A/HRC/54/31/Add.2
contact point, established in alignment with the OECD Guidelines for Multinational
Enterprises on Responsible Business Conduct; and the office of the Canadian Ombudsperson
for Responsible Enterprises, launched in 2019.
70.
The Canadian Ombudsperson for Responsible Enterprises has a mandate to review
alleged human rights abuses arising from the activities of Canadian companies operating
abroad in the garment, mining or oil and gas sectors. Indigenous Peoples and others affected
by a Canadian company’s operations abroad can file a complaint alleging human rights
abuses. However, the Special Rapporteur was informed of some shortcomings regarding this
mechanism. It is not independent from the Government of Canada, as it is situated within
Global Affairs Canada and reports to the Minister of International Trade, Export Promotion,
Small Business, and Economic Development, and its reports are not released until they have
been reviewed by the Minister. Additionally, it has been criticized for lacking the following
safeguards: mechanisms to protect Indigenous Peoples who file complaints from reprisals;
effective protocols to engage with Indigenous Peoples; policies to ensure gender-based
analysis and cultural sensitivity procedures during investigations; powers to compel
Canadian companies to produce documents or witnesses; and effective compensatory
mechanisms. In this regard, the Ombudsperson can only make recommendations to the
Government of Canada to impose consequences on businesses that do not respect human
rights, including revocation of trade promotion and export credit financing. Furthermore, the
Government does not comprehensively regulate the activities of Canadian companies
operating transnationally, on the assumption that this is primarily the role of the host State.
71.
For example, Canada continues to support the operation of the Line 5 pipeline, despite
the opposition of directly affected Indigenous Peoples in Canada and the United States of
America. The transportation of crude oil and liquid natural gas by Canadian-owned Enbridge
is creating the risk of a catastrophic oil spill that could contaminate the lands and waters of
Indigenous Peoples on both sides of the border. Canada is advocating for the pipeline to
continue operations, following the decision of a Parliamentary Committee that did not hear
testimony from the affected Indigenous Peoples. The Government invoked the 1977 transit
pipeline treaty with the United States to prolong Line 5 operations, which is inconsistent with
its international commitment to prevent and mitigate the effects of climate change by phasing
out fossil fuels.
72.
In 2020, the highest court in Canada set an important legal precedent allowing
corporations to be sued in Canada for abuses committed abroad. Previously, under Canadian
law, transnational corporations could only be held liable in foreign jurisdictions in which the
alleged abuses occurred. In Nevsun Resources Ltd. v. Araya et al., the Supreme Court of
Canada ruled that a Canadian mining company operating in Eritrea could be sued in Canada
for alleged slavery abuses. The company settled the lawsuit for an undisclosed amount.
Despite this advancement, Indigenous Peoples affected by overseas operations of Canadian
businesses still face great challenges in accessing juridical remedies before Canadian courts.
Civil society organizations have thus proposed the adoption of legislation to require Canadian
companies to prevent human rights and environmental harm throughout their global
operations and supply chains.
73.
The responsibility to respect human rights is a global standard of expected conduct
for all business enterprises wherever they operate, 50 and the State has extraterritorial
obligations to take steps to prevent and redress infringements of these rights committed
abroad by business entities over which it exercises control. 51 Home States must require
companies to conduct human rights due diligence to ensure respect for Indigenous Peoples
rights in their supply chains, and adopt and enforce regulations in relation to the human rights
impacts overseas of companies domiciled in home States.52
50
51
52
14
See Guiding Principles on Business and Human Rights and OECD Guidelines for Multinational
Enterprises on Responsible Business Conduct.
Committee on Economic, Social and Cultural Rights, general recommendation No. 24 (2017).
A/71/291, para. 115.
GE.23-13374