A/HRC/12/34 page 19 concerned at the early stages of the consultation, allowing them time to understand the results of the impact studies and to present their observations and receive information addressing any concerns. Further, a consensus-driven consultation process in such contexts should not only address measures to mitigate or compensate for adverse impacts of the project, but also explore and arrive at means of equitable benefit-sharing in a spirit of true partnership. E. The duty to consult and private company responsibility 54. Frequently, issues of consultation arise when Governments grant concessions to private companies to extract natural resources, build dams, or pursue other development projects within or in close proximity to indigenous lands. In this connection, the State itself has the responsibility to carry out or ensure adequate consultation, even when a private company, as a practical matter, is the one promoting or carrying out the activities that may affect indigenous peoples’ rights and lands. In accordance with well-grounded principles of international law, the duty of the State to protect the human rights of indigenous peoples, including its duty to consult with the indigenous peoples concerned before carrying out activities that affect them, is not one that can be avoided through delegation to a private company or other entity. Further, as is the case in other contexts, consultations on extractive or other development activities affecting indigenous peoples should take place at the earliest opportunity and in all phases of decision-making, such that consultations should occur before concessions to private companies are granted. 55. The Special Rapporteur has observed several instances in which the State hands over consultation obligations to the private company involved in a project. In addition to not absolving the State of ultimate responsibility, such delegation of a State’s human rights obligations to a private company may not be desirable, and can even be problematic, given that the interests of the private company, generally speaking, are principally lucrative and thus cannot be in complete alignment with the public interest or the best interests of the indigenous peoples concerned. That is not, however, to discount the possibility of substantial convergence of these interests in a way that allows for consensus through negotiations in which imbalances of power are overcome. 56. For their part, private companies that promote or engage in extractive or other development activities affecting indigenous peoples should themselves, as a matter of company policy, endeavour to conform their behaviour at all times to relevant international norms concerning the rights of indigenous peoples, including those norms related to consultation. While in strict legal terms, with the exception of some circumstances, international law does not impose direct responsibility on companies to respect human rights, private companies are in fact increasingly evaluated for their compliance with international human rights norms. More and more, there is widespread expectation that companies will follow these norms within their respective spheres of influence, an expectation that has been expressed by international civil society, international human rights institutions, States, and companies themselves.29 Additionally, in situations in 29 See the report of the Special Representative of the Secretary-General on the issue of human rights and transnational corporations and other business enterprises, John Ruggie, “Protect, Respect and Remedy: a Framework for Business and Human Rights” (A/HRC/8/5) (2008).

Select target paragraph3