How can companies address security concerns as part of their Environmental, Social and Governance (ESG) obligations?

On 18 October, the DCAF-ICRC Partnership spoke at the ESG Global Leaders Conference in Shanghai – one of the largest sustainability conferences in China, hosting participants from businesses, industry associations, think tanks, government agencies and the wider international community. On behalf of DCAF-ICRC, DCAF delivered a presentation on how responsible management of company security arrangements and impacts is a key part of ESG requirements, particularly when companies operate in complex environments. 

Business activities in high-risk contexts can pose particular security and human rights risks to communities. Companies must therefore take steps to implement conflict sensitivity into their corporate culture and processes. Particular attention needs to be given to ensuring transparent arrangements with host states, to mitigating risks around public and private security, as well as proactively engaging with affected communities. All these efforts should be reported to ESG standards, regulations and benchmarks – promoting transparency and continuous improvement and informing consumers, investors and lending institutions. This has the potential to create a virtuous cycle with governments, companies, international institutions and civil society working together to promote better security and human rights performance.

Chinese companies are an important part of this ecosystem. In Africa alone, some 10’000 Chinese-owned businesses are now driving a significant percentage of the continent’s infrastructure initiatives and extractive projects. As part of our partnership in the field of responsible business conduct, DCAF and ICRC are committed to enabling Chinese companies to implement responsible security management practices and to join multistakeholder efforts to address security challenges in conflict-affected and high-risk areas alongside stakeholders from government, communities and other companies.

Are you interested in learning more about DCAF-ICRC’s work in China or on sustainability reporting?

• Check out our project highlight here.
• Discover our new practical report on how the Global Reporting Initiative can better encourage companies to report on conflict sensitivity, responsible security management and international humanitarian law.

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Reflections from the event hosted by the Institute for Human Rights and Business: Responsible Business in Uncertain Times