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Blog | Tuesday May 12, 2020
A Human Rights Impact Assessment of Facebook In Cambodia
Earlier today, Facebook published an executive summary of a human rights impact assessment that BSR conducted on behalf of Facebook in Cambodia and its response to those recommendations. We welcome this disclosure as part of Facebook’s increasingly strategic approach to human rights due diligence.
Blog | Tuesday May 12, 2020
A Human Rights Impact Assessment of Facebook In Cambodia
Earlier today, Facebook published an executive summary of a human rights impact assessment (HRIA) BSR conducted on behalf of Facebook in Cambodia and their response to those recommendations. This follows Facebook’s previous publication of BSR’s HRIA of Facebook in Myanmar and human rights review of the Facebook Oversight Board. Today Facebook also published executive summaries of HRIAs conducted in Indonesia and Sri Lanka.
BSR’s HRIA made 22 recommendations for Facebook in Cambodia across the five areas of Community Standards enforcement, protecting civic space, engagement with stakeholders, promoting systemwide change, and preparing for upcoming risks and opportunities. Facebook’s response to the HRIA clearly sets out the meaningful steps the company is taking to implement the recommendations and its plans for more in the future.
We welcome these disclosures as part of Facebook’s increasingly strategic approach to human rights due diligence, one that covers the main elements expected by the UN Guiding Principles on Business and Human Rights (UNGPs): assessing human rights impacts, taking action, tracking effectiveness, and communicating externally.
Taken in combination, these disclosures indicate three trends in business and human rights that we believe will take hold over the coming years.
- Reporting the results of human rights assessments, not just the process. Over recent years, companies have increased public communications that describe their human rights due diligence process, such as when, how, and where human rights assessments are conducted. However, it remains rare for companies to disclose the findings of these assessments and the actions that are subsequently taken. The proposed new Global Reporting Initiative Human Rights Standard includes reporting on the actual and potential adverse human rights impacts identified and actions taken, and so we both welcome Facebook’s disclosures and see them as a sign of things to come. Facebook’s decision to publish executive summaries, rather than the full HRIA, also points towards an approach that allows for increased disclosure by companies while protecting stakeholder safety and commercial confidentiality at the same time. It’s a good balance, and we expect increased alignment around this approach. Google’s recent HRIA of a celebrity recognition tool is another notable indicator of this trend.
- Considering respect for human rights in entire systems, not just individual companies. Facebook’s HRIAs identify the company’s actual and potential adverse human rights impacts—however, they also situate these impacts as part of a broader system. The recommendations contained in the HRIAs are notable for the extent that they involve action by multiple parties, not just Facebook. As we have previously written, while HRIAs are typically undertaken for a single company, the solutions often need to be applied at the system level. This also implies that not only do multiple actors need to be involved, but that single companies have the potential to exact positive influence on the entire “protect, respect, and remedy” human rights ecosystem.
- Connecting global and local approaches. While the HRIA BSR conducted was focused on Cambodia, we made five recommendations on topics, such as human rights defenders, child rights, and advertising on Facebook’s platforms, that are relevant everywhere. While each country has its own unique context, Facebook’s increasing portfolio of country-level HRIAs provides good insight into the direction that a global human rights program can take.
The UNGPs state that companies should track the effectiveness of their human rights approach by drawing upon feedback from external sources, including affected stakeholders. We hope that the publication of these HRIAs and Facebook’s response to them enhances this feedback process and informs improved dialogue among all stakeholders. We look forward to seeing progress over time.
Blog | Tuesday May 12, 2020
COVID-19: External Resources for Business
A list of external resources on sustainability, ESG, and CSR for companies and stakeholders during the COVID-19 crisis.
Blog | Tuesday May 12, 2020
COVID-19: External Resources for Business
As part of our efforts to support businesses and stakeholders during the COVID-19 crisis, we at BSR are compiling and sharing a list of relevant external resources in addition to the thought leadership from BSR experts, members, and partners provided on our COVID-19 Content Hub. Below is a selection of external blogs, articles, and other materials providing useful perspectives for companies looking to meet the moment and build the future. We will update this selection on an ongoing basis.
Climate Change
- Ceres: Business Disruption and a Just Transition (Video)
- Levi Strauss & Co.: Employee Hardship Fund Playbook (Playbook)
- Morrison & Foerster: Public Charity Side Car (Article)
- UN Global Compact: Uniting Business and Governments to Recover Better (Statement)
- UNEP: COVID-19 Is Not a Silver Lining for the Climate, says UN Environment Chief (Article)
- WBCSD: The Consequences of COVID-19 for the Decade Ahead (Brief)
Human Rights
- Business Fights Poverty: Business and COVID-19: Supporting the Most Vulnerable (Guide)
- Human Rights Watch: COVID-19 Puts Millions of Global Supply Chain Workers at Risk (Article)
- IHRB: Impact of COVID-19 on Migrant Workers in South East Asia (Brief)
- IHRB: Respecting Human Rights in the Time of the COVID-19 Pandemic: Examining Companies’ Responsibilities for Workers and Affected Communities (Paper)
- ILO: COVID-19 and the World of Work: Global Impact and Policy Recommendations (Primer)
- Investor Alliance for Human Rights: Investor Toolkit on Human Rights (Toolkit)
- IRIS: COVID-19: Guidance for Employers and Business to Enhance Migrant Worker Protection during the Current Health Crisis (Guide)
- ISS Governance: Workers' Rights and COVID-19: Testing the Resolve of Corporate Labor Policies (Report)
- Levi Strauss & Co.: Employee Hardship Fund Playbook (Playbook)
- Morrison & Foerster: Public Charity Side Car (Article)
- OAS: OAS Launches Practical Guide to Inclusive Rights-Focused Responses to COVID-19 in the Americas (Press Release)
- Pillar Two: Managing Business-related Human Rights Risks During and After C-19 (Hub)
- UNDP: Human Rights Due Diligence and COVID-19: Rapid Self-Assessment for Business (Tool)
- UNICEF/ILO/UN Women: Family-Friendly Policies and Other Good Workplace Practices in the Context of COVID-19 (Document)
- WBCSD: The Consequences of COVID-19 for the Decade Ahead (Brief)
Inclusive Economy and Worker Wellbeing
- AIHA: Back to Work Safely (Hub)
- ILO: Almost 25 Million Jobs Could Be Lost Worldwide as a Result of COVID-19 (Article)
- ISS Governance: Workers' Rights and COVID-19: Testing the Resolve of Corporate Labor Policies (Report)
- Fast Company: In Coronavirus’s Wake, Gig Workers Are Demanding Paid Sick Leave (Article)
- Levi Strauss & Co.: Employee Hardship Fund Playbook (Playbook)
- Morrison & Foerster: Public Charity Side Car (Article)
- Sodexo: Reopening with Resilience: Webinar Takeaways (Summary)
- The Life I Want: How Will the Future of Work Affect Our Mental Health? (Blog)
- Triple Pundit: EdTech Companies Easing the Transition to Distance Learning in Wake of COVID-19 (Article)
- UN Global Compact: Uniting Business and Governments to Recover Better (Statement)
- UNICEF/ILO/UN Women: Family-Friendly Policies and Other Good Workplace Practices in the Context of COVID-19: Key Steps Employers Can Take (Document)
