Canada 2022 - Canada Championing The Fairer World by CorD Magazine

Canada 2022

CONTENTS

05 06

CARING COUNTS COMMENT

WE URGE RESPONSIBLE BUSINESS CONDUCT ZORANA MIHAJLOVIĆ PH.D., SERBIAN DEPUTY PRIME MINISTER AND MINISTER OF MINING & ENERGY

ENCOURAGING STRIDES SHERI MEYERHOFFER, CANADIAN OMBUDSPERSON FOR RESPONSIBLE ENTERPRISE

NO PROGRESS WITHOUT GEOLOGY DUŠAN SIMIĆ, JANTAR GRUPA FOUNDER AND CEO

LEADING BY EXAMPLE H.E. GILES NORMAN, AMBASSADOR OF CANADA TO SERBIA

THRIVING AND GROWING TOGETHER WITH THE LOCAL COMMUNITIES DUNDEE PRECIOUS METALS

RESPONSIBLE TO SOCIETY, PEOPLE, AND PLANET MIRJANA DONČIĆ BEATON, MANAGING DIRECTOR OF THE CANADIAN-SERBIAN BUSINESS ASSOCIATION

GENDER EQUALITY IS THE FOUNDATION OF RESPONSIBLE BUSINESS VIOLETA JOVANOVIĆ, EXECUTIVE DIRECTOR, NALED

STEPPING IT UP CORPORATE RESPONSIBILITY AND RESPECT TO HUMAN RIGHTS LUC ZANDVLIET, DIRECTOR , TRIPLE R ALLIANCE

FOCUSED ON PEOPLE AND THE PLANET APATIN BREWERY

MUNDORO FOLLOWS WORLD BEST PRACTICES TEO DECHEV, CHIEF EXECUTIVE OFFICER, PRESIDENT & DIRECTOR OF MUNDORO

FACT AND FIGURES

CANADA’S STRATEGY FOR THE FUTURE (2022 TO 2027) RESPONSIBLE BUSINESS CONDUCT ABROAD

IMPRESSUM EDITOR IN CHIEF Neda Lukić n.lukic@aim.rs ART DIRECTOR Branislav Ninković b.ninkovic@aim.rs PHOTOS Zoran Petrović COPY EDITOR Mark Pullen mrpeditorial@mail.com

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PROJECT MANAGERS Biljana Dević b.devic@aim.rs Vesna Vukajlović v.vukajlovic@aim.rs Mihailo Čučković m.cuckovic@aim.rs OFFICE MANAGER Svetlana Petrović s.petrovic@aim.rs FINANCE Dragana Skrobonja finance@aim.rs

EXECUTIVE DIRECTOR Maja Vidaković m.vidakovic@aim.rs PUBLISHER Ivan Novčić i.novcic@aim.rs DIRECTOR Ana Novčić a.novcic@aim.rs a.novcic@cordmagazine.com

PRINTING Rotografika d.o.o. Segedinski put 72, Subotica CANADA 2022 Published by: alliance international media Prote Mateje 52, 11111 Belgrade 17, PAK 126909, Serbia Phone: +(381 11) 2450 508 E-mail: office@aim.rs; office@cordmagazine.com

www.aim.rs; www.cordmagazine.com No 41 ISSN: 2560-4465 All rights reserved alliance international media 2022 The views expressed in this publication are those of the presenter; they do not necessary reflect the view of publications published by alliance international media THIS PUBLICATION IS FREE OF CHARGE

COMMENT

CARING COUNTS

Companies must know—and show—that they respect human rights in all their operations. With the new Responsible Business Conduct Strategy, the Canadian Government is calling on all Canadian companies working abroad to abide by these rules

ver since the 1976 adoption of the OECD Guidelines for Multinational Enterprises, continuous progress has been seen on raising the importance of human rights in the international business sector, but also on the adoption of relevant national and international policies and standards that enforce respect for those rights. Despite this topic having been strongly recognized and prioritized by governments and corporations around the world, we have also witnessed unfortunate events that serve to remind us that the process of improving respect for human rights is never-ending. One such unfortunate event was the April 2013 collapse of the Rana Plaza building in Bangladesh that killed 1,132 people and injured more than 2,500 workers employed in operations serving various global fashion companies. The tragedy became a symbol not only of the impact of the fashion industry, but of the carelessness of businesses seeking to turn a profit at the expense of workers’ human rights. The Rana Plaza disaster also led to progress – supported by the International Labor Organization – on labor law reform, labor inspections, workplace safety, and injury compensation for workers and their families. Furthermore, it reminded all stakeholders that there was a need to establish a new, international, legally-binding standard on human rights due diligence in global supply chains, based on the UN Guiding Principles on Business and Human Rights. In the absence of such a document, the UN Guiding Principles are still the most important document in that area. The Guiding Principles closely connect human rights and the responsibilities of businesses, and define key elements of human rights due diligence. Under the Principles, businesses should ensure that they respect human rights in their own ac-

