Human rights due diligence supply chain priorities
Our human rights policy prescribes a risk-based approach to human rights due diligence. But what does this mean in practice for Equinor with approximately 9000 first tier suppliers?
Here is how we for the first time, with the assistance of external human rights expertise and through a holistic assessment, have defined the Equinor supply chain due diligence priorities for the period of 2021-2023.
Equinor’s Human Rights Policy (‘Policy’) sets out our commitment to perform human rights due diligence consistent with the United Nations Guiding Principles on Business and Human Rights (UNGPs). Human rights due diligence is an ongoing risk-based process including identifying, avoiding/preventing, mitigating and accounting for adverse human rights impacts occurring when products or services are being produced, directly or indirectly, for Equinor.
The Equinor supply chain universe is vast due to the sheer number of involved parties. Our main suppliers have multiple sub-suppliers, which in turn have their own supply chains. All these companies are delivering products and services towards an end-product ultimately delivered to Equinor, and the many workers involved are therefore all part of Equinor’s human rights scope.
Since 2019, Equinor has had a specific Human Rights Expectations of Suppliers Framework in place. The framework includes expectations of all current and new suppliers to Equinor, a guideline for how to meet the expectations, and specific human rights provisions in our contracts.
Our salient human rights issues are our main priorities as identified in our Policy. Our efforts in our supply chain build on these by focusing on opposing forced labour and child labour, non-discrimination, and safe and healthy working conditions for workers.
Equinor performs a basic desktop human rights risk assessment for all contracts as part of our procurement process. The contract scope is screened for actual and potential human rights risks, and the supplier’s approach towards their own workers and underlying supply chain is assessed. Risks, impacts and weaknesses in the supplier’s system which are not improved before a contract is signed, but still considered tolerable and manageable with an agreed action plan, will be further followed up after signing. Human rights risks shall be documented, reported, and followed up in the Equinor risk management system in accordance with our corporate requirements.
To progress our work on human rights, we acknowledge the efforts needed both by us, our peers and our suppliers to address systemic issues together, such as forced labour. We have therefore decided to focus our deeper engagement around specific priorities, supported by good practice.
The UNGP’s recognise that no company can address all potential human rights impacts in their full value chains, and certainly not at the same time, and so expect companies to approach human rights due diligence by prioritising their efforts according to the scope, scale and irremediability of potential and actual human rights impacts.
When deciding where to focus our efforts we have considered:
- Risk to People – Where are the workers most at risk, how severe is the potential impact and how many might be impacted? People in this context is defined as supply chain workers, regardless of where in the supply chain. Vulnerable groups include low-skilled or unskilled workers and migrant workers.
- Connection to Equinor – How closely are we connected to a supplier or a supplier activity? Connection in this context implies for example, a degree of impact Equinor has on the technical specification of the product or service and/or the delivery of such, repetitive or rare sourcing of the product or service, relationship with the supplier and whether the service is delivered on our premises.
Using this methodology, Equinor has defined specific priorities for supply chain human rights due diligence for the period 2021-2023:
- Construction of fixed and floating oil and gas installations
- Solar cells and wind turbine generators
- Marine operations and installation of facilities for offshore wind and oil & gas projects
- Integrated drilling and well services
- Services to onshore and offshore producing assets in Norway involving foreign personnel
- IT and business support services delivered to Equinor from supplier offices
- Security, catering and cleaning services to select Equinor offices based on known risk
For those areas prioritised in the listing above, our human rights approach extends beyond basic qualification procedures and contractual requirements and will be supported by internal and external expertise. Typical activities of this extended approach could include:
- Senior level management dialogue
- Supply chain mapping and traceability to verify whether known risk factors are present
- On site assessments and worker engagement
- Capacity building and support to suppliers and sub-suppliers in implementing processes and practices to strengthen workers’ rights
- Joint initiatives between suppliers or with peers to address common issues
- Developing specific indicators to track performance
The above presents the areas of priority for Equinor’s proactive human rights due diligence efforts within our own supply chains. If we detect or receive information about adverse human rights risks or impacts with a supplier or sub-supplier outside these priorities, our Human Rights Expectations of Suppliers Framework will guide what actions should be taken.
This risk-based prioritisation has been developed based on internal experience and with support from external advisors on human rights. It will enable us to channel resources effectively – focusing both on human rights risks to people and our ability to effectively address these, in line with our human rights commitment and as expected by our stakeholders.
Our human rights policy documents