By Connie Vitta. Director for Sustainability Issues, The New Energy Standard
Regulatory changes, especially those focused on sustainability or the approach of responsible and integrated approach to territories, always seek to promote improvements in the harmonious coexistence of people, companies and ecosystem, however, in some cases standards that are easily addressed by companies are imposed. large in size, but difficult or expensive to adopt by small and medium-sized companies.
The above has been the case in the standardization of many standards regarding due diligence in sustainability and human rights for companies and the corresponding extension to their supply chains.
Anticipating the above, the criterion of gradualness is being applied from the design stage of these regulations and standards, with 2024 having arrived at the issuance of the European Directive on Due Diligence of Companies in Matters of Sustainability, which specifically contemplates a Differential treatment according to the size of the companies.
In line with what has been mentioned and after announcing in 2023 in Chile the preparation of the due diligence bill on human rights and companies, the participation in pre-legislative dialogues has allowed us to bring to the table the concerns of various companies, especially those related to operational costs, difficulties in addressing due to lack of training or awareness and risk of increased prices of the goods or services developed by them, which would arise from their implementation.
However, when we talk about human rights and companies, we are referring to the basic standards of responsible business management and conduct, respectful treatment, observance of labor rights, compliance with occupational health and safety regulations, responsible production, to respect for maintaining a pollution-free environment, to not compromise water security for human consumption, to work for territorial development with social value, to promote the generation of resilient communities and finally to seek common well-being, beyond the generation of utilities.
This is why it is not only necessary to advance in the regulation of these standards, to promote adherence to the United Nations Guiding Principles on Business and Human Rights and to support the conduct of human rights due diligence processes in companies, with its corresponding subsequent management of findings; but it is imperative to promote a culture of responsible production and business conduct, to ensure the creation of shared value and the sustainability of our operations.
In summary, to continue existing as companies, the old “social license to operate” is no longer enough, but we must move towards a total cultural change, which includes the significant participation of communities, where the fear of dialogue is lost, where active listening and horizontal and constant relationship is the custom, where we do not have to face active conflict to consider issues that are important to our neighbors, where we consider the territory from its indivisible multi-dimension, we seek coexistence based on respect and not in the competition for resources and where we seriously move forward to consider the construction of social well-being as the responsibility of all of us who live here.
To adapt to the above, we must certainly start by training ourselves, raising awareness, losing the fear of talking about human rights within companies, and valuing what we are already doing in our operations, regardless of their size, knowing that each contribution, by As small as it may seem, it is still a step in the right direction towards equalizing opportunities and sharing benefits.
In short, the advance of regulatory processes that mandate us to conduct due diligence in matters of sustainability and human rights, only opens multiple opportunities to re-think the way of being and doing business in Chile, and how we can include from the design of a project, plan or product, the human aspect. This is, without a doubt, an opportunity to participate in the country challenge aimed at a responsible way of doing business.
This is why it is not only necessary to advance in the regulation of these standards, to promote adherence to the United Nations Guiding Principles on Business and Human Rights and to support the conduct of human rights due diligence processes in companies, with its corresponding subsequent management of findings; but it is imperative to promote a culture of responsible production and business conduct, to ensure the creation of shared value and the sustainability of our operations.