In today’s world, responsible companies use the Guiding Principles to differentiate themselves from their competitors, to improve their branding and build better relations and trust in the countries and communities in which they operate tivities, but also in their business relations with their suppliers. The Guiding Principles were proposed by UN Special Representative on Business and Human Rights John Ruggie, and endorsed by the UN Human Rights Council in June 2011. The same resolution saw the UN Human Rights Council establish the UN Working Group on Business and Human Rights. Following the endorsement, this UN working group, consisting of five independent experts, was appointed to guide the dissemination and implementation of the UN Guiding Principles. The UN Framework recognizes the duty of states (under international human rights law) to protect everyone within their territory and/or jurisdiction from human rights violations committed by business enterprises. As a result, the states are obliged to have effective laws and regulations in place to prevent and address

business-related human rights abuses, and ensure access to effective resolution for those whose rights have been abused. Since then, many countries, Canada included, have exerted considerable efforts to promote responsible business conduct and develop tools to help companies achieve these standards. In the previous stages, these rules focused on companies that work outside Canada in the garment, mining, and oil and gas sectors, but in the new document - the Responsible Business Conduct Strategy - the Canadian Government has broadened the scope of intervention to all companies. As stated, businesses themselves have a responsibility to respect human rights wherever they operate and whatever their size or industry.This means that they have to know either the actual or potential impacts of their operations, and to react preemptively or address existing adverse impacts.

Canada 2022

INTERVIEW ZORANA MIHAJLOVIĆ PH.D., SERBIAN DEPUTY PRIME MINISTER AND MINISTER OF MINING & ENERGY

WE URGE RESPONSIBLE

BUSINESS CONDUCT

If we want Serbia to have modern, green mining, we must have the highest standards in the field of environmental protection, and that’s something we’ll demand of all mining companies and for all new projects. In accordance with that, we pay great attention not only to investments, but also to the values that these companies bring to our market

n order for us to create the kind of society we want, it’s necessary for us to have both economic growth and respect for all standards that contribute to improving quality of life, from environmental protection to the promotion of labor rights, inclusiveness and equality, says Serbian Deputy Prime Minister and Minister of Mining and Energy Zorana Mihajlović Ph.D., with whom we discussed how all of that can be achieved in practice.

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We hear very often about how some companies, whether domestic or foreign, endanger the rights of their workers. What does the Serbian government do to promote good employers and sanction those that violate workers’ human rights? - First and foremost, respect for workers’ rights isn’t a matter of the good will of employers, rather adherence to the law and its application. It is possible, however, to do some

additional things, either through initiatives or certain regulations that encourage companies to take better care of their attitude towards employees and thereby raise standards and promote good practice as a society. One example of this is the so-called white and black list of works contractors, which we introduced during my time heading the Ministry of Construction, Transport and Infrastructure. That list ranks construction

STANDARDS

VALUES

PRACTICES

Mining isn’t merely the exploitation and processing of mineral ores… That’s why projects in the mining sector can only be realized if they’ve first satisfied all environmental protection requirements

For us, it is very important that the investors that come to Serbia not only bring capital and technology, but also contribute to improving practices with regard to environmental protection and inclusivity

The increased presence of Canadian companies in Serbia would provide more opportunities to transfer good business practices to ur country

companies according to criteria like the number of employees on fixed-term contracts, the number of serious and minor injuries sustained at work, regular payments of taxes and contributions, instances of undeclared work, with the aim of clearly identifying companies that violate regulations and giving a preference in the awarding of works to those that act responsibly towards employees and respect deadlines. At the suggestion of the ministry that I then headed, the Government of Serbia adopted a finding in 2017 that recommended state institutions confirm the rating of companies on the black and white list, via public procurement, prior to making a decision on the awarding of works, precisely with the aim of giving an advantage to companies that regularly pay their taxes and contributions, take care of the safety of workers and respect contractual obligations, all of which are criteria that ensure they’re included on the white list. Of course, such a model can also be applied in other areas, as long as there are clear criteria and a willingness to give a preference to responsible companies. We often see a lack of responsible business conduct when it comes to the attitude towards women. To what extent do existing documents and control instruments provide a response to these issues? - Gender equality must be achieved in all areas of social, economic and political life, in order for us to achieve progress in society. The new legislative and strategic framework – primarily the umbrella Law on Gender Equality and the Strategy for the Promotion of Gender Equality – introduce an array of regulations aimed at advancing equality between women and men in many areas, which also includes labor and employment. This includes, among other things, reducing the pay gap between women and men in the labor market (the pay gap stood at 8.8% in 2018), increasing the participation of women in high-paying jobs, establishing systemic support for launching,

developing and growing businesses that are majority-owned by women, boosting support for innovative programs and services that aim to encourage women in the labor market. Statistics show that women account for more than half of graduate students in Serbia, while 57% of those who’ve completed doctoral studies are women and 43% are men. Taking this data into consideration, a

