Renewable energy projects may trigger environmental and social impacts. We endeavour to minimise our negative impacts, maximise local benefits and ensure constructive dialogue with all project stakeholders. In all our work, we pay special attention to the human rights we are at risk of impacting and to the most vulnerable groups.
Policy and governance
Our human rights policy is aligned with the United Nations (UN) Guiding Principles on Business and Human Rights to prevent, address, and remedy human rights abuses committed in business operations. The policy confirms that Scatec’s responsibility to respect human rights applies to our business enterprises wherever we operate and pay special attention to the human rights risks of certain groups, such as indigenous people, minorities, women, children, migrant workers and other vulnerable groups.
In addition, Scatec’s Code of Conduct sets out the essential requirements for ethical business conduct within our company, which applies to all employees, hired consultants and directors, including our subsidiaries, joint ventures and affiliates. In addition, we do not enter any contractual relationship with a third party without appropriate integrity due diligence.See more
We follow standardised processes in all our projects to identify, mitigate and monitor our environmental and social (E&S) risks and impacts including human rights under the IFC Performance Standards (PS) framework. We conduct human rights due diligence as part of our overall E&S due diligence process. Project risk registers, Environmental and Social Impact Assessments (ESIA), Environmental and Social Due Diligences (ESDD), Environmental and Social Action Plans (ESAP), Environmental and Social Management Plans (ESMP) contain human rights aspects. When initial assessments point to potential human rights risks, focused Human Rights due diligence assessments are conducted to gather deeper understanding of the risks the development of project can trigger and mitigation measures.
Salient human rights risks
Scatec engaged a third party to conduct a gap analysis of our alignment to the Transparency Act, related to human rights due diligence, external reporting on human rights as well as responding to requests for information from the public. Key findings include:
In Q4 2022, an in-dept saliency assessment was undertaken where human rights risks, across 25 specific operational and value chain areas, were identified and categorised according to severity and likelihood. Refer to the below summary:
Access to remedy
Scatec has both a whistleblowing channel and grievance mechanism in place in line with the IFC PS and UN Guiding Principles on Business and Human Rights.
The whistleblower function is available to all employees, suppliers, partners and customers of the company through internal channels and our corporate website. The function is operated by an independent third party and available in eight languages. All whistleblowers have the option to be anonymous.
Our grievance mechanism is targeted towards individuals, communities and companies who have feedback or concerns regarding our projects. It is a channel to present issues to the administration of the projects and is directly supervised by our global sustainability unit. Each grievance is logged in our system, allocated to the responsible person and systematically processed according to our grievance procedures. We aim to have a response time and initiate action to resolve the grievance in a maximum of 15 working days. The mechanism is available at each local project site and in five different languages on our website: English, Arabic, Spanish, Portuguese and Ukrainian. The mechanism provides a valuable platform for engaging with communities.
We report on the number of grievances received and resolved, as well as whistleblowing reports received and outcomes after investigations aligned to our internal processes. Refer our Ethics and compliance and Local value creation reporting on our corporate website for more information.
Although there are no specific cases relating to human rights in 2022 to date, summaries of the resettlement processes we carried out in line with the IFC Performance Standards in 2022, are presented here.
Labour compliance in accordance with IFC Performance Standards and key International Labour Organisation (ILO) conventions is a contractual requirement for all engineering, procurement and construction (EPC) contractors.
GRI 410-1: Security personnel trained in human rights policies or procedures
Scatec’s human rights training programme for security personnel was launched in 2020. All Scatec facilitators were trained by a third party with international best practice human rights experience to be able to present this training to the security guards at their respective locations. The training is provided to third party security service providers and staff based on Scatec’s project sites. In 2022, all new security service providers were trained in addition to 55% of security guards who we trained in 2021 in all projects where Scatec has operational control.
In addition, the interactive corporate training for all employees provides background to human rights and focuses on business and human rights and the specific role human rights play within Scatec and its operations.
Sukkur project (150 MW) under construction, Pakistan
Scatec completed the physical resettlement process in Pakistan of 81 households, other structures and cultivated land.
1) The policy states the projects with potentially significant, adverse impacts must have “broad community support” in order to receive IFC financing.
Mendubim project (531 MW) under construction, Brazil
Scatec completed the resettlement actions of 2 households.
E&S impact assessments: Environmental and Social Impact Assessments (ESIAs), due diligence or baseline studies to identify potential environmental and social risks and impacts of our activities (in accordance with the IFC Performance Standards and Equator Principles).
Security guards: Personnel of companies appointed by Scatec to provide security services to the project site.