Annual Report.