Corporate report

Annual Report on the United Kingdom’s National Contact Point for the OECD Guidelines for Multinational Enterprises

Published 2 December 2020

© Crown copyright 2020

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This publication is available at https://www.gov.uk/government/publications/united-kingdoms-national-contact-point-2019-annual-report/annual-report-on-the-united-kingdoms-national-contact-point-for-the-oecd-guidelines-for-multinational-enterprises

1. Introduction

1.1 United Kingdom’s National Contact Point

The United Kingdom’s National Contact Point (NCP) is responsible for raising awareness of the Organisation for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises, and for implementing the complaints mechanism set out on the guidelines.

1.2 Annual report to the OECD Investment Committee

The OECD Guidelines state that each NCP is required to report to the OECD Investment Committee on an annual basis on the nature and results of the activities of the NCP, including implementation activities on specific instances (complaints). The OECD provides NCPs with a standardised questionnaire to help NCPs fulfil their reporting obligations as described in the Guidelines. This report is based on the United Kingdom’s NCP’s return to the Investment Committee.

1.3 Commonly used language

Throughout this report “Specific Instance” means a complaint that is submitted to the NCP concerning a company’s alleged breaches of the Guidelines. The terms “specific instance” and “complaint” are synonymous.

2. Institutional arrangements

This chapter relates to the institutional arrangements of the United Kingdom’s NCP including where it is based, how it is structured and governed for the year 2019.

The OECD Guidelines do not state how NCPs should be structured aside from that they should retain the confidence of social partners and other stakeholders and foster the public profile of the Guidelines.

2.1 Structure, location and composition of the NCP

The United Kingdom’s NCP is based in the Department for International Trade (DIT). The OECD describes the structure of the NCP as “single agency”, which means the NCP is based in a single government department or agency. The NCP consists of three civil servants who are based in an independent unit and operate independently from the rest of DIT.

The NCP was established in 2000. The NCP has not been established through a legislative, regulatory or administrative instrument.

2.2 Advisory body

The Guidelines state that NCPs can establish multi-stakeholder advisory or oversight bodies to assist NCPs in their tasks.

The United Kingdom’s NCP Steering Board is an advisory body with its own Terms of Reference which describe its functions. The Steering Board holds meetings quarterly, or at times that the Steering Board Chairman considers to be appropriate. The Steering Board has its own Terms of Appointment for members and is supported by a secretariat which is separate from the NCP. The secretariat supports the Chairman, takes minutes of the board meetings and provides the administration for steering board reviews of NCP complaint decisions.

The composition of the Steering Board is balanced between government departments with an interest in responsible business conduct and external stakeholders. The membership of the Steering Board in 2019 included:

  • the Department for Business, Energy and Industrial Strategy
  • the Department for Work and Pensions
  • the Foreign and Commonwealth Office
  • the Department for International Development
  • a Business representative nominated by the International Chamber of Commerce
  • a Trade Union representative nominated by the Trade Union Congress
  • a Non-government organisation representative nominated by the Corporate Responsibility Coalition, CORE)
  • an Independent (unaffiliated) member

2.3 Human and financial resources

The NCP has three dedicated members of staff. In 2019, one member of staff left the NCP and one new member of staff joined the NCP.

The NCP has a dedicated budget. In 2019, human and financial resources were available to the NCP to:

  • handle complaints in an efficient and timely manner
  • organise promotional events
  • attend NCP meetings at the OECD
  • attend events organised by other NCPs
  • attend events organised by stakeholders
  • cover professional mediator fees and other costs associated with complaint handling

The NCP did not need to conduct fact finding research abroad this year. The NCP’s spending this year was largely in line with its usual distribution, however one mediation took place in country (in Africa) and costs for the mediators’ travel were higher than a London-based mediation. That mediation also involved translation of documents from and into French involving additional costs.

2.4 Reporting

The NCP reports on its activities to senior colleagues within the Department for International Trade on a regular basis. During 2019, the NCP also reported to the then Department for International Development (DfiD) on a quarterly basis when it was receiving funding from DfID under the Responsible Accountable and Transparent Enterprise programme.

The NCP is part of the portfolio of the Minister for Internaional Trade through whom it communicates with Parliament. The Minister notifies Parliament when the NCP publishes Initial and Final Assessment statements and deposits the documents in the libraries of Parliament. The Minister also informs the Chairman of the International Trade Committee of the publications.

3. Information and Promotion

This chapter relates to the first objective of NCPs to promote the Guidelines. In relation to promotion, the Guidelines state that NCPs:

  • are required to make the Guidelines better known and available online
  • should provide information on its handles complaints to provide to parties to complaints
  • should co-operate and respond to enquiries from a wide variety of organisations to promote awareness of the Guidelines including: the business community, worker organisations, other non-governmental organisations (NGOs) and other interested parties
  • should maintain regular contact with stakeholders in order to consider new developments and emerging practices which the OECD terms the “proactive agenda”

3.1 NCP Website

The NCP has a website, which it updated in 2019. The website contains information about the Guidelines and the role of the NCP including:

The website contains information about the complaints mechanism including:

The website includes contact details for the NCP.