Respect for workers’ rights isn’t a matter of the good will of employers, rather adherence to the law and its application… An example of this is the so-called white and black list of works contractors, which we introduced during my time heading the Ministry of Construction, Transport and Infrastructure question arises as to how women find it tougher to secure employment in the highest positions and how it’s possible that decision-making positions are most often held by men? There are many factors contributing to this situation and maintaining the “glass ceiling” effect, such as – among other things – gender stereotypes and prejudice, the historically unequal distribution of power between men and women, unpaid housework and gender roles that most often identify women as housewives and mothers whose place is in the home. Five years ago, with the aim of promoting responsible business, the Coordination Body for Gender Equality and the Association of Business Women of Serbia jointly established an award for the most gender-sensitive company, in order for gender principles to be included in all spheres of life, including the business world. Companies that implement a CSR strategy that’s guided by

gender equality principles, that treat all employees fairly, respect and protect human rights and non-discrimination, that promote the education, training and professional development of women in their operations and that endeavor to ensure the health, security and equality of all workers while publicly advocating for equality and including women’s companies in their supply chains are certainly companies that contribute, with their example, to the creation of a new, gender-sensitive climate in Serbia. We have a great drive to develop mining in Serbia, but the public is suspicious over whether the companies involved in these operations will behave in accordance with best practices. What mechanisms are available to the Government of Serbia when it comes to ensuring companies comply with the standards and obligations that they accepted contractually? - When the Ministry of Mining and Energy was formed in October 2020, we set the priority, first and foremost, not only for mining operations to comply with all legal regulations, but also for us to work on the respecting and raising of standards related to environmental protection and the relationship companies have with the communities living in the places where they conduct mining operations. This all requires the state’s proactive approach, from the advancing of regulations – which we achieved through the adoption of the Law on Amendments to the Law on Mining and Geological Exploration – to the reinforcing of inspection oversight. With the adopting of this law, we wanted to create the necessary conditions for the more efficient and sustainable management of Serbia’s mineral deposits and other geological resources, and to increase investments in geological exploration and mining, given that the value of Serbia’s confirmed mineral reserves is more than 250 billion dollars. However, mining isn’t merely the exploitation and processing of mineral ores, but rather

Canada 2022

INTERVIEW also implies caring for the people who live close to the mine and taking care of nature. That’s why projects in the mining sector can only be realized if they’ve first satisfied all environmental protection requirements. Mining needs to develop itself and contribute to overall economic growth, but that must be done in a sustainable way. If we want Serbia to have modern, green mining, we must have the highest environmental protection standards, and that’s something we’ll demand of all mining companies and for all new projects. We are, of course, also aware of the multitude of half-truths and complete lies being propagated when it comes to mining projects, which only cause harm to everyone, and we combat that by informing citizens and being fully transparent in everything we do. What is your greatest inspiration and which of the practices included in the Canadian strategy on responsible business conduct would you like to see implemented in Serbia? - Primarily, that would be the expectation that companies – regardless of ownership structure, size, and sector of operations – can contribute to sustainable development and serve as an example to their partners and suppliers, thus contributing to raising standards throughout the entire supply chain. For us, it is very important that the investors that come to Serbia not only bring capital and technology, but also contribute to improving practices with regard to environmental protection, inclusivity, promoting gender equality and human rights, and contributing to the fight against all forms of discrimination in our society. I also believe that the influence of Canadian companies, as well as the promoting of the values promulgated through the Canadian Strategy for Responsible Business Conduct, would be even more significant with the greater presence of Canadian companies in Serbia and more investors from this country. The highest level of bilateral trade was achieved last year, but space certainly exists to advance our economic cooperation further and attract more investment from Canada. The increased presence of Canadian companies in Serbia would certainly lead to more opportunities to transfer good business practices to Serbia.

