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PH-EITI: 2025 EXTRACTIVES TRANSPARENCY WEEK

27 November 2025

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Session 1: Climate Action and Energy Transition

Supply Chain Transparency: Data and Benefits

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Identifying and Responding to Salient Human Rights Risks in Business Activities in Asia

The Business & Human Rights Resource Centre is the only non-profit organisation drawing attention to the human rights impacts (positive & negative) of over 10,000 companies worldwide.�www.business-humanrights.org

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Strengthening Partners, Allies, and Movements: �We amplify voices and actions of workers & communities, support networks for power, and provide solidarity and support.

Influencing Decision-Makers: �We analyse and deploy evidence and data, promote effective government regulation and corporate reform, and drive change in investors and financiers.

Driving Accountability for Abuse: �We take up allegations of abuse and seek remedy, press for effective implementation of regulation and legal avenues for accountability, and support strategic litigation and connect legal advocates.

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PROTECT

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The state’s duty to protect against human rights violations by third parties, including businesses.

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Effective policies/laws; access to effective legal remedies

RESPECT

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Corporate responsibility to respect human rights throughout the value chain.

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HRIA, due diligence & complaints/

complaints

REMEDY

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Access to effective remedies in the case of human rights abuses.

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Judicial and non-judicial remedies

UN GUIDING PRINCIPLES ON BUSINESS AND HUMAN RIGHTS

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TRANSPARENCY

is a cornerstone of business and human rights, serving as a prerequisite for corporate accountability and effective human rights due diligence

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Enables Accountability

Drives Due Diligence

Empowers Stakeholders

Builds Trust and Mitigates Risk

Supports Systemic Change

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EMERGING LEGAL FRAMEWORKS

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EU Corporate Sustainability Due Diligence Directive (CSDDD)

CSDDD entered into force

25 July 2024

Omnibus for CSDDD announced & CSDDD delayed

February & April 2025

New deadline for transposition of CSDDD for Member States

26 July 2027

First application of obligations for companies

26 July 2028

  • Objective: Requires large companies operating in the EU to respect human rights and the environment by obliging them to carry out human rights and environmental due diligence across their global operations and (most parts of their) value chains

A "directive" is a legislative act that sets out a goal that EU countries must achieve. But it is up to the countries how to transpose it into national law

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CSDDD: Personal Scope

CSDDD

Omnibus proposal

🡪 Around 7,000 companies and 4,300 corporate groups

  • EU companies with 1000+ employees and net turnover of more than EUR 450 million
  • Non-EU companies with net turnover of more than EUR 450 million generated in the European Union
  • Financial institutions: only upstream

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Suggestion by the Council of the European Union: Change scope up to >5000 employees

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Source: SOMO, CSDDD Datahub, https://www.somo.nl/csddd-datahub/#look-for-company

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CSDDD: Due diligence obligations

Topic

CSDDD

Omnibus proposal

Due diligence obligations

(Art. 5– 16)

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  • Risk-based due diligence across the “chain of activities”
  • Put in place a policy framework
  • Establish and maintain a notification mechanism and complaints procedure
  • Monitor the effectiveness of due diligence policy and measures annually

Focus on direct suppliers (Tier-1)

Beyond Tier-1: only in-depth assessments where they have “plausible information” that adverse impacts are occurring

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  • Not aligned with UNGPs and OECD Guidelines
  • Most severe violations further down or up the value chains
  • Burden on Civil Society to raise awareness on adverse human rights impacts
  • Many affected rightsholders do not know which European company is at the end of the value chain

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Monitoring effectiveness from every year to every 5 years

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CSDDD: Meaningful stakeholder engagement

Topic

CSDDD

Omnibus proposal

Meaningful stakeholder engagement

(Art. 13)

Stakeholder as defined in Art. 3(n) includes:

    • Workers of the company, its subsidiaries, and its business partners along the chain of activities
    • Trade unions and workers’ representatives;
    • Consumers;
    • Other individuals, groups, communities, or entities whose rights or interests are affected by products, services, or employment relationships
    • Where direct engagement is not possible, Civil society organisations (CSOs) and experts can be used as proxy
  • Engagement must be meaningful throughout the whole process: timely, safe, accessible, and inclusive

Definition reduced to those “directly” affected and limited to necessary engagement of stakeholders (disengagement)

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Battery Regulation (EUBR)

Objective: Preventing human rights violations, environmental damage and harm to Indigenous People and communities in the mining of nickel, cobalt, graphite and lithium worldwide

  • Compliments CSDDD and focuses on sustainability of batteries throughout their lifecycle

Entry into Force

2023

Omnibus proposal includes Battery Regulation

22 May 2025

Guidelines published

2026

Full application & enforcement begins

2027 (tentative)

First report reviewing the regulation

2029 (tentative)

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Battery Regulation (EUBR)

Topic

EUBR

Omnibus proposal

Scope

  • All companies that generate more than EUR 40 million in revenue and that manufactures or sells batteries containing nickel, cobalt, graphite or lithium in the EU
  • Non-EU companies that sell such batteries to end costumers in the EU

Increased scope to net turnover below €150 million

Content

Due diligence obligations for companies in scope:

  • Installing a risk management system including the identification, analysis, prevention and mitigation of risks
  • providing a grievance mechanism
  • evaluating the system
  • documenting processes
  • public reporting

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Reviewing and reporting every three years, rather than annually.

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Battery Regulation (EUBR)

Topic

EUBR

Omnibus proposal

Additional instruments

  • Recognition of initiatives that support companies in fulfilling their due diligence obligations
  • The Commission is preparing a central platform for recording violations and sanctions

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No changes proposed (as of now)

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Enforcement

  • Enforcement by national supervisory authorities
  • Injunctions and fines can be imposed

No changes proposed (as of now)

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