- WBCSD: The Consequences of COVID-19 for the Decade Ahead (Brief)
Supply Chain Sustainability
- Better Buying: Guidelines for “Better” Purchasing Practices Amidst the Coronavirus Crisis and Recovery (Guide)
- Fair Wear: Garment Industry Coalition Lays out Joint Priorities for the Garment Sector (Statement)
- Flexe: Supply Chain Disruption Q&A: From Redundancy Comes Resilience (Blog)
- ISS Governance: Workers' Rights and COVID-19: Testing the Resolve of Corporate Labor Policies (Report)
- Levi Strauss & Co.: Employee Hardship Fund Playbook (Playbook)
- Morrison & Foerster: Public Charity Side Car (Article)
- Novartis: COVID-19 Good Practice Guidance for Third Parties (Guide)
- WBCSD: The Consequences of COVID-19 for the Decade Ahead (Brief)
- Worker Rights Consortium: Which Brands Are Acting Responsibly toward Suppliers and Workers? (Tracker)
- Worker Rights Consortium: Who Will Bail Out the Workers that Make Our Clothes? (White Paper)
Sustainability Management
- BlackRock: BlackRock Investment Stewardship: Engagement Priorities for 2020 (Guide)
- Bloomberg: Older ESG Funds Outperform Their Newer Rivals in Market Tumult (Article)
- Just Capital: The COVID-19 Corporate Response Tracker (Tracker)
- Levi Strauss & Co.: Employee Hardship Fund Playbook (Playbook)
- Morrison & Foerster: Public Charity Side Car (Article)
- Public Private Strategies: Employer Resource Round Up (Hub)
- RI: Pandemic Could Be Tipping Point for ESG (Survey)
- Target: Considerations for Retail Operations Post COVID-19 (Guide)
- WBCSD: The Consequences of COVID-19 for the Decade Ahead (Brief)
Women's Empowerment
- CARE/IRC: Global Rapid Gender Analysis for COVID-19 (Tool)
- Data2X: COVID-19 Resources: Gender Data, Gender, and Data (Hub)
- Levi Strauss & Co.: Employee Hardship Fund Playbook (Playbook)
- Morrison & Foerster: Public Charity Side Car (Article)
- UK Government: Employers Do Not Have to Report Gender Pay Gaps in 2020 (News)
- UN Women: COVID-19 and Gender Rapid Self-Assessment Tool (Tool)
- UN Women: Gender-Sensitive Private Sector Response to COVID-19 for Accelerated and Inclusive Economic Recovery (Primer)
- UN Women/BSR/WeEmpowerAsia: The Business Case for Integrating a Gender Lens into Private Sector COVID-19 Recovery Plans (Webinar)
- WBCSD: The Consequences of COVID-19 for the Decade Ahead (Brief)
- World Bank: Gender and COVID-19 (Brief)
Blog | Tuesday May 5, 2020
COVID-19 and the Climate Crisis: Building Resilience with People at the Core
Whether it’s a pandemic or climate-related impact, those with the least, and those faced with the most extreme socioeconomic barriers, will suffer the most. The impacts that these populations face have the potential to disrupt business, from operations and supply chains down to the vital communities on which business depends.
Blog | Tuesday May 5, 2020
COVID-19 and the Climate Crisis: Building Resilience with People at the Core
In what feels like the blink of an eye, COVID-19 has dislocated our daily lives, our economy, and the way we do business, with little visibility on when the crisis will be resolved. Our experience with this pandemic makes one thing very clear, however—we need to become more resilient, and people have to be at the core. Despite warning after warning of a potential pandemic, we weren’t ready for this public health crisis: governments, businesses, and people alike.
We’re similarly unprepared to respond to the climate crisis, especially as we enter the “decisive decade,” where action to reduce greenhouse gas (GHG) emissions and to adapt to immutable climate change impacts has never been more critical. Business has a critical role to play in helping to create a system that is better prepared to prevent and cope with the crises to come.
Another thing is clear: systemic socioeconomic inequality further exacerbates the dangers posed by both COVID-19 and the climate crisis to vulnerable populations. Both expose the underlying inequalities that exist today, creating disproportionate impacts on low-income communities, people of color, women, the elderly and those with pre-existing health conditions, who are more susceptible to both the virus and its knock-on effects.
Systemic socioeconomic inequality further exacerbates the dangers posed by both COVID-19 and the climate crisis to vulnerable populations.
In some parts of the United States, people of color are more affected by the virus, including lack of access to medical care and other long-standing inequities within health and economic systems. Low-income populations are less likely be able to work from home, increasing their potential risk of exposure. Vulnerable populations are similarly disproportionately affected by the impacts of climate change. When Hurricane Katrina hit New Orleans in 2005, low-income people and women of color and their children bore the brunt of the disaster, forced to flee their homes to often unsafe, temporary living situations and exposing themselves to increased gender-based violence.
People with disabilities and the elderly may be more likely to struggle in the face of COVID-19 response measures, such as social distancing, since many rely on the support of others for essential tasks and often already have compromised immune systems. These factors can pose similar challenges in the face of climate-related disasters.
The COVID-19 crisis has also greatly affected migrant workers and refugees, preventing those seeking asylum from gaining access to countries as borders closed over fear of virus spread. This leaves refugees in unsafe situations without basic needs. A similar situation is unfolding with the climate crisis, which is projected to increase the number of refugees, adding stress to already overburdened development and aid systems.
Whether it’s a pandemic or climate-related impact, those with the least, and those faced with the most extreme socioeconomic barriers, will suffer the most. The impacts these populations face have the potential to disrupt business, from operations and supply chains down to the vital communities on which business depends.
COVID-19 and Climate Change Responses: Shared Learnings
Both the pandemic and climate change manifest themselves in physical impacts. And although the impact of the pandemic is here and now, while climate impacts vary in degree and timeframe (i.e. acute events like extreme weather events, flooding, drought, and changes in vector-borne diseases; chronic events like sea-level rise), there are clear similarities in the infrastructure and systems required to mount an effective response.
One common learning is that we need to redesign the way we recover from these shocks. In both cases, our recovery must be just and inclusive of the most vulnerable, taking a more holistic approach and putting people at the center of our forward-looking plans, both in the short and long term.
Planning for a more uncertain future from unknown shocks, including those caused by climate change, will help businesses and society become more prepared with less stress on people and the planet.
The economic downturn has only begun, but it is obvious that the economy and jobs, people’s livelihoods, are critical to our recovery from the pandemic, as well as when we design climate solutions. More than 30 million Americans have filed for unemployment, with certain industries more affected than others. Our recovery must be designed to ensure that people don’t bear the brunt of the adjustment cost of getting back to work post-pandemic. This is also true within the climate crisis as we transition away from fossil fuels to renewable energy. It’s critical that we ensure that the people and communities dependent on high-carbon jobs aren’t left behind. Addressing the climate crisis has the potential to create new markets and jobs within the renewable energy sector—jobs that won’t depend on the volatile carbon market or carbon-intensive assets. Creating preventative plans and systems that both address current unemployment from COVID-19 and help society respond better to future inevitable climate impacts will create a more resilient and healthier economy.