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Gender equality must be achieved in all areas of social, economic and political life, in order for us to achieve progress in society To what extent are companies’ CSR policies integrated in the sector that’s under your direct jurisdiction? - Serbia is a country that’s on the path to achieving EU membership, and the entire process of European integration should ensure the raising of standards in all areas. The opening of Cluster 4 - Green Agenda and sustainable connectivity – is an acknowledgement of the results achieved to date, but also an obligation for us to reach the standards required of us in the coming period. Serbia is undergoing the energy transition process that will change many things, especially in the energy sector, but also in relations towards the environment. No project can be implemented in the field of energy without first complying with all environmental protection regulations and standards. Green transition is a process that impacts all of us, and we will all have to change our attitude towards energy – from how we access

it, to how we consume it in our households, transport, companies, and production processes. Through the laws that we’ve passed and our program of subsidies for increasing energy efficiency in households and installing solar panels, the Ministry of Energy and Mining has made it possible for citizens to become actors in green transition, but it is equally important for business to be part of our route to decarbonization, and for the green agenda to be included in companies’ strategies and operations. Attitudes towards the environment, contributing to the fight against climate change, reducing carbon emissions and taking care to ensure the rational use of energy are factors that are being seen around the world as ways for companies to set themselves apart from their competition, demonstrate their awareness and responsibility, and thus gain the trust of customers and service users. It is my belief that this will increasingly become part of the practice of companies in Serbia, especially in the energy transition process, which is a generational issue that we should all contribute to in order for us to become an energy secure country, for us to have enough energy, and to preserve a healthy environment – not only today, but also for future generations.

Canada 2022

INTERVIEW H.E. GILES NORMAN,AMBASSADOR OF CANADA TO SERBIA

LEADING BY EXAMPLE The Government of Canada is adamant that the protection of human rights, both in Canada and globally, has to be high on the agenda of companies, and that’s why it encourages Canadian businesses to approach their international projects by placing human rights at the very heart of their endeavors

he Government of Canada has insisted, and will always insist, on the protection of human rights in Canada and around the world. We continue to encourage Canadian businesses to develop their international projects by placing human rights at the very heart of their projects, thus building Canada’s reputation as the global leader of responsible business conduct ~ says Canadian Ambassador to Serbia Giles Norman at the start of our interview, which is focused on the values underpinning the Responsible Business Conduct Strategy adopted by

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the Government of Canada in April 2022. The Responsible Business Conduct Strategy (RBC) represents continuity with some shifts, including the introduction of new tools and requirements to help Canadian companies achieve leading responsible business practices, greater alignment with the wider priorities of the Government of Canada, and the establishment of an action plan and a monitoring and evaluation framework, explains our interlocutor. As part of the Strategy Action Plan, the Government of Canada will develop an RBC due diligence standard that will complement

existing international and Canadian reporting frameworks, and provide a common set of indicators for Canadian companies to account for how they address actual and potential negative impacts on their business activities, explains the ambassador. “We will also develop interactive tools to provide companies with information on social and environmental risks related to specific markets and sectors. These tools will aim to increase awareness among Canadian companies regarding the risks they may face in the international markets. “Coupled with the control mechanisms

INCLUSIVENESS

COMMITMENT

STANDARDS

The Responsible Business Conduct Strategy is central to Canada’s trade diversification strategy, inclusive trade, and sustainable and inclusive economic growth

The Canadian Government is committed to enacting legislation to eradicate forced labor from Canadian supply chains and prevent human rights abuses

The Government of Canada, and our industry as a whole, encourage Canadian mining companies to run their international projects as they do in Canada

developed by the Government of Canada, such as the Canadian Ombudsperson for Responsible Enterprises (CORE) and Canada’s National Contact Point (NCP) for RBC under the OECD, we continue to encourage businesses to conduct their international activities in the “Canadian way”,” concludes our interlocutor.

and share our beliefs and commitment with other countries. The Extractive Sector Transparency Measures Act (ESTMA) came into force in 2015 and helps the Government of Canada deter corruption in the extractive sector. Amendments to the Customs Tariff made in July 2020 prohibited the importation of goods that are mined, manufactured or produced wholly or in part by forced labor. In addition, the Government is committed