3.2 Promotional activities

The NCP has a promotional plan for five years. In 2019, the NCP conducted a number of promotional activities to:

  • the business community
  • non-governmental organisations (NGOs)
  • trade unions
  • among government agencies
  • among embassies abroad
  • investment promotion agencies

The NCP:

  • organised and co-organised 21 events (Annex A)
  • made four presentation to promote the Guidelines organised by others (Annex B)
  • promoted the work of the NCP at 15 events (Annex C).

The Head of the NCP represented the United Kingdom at the OECD Working Party for Responsible Business Conduct in March and November. The NCP also attended the OECD Meeting of the National Contact Points in June.

3.3 Proactive agenda

In 2019, the NCP continued to support the OECD in promoting its proactive agenda on promoting sector based due diligence to businesses, including:

The NCP focused its support to the OECD WPRBC on the development of new Guidance on Due Diligence for Responsible Corporate Lending and Securities Underwriting, which was published in October 2019. The NCP participated in the Multi-Stakeholder Advisory Group, and promoted the development of the Guidance to relevant stakeholders, and liaised on the sector specific due diligence guidance with the government departments that have policy responsibility for those sectors e.g. FCO and BEIS on conflict minerals and extractives.

The NCP also participated in the OECD Forum on Due Diligence in the Garment and Footwear Sector in February and the OECD Forum on responsible mineral supply chains in April.

4. Complaints

This chapter relates to the second objective of NCPs to handle complaints regarding a company’s behaviour in relation to the Guidelines.

4.1 NCP Procedures for handling complaints

The NCP has procedures describing the handling of complaints. The procedures are available on its website. The NCP has separate procedures for:

The NCP’s procedures were updated in 2019 to ensure they were in line with the latest data protection legislation.

4.2 Complaints practicalities

When the NCP receives a complaint, it confirms receipt within ten days of receiving the complaint to confirm how the complaint will be handled.

The NCP does not currently request feedback from the parties on the procedure following the conclusion of a specific instance. However, before publishing an initial assessment statement or final statement it does invite both parties to request a procedural review of its handling if either party believe that the NCP has not handled its complaint fairly.

NCP staff did not undergo any training in dispute resolution or conduct mediation themselves. The NCP uses professional mediation services to conduct its mediation.

4.3 Reporting of Complaints handled by the NCP in 2019

Complaints assessed at the Initial Assessment for further examination

The NCP accepted one complaint for further examination at the Initial Assessment stage, the complaint from Inclusive Development International (IDI), Equitable Cambodia (EC) and Cambodian League for the Promotion and Defense of Human Rights (LICARDO) against Bonsucro Ltd. The Initial Assessment was published in September 2019.

Complaints concluded by the NCP at the Final Statement Stage

The NCP concluded one complaint at the Final Statement Stage: the complaint from IUF against British American Tobacco. The Initial Assessment (PDF, 206KB) accepting the complaint for further examination was published in August 2016. The Final Statement was published in December. A Review of the Final Statement was published on the same day.

Ongoing complaints being handled by the NCP in 2019

Of the complaints that were already in progress at the start of the year the NCP continues to handle the following complaints:

  • the complaint from UK Lawyers for Israel about PwC. The NCP published the Initial Assessment accepting the complaint for further examination in June 2018.
  • the complaint from Bahrain Institute for Rights and Democracy (BIRD) about HPower Group Ltd, Company A and Company B. The NCP published the Initial Assessment accepting the complaint for further examination against HPower Group in November 2018.
  • the complaint from Association des Habitants de Ndogpassi I, II et III (AHN) and Cercle de Bon Voisinage de Logmayangui (CBVL) about Victoria Oil & Gas. The NCP published the Initial Assessment accepting the complaint for further examination in December 2018 (and in French in January 2019).

Complaints where a Follow-up was conducted

The NCP conducted one follow-up on the complaint from Crude Accountability against KPO. The NCP published the Initial Assessment (PDF, 153KB) accepting the complaint for further examination in December 2013. It published its Final Statement (PDF, 447KB) on the complaint in December 2017. In line with the recommendation in the Final Statement the NCP conducted a follow-up of the complaint in 2019 and published the Follow-up Statement in September 2019.

5. Peer learning and peer reviews

This chapter relates to peer learning and peer reviews by the global NCP community. In the OECD Guidelines it states that NCPs will engage in joint peer learning activities. It states in particular, they are encouraged to engage in horizontal, thematic peer reviews and voluntary NCP peer evaluations. Such peer learning can be carried out through meetings at the OECD or through direct co-operation between NCPs.

5.1 Peer learning

The NCP continues to work effectively and support its NCP peers. In 2019 the NCP provided capacity building and mentoring to several NCPs, supporting them with handling complaints. The NCP team participated in NCP peer learning activities hosted by other organisations including training organised by the International Labour Organisation, in collaboration with the OECD and funded by the European Union on Labour Issues in Responsible Business Conduct. The NCP did not host its own peer learning activity.

