ESG and Business & Human Rights

At Reagan Blankfein Gates Legal Practitioners (RBGLP), we are committed to providing our clients with comprehensive insights into Environmental, Social, and Governance (ESG) considerations, as well as Business and Human Rights (BHR) practices. Understanding and integrating ESG and BHR principles are essential for businesses operating in Zambia, as they navigate the complexities of sustainable development and ethical operations.

Environmental, Social, and Governance (ESG) Considerations

ESG factors are increasingly influencing investment decisions and corporate strategies worldwide. In Zambia, the integration of ESG principles is becoming a critical component of business operations, driven by both regulatory frameworks and stakeholder expectations.

• Environmental: Companies are expected to manage their environmental impact through sustainable resource utilization, pollution control, and adherence to environmental regulations. The Environmental Management Act No. 12 of 2011 provides the legal framework for environmental protection in Zambia.
• Social: This dimension encompasses labour practices, human rights, and community engagement. Businesses are encouraged to foster ethical relationships with employees, customers, and communities, promoting diversity, inclusion, and human rights.
• Governance: Good corporate governance involves transparent decision-making processes, accountability, and compliance with laws and regulations. The Companies Act No. 10 of 2017 emphasizes the importance of transparency and governance standards in Zambia.

Business and Human Rights (BHR) Practices

The corporate responsibility to respect human rights is a fundamental aspect of sustainable business operations. In Zambia, sectors such as mining and agriculture have been the focus of studies assessing the implementation of human rights due diligence and the establishment of grievance mechanisms. The Human Rights Commission of Zambia, with support from the Danish Institute for Human Rights, has conducted assessments to evaluate how businesses are integrating human rights into their policies and practices.

Regulatory Landscape in Zambia

While Zambia does not have a single comprehensive law dedicated to ESG, various regulations address different aspects:

• Environmental Regulations: The Environmental Management Act No. 12 of 2011 and the Forest Act No. 4 of 2015 establish standards for environmental protection and sustainable resource management.
• Labour and Social Regulations: The Employment Code Act No. 3 of 2019 and the Occupational Health and Safety Act No. 36 of 2010 govern labour practices, workplace safety, and employee welfare.
• Corporate Governance Regulations: The Companies Act No. 10 of 2017 and the Securities Act No. 41 of 2016 outline corporate governance standards, including transparency, accountability, and disclosure requirements.

Recent Developments

The 2024 Zambia National Budget reflects a commitment to ESG principles, with measures aimed at promoting sustainable development and addressing climate change. Initiatives such as the Export Proceeds Tracking Framework and the intention to join the Global Forum on Tax Transparency indicate a focus on effective governance and economic sustainability.

RBGLP’s Commitment

At RBGLP, we provide legal advisory services to assist clients in understanding and integrating ESG and BHR principles into their operations. Our services include:

• Regulatory Compliance: Guiding clients through the complex regulatory environment to ensure adherence to environmental, social, and governance standards.
• Policy Development: Assisting in the creation and implementation of corporate policies that reflect a commitment to human rights and sustainable practices.
• Training and Capacity Building: Offering training programs to educate stakeholders on ESG and BHR issues, promoting a culture of ethical business conduct.

Conclusion

Integrating ESG considerations and upholding human rights are not only ethical imperatives but also strategic business decisions that can enhance corporate reputation and sustainability. RBGLP is dedicated to supporting businesses in navigating these critical areas, ensuring compliance and fostering responsible business practices in Zambia.

For more insights and legal updates on ESG and Business & Human Rights in Zambia, subscribe to our blog or contact our legal team at RBGLP.