And finally, with the pandemic halting business as usual, we’re already seeing reduced GHG emissions, even if temporary. While we know that this isn’t enough to keep global warming in line with the Paris Agreement goals, it’s likely that some changes will remain in practice and that can have a lasting, positive effect on society. These include the increase in remote working and decrease in demand for in-person meetings, with technologies having already improved in the weeks during the pandemic (although equitable access to technology remains an issue in many communities and households). Planning for a more uncertain future from unknown shocks, including those caused by climate change, will help businesses and society become more prepared with less stress on people and the planet.
Resilient Business Strategies for a Better Recovery
There is a tremendous opportunity for business to take the lead. While this pandemic has revealed opportunities where we can improve our approach to resilience planning, it has also proven that both businesses and governments can act, and they can act quickly. Imagine the difference in our response had there been a holistic plan to address the pandemic? We can and must prepare for the next pandemic, or the impacts of climate change, with resilient business strategies that put people at the center.
Here are some mutually reinforcing interventions businesses can take considering COVID-19 and the climate crisis:
- Understand your company’s vulnerabilities to short- and long-term shocks across your entire value chain by undertaking the necessary risk assessments and scenario planning. This strategic foresight can help to identify potential future shocks and lead to the development of more holistic resilience strategies. This includes the consideration of how sudden changes can magnify one another, including how climate change can potentially exacerbate a company’s existing vulnerabilities. BSR’s Sustainable Futures Lab helps companies understand how these changes can affect businesses, and the Taskforce for Climate-Related Financial Disclosures (TCFD) embeds scenario analysis into its recommendations. The benefits go beyond looking at future climate impacts but also examining how multiple shocks can compound each other.
- Strengthen your company’s resilience plans through collaboration with other relevant stakeholders, including other businesses, government, and civil society. For example, BSR’s Value Chain Risk to Resilience platform collectively aims to build resilience holistically through climate risk assessments, business integration, and governance from the top to their on-the-ground communities fundamental to their existence.
- Ensure that the most vulnerable are at the center of core business resilience planning. Invest in the resilience of these vital and surrounding communities, including employees, within your business’ operations, supply chain, and markets—the solutions should address the inequalities, health systems and well-being of the people.
- Help create jobs post-pandemic by investing in renewable energy—this will provide new, long-term jobs. Transitioning away from fossil fuels and procuring renewable energy should be done through an approach that puts people at the center by respecting human rights and that leaves no one behind.
- Formalize new ways of working that have co-benefits both for your people as well as the environment, starting with less business travel and better videoconferencing. Embedding this into your system now will help reduce your emissions and climate impacts.
As we scramble to contain the current public health crisis and the growing recession, we cannot afford to wait to address the climate crisis. It is clear that solving any future crises, and being truly resilient, will require all hands on deck for the type of systemic change necessary. Efforts will be needed from governments of all levels and from business of all kinds, including those with massive supply chains and those that make up the local communities on which we depend for our daily existence, and it will also come down to the decisions that we make on an individual basis. Redesigning our systems to address the systemic inequalities and vulnerabilities our society faces will help us to manage, and to recover from, the next crisis. Let’s come together to do the work now for a better future—one that boosts the resilience of those that need it most.
Blog | Monday May 4, 2020
Sustainability Reporting and Early Lessons from COVID-19
BSR has observed several trends emerging from the COVID-19 pandemic and compared them with best practices on reporting. We are sharing these insights here to assist company sustainability teams as they strive to keep stakeholders informed—despite, in many cases, the reality of limited time and diminished resources.
Blog | Monday May 4, 2020
Sustainability Reporting and Early Lessons from COVID-19
Public scrutiny of how businesses are responding to the COVID-19 pandemic is bringing renewed attention to the importance of corporate transparency on sustainability issues. Effectively meeting these expectations starts with understanding two key dimensions of sustainability reporting: how companies are responding now and defining how companies should respond in the future.
We have observed several trends emerging from the pandemic and compared them with best practices on reporting. We are sharing these insights here to assist company sustainability teams as they strive to keep stakeholders informed—despite, in many cases, the reality of limited time and diminished resources.
What We’re Seeing Now
- Companies adjusting their reports. COVID-19 has shaken all businesses, causing some to delay or scale back their formal sustainability reporting. Companies that recently released a 2019 report or are in the final approval stages are primarily acknowledging COVID-19 in one of three places: the CEO letter, as a call-out box or case study within the report itself, or in the report’s corresponding press release. Companies are also linking to informal and regularly updated webpages that provide specifics on their immediate COVID-19 responses.
- Investors watching closely. Investors remain eager for the latest performance data and have reiterated the importance of engagement on long-term environment, social, and governance (ESG) issues despite the havoc wreaked on businesses’ day-to-day operations. BlackRock notes this proxy season will focus on board composition and quality, environmental risks and opportunities, corporate strategy and capital allocation, compensation that promotes long-termism, and human capital management. JUST Capital is tracking how employers are treating stakeholders amid the current crisis, and Truvalue Labs has introduced a free Coronavirus ESG Monitor that captures impact using the Sustainability Accounting Standards Board's (SASB) material issue categories. The ESG issues that investors were looking at prior to COVID-19 still hold—indeed, the current crisis has amplified their importance to investors’ decision-making.
- An emphasis on social criteria. The COVID-19 crisis is placing heightened importance and increased scrutiny on how companies are addressing the “S” in ESG. News outlets and investors alike are focusing on companies’ treatment of employees, suppliers, and the communities in which they operate, naming and shaming (or faming) good and bad actors along the way. Reputation is an important driver of this focus, but business continuity, economic inclusion, and public safety considerations are also critical. Given mounting investor, civil society, and media attention, companies are increasing their focus on social issues to demonstrate responsiveness to the top priorities of the day.
What We’d Like to See in the Near Future
- Consistency and completeness. Investors still want comparable year-on-year data and will be especially interested this year in gauging companies’ resilience to shocks. Although managing COVID-19’s immediate impacts remains top priority for many public companies, reporting historical ESG data and performance remains essential. While a slight delay of this year’s reporting is understandable, companies should still strive for the same level of coverage as previous years and continue to improve their disclosures moving forward, with the expectation that their performance on key social issues will be even more thoroughly examined than usual.
- Accountability during the new reality. Reports should provide an enduring account of how companies are responding to the COVID-19 crisis. The extent to which companies do this now or in the future depends on where they are in their reporting cycle: reports near completion today (e.g. by companies that operate on a calendar-year basis) will provide less insight than those with more time available (e.g. by companies with a fiscal year that doesn’t match the calendar year and report later in the year). Regardless of reporting calendar, companies will need to explain decisions made during this time and make forward-looking statements about how they intend to help "build back better" in the future. Sustainability reports will become an essential venue for accountability when looking back at company actions during COVID-19.
- Numbers backed by narrative. Stark reductions in business operations and travel as a result of COVID-19 will likely reduce companies’ greenhouse gas emissions and other environmental impacts, in many cases accelerating progress towards sustainability goals. Similarly, COVID-19 will impact many other metrics, such as diversity, employee engagement, and supply chain labor compliance. Going forward, it will be essential for companies to provide a narrative that identifies what change in historical performance relates to COVID-19 factors and what change results from previously existing plans—numbers on their own will be impossible for readers to interpret. It will also be important to provide a forward-looking narrative explaining their potential trajectory once COVID-19 is behind us.