- Canada offers three means of support to our businesses in order to help them incorporate, improve and/or implement RBC standards in their operations. Firstly, the government of Canada aims to introduce new tools to help companies better understand and mitigate risks, by providing clear guidance to businesses on how to conduct RBC due diligence and help them de-risk their international business activities, including in their supply chains. This will be especially important for SMEs, which comprise about 99.8% of Canadian companies and account for 55% of Canada’s GDP and 41% of its goods exports. Secondly, to ensure that Canadian businesses requesting support from the Government of Canada comply with the RBC expectations, they will be obliged to complete the Digital RBC Attestation. Through the Digital RBC Attestation, companies will acknowledge the importance of RBC, including adherence to Canadian laws and other international legal standards and norms, primarily with respect to human rights and the environment. It is not enough to set up the RBC legislative and institutional framework and ensure that businesses and governments adhere to those standards. We cannot guarantee that mistakes won’t be made, that incidents won’t occur. Canada has established two important remedy and dispute resolution mechanisms that provide accessible, lowcost and constructive dispute resolutions. I have already mentioned Canada’s NCP for RBC under the OECD, which is mandated to promote the OECD Guidelines, respond to enquiries and offer facilitated dialogue and mediation to all sectors on a wide range of issues related to human rights, labor, the environment and bribery. In April 2018, the Government of Canada announced the establishment of the Canadian Ombudsperson for Responsible Enterprise (CORE), which is mandated, amongst the other responsibilities, to review allegations of human rights abuses arising from the operations of Cana-

What values does “doing business the Canadian way” entail? - Canada’s global reputation as RBC leader comes from our country’s commitment to doing things in responsible ways, contributing to more sustainable growth and building a better future for all. It means respecting human rights, protecting the environment, advocatingforgenderequalityandcombating discrimination while furthering diversity and inclusion. It means prioritizing the interest of the people and protection of the environment in your everyday activities, no matter the costs of such an approach, because our failure to act responsibly inevitably disturbs the trust that societies have in the government and businesses. Canadian Prime Minister Justin Trudeau once said: “Openness, respect, integrity – these are principles that need to underpin pretty much every other decision that you make” and that is the essence of “doing things the Canadian way”. How have responsible business practices evolved over time, from the government’s perspective? - RBC is central to Canada’s trade diversification strategy, inclusive trade and sustainable and inclusive economic growth. Throughout the past 10 years and more, the Canadian legal environment has evolved to ensure greater commitment to RBC. The Strategy relies on the previous five-year document that was adopted by Canada in 2009 and 2014. But, both in Canada and internationally, our government has developed other policies, standards and institutions to build the RBC framework

Canada’s global reputation as RBC leader comes from our country’s commitment to doing things in responsible ways. That means respecting human rights, protecting the environment, advocating for gender equality and combating discrimination while furthering diversity and inclusion to enacting legislation to eradicate forced labor from Canadian supply chains and ensure that Canadian businesses operating abroad do not contribute to human rights abuses. Canada has ratified several international treaties and adheres to various guidelines that promote RBC, including the UN Principles on Business and Human Rights, and the OECD Guidelines on Multinational Enterprises. In 2000, Canada established the National Contact Point for RBC under the OECD, as a tool to promote international RBC standards, but also to offer a mechanism for addressing grievances to those who feel they have been adversely affected by the operations of Canadian companies. What kind of support does the Canadian state offer businesses to help them navigate ethical and environment standards?

Canada 2022

INTERVIEW

dian companies abroad in the mining, oil and gas and garment sectors. I’m glad that the current ombudsperson, Sheri Meyehoffer, will also have an opportunity to present the work of her office in this special edition. How well do business goals aimed at maximizing profit go hand-in-hand with these standards, which often impose additional costs and investments? - Building trust is key to any successful relationship, be that in business or other segments of our lives. To be able to gain trust, people and businesses need to understand the rights of societies and respect them when conducting their activities. By neglecting them, businesses increasingly run the risk of being unable to develop or start new partnerships or enter new markets. They inevitably lose trust. Therefore, in the short-term, businesses may consider that time and money invested in understanding and integrating RBC in their activities will not justify the (poten-

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By leading digitalization in the RBC sector, our government can ensure that companies conduct their operations “in the Canadian way”, both in Canada and abroad tial) profit reduction. However, companies should really consider these costs as an investment in their future, since modern societies prioritize human rights over unsustainable economic development. Very soon businesses will have an imperative to integrate RBC into their operations if they want to remain competitive in the international markets. Canada is recognized globally for the size and importance of its mining industry, which has long been in the spotlight for its negative impact on the environment and local communities. How does the RBC Strategy and/or other Canadian developed

or supported RBC standards hold Canadian companies accountable in their projects, both in Canada and overseas? - Canada has a long history in mining. From the 19th century onwards, mining has been one of the key industries of Canada’s settlement and development, starting from early operations in Quebec, to modern mines in the Arctic circle. The mining industry today provides a 5% contribution to our GDP, while directly and indirectly employing more than 600,000 people. Global society is striving for a smart, clean and sustainable future based on a digitalized economy, renewable energy sources and decarbonization. Such a future will rely on the Internet of Things, wind and solar energy, electric vehicles and battery storage. Critical minerals are key components of these products, thus making mining an intrinsic part of the future we’re striving to create. The world will need more mining, not less. Putting people and the environment first will be an imperative for

