The commodity trading and shipping industry has a unique role in driving respect for human rights in business. With its power to enhance the value of commodities through investment decisions, the industry can also play a vital part in mitigating the human rights impact of the pandemic and support the development of sustainable business.
The pandemic poses unprecedented human rights challenges for global trade. One example is the ongoing crew change crisis involving hundreds of thousands of seafarers stranded aboard vessels worldwide. The Neptune Declaration, a collaborative agreement that seeks to resolve the issue, was signed by over 600 maritime stakeholders including commodity traders. It calls for several actions such as recognising seafarers as key workers to grant them priority access to vaccines and adopting universally accepted health protocols during crew changes.
Another example is the humanitarian crisis in the Democratic Republic of the Congo exacerbated by COVID-19. Disruptions to mining activities and border closures complicating supply continue to intensify the difficulties faced by millions of households reliant on the Congolese mining sector. Exposure to human rights risks, including health and safety issues and child labour, is accentuated during the pandemic because on-site supply chain audits are often impossible, despite the heightened need for close monitoring. Similarly, companies that source coffee and cocoa are under pressure to tackle the increased prevalence of child labour.
This is where commodity traders with their inherent expertise in risk management and leverage to influence corporate actions can come into play. Our research at the Geneva Center for Business and Human Rights illustrates the unparalleled influence commodity trading firms have on upstream actors such as mine operators and mining cooperatives. This influence is not specific to a commodity or an industry. By entering into long-term commitments with suppliers and demanding compliance with concrete human rights standards in the sectors they invest in, commodity traders can advance the corporate responsibility to respect human rights while ensuring a wider market acceptance of the commodities they source responsibly. As a result, commodity traders can act as a powerful force for driving positive change, even in the deepest layers of supply chains.
In order to equip business leaders in the commodity trading and shipping industry with the knowledge and tools to manage human rights challenges, the Geneva School for Economics and Management integrates human rights elements in its course offerings: The Diploma of Advanced Studies in Commodity Trading, a part-time leadership program developed in collaboration with the STSA, and the Master of Science in Commodity Trading, which offers a core course on business ethics and human rights.