5.2 United Kingdom’s NCP peer review

In 2018, the on-site visit of the team conducting the peer review of the United Kingdom’s NCP was held in London. In 2019, the report of the United Kingdom’s NCP peer review (PDF, 1.8MB) was published by the OECD. The NCP will report on its response to the Review’s recommendations to the OECD Working Party for Responsible Business Conduct in November 2020.

6. Policy coherence

This chapter relates to policy coherence on Responsible Business Conduct (RBC). NCPs are expected to promote policy coherence on RBC within their governments.

In the United Kingdom, the OECD Guidelines are referred to in our:

The NCP shares information on the specific instances it has concluded with United Kingdom Export Finance and other relevant government trade bodies. The NCP provides training on the work of the NCP and the OECD Guidelines to staff working on investment and exporting, including embassy staff at post. In 2019 the NCP collaborated with the United Kingdom’s Competent Authority for Conflict Minerals on a roundtable with other government departments and businesses. The NCP regularly participates in cross government forums on responsible business conduct, business and human rights and supply chain issues.

The United Kingdom has a number of specific initiatives and examples of good practice involving public procurement and RBC including:

7. Annexes

7.1 Annex A: NCP-organised and co-organised events to promote the Guidelines and/or the NCP

Month Title Audience
January Met to discuss the role of the NCP and OECD Guidelines Business in the Community (BITC)
January Met to discuss the role of the NCP and OECD Guidelines Royal Institute for Chartered Surveyors (RICS)
January, April, July Met to discuss the role of the NCP and OECD Guidelines UK Export Finance (UKEF)
January, June, November Met to discuss the role of the NCP and OECD Guidelines Centre for Effective Dispute Resolution (CEDR)
January, March, May, July Delivered training on the NCP and the OECD Guidelines Government officials working on investment and export
April Met to discuss the role of the NCP and OECD Guidelines Home Office
April Met to discuss the role of the NCP and OECD Guidelines Foreign and Commonwealth Office Responsible Minerals Team
April Met to discuss the role of the NCP and OECD Guidelines Airbus
May Delivered training on the NCP and the OECD Guidelines Government officials working on trade and investment policy
June Met to discuss the role of the NCP and OECD Guidelines Government Equalities Office
July Met to discuss the role of the NCP and OECD Guidelines Financial Conduct Authority
August Met to discuss the role of the NCP and OECD Guidelines Department for Work and Pensions
August Delivered presentation on the role of the NCP and OECD Guidelines Global Witness, NGO
October Met to discuss the role of the NCP and OECD Guidelines Institute for Chartered Accountants in England and Wales (ICAEW)
December Delivered presentation on the role of the NCP and OECD Guidelines Financial Conduct Authority

7.2 Annex B: Presentations by the NCP to promote the Guidelines and/or the NCP in events organised by others

Month Title Audience
February Participated in a panel discussion on Access to Remedy and Operational Grievance Mechanisms Ethical Trading Initiative, Office of the United Nations High Commissioner for Human Rights, businesses, NGOs
September Delivered presentation on the role of the NCP and OECD Guidelines at roundtable on Conflict Minerals BEIS, OECD, businesses, NGOs
November Promoted the role of the NCP at roundtable on the OECD’s due diligence Guidance on Corporate Lending UK Finance, businesses in the financial sector
December Delivered presentation on the role of the NCP and OECD Guidelines ICAEW

7.3 Annex C: Other events where the NCP promoted the Guidelines and/or the NCP

Month Title Audience
February Promoted the role of the NCP at the OECD Forum on Garment and Footwear Businesses, trade unions and NGOs
February Promoted the role of the NCP at cross-government International Trade Conference Government officials working on trade
March Represented at the Working Party for Responsible Business Conduct (WPRBC) OECD’s WPRBC - - -
March Promoted the role of the NCP at an event on Tackling Slavery, Creating Value, Promoting Responsibility British Academy, Department for International Development (DfID)
April Promoted the role of the NCP at an event on Transparency in the world’s oil, gas & mining industries Extractives Industries Transparency Initiative (EITI)
April Promoted the role of the NCP at the OECD Forum on Responsible Mineral Supply Chains Businesses, trade unions and NGOs
April Promoted the role of the NCP at the Responsible Business in Action Conference BITC
May Promoted the role of the NCP at a working meeting on Fair Fashion in Africa DfID, NGOs
June Participated in the Meeting of the National Contact Points OECD, NCPs
September Participated in training for NCPs on Labour Issues in Responsible Business Conduct International Labour Organisation, NCPs, European Union, OECD
October Promoted the role of the NCP at the London Stock Exchange Sustainable Finance and Investment Summit Businesses
November Promoted the role of the NCP at the United Nations Forum on Business and Human Rights Businesses, trade unions and NGOs
November Working Party for Responsible Business Conduct and Meeting of National Contact Points OECD and NCPs
November Promoting role of NCP at roundtable held by Centre for Effective Dispute Resolution at the UN Forum on Business and Human Rights CEDR
December Promoted the role of the NCP at the Future of Trade event IHRB
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