Our client, Sustainable Development Capital LLP (SDCL), a specialist investment manager, has a long history of investing in sustainable energy companies and projects.
SDCL sought our advice on how to respond to growing regulatory and investor scrutiny on human rights risks in the renewable energy supply chain. Specifically, they wanted to better understand how SDCL’s funds and their investments could align with core social and governance standards expected by their investors, and how these should be integrated into contractual provisions, prior to commencements of construction and operation of their projects.
We created a briefing to demystify what core social and governance standards SDCL’s investors expect alignment with, why they matter to the firm’s funds and their investments, and how to comply with them. This included practical actions to prevent and mitigate adverse impacts prior to investment and through the duration of the project.
We also developed specific contracting guidance. This comprised of principles and specific provisions to ensure that the responsibilities for the prevention, mitigation and remediation of human rights risks associated with each project and its activities are embedded in contracts with key contractors and suppliers.
This drew on our expertise of responsible business standards, emerging human rights and sustainable finance regulations, legal developments and their practical application for businesses and investors.
SDCL is now better placed to meet the increasing expectations of its fund’s investors and customers to manage and respect human rights risks in the value chain, in line with recognised standards and upcoming regulations.
The team are equipped with practical actions, including model contracts, to ensure that the responsibility to protect the human rights of workers is shared across the supply chain.