- Meeting stakeholders’ information needs outside the annual reporting cycle. Honest and timely communications are more important now than ever. Reporting is about meeting the information needs of external stakeholders, and in the current crisis, that may entail disclosure outside the boundaries of the formal sustainability/annual report, such as dedicated COVID-19 webpages. While not a substitute for formal reporting, well-designed websites and other responsive communications can be a powerful tool to distill the most material information to stakeholders, enabling them to make informed decisions and provide feedback to companies in the near term.
Sustainability reporting exists so that stakeholders can make informed judgments about how companies impact the world around them and understand how the changing world impacts the sustainability performance of companies. In this sense, sustainability reporting is more important now than it has ever been, and looking forward, it will be critical to understand how COVID-19 may impact sustainability reporting over the long term. Stay tuned for a follow-up blog post on how to “build the future” of post-COVID sustainability reporting.
Blog | Wednesday April 29, 2020
Understanding Connections Between Climate and Public Health
The global coronavirus pandemic is bringing the connection between climate and public health into focus. In recognition of Earth Day, Levi Strauss & Co. interviewed experts at the nexus of climate and public health to better understand the links and what needs to be done.
Blog | Wednesday April 29, 2020
Understanding Connections Between Climate and Public Health
Climate change threatens the planet, our communities, and business. The global COVID-19 pandemic is also highlighting the connection between climate and public health.
As part of Earth Day, and in light of the current worldwide health crisis, BSR member company Levi Strauss & Co. interviewed experts at the intersection of climate and public health, including BSR Director Cécile Oger. To better understand connections between these two critical issues and the next steps to take, we invite you to read this article.
Blog | Wednesday April 22, 2020
ESG Isn’t Going Anywhere: Investor Expectations in the Age of COVID-19
One of the most important topics in corporate sustainability is the dramatic increase in attention by investors on the integration of environmental, social, and governance (ESG) considerations. How will the rise of COVID-19 affect ESG investing strategies both in the short term and the long term, and what does it…
Blog | Wednesday April 22, 2020
ESG Isn’t Going Anywhere: Investor Expectations in the Age of COVID-19
One of the most important topics in corporate sustainability is the dramatic increase in attention by investors on the integration of environmental, social, and governance (ESG) considerations.
The COVID-19 pandemic has created a global health crisis, upended the economy, and led to major stock market declines. As a result, many investors are reevaluating both short-term and long-term portfolio strategies, and companies are reevaluating their sustainability priorities. This raises an important question for corporate sustainability professionals: how will the rise of COVID-19 affect ESG investing strategies both in the short term and the long term, and what does it mean for companies?
Preliminary indications are that the COVID-19 pandemic has—if anything—increased investor attention on corporate ESG management. In particular, investors have been even more vocal about their expectations on issues such as employee health and safety, workforce policies, job security, and business operational and strategic resilience. Front and center are investor concerns about responsible corporate governance, specifically related to COVID-19 response.
Preliminary Indications Are That Investors Are Full Steam Ahead on ESG
Leading asset owners and institutional investors are renewing their ESG investing commitments. The Government Pension Investment Fund (GPIF) of Japan, the world’s largest asset owner, and other major asset owners remain steadfast in their expectations of ESG and long-term investing. Even as the virus and market turmoil spread in mid-March, a new round of major asset owners joined GPIF’s letter.
Larry Fink, the CEO of BlackRock, the world’s largest asset manager, also released a letter at the end of the first quarter in which he emphasized that “the pandemic we’re experiencing now highlights the fragility of the globalized world and the value of sustainable portfolios. We’ve seen sustainable portfolios deliver stronger performance than traditional portfolios during this period.” Blackrock is also continuing to take ESG action as a shareholder even during the crisis, notably voting against a board member at a natural gas distributor based on the company’s inadequate climate-related risk disclosure.
Early data seems to show that ESG funds are performing better and proving more resilient during this turbulent moment in time. S&P Dow Jones' analysis notes that ESG portfolios have delivered better returns during the COVID-19 crisis and over the longer-term as well.
BSR has partnered with Polecat since 2017 to deliver real-time corporate reputation and ESG intelligence from global online and social media discourse. Our review of data from Polecat indicates that many ESG topics (e.g., climate change, indigenous rights, etc.) are being reframed in relation to COVID-19, increasing their urgency and reach.
The Wall Street Journal also envisions that the pandemic could elevate ESG factors in investment decisions, characterizing remarks from the head of research at the British investment bank Barclays: “Companies should expect more investors to ask questions about resilience and contingency planning, viewing the issues in light of the pandemic as relevant to a company’s long-term performance. Down the line, those conversations could evolve to broader ESG discussions…”
More broadly, COVID-19 has also highlighted enormous disparities in society and corporate performance on the “S” in ESG. As the world assesses the challenges and rebuilds—and invests the capital to do so—it is likely to be guided by the imperative to “build back better” with a more just and sustainable economy. Companies will be evaluated by how they address those challenges in their businesses and being part of global solutions will be both a competitive differentiator and an ESG differentiator.
COVID-19 Will Demand Emphasis on Different Areas of ESG
Many, if not most, corporate sustainability materiality matrixes will need some updating. The pandemic has demonstrated that many companies might generally have identified the right set of issues but may not be prioritizing them correctly or setting the right agendas to address them. For example, many service companies have not thought that employee health and safety was a high risk for their business. This thinking is obviously now changing.
In this regard, BSR has seen a variety of material issues emerge as areas of particular interest to ESG investors. These include employee health and safety outside as well as inside the workplace, supply chain and resource risk and resilience, and employer-employee social contracts. It will be noteworthy to see how companies begin to report on COVID-19 in relation to these material issues, especially with the impending release of many corporate sustainability reports.
COVID-19 has also put a spotlight on building resilient business strategies through scenario planning and considering second or even third-order effects. Issues that may have been deprioritized because they seem attenuated have—by the nature of the virus and its related effects on labor, supply chains, etc.—highlighted that a one-dimensional view of risk is not sufficient in designing resilient business strategies. Using scenario analysis in materiality and integrating the process with enterprise risk management are examples of ways that companies can better identify emerging ESG issues, some of which could manifest as quickly as COVID-19—and manage those risks accordingly.
COVID-19 Is a Reason to Accelerate Efforts on ESG, Not to Pause Them
Companies that are more strategically and operationally resilient and that treat their workforces better will likely be more attractive to all investors. In the short term, that means companies should increase efforts to integrate ESG investor expectations, ratings, and perspectives as part of sustainability initiatives, stakeholder engagement, and resilient business strategies. Corporate leadership should also be conversant in ESG topics that relate to the COVID-19 response as investors ask tough questions and stakeholders evaluate companies on their effectiveness, credibility, and leadership on those material topics.
Longer-term, COVID-19’s effects and the responses may also become a testbed for ESG analysis that helps create a new understanding of ESG impacts on business. For example, many investors have struggled with how to model and quantify the “social” aspects of ESG (whereas “environmental” are quantitative and more understood), and this may improve understanding of the financial impacts of major social disruptions. If this happens, companies should expect to see an increase in the quality of ESG investor expectations for corporate reporting.
As we look ahead to the day when COVID-19 is no longer front-page news every day, it will be imperative for companies to learn and apply the lessons of this crisis. We believe investors will in turn hold them to higher ESG expectations. It will only become more important for companies to turn corporate sustainability principles into action, placing robust approaches to ESG at the center of resilient business strategies.
