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Human rights

EKN makes an assessment of the risk of negative impact on human rights with a focus on the operations or project where the product is to be used.

Reducing transaction risk

A human rights review is part of EKN’s business risk assessment and can help to reduce both financial risk and human rights risk. Defence material transactions are exempted from the human rights assessment.

EKN’s assessment of human rights impacts places particular emphasis on the rights that are linked to the business activity’s local impacts. These include, for example, working conditions, the effect on health and safety in the surrounding area, resettlement, indigenous peoples, vulnerable groups and cultural heritage.

How does EKN’s assessment of human rights work?
  1. When guarantee applications are received, EKN performs a screening to identify transactions with a significant risk of negative impact on human rights The screening takes into consideration, inter alia, the sector and the country applicable.
  2. When there is any indication of a material risk of negative impact, the application is subjected to a human rights assessment. The review is adapted based on the risks that are identified and the design of the financing. If necessary, EKN can request supplementary information from the borrower concerning how risks of human rights are managed in the operations where the equipment is to be used.
  3. EKN uses the IFC’s Performance Standards and the World Bank’s Environmental, Health and Safety Guidelines (EHS Guidelines) as well as the UN Guiding Principles on Business and Human Rights (UNGPs) to evaluate whether the risk of negative impact on human rights is managed in an adequate manner. EKN also uses the UN Guiding Principles on Business and Human Rights in its assessment of how risks are to be prioritised and what opportunities EKN has to mitigate these risks.
What should you do as an exporter for the human rights assessment?

As an exporter, your application will include responses to:

  • Where, how and within which industry the good/service is to be used and if the end user is any party other than the buyer.
  • If the end user is an existing operation or  a project such as a newly established or significant expansion.
  • Any risks and impact on human rights and working conditions.
  • Any positive social effects.
  • The evaluation the exporter has made of the risks and impact on human rights and working conditions, or alternatively, the reason behind why no such evaluation has been made.

You must also provide EKN with any questions presented to the buyer.

Keep in mind

You can accelerate the process and make it easier for administration by being well prepared ahead of EKN’s assessment of the impact on human rights.

  • Inform the buyer at an early stage that an EKN guarantee can lead to questions concerning the management of human rights to prepare the buyer to answer questions when EKN is involved.
  • The more information that EKN receives about the buyer from the exporter, the quicker the human rights risk assessment takes.
  • If any human rights risks are known, involve EKN at an early stage so that the issues can be managed in parallel with other financing.

Read more

IFC´s Performance Standards
The World Bank Group’s Environmental, Health and Safety Guidelines

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