Canadian Network on Corporate Accountability launches model legislation for due diligence and corporate accountability

Still from video of media conference launching model law.

On May 31, the Canadian Network on Corporate Accountability (CNCA) released draft model legislation to provide parliamentarians with a blueprint for an international corporate accountability law in Canada.

The model legislation can be read here.

The CNCA has noted: “Several European jurisdictions have passed, or are considering, comprehensive human rights due diligence legislation – most notably France’s 2017 Devoir de vigilence legislation, and the 2021 resolution of the European Commission outlining its forthcoming human rights due diligence legislation.”

But it adds: “Canada has failed to establish rules that require Canadian companies to respect human rights and the environment overseas.”

Human rights defenders and enforcement mechanisms

The European Parliament resolution of March 10, 2021 recognizes: (V) “Whereas, according to the United Nations High Commissioner for Human Rights, a large number of human rights defenders are under threat because they raise concerns about adverse human rights impacts of business operations.”

While that is welcome, organizations including Amnesty International and Global Witness have highlighted that the European legislation should include:

“Enforcement mechanisms (through both public/administrative and private/civil enforcement mechanisms) in case of non-compliance with the due diligence obligations or for harm caused must provide an effective deterrent. In this regard, we expect the Commission to consider criminal liability or equivalent instruments.”

The CNCA has recognized the need for “meaningful consequences for non-compliance, including liability for harm and effective enforcement mechanisms.”

The model Canadian legislation (point 42) states:

“Any person who has suffered an injury as a result of an entity’s contravention of s. 25 (1) [thus causing adverse human rights impacts outside Canada], may, in a court of competent jurisdiction, bring an action against the entity for relief by way of [including] recovery of damages or losses [and] aggravated and/or punitive damages.”

The Canadian model legislation can be read here.

The European resolution can be read here.

Given the PBI’s accompaniment of social leaders in Colombia, Honduras, Guatemala and Mexico impacted by Canadian corporations, notably mining and oil and gas companies, we follow this model legislation with great interest.

#HREDD