the mining industry. This means enhancing the industry’s responsible business conduct. The Government of Canada, and our industry as a whole, encourage Canadian mining companies to run their international projects as they do in Canada. Companies are obliged to respect domestic laws in their countries of operation, but they are also responsible for respecting Canada’s laws and standards. The Mining Association of Canada (MAC) has developed the standard Towards Sustainable Mining (TSM), which provides MAC members with a set of tools and indicators to turn these standards into action on the ground and respect the highest environmental and social commitments. It also enables local communities to gain insight into the operations of these mining companies, including in areas such as community engagement, tailings management and biodiversity. Nine countries, including Australia and Finland, have so far adopted TSM as their local standard, and we hope

it will continue to be promoted around the world by Canadian companies. In order to enhance the control mechanism of an industry that faces major public criticism, the Government of Canada continues to build its own control mechanism. It was in March 2021 that the government launched the work of Canada’s Ombudsperson for Responsible Enterprise (CORE). This institution has a mandate to receive and review complaints of human rights violations lodged by local communities from the jurisdiction of Canadian companies’ operations in the extractive, chemical and textile industries. As a non-judicial mechanism, the CORE can mediate the settlement of a dispute between a local company and Canadian business. How does digitalization help in the process? - Global digitalization is a tool that supports efficient business conduct and enables better time management in our everyday lives.

The Canada RBC Abroad Strategy will offer Canadian businesses interactive tools with information on social and environmental risks related to specific markets and sectors. These tools will aim to increase awareness among Canadian companies of the risks they may face, and help them mitigate risks by incorporating RBC standards into their operations. On the other hand, the CORE mechanism will enable local communities and individuals to protect their human rights, including rights related to environment protection, even if they are distant from Canada’s territory. By using digital tools to report relevant claims, communities and individuals can be sure that the CORE will process their cases and offer mediation in any dispute between a Canadian business and the reporting party. By leading digitalization in the RBC sector, our government can ensure that companies conduct their operations “in the Canadian way”, both in Canada and abroad.

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BUSINESS RESPONSIBLE BUSINESS CONDUCT ABROAD: CANADA’S STRATEGY FOR THE FUTURE (2022 TO 2027)

GUIDING CANADIAN COMPANIES

POSITIVE IMPACT ABROAD Global Affairs Canada, through the Trade Commissioner Service, aims to work with other institutions to support Canadian companies in incorporating responsible business practices abroad

esponsible Business Conduct Abroad: Canada’s Strategy for the Future (2022 to 2027) builds upon two previous strategies, namely Canada’s enhanced Corporate Social Responsibility (CSR) Strategy, “Doing Business the Canadian Way: A Strategy to Advance Corporate Social Responsibility in Canada’s Extractive Sector Abroad”, which was enacted in 2014, and Canada’s first CSR strategy, “Building the Canadian Advantage: A Corporate Social Responsibility Strategy for the Canadian Extractive Sector Abroad,” which was adopted in 2009. The core idea of “Doing Business the Canadian Way” revolves around the values of responsibility, sustainability and building a better future for all. It thus places

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a strong emphasis on respecting human rights, including advancing the rights of under-represented groups, protecting the environment, advocating for gender equality, combatting discrimination and furthering diversity and inclusion. The aim of the Government of Canada is to encourage Canadian companies, both operating at home and abroad, to satisfy high standards of responsible business conduct. Many Canadian businesses are already widely recognized as leaders in responsible business practices that are integrated throughout every facet of their operations. This Strategy envisions governmental support to Canadian companies for starting up, scaling up, and accessing new global markets, by providing them the

tools, guidance, and support necessary to operate according to high ethical and environment standards while remaining competitive. This line of action is consistent with the government’s approach to inclusive trade, and the effort to ensure Canadian companies make a positive impact on the local communities in which they operate, improving the lives and livelihoods of people both at home and abroad. Responsible Business Conduct Abroad: Canada’s Strategy for The Future is a fiveyear strategy (2022–2027) that sets out priorities for the Government of Canada to support Canadian companies that are active abroad. “It recognizes a culture shift, whereby responsible business conduct (RBC) is increasingly seen as central to business success, and it recognizes the role that the Government of Canada, through the Trade Commissioner Service (TCS) and partners, can play in helping Canadian companies achieve world-leading responsible business practices”, says The Honourable Mary Ng, P.C., M.P., Minister of International Trade, Export Promotion, Small Business and Economic Development. This Strategy accordingly provides a framework and new innovative tools, such as digital resources, the development of a standard and a requirement for all TCS clients to complete a Digital RBC Attestation. These efforts will assist all Canadian companies in integrating leading responsible business practices into their operations regardless of their size, sector of industry, or scope of activities. These policies are closely connected to other values embraced by the Government: a rules-based trading system, which recognizes, respects, protects and fulfills the rights of Indigenous peoples, and

