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Corporate Accountability and Human Rights Case Study PULP Mills in Fray Bentos - Uruguay

Corporate Accountability and Human Rights Case Study PULP Mills in Fray Bentos - Uruguay. Presented by Center for Human Rights and Environment (CEDHA) - Argentina Harvard - April 19, 2007 Jorge Daniel Taillant – jdtaillant@cedha.org.ar. Ence. Botnia. Rio Uruguay. Argentina. Uruguay.

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Corporate Accountability and Human Rights Case Study PULP Mills in Fray Bentos - Uruguay

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  1. Corporate Accountability and Human Rights Case Study PULP Mills in Fray Bentos - Uruguay Presented by Center for Human Rights and Environment (CEDHA) - Argentina Harvard - April 19, 2007 Jorge Daniel Taillant – jdtaillant@cedha.org.ar

  2. Ence Botnia Rio Uruguay Argentina Uruguay

  3. Principal Proponents • Companies - Botnia/ENCE • IFC • MIGA • Private Banks (ING / BBVA / Nordea / NIB) • Finnvera (Finnish Export Credit Agency) • Uruguayan Government (National and Local) Spain Netherlands Uruguayan Gov

  4. Key Source of Problem • Environmental Impact Assessment Summary – Orion – April 20, 2005 • Two Mills ENCE/Botnia measured separately • Incomplete EIAs and failed engagement generate speculation and mistrust • “Consultations indicate that the project enjoys broad public support”

  5. Broad Public Support!Just 10 Days Later!

  6. Broad Public Support!

  7. Entre RíosGov Gualeguaychu Assembly40,000 persons Taking to Bridge Argentine Gov Principal Oposition • Gualeguaychu Assembly (40,000 personas) (Public/Business/NGOs) • Select NGOs and Public in Uruguay • Argentine Government (National, Provincial and Municipal) • Uruguayan Prosecutor • Press • CEDHA UruguayanNGOs

  8. What to do?

  9. Possible Channels of Action • CAO • Inter-American Commission of Human Rights • European Commission for Violations to European Citizens • Spanish/Finish Courts (Finnvera - ECA) • Criminal Actions in Argentina against CEOs • International Court of Justice • Legal Action in Uruguay • Equator Bank Compliance Claim (to BBVA and ING) • OECD Guidelines for Multinational Enterprises • UN Human Rights Norms for Transnational Corporations • UN Global Compact • Generally on Corporate Social Responsibility Commitments Corte Internacional de Justicia

  10. Complaints – What We Did

  11. Grounds of Action at CAO • Violations to Environmental and Social Safeguards • Violations to Disclosure Policy • Violations to International Waterways Policy • Poor Stakeholder Consultation • Poor EIAs • Violations of International Treaties

  12. CAO Audit Findings • Complaint by 40,000 Stakeholders • “IFC’s due diligence to satisfy itself that the EAs were complete in all material respects was inadequate and not incompliance with the organization’s Disclosure Policy” (CAO, Feb 22, 2006) • Insufficient evidence that proper consultation has occurred • No cumulative impact study; IFC Fosters Separation of Projects! • Need to generate transboundary trust in Local Communities • Botnia’s beginning construction undermines legitimacy • Special Efforts must be made to legitimize future studies • Must study impacts of eucalyptus tree farming on water • Must examine International Law Obligations; MIGA says not needed! • Establishes legitimacy of (Gualeguaychú Assembly) • IFC Fails to Give Clarity on how it will address Study Flaws • “Further technical information and facts will not be sufficient”

  13. International Waterways International Waterways policy (OP 7.50)

  14. International Court of Justice ICJ Ruling

  15. Grounds of Action at IAHRC (for Responsibility of Uruguayan Gov. To Project) • Right to Life • Right to Physical Integrity • Rights of the Child • Judicial Process • Progressive Realization of ESCR • Right to Health • Right to a Healthy Environment • Access to Information • Access to Justice We asked for Preventive Measures

  16. Mixed Results • Withdrawal of One Pulp Mill • Withdrawal of One Major Financial Bank (480m) • Posibility New Compliance Procedure at Equator Banks • Debate Opening at OECD of Bank Liability to Guidelines • Improvement of Remaining Mill • 18 Month Delay Board Vote Date @ WB • Investigation process initiated at IAHRC • Greater Attention to Policy Procedures • Awareness Building / • Experience

  17. Exploratory StrategiesArticulation of Actions Others? UN CSR CAO World BankBoard Safeguards IACHR Indep. Control Mechs OECD -NCPs Companies IFIs Human Rights Press Social Movements NGOs NationalGovernments Prvt Banks

  18. Jorge Daniel Taillant jdtaillant@cedha.org.ar Center for Human Rights and Environment

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