Blog | Monday April 20, 2020
Women in Supply Chains: On the Frontlines of COVID-19’s Impact
The COVID-19 pandemic has quickly transformed from a global health crisis into a financial crisis, particularly for low-income female workers in global supply chains. However, companies can effectively deploy preventative measures to support workers and workplaces to protect their health and strengthen their financial resilience.
Blog | Monday April 20, 2020
Women in Supply Chains: On the Frontlines of COVID-19’s Impact
The COVID-19 pandemic has quickly transformed from a global health crisis into a financial crisis, particularly for low-income female workers in global supply chains. However, companies can effectively deploy preventative measures to support workers and workplaces to protect their health and strengthen their financial resilience.
Developing countries—where many supply chain production sites are located—are not equipped with the economic resources and medical facilities and commodities required to mount an effective public health response. Compounding this issue, businesses faced with the mass cancellation of orders from global brands or government lockdowns are closing their business doors and laying off low-income workers.
In the context of a health emergency, the implications of gender inequality are stark. COVID-19 is no exception and will affect women and girls disproportionately. With approximately 190 million women working in global supply chains, the outbreak is especially concerning for low-income female workers, resulting in:
- Added economic hardship on a population whose financial status is already stretched too thin and put at risk of being unable to pay for bare survival necessities;
- Exacerbated risk of violence against women, increasing the level of stress and the disruption of social and protective networks and decreasing access to protective services;
- Being relegated to traditional gendered roles as primary caretakers by both solely looking after children during school closures as well as the sick and elders;
- Increased exposure to COVID-19 as those most in contact with sick family members and elders (who are most at risk of the virus) and also likely nexus of transmission by being primary caretakers.
Women already have limited financial means and struggle to meet expenses under normal circumstances. With many of them paid in cash wages, sudden workplace closures or layoffs can also mean pay delays or reductions or worse. In Cambodia, workers in garment factories suspended due to COVID-19 will only receive $70 a month (about 37 percent of their monthly minimum wage), a shock which could have a dramatic and long-lasting impact on their lives. In Bangladesh, the Bangladesh Garment Manufacturers Association has reported that over $2.4 billion of ready-made garment orders have been cancelled or suspended by global buyers, describing it as a "catastrophic" move which will directly affect almost 2 million workers, mostly women. This drastic slowdown in commerce, combined with the preexisting financial inclusion gender gap, makes female workers even more vulnerable and less likely to have access to remittances, savings, or insurance that could help them in emergencies.
Not going back to work is not an option. Workers are more concerned about getting paid—regardless of the health risks. "We have not been paid for two months. We are starving," a female garment worker, Brishti, recently told AFP during a protest in Dhaka. "If we don't have food in our stomach, what's the use of observing this lockdown?"
But how can workers reintegrate into factory work in a safe and sustainable way? Workplaces need to implement preventative measures, upholding social distancing and improving hygiene practices. Workplaces, which gather people from different and densely populated communities into a confined space and have them handling the same objects, are an obvious vector for communicable disease transmission. Garment factories, which are staffed by approximately 60-80 percent women workers globally, are exceptionally at risk because the production process requires workers to operate in close proximity while passing products from one to another. It’s been documented that the coronavirus can be transmitted through handling cardboard boxes passed between workers. As the material of choice for packhouses, this puts packhouse workers at higher risk of picking up traces from carton to hand.
So how should businesses consider the needs of female workers when reopening their doors?
Reproductive Health to Ensure the Sustainable Return of Women at Work
Health resources normally dedicated to reproductive health go towards emergency response in times of crisis. At the same time, past pandemics have showcased a rise in domestic violence which lead to additional unwanted pregnancies. Ensuring continued access to family planning resources and preferred contraceptive methods during COVID-19 will be key to ensure that low-income women who are already facing financial hardship from this pandemic are not faced with the added economic hardship of having a child. Furthermore, it ensures that they are able to return to work and not forced to drop out to care for a newborn. Access to contraceptives may be hampered, however, by potential supply shortages during lockdown which reduce the stockpile of available commodities. Furthermore, low-income women suddenly out of work may find it difficult to make out-of-pocket payments while navigating insurance practices that often limit reimbursement to just one month of prescription drugs at a time. COVID-19 is an exemplary reason why employers should ensure their workforce’s modern family planning needs are provided for at the workplace clinic or through referral mechanisms.
Physical Health and Safety in the Community and at Work
HERhealth baseline data in 2019 showcased that personal hygiene practices are weak and conducive to spreading germs like the coronavirus both at work and at home. For example, across eight factories in Bangladesh, 55 percent of 363 women workers could name only one benefit of hand washing. And yet, 13 years after we first launched a personal hygiene model, some donors ask us whether it is still relevant. Of course, the topic is now back on the map as a central public health concern, crossing both personal and professional spaces in order to survive the pandemic. Imparting a culture of handwashing, however, relies both on behavior and access to clean water and soap. HERhealth is reaching workers—both at work and in their communities—via digital means to improve hygiene best practices.
Production Pressure and Stress
It is commonly reported that poverty-related stress and economic insecurity can lead to an increase in intimate partner violence. When unemployment rates skyrocket and economies slow to a halt, intimate partner violence is likely to increase at home as a result of related stress. Similarly, following the reopening of factories, orders that were on hold will lead to increased production pressures. We know from experience that in times of stress, managers sometimes resort to abusive behaviors, such as shouting, insulting, and cursing, in an effort to motivate increased production. Such practices are unacceptable, and they give rise to conflicts, confrontations, and grievances that require negotiation and mediation. Support for managers and workers, especially female workers, while navigating the pressure of making up for lost profit and time while the factory was closed and its implications on management stress repercussions on women workers will be key to reopening factory doors.
Building Financial Health and Resilience
Although the protocol for wage payments during factory closures is determined by government, brands, and factories, we know that wage digitization is a more convenient, efficient way for factories to pay workers remotely, which also supports social distancing. For example, the Government of Bangladesh's $590m bailout package stipulates that workers must have financial accounts to receive wages. This enables workers to be paid, even if it’s through family members' financial accounts. More support will be required to ensure that workers, especially women, are able to control and benefit from their digital wages. Participants in the HERfinance Digital Wages program have been able to manage their finances better and increase their savings, helping to make them more resilient. The program found a 21-percent increase in both male and female workers reporting that they save regularly, and women were 17 percent likelier to report feeling confident that they can meet such unexpected costs as an emergency or family problem in the next two years.
Collaboration and good communications across brands and their suppliers, garment associations, governments, and development organizations will be key to helping garment workers recover from the COVID-19 shutdowns and build their resilience for future health and economic crises. Looking ahead, it will be crucial to consider how additional partnership efforts can support and prioritize workers’ health and financial resilience as businesses reopen. Early, bold, and effective action will reduce short-term risks to employees and long-term costs to businesses and the economy.
Blog | Tuesday April 14, 2020
Wings of Change: A Scenario Realized
As we move through and beyond the COVID-19 pandemic, Merck’s Cathryn Gunther offers her thoughts on consequential gifts that might materialize from the crisis, and the role companies can play in making them a reality.