children, eradicating poverty, combatting discrimination, promoting gender equality and inclusion and diversity—including digital inclusion. Furthermore, these policies are aligned with the Government of Canada’s Feminist Foreign Policy, including its Feminist International Assistance Policy. At the global level, Canada supports further improvements of the RBC policies through the ratifying of several international treaties and adherence to various guidelines that promote RBC, including the United Nations Guiding Principles on Business and Human Rights (Guiding Principles), the OECD Guidelines on Multinational Enterprises (OECD Guidelines) and, as it relates to respect for and recognition of the human rights of Indigenous Peoples, the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP). Such an approach has important positive effects on Canadian businesses. The first relates to combatting risks. As Canadian companies continue operating abroad and expanding to new markets, they may face increased risks. Integrating RBC helps companies evaluate operations through a broader lens, ultimately enhancing their reputation and competitiveness. The second aims to build resilience, the need for which was emphasized by the Covid-19 pandemic. Specifically, throughout the pandemic, companies with strong responsible business policies and practices were better able to assess their production and supply chain risks, allowing them to address potential problems and have mitigation strategies in place. Equally important are the competitive advantages of RBC that can lead to investment attraction, increased brand value, and customer attraction and retention, as more consumers seek to buy ethically produced goods, and partners (including financial partners) strive to meet Environmental, Social, Governance (ESG) requirements. This can also lead to the creation of greater potential for increased access to capital. Legislative changes reflect these efforts. July 2020 saw the introduction of an amendment to the Customs Tariff prohibiting imports of goods that are mined, manufactured or produced, wholly or in part, by forced labor. In the next step, the

Government is committed to enacting legislation to eradicate forced labor from Canadian supply chains and ensure that Canadian businesses operating abroad do not contribute to human rights abuses. The aforementioned legislative activities were much-needed, as some international jurisdictions introduce mandatory measures related to labor, the environment and due diligence. Canadian companies will consequently also need to comply with these regulations in order to maintain or gain market access.

discretion, in the public interest and in appropriate circumstances—to address corporate criminal wrongdoing. While this strategy continues Canada’s balanced approach to RBC, featuring prevention measures and access to remedies, underpinned by legislation covering critical areas like forced labor, transparency and corruption, there are several strategic shifts from previous strategies: it firstly focuses on RBC actions rather than specific industry sectors (extraction sector

There are three interconnected elements guiding the implementation of the Responsible Business Conduct Abroad Strategy: Building awareness and championing action through the Trade Commissioner Service; increasing uptake of RBC via a focus on due diligence and accountability; strengthening the global RBC ecosystem by contributing to the rulesbased international system Further in the past, several new pieces of legislative have been adopted in support of these causes. The Corruption of Foreign Public Officials Act (CFPOA), passed in 1998, criminalizes bribery of a foreign public official. In September 2018, a Remediation Agreement (RA) regime came into force, which is a tool available to prosecutorial authorities—at their

in particular); it secondly introduces new tools, as well as enhancing existing ones, to help Canadian companies achieve leading responsible business practices; while it thirdly offers broader coherence with the priorities of the Government of Canada and, fourthly, is accompanied by an action plan and associated monitoring and evaluation framework.

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INTERVIEW SHERI MEYERHOFFER, CANADIAN OMBUDSPERSON FOR RESPONSIBLE ENTERPRISE

ENCOURAGING STRIDES We currently have three bills before our Parliament that seek to strengthen due diligence and ensure that human rights are respected throughout Canadian company supply chains. While the proposed legislation is important, Canada has not advanced as much as some other jurisdictions

he Canadian Ombudsperson for Responsible Enterprise (CORE) is a human rights ombuds institution with a mandate to promote respect for human rights and responsible business conduct among Canadian companies operating in the garment, mining and oil/gas sectors outside of Canada. The CORE is a world-first. There are no other offices of its kind, either elsewhere in Canada or around the world. This is how our interlocutor, Sheri Meyerhoffer, Canadian Ombudsperson for Responsible Enterprise, briefly summarizes the uniqueness of her institution. “My office was established to address complaints related to human rights abuses committed by Canadian companies operating abroad in the garment, mining, and oil and gas sectors. It was created out of a commitment to ensure that Canadian companies respect human rights wherever they do business,” say Meyerhoffer, a Canadian lawyer with 17 years of experience in the upstream oil and gas industry, and 13 years of experience in international governance, rule of law and human rights. “My mandate is composed of four main components: Promote, Advise, Review, and Recommend. First, the CORE promotes the implementation of the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises. Second, the CORE advises Canadian companies operating abroad in the garment, mining, and oil and gas sectors on best practices related to responsible business conduct. Third, the CORE reviews allegations of human rights abuses arising from Canadian companies’ operations abroad,” says Meyerhoffer, who’s worked in Bhutan, Bolivia, Cuba, China, India, Jamaica, Myanmar, Nepal, Russia, and the U.S.

