A leading multinational consumer goods company that produces products in hygiene, health, and nutrition instructed Ksapa to conduct a human rights impact assessment (HRIA) covering its operations and value chain in Brazil. This is part of the company’s public commitment to conduct a series of 10 HRIAs by 2030.

the challenge

The scope of the human rights impact assessment covered the following business activities in Brazil:

1. Downstream: Human rights impact on consumers closely looking at 3 flagship brands and products.
2. The company’s own operations and production lines.
3. Midstream: Tier 1 suppliers.
4. Upstream: Key raw materials used in the production of products.

KEY ASSESSMENT FINDINGS

The HRIA revealed a wide range of potential and actual human rights impacts, including:

1. Downstream: positively the company demonstrated to hold strong brands that enable engagement of consumers on hygiene and health, with a strong capacity to manufacture safe and trusted products. However, the assessment found that there are issues related to affordability and, accessibility, and distribution, especially among low-income and low-educated consumers, which represent the most vulnerable category in hygiene & health issues.
2. The company’s own operations and production lines: the assessment revealed that the company remains strong and attractive for employment. However, despite an internal commitment to strong labor & human rights standards, many challenges remain in practice from a career development standpoint and gender-related issues.
3. Midstream: Tier 1 suppliers: The company is regarded as a strong and trusted partner in the industry, but challenges remain when looking at the living wage, workplace health and safety, and implementation of labor conditions despite the existing strong internal code of conduct.
4. Upstream: Key raw materials used in the production of products: we recommended that the company consider establishing a robust monitoring system to ensure alignment with practices expected for the production of such materials.

OUR APPROACH

The work was based around four main activities:

1. Human rights risk management assessment
2. A gap analysis of the existing human rights approach against current and future standards and regulations
3. The definition of a roadmap for the coming years to strengthen the Group’s commitment and actions on these issues
4. Internal awareness of the approach and future developments within the Group’s various activities

Throughout this exercise, Ksapa has taken into account the broad scope of the company’s operations and the perspective of the rightsholders. Project deployment included local team in Brazil. Engagement included direct engagement with hundreds of sample workers and other rightsholders. These risks were reviewed taking into account fundamental international treaties, conventions, and documents on human rights, and best international practices. Ksapa’s comprehensive monitoring work has also made it possible to take into account human rights controversies relevant to the sector – which must be considered in light of future socio-environmental risks.

RESULTS & NEXT STEPS

The deliverables provided the company with an overall understanding of their approach and of any areas that could be improved. As the exercise was carried out bearing in mind the various operations and stakeholders, the recommendations will allow the company to establish an action plan according to each activity and for the different parameters.
The continuous evaluation and updating of this strategy are good practices, allowing companies to regularly reflect on their commitments with an organized action plan enabling them to quickly respond and implement necessary changes. Of course, this is not possible without effective, organized, and flexible governance.