Blog | Tuesday April 14, 2020
Wings of Change: A Scenario Realized
Cathryn E. Gunther
AVP Global Population Health
Merck & Co., Inc.
“Wings of Change” was the title of a pandemic-based future scenario that I coauthored in 2008 when working for a strategic consultancy firm. Scenario planning is a disciplined method for imagining plausible future states in which companies envision what it will take to "future-proof" their business model, remain relevant, and ensure sustainability amidst a range of alternative environments. It is a tool for strategic thinking.
I recently reread the scenario narrative with some trepidation. Even though the imaginary killer virus was a bird flu of the H1N1 type (not a coronavirus), the scenario was eerily comparable to our current state of the SARS-CoV-2 pandemic. “Wings of Change” was an imaginative future state that came to life—and came into our lives.
As dramatic and honestly—scary—as that scenario was to research and write, the resulting national health care system that rose up from the fictional pandemic was forever changed for the better. The virus was a catalyst for reformation of a health care ecosystem that vigorously focused on health promotion, health prevention, and the reframing of community health. Local and public health care was reimagined. Health—not sickness—was prioritized, and accountability for a healthy society was shared widely. Health and health care were "socialized." Not through a single-payer model, but literally through the mobilization and collaborations of citizens, businesses, public and private health care providers and through a lightning-speed step change in health analytics, artificial intelligence, and technologies. In "Wings of Change," the fictional pandemic was a catalyst for sustained improvements in health and health outcomes.
As we move through and beyond this real-world, global—and human—experience, we will be left with heartbreaking stories of untimely and widespread deaths, massively disrupted lives and economies, and selfless heroic acts of humanity. Coming out of the fog of disruption and renewal will also come gifts. Yes, gifts.
As a health care strategist, business executive, and advocate for well-being, I’d like to share my views of three consequential gifts that will materialize from this pandemic and the role that companies can play in amplifying the value of those gifts to society.
Gift #1: A Vital Appreciation of Mental Health
People will have experienced physical and social isolation in ways that were unimaginable just weeks prior to the pandemic. Anxiety, depression, loneliness, and sustained worry over the virus and the personal and economic consequences to families and businesses may linger for some time. For those with underlying mental health conditions, fragile emotional health, or individuals who struggle to cope with change, the recovery period will be especially difficult. Since everyone will be impacted by this shared experience, the stigma of mental health will be muted.
This vulnerable period presents an opportunity for employers to establish greater parity between physical health and mental health for employees. Companies can implement policies and practices that support healthy bodies and minds. Organizations can create a culture that leverages our shared experience to reduce the stigma associated with mental health by providing and promoting resources, tools, and programs.
When studying which illnesses impact productivity and performance the most, mental illness is at or near the top for most employers. At Merck, mental and emotional health are strategic priorities in support of our workforce. By sharing personal stories of how people—especially leaders—were affected by the pandemic, others will be comforted to come forward for help. Companies can embrace a holistic "total worker" view and acknowledge that there is no health without mental health. Leaders and grassroots efforts can hasten the elevation of mental health as a key component of well-being. The aftermath of the pandemic will mandate heightened awareness of, attention to, and action on employee mental and emotional wellness. Mental health can come out of the corporate closet for good, and businesses can lead the way.
Mental health can come out of the corporate closet for good, and businesses can lead the way.
Gift #2: The Value of Vaccination
The SARS-CoV-2 pandemic is a harsh reminder that immunity through vaccination is one of the most effective measures we can take to protect our societies and economies from disease outbreaks. We are seeing a public outcry for new treatments and new vaccines effective against the novel coronavirus. Companies are coming together in unprecedented ways to research and test vaccines and treatments against COVID-19. Decades of evidence indisputably demonstrate that vaccines serve a critical public health need. We know that vaccines save countless lives. It can be argued that on a population health scale, vaccines are the greatest achievement of medical science. Belief in the power of immunization will be renewed.
Employers are uniquely positioned to encourage and promote appropriate vaccination of their workforce. Through health education and promotion, health fairs, vaccine clinics, benefits coverage and by leadership example, companies can boost understanding of, access to, and confidence in vaccination. With over 100 million workers in the U.S., employers have the capacity to increase immunization by supporting vaccination and protecting employees, dependents, and communities from preventable diseases.
Employers that have invested in building a culture of well-being through integrated policies, programs, and environmental cues reap the benefits of a healthier workforce.
Gift #3: The Benefits of Health and Well-Being
A person’s baseline health is an important determinant of their clinical outcome with COVID-19. For example, we know that smoking can impact pulmonary function. Smoking increases the risk of chronic diseases that place COVID-19 patients at higher risk. Individuals with high cholesterol, uncontrolled hypertension, poorly controlled diabetes, and certain immunocompromised conditions have increased risk of poor outcomes. Staying healthy is a good starting point for fighting the virus.
Employers that have invested in building a culture of well-being through integrated policies, programs, and environmental cues reap the benefits of a healthier workforce. Merck is committed to this by making the healthy choice the easy choice and by ensuring that health and safety is considered in every aspect of daily life at work. Evidence shows that employers with a benchmark culture of health can reduce health care spending, improve employee engagement, boost productivity, prevent injuries, and improve overall corporate performance. Employers are well-positioned to help stem the tide of chronic conditions that cripple our societies by advocating and creating health within their workforce. After all, good health is smart business.
It is hard to envision the silver lining of a pandemic. As we turn the corner and look to the future, employers can incorporate health into their return-to-work efforts. Companies have retooled manufacturing processes from cars to respirators, from evening gowns to masks, and from beer to hand sanitizer. They, too, can retool their employee health efforts. Businesses can carry forward the gifts that improve mental health support and services. Businesses can fuel the broader use of vaccines to protect workers, families, and society. Businesses can drive improvements in the health and well-being of their workforce. These are just a few of the gifts that will arise out of this public health crisis.
This real-world version of “Wings of Change” presents an opportunity for a step-change in how the private sector supports health promotion, health prevention, and health protection. Companies have the power to catalyze enduring change towards health and wellness, create a competitive advantage, and amplify their social responsibility.
This is part of a series of guest blogs by BSR member companies, offering their insights as they continue their work in sustainability while managing the immediate economic and social impacts of the COVID-19 pandemic.
Blog | Friday April 10, 2020
COVID-19 and Our Future World
BSR and Polecat analyze the top ESG issues and sectors arising in global discourse about COVID-19 over the last fortnight.
Blog | Friday April 10, 2020
COVID-19 and Our Future World
BSR has partnered with Polecat since 2017 to deliver real-time corporate reputation and ESG intelligence from global online and social media discourse.
Yasmin Crowther, Polecat's VP of Strategic Insight, collaborated with Charlotte Bancilhon, Associate Director, BSR, to analyze the top ESG Issues and Sectors arising in global discourse about COVID-19 over the last fortnight. This blog post draws on the key findings:
- Procurement of medical supplies is the top online media topic, followed by concern for impacted workforces and labor practices. Public opinion on social media indicates high expectations of businesses to play a positive role in the COVID-19 response, including to protect employees, provide fair benefits, and pay taxes.
- Social media is also focused on potential healthcare solutions, but pays acute attention to issues of diversity and inclusion, with strong responses to the stigmatization of ethnic minorities and characterization of COVID-19 as "the Chinese virus."
- The industrial sector receives most online scrutiny for the economic impacts of COVID-19 as well as for the ways in which business models are pivoting to provide solutions. Firms across sectors are making investments to support communities—from access to IT to ensuring food security and emergency relief.
- Conversations about climate change have not been hampered by COVID-19 but reframed. The depth and scale of the current pandemic is being compared to the climate crisis, with a renewed focus on building resilient communities and businesses.
- There is a new focus on biodiversity with growing attention to how wildlife carries infectious diseases and the risks of destroying natural habitats which force animals into ever closer proximity with humans.
Coronavirus coverage across leading ESG Topics and Sectors for the two weeks to 8 March 2020
The main headline in the Financial Times this weekend read: "Global economy set for sharpest reversal since Great Depression." Although businesses are not all equal in face of the crisis, it is clear from our review of online and social media discourse that businesses are being scrutinized for how they are considering the welfare of their employees, communities, and partners before profits. A recent survey found that 90 percent of respondents expect businesses to partner with governments and relief agencies to address challenges, while long-standing debates on climate and stakeholder capitalism are being powerfully reframed. There is an unprecedented opportunity for businesses to show leadership and purpose:
Response to Medical Imperatives
We are glimpsing what is possible when urgent social need comes first—when the imperatives are the procurement of ventilators, face masks, vaccines, and testing kits. Around the world, auto manufacturers like Ford, GM, Fiat, and Nissan are collaborating with healthcare specialists to deliver tens of thousands of medical ventilators in a matter of months. The pharma sector is investing billions to co-fund vaccine research and clinical testing, and some of the world’s best-known beauty brands and beverage companies, like Estee Lauder, LVMH, L’Oréal, and Pernod Ricard, are turning their facilities to the production of hand sanitizer for frontline medical staff. Meanwhile, the fashion industry, from luxury brands to small- and medium-sized enterprises (SMEs), are making facemasks, and household names like Unilever are donating hundreds of millions of dollars of soap, sanitizer, bleach, and food to support health organizations globally.
Support for Communities
After the medical imperatives, come the community concerns of ensuring care for vulnerable people in their homes; that we all have enough food and that we have the digital infrastructure – the networks, connectivity and data—vital to working from home and maintaining contact with family and friends whom we may not see for months. Food companies like Mondelez are donating tens of millions in financial aid and in-kind support to community partners advancing critical food stability and emergency relief. Retailers are setting aside dedicated time every day for the elderly to shop and providing free home deliveries for the most vulnerable. Tech companies are lifting data caps and promising not to cut off supplies if payments are overdue or missed.
Flexible work forces
At the same time as businesses strive to pivot to the realities of a world in lockdown, the longer-term consequences will reshape work life within many sectors. Employees around the world are being asked to adapt to working from home or being furloughed. A recent ILO report found that more than 4 out of 5 people (81 percent) in the global workforce of 3.3 billion are currently affected by full or partial workplace closures. But while some sectors, such as airlines, are registering massive layoffs, others, such as retail, are hiring. Around 40 percent of the world’s passenger jet fleet is now in storage, with firms like Air New Zealand reporting an expected contraction of at least 30 percent over the next year, as its revenue falls from just under US$6bn to US$500m. In the U.K., laid-off airline cabin crew with first aid training are being pursued by the NHS to work in support of nurses and doctors in hospitals across the country. It is hard not to wonder if the experience will compel a permanent change in career as the perceived value of frontline workers is set to soar, with UK political conversation on the need for better pay already igniting. Meanwhile in the U.S., the reduction in emergency departments and routine hospital programs to cope with COVID-19 means some frontline staff are actually getting pay cuts.
Science at the Center
Perhaps most powerfully, coronavirus has put expert opinion and scientific fact center stage. We do not want or need the opinion of literati—we care mainly for the epidemiologists, virologists, and medics who tell it as it is. Twitter has redefined its definition of harm to address content that "goes directly against guidance from authoritative sources of global and local public health information" and is removing tweets that spread dangerous misinformation about COVID-19. Facebook is investing an additional US$100 million in local journalism to support reporting on the pandemic.
Climate Change at the Fore
There is much that is positive, but what does it all bode for how we think about the future more widely? Many articles use the lens of climate change to consider future possibilities—balancing the immediate enforced environmental benefits of cleaner air and birdsong with longer-term choices. As The New York Times writes:
The efforts to revive economic activity — the stimulus plans, bailouts and back-to-work programs being developed now — will help determine the shape of our economies and our lives for the foreseeable future, and they will have effects on carbon emissions that reverberate across the planet for thousands of years.
In an interview with New Scientist, Greta Thunberg said:
If one virus can wipe out the entire economy in a matter of weeks and shut down societies, then that is proof that our societies are not very resilient. It also shows that once we are in an emergency, we can act and we can change our behaviour very quickly.
Reframing of Biodiversity and Disease
Conversations about climate change and biodiversity haven’t been killed by COVID-19, but they are being reframed. Tigers with COVID-19 make the front page, along with wide-ranging discourse about potential threats to and from other animals. Inger Andersen, head of the UN Environment Programme, has cautioned on the proximity of wild animals to humans as a cause of disease—with 75 percent of all emerging infectious diseases coming from wildlife. Her message is that failing to look after the planet is a failure to look after ourselves: global warming and the destruction of habitats for farming, mining and housing all drive wildlife into contact with people in ways that increase risk of cross-infection. Aaron Bernstein of the Harvard School of Public Health has said:
The separation of health and environmental policy is a dangerous delusion. Our health entirely depends on the climate and the other organisms we share the planet with.
The emerging imperative is for more joined-up thinking and fewer artificial silos, for business strategies to go beyond just cutting greenhouse gas (GHG) emissions to the delivery of resilience in the face of a global crisis.
The Battle for Hearts and Minds
The political message to societies in lockdown is that we are "all in it together"—that our individual sacrifices are essential for the greater good and to safeguard the vulnerable. On social media, there are strong reactions to behaviors that undermine diversity and inclusion, particularly when it comes to stigmatizing minorities and characterising COVID-19 as "the Chinese virus." Online, the emphasis is largely that "we are all in it together." We are, but there is also an abyss being observed between the experiences of haves and have-nots. Social isolation in a roomy home with a garden is very different from lockdown in a high-rise block, let alone the difference between established and emerging economies. COVID-19 is shining an unforgiving light on how we are all the same and also how lives are so different and that we turn our backs on one another at our collective peril.
Our Post-COVID-19 World
The tension that seems to be strongly in play when it comes to imagining a world after COVID-19 is whether the impetus to collaborate and put science and society first endures or whether more protectionist and nationalist policies assert themselves. Conversations to build back better are emerging, as demonstrated by the group of French parliamentarians who have launched a national consultation to prepare “the day and the world after” COVID-19 under the hashtag #LeJourdAprès, in reference to the Hollywood hit The Day After Tomorrow. BSR is inviting member companies to engage in thinking ahead to build a different future.
Already, multiple corporate conversations are trying to scope the future landscape, with speculation that flexible working and reliance on digitization will not spring back to the status quo—that the future has somehow been rapidly accelerated—and that new priority and investment will need to go towards ensuring more inclusive and resilient economic strategies if we are not to bear the cost of more damaged societies.
As Arundhati Roy wrote in the Financial Times over the weekend:
The Pandemic is a portal. We can choose to walk through it with our dead ideas. Or we can walk lightly, ready to imagine another world.
This blog was written and produced in collaboration between Polecat and BSR.
Blog | Thursday April 9, 2020
Three Ways Businesses Can Protect LGBTIQ+ Rights in the Face of COVID-19
COVID-19 will take an increased toll on those groups who were marginalized, vulnerable, and excluded before the pandemic hit, including lesbian, gay, bisexual, transgender, intersex, and queer (LGBTIQ+) people. For LGBTIQ+ people who have experienced a lifetime of discrimination, especially in places with deep poverty, tenuous healthcare delivery systems, and…
Blog | Thursday April 9, 2020
Three Ways Businesses Can Protect LGBTIQ+ Rights in the Face of COVID-19
• The coronavirus will hit marginalized groups, including LGBTIQ+ people, hardest.
• The private sector must take collective action to cushion the blow.
• Businesses can consider three strategies when trying to ensure inclusion.
The COVID-19 pandemic has disrupted life as we know it on a scale never seen before. One inescapable point in this crisis is that it will take an increased toll on those groups who were marginalized, vulnerable, and excluded before the pandemic hit, including lesbian, gay, bisexual, transgender, intersex, and queer (LGBTIQ+) people. For LGBTIQ+ people who have experienced a lifetime of discrimination, especially in places with deep poverty, tenuous healthcare delivery systems, and fragile government infrastructure, the sober truth is that this global emergency presents immediate unimaginable challenges.
For example, as highlighted in a recent Openly article, in India transgender people are at heightened risk of poverty and ill health because they already exist on the margins of society. The UN Independent Expert on Sexual Orientation and Gender Identity recently wrote in an open letter about the impact of COVID-19:
“Homeless persons, among whom LGBTIQ+ persons are many, face exacerbated exposure to contagion.…Many LGBTIQ+ youth will now be forced to [isolate] within hostile environments with unsupportive family members or co-habitants.”
Ultimately, as OutRight Action International notes, in too many places—simply because of who they are and who they love—LGBTIQ+ people will have less access to healthcare, will be hard hit by unemployment and food scarcity, will see their already-thin margins disappear, and without life-saving interventions will fall sick and die.
For these reasons, OutRight has launched a COVID-19 Global LGBTIQ+ Emergency Fund to support queer organizations on the frontlines of the pandemic in all regions outside of North America and western Europe. The fund will distribute grants to grassroots LGBTIQ+ organizations that are addressing a range of community needs, including provision of emergency food and/or shelter, access to safe and competent healthcare, safety and security, financial stability, and other unforeseen negative impacts brought about by the pandemic. Fund participants benefit from our coordination, vetting, and distribution of money to capable local organizations in markets where they do business. This is but one example of how the private sector can link up with civil society to respond to the pandemic when systems and government fail or are insufficient.
As COVID-19 strengthens its indiscriminate grip, those of us in the business and social sectors are being asked hourly what more the private sector can do to effectively ensure that those most at risk are not left behind. Our answer: take collective action to address the immediate needs of those affected by COVID-19, while staying focused on and committed to long-held values that prioritize inclusion and equity.
In this regard, purpose-driven leadership has never been more critical. As each company and civil society organization addresses urgent needs in unique and important ways—from building hospitals and tech platforms to manufacturing medical equipment and delivering food to homebound older people—important trends are emerging with regard to the need for, and power of, collective action. Never before has the old adage “there is power in numbers” rung truer.
When the Partnership for Global LGBTIQ+ Equality (PGLE), a global leadership platform to accelerate LGBTIQ+ inclusion in collaboration with the World Economic Forum and BSR, was launched in January 2019 at the Forum's Annual Meeting, we could not have predicted that in only one year its raison d'etre—tackling discrimination in all its forms to ensure that the universal basic human rights of LGBTIQ+ people are acknowledged and upheld—would be a matter of life and death for hundreds of thousands that comprise our global community.
Today more than ever, the business community has an opportunity, in fact a responsibility, to demonstrate leadership. But it can’t do it alone. While the past decade has seen important progress in LGBTIQ+ inclusion in some parts of the world, in most countries, protection against discrimination based on sexual orientation and gender identity is inadequate at best.
Unless we act, discrimination, unequal access, and the denial of universal human rights will only compound the poverty and dislocation that LGBTIQ+ people face around the world and render long-term social and economic progress out of reach.
Three years ago, the Office of the United Nations High Commissioner for Human Rights, in collaboration with the Institute for Human Rights and Business, developed the UN Standards of Conduct for Business to support the business community in tackling discrimination against lesbian, gay, bi, trans, intersex, and queer people. These standards provide five concrete steps that companies can take to align their policies and practices with international standards on human rights of LGBTIQ+ people.
To date, nearly 300 companies have stood up in support of human rights and equality for LGBTIQ+ individuals by expressing support for the UN Standards. If your company has not stood up for the universal human rights of LGBTIQ+ people, now is the time to do so by adding your name to the list of companies supporting the UN Standards.
The pandemic will undoubtedly present a range of new challenges to democracy and human rights. It is undeniable that repressive regimes will use the pandemic in ways that serve their own myopic political interests at the expense of basic freedoms and people’s lives. Unless we act, discrimination, unequal access, and the denial of universal human rights will only compound the poverty and dislocation that LGBTIQ+ people face around the world and render long-term social and economic progress out of reach.
Our community and its allies cannot afford to stand idle, and we must not allow backsliding on hard-won LGBTIQ+ rights. We must accelerate our quest for inclusion, together. In addition to expressing public support for the UN standards, here are three strategies to guide our collective response:
- Apply a human rights lens to decision-making. Source accurate information when making data-informed decisions, ensure that those decisions are guided by application of a human rights lens and the UN Standards of Conduct for Business, and make sure responses prioritize the immediate and long-term recovery needs of the most vulnerable. In developing individual, sector-wide, and cross-sectoral actions, ensure that all affected stakeholders inform a coordinated, global strategy. Identify local stakeholders and global organizations with deep roots in local communities where you operate to understand their vulnerabilities and how your decisions impact them.
- Amplify your core values. Content is key in times of emergency. Now more than ever, people will need constant reminders that fear of the Other is the enemy and that inclusion remains the highest priority. Leverage all communications platforms to remind stakeholders that inclusion is a value that should underpin our response—and that inclusion means everyone. Dispel stigmatizing messages that harm vulnerable communities by countering them publicly.
- Prioritize collective action and share what you learn. It is critical that those in positions of authority around the world understand that none of us are too distracted to uphold basic universal human rights for all or that we are not too preoccupied to hold violators accountable. Through joint public statements or silent diplomacy, make your position known. Help others avoid mistakes and scale successful approaches, including innovative ones. Raise awareness of best practices and assist others in applying them. Now is the time for a big tent approach.
Months and years from now, when we look back on this time, we will be measured by our capacity to lead with purpose, kindness and compassion, and our ability to mobilize together to respond to the needs of our most vulnerable members of society. The time for bold action is now. Let us not fall short or fail to do absolutely everything we can.
First published on the World Economic Forum website.
The Partnership for Global LGBTIQ+ Equality (PGLE) is a collaboration between the World Economic Forum, the UN Office of the High Commissioner for Human Rights, and BSR.