Human rights and natural resources

Many of the world’s remaining supplies of oil and gas are in difficult to reach places, such as underneath deep oceans, in the Arctic, or close to communities or conflict zones. In the meantime, global energy demand continues to surge and could rise by up to 80% in the first half of this century, due to improved living standards and development in emerging economies.

There is a strong business case for the effective management of security and human rights when it comes to extracting natural resources. Preventing security problems in the first place is clearly the most effective way to manage them, and in many places where extractive companies work, this is a significant part of their “licence to operate”. Research has shown that the majority of the risks that slow down or prevent large projects for oil and gas companies are non-technical.

Perhaps the business sector has not made a sufficiently strong case for the importance of devoting management time and attention to managing security and human rights issues. However, companies have a great deal of experience which could help to make policies in this area more effective.

As a starting point, the Voluntary Principles on Security and Human Rights (VPSHR) provide a global framework for companies to seek practical guidance on security and human rights. The principles, developed by governments, companies and non-governmental organizations in 2000, provide companies with best practices for maintaining the safety and security of their operations, and for setting up operating frameworks that ensure respect for human rights and fundamental freedoms.

A number of additional tools exist for companies to screen for security and human rights issues, including simple risk assessments. Companies should allow for significant contractor training in this area. Hundreds of contractors may require training in the case of a major project.

Timely escalation mechanisms within companies, including formalized methods to make sure the right people are informed in the case of a potential conflict, can help ensure that responses are put in place. In projects, it is important to identify those individuals that can make an impact on security and human rights. This may include project and line management staff as well as security professionals. It is essential that proper care for security and human rights issues is embedded in the individual performance contracts of the relevant individuals.

Read Rules of the game for Myanmar’s natural riches by Clare Lockhart

Human rights and security are one element of responsible natural resources management explored by the Global Agenda Council publication Natural Riches? Perspectives on Responsible Natural Resources Management in Conflict-affected Countries

Author: Andrew Vickers is Vice-President for NGO and Stakeholder Relations, Royal Dutch Shell and is a member of the Global Agenda Council on Conflict Prevention. With the collaboration of Christos Mylonas,Chief of Staff, Shell Iraq Petroleum Development BV.