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COMPLAINTS

WISH

RESPONSIBILITY

At the heart of CORE’s work is our complaints mechanism, through which impacted individuals and groups can submit complaints to the CORE

Mandatory human rights due diligence legislation has already been enacted in the EU. This is something that we would like to see happen in Canada

Good Canadian companies understand the importance of acting responsibly. They know that there is no conflict between running a successful enterprise and respecting human rights

and RBC among Canadian companies operating abroad in the garment, mining and oil/gas sectors.

“The CORE reviews allegations of human rights abuses through our complaints mechanism, through which impacted workers, individuals, and communities can submit complaints to the CORE,” adds our interlocutor. Fourth, concludes Meyerhoffer, the CORE can issue recommendations to the concerned company or the Canadian government following the investigating of complaints and the completion of Ombuds reviews and studies: “These recommendations may be for compensation to remedy the harms caused, or changes to the policies and practices of Canadian companies.” Why were the garment, mining, and oil and gas sectors in particular chosen; and how are specific sectors included or excluded from that list? - The reason for the choice is historical. The CORE is the result of decades of advocacy by civil society organizations, and specifically in response to concern about harm to local populations. Canadian companies – particularly those in the garment, mining, and oil and gas industries – are very active abroad. For example, Canada is home to over half the world’s publicly listed mining and mineral exploration companies. The focus was originally on extractives. However, the Rana Plaza disaster in Bangladesh in 2013, and the fact that some large Canadian garment companies were implicated, led to the garment sector being included in the CORE’s mandate. While the majority of companies are committed to operating responsibly, human rights abuses may result from their operations. Canadian civil society organizations wanted the government to establish a body to monitor companies, provide a mechanism to resolve disputes, and provide remedies for those harmed. There is a possibility that other sectors will be added to the CORE’s mandate, which we would welcome, assuming an expanded

The CORE is a key pillar of the Canadian government’s new Responsible Business Conduct (RBC) strategy mandate comes with the resources needed for effective implementation. The Canadian Government’s latest Responsible Business Conduct Strategy broadens its scope from the extractive industries to encompass all companies. What does that mean from the perspective of your intervention? - The CORE is a key pillar of the Canadian government’s new Responsible Business Conduct (RBC) strategy. We welcome the new strategy’s expanded focus, and we remain committed to working with the Canadian government, Canada’s Trade Commissioner Service, and other Foreign Service personnel to promote human rights

The European Union and certain European countries have been enacting legislative solutions that stipulate adherence to certain rights throughout global value chains. What is the Canadian response to these practices? - The context in Canada is also starting to shift. We have seen, in recent years and even months, growing interest in, and discussion of, legislation that focuses on corporate accountability in Canada, including potential future legislation on human rights due diligence. Currently, we have three bills before our Parliament that seek to strengthen due diligence and ensure that human rights are respected throughout Canadian company supply chains. While the proposed legislation is important, Canada is not currently as far along as other jurisdictions. Mandatory human rights due diligence legislation has already been enacted in France, Germany, Norway, and by the European Union. This is something that we would like to see happen in Canada, and we are encouraged by the strides being made. Most recently, this month (June 2022), the Canadian Minister of Labor, Seamus O’Regan, announced that the government would be supporting Bill S-211, the bill to enact the Fight Against Forced and Child Labor in Supply Chains Act. This act would impose an obligation on certain government institutions and private sector entities to report on measures taken to prevent and reduce the risk or forced labor or child labor being utilized by them or in their supply chains. It would also amend the Customs Tariff to allow for a prohibition on the importation of goods manufactured or produced, in whole or in part, through forced or child labor. We hope to see this bill strengthened, and passed by our government.

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INTERVIEW Other due diligence legislation currently before the Parliament includes Bill C-262, the Corporate Responsibility to Protect Human Rights Act. The act would require businesses to establish processes to prevent, address, and remedy adverse impacts on human rights that occur in relation to their business activities conducted abroad. It would also require businesses to monitor and document the implementation and effectiveness of their due diligence procedures. How do you oversee the conduct of Canadian companies abroad, say in Serbia, for example? - At the heart of CORE’s work is our complaints mechanism, through which impacