SCG Human Rights Due Diligence 2019

1/130

SCG Commitment to Human Rights

2/130

SCG Commitment to Human Rights

3/130

In 2020, SCG has announced the 1st revision of

Human Rights policy for its commitment to

respect human rights in accordance with the UN

Guiding Principles on Business and Human Rights

and other internationally accepted standards, to

prevent human rights violations in every aspect.

Our Human Rights policy is announced and

enforced in every country where we have

operations along our business value chain and joint

venture.

SCG has long been a member of the United

Nations Global Compact (UNGC), showing in our

commitment to comply with international best

practices since 2012 with the Advanced Level of

compliance that covers 24 aspects governing areas

such as human rights, labor practices, the

environment, anti-corruption, value chain,

transparency and certification.

SCG Commitment to Human Rights

4/130

In 2017, SCG has launched the Expectation Letter

on Human Rights to request commitment from

our Business Partner, Join Venture, Supplier,

Contractor, and Trader.

SCG Human Rights Process

5/130

POLICY

Commit to respect human rights

Embed human rights policy in the company’s culture

HUMAN RIGHTS DUE DILIGENCE

Identify potential and actual human rights impacts

Act upon the findings

Track the company’s performance on preventing and

mitigating impacts

Communicate the company’s efforts

REMEDIATION

Establish Operational-level grievance mechanisms

Provide for or cooperate in remediation

Engage

Stakeholders

In meaningful

Dialogue

throughout

*Adapted from WBCSD “CEO Guide to Human Rights”

Human Rights Due Diligence Process

6/130

Identification

of human

rights risk

issues

Identification

of vulnerable

groups

Preventive or

mitigation plans

including

remediation

actions

Monitoring

results

Identifying Human Rights Issues

7/130

1. Right to life

2. Right to liberty and security

3. Right not to be subjected to slavery, servitude or forced

labour

4. Right not to be subjected to torture, cruel, inhuman

and/or degrading treatment or punishment

5. Right to recognition as a person before the law

6. Right to equality before the law, equal protection of the

law, non-discrimination

7. Right to freedom from war propaganda, and freedom

from incitement to racial, religious or national hatred

8. Right to access to effective remedies

9. Right to a fair trial

10. Right to be free from retroactive criminal law

11. Right to privacy

12. Right to freedom of movement

13. Right to seek asylum from persecution in other countries

14. Right to have a nationality

15. Right of protection for the child

16. Right to marry and form a family

17. Right to own property

18. Right to freedom of thought, conscience and religion

19. Right to freedom of opinion, information and expression

20. Right to freedom of assembly

21. Right to freedom of association

22. Right to participate in public life

23. Right to social security, including social insurance

24. Right to work

25. Right to enjoy just and favourable conditions of work

26. Right to form and join trade unions and the right to strike

27. Right to an adequate standard of living

28. Right to health

29. Right to education

30. Right to take part in cultural life, benefit from scientific

progress, material and moral rights of authors and

inventors 31. Right of self-determination

32. Right of detained persons to humane treatment

33. Right not to be subjected to imprisonment for inability to

fulfill a contract

34. Right of aliens due process when facing expulsion

35. Rights of minorities

Reference: Guide to Human Rights Impact Assessment and Management (HRIAM)

Identifying SCG Human Rights Specific Issues

8/130

Business Sector Key Human Rights Considerations

Construction and

Infrastructure

Health and safety of workers – direct and indirect

Employment conditions and practices

Disruption or relocation of local communities

Indigenous community rights

Migrant workers

Forced labour and overtime

Child labour

Access to water and other services

Relationships with government – national and local

Corruption

Stakeholders Engaged with Business On Human Rights Issues

9

Stakeholders are persons or groups of persons who are

directly or indirectly affected by a business operation of

SCG, as well as those who may have interests in a

business operation of SCG, or abilities to influence over

the outcomes of a business operation of SCG such as

customers, employees, communities, shareholders,

business partners, government agencies, intellectual

leaders, etc.

• Shareholders

• Employees

• Customers and Consumers

• Suppliers including Suppliers’ employees,

Suppliers’ contractors, third party contracted labors

• Business Partners

• Competitors

• Joint Venture Partners

• Creditors

• Communities

• National and Local Government Agencies

• Media

• Civil Society Sector, Academia, and Opinion Leaders

• Advocacy organizations

• Development organizations

• Local, indigenous, minorities in communities such as children, migrant labour, disable, vulnerable groups

• International organizations

• Lenders and international financial institutions

• NGOs

Human Rights Risk Assessment

10/130

Severity

Likelihood

To assess how the business activity is impacting

the rights of affected stakeholders, SCG

considers:

• The business risks and impacts and any

business opportunities associated

with each relevant human right

• The source of the risks and impacts

• The affected stakeholders

• Stage of the business activity’s lifecycle

Human Rights Due Diligence Result 2019

11/130

SCG regularly conducts a human rights assessment to identify and assess actual and potential adverse

human rights impacts on employee, community and contractor along the entire value chain including

vulnerable groups such as children, woman, people with disabilities, indigenous people, local community,

migrant workers. The findings from human rights impacts assessment are integrated and taken into

actions for monitoring & prevention, mitigation and remediation.

The findings in 2019 revealed that 47 sites of own operations, contractors & tier 1 suppliers and JV have

been exposed to risks on human rights. All 47 sites have been remediated and have mitigation plans in

place to prevent the recurrence in the future.

Scope Key Risks Mitigation Plan No. of SItes

Own OperationsOccupational

Health and Safety

• Raise awareness on safety culture through Occupational Health

and Safety Management System or SCG Safety Framework

• Raise awareness and continuously monitor compliance and

violation of the Life Saving Rules

• Enhance safety standards and evaluate performance through

SCG Safety Performance Assessment Program (SPAP)

14

Contractors and

Suppliers

Workplace Safety

and Transportation

Safety

• Clarify all relevant safety rules prior to each bidding and clearly

include them in the employment contract

• Established a Transportation Safety Committee to develop

transportation safety standards for SCG own operations and

transportation contractors

• Encourage transportation contractors to comply with laws and

SCG standards and constantly monitor their drivers through GPS

and in-cab cameras

• Encourage contractors to continuously improve their safety

standards and develop relations towards business partnerships

33

Joint Ventures None None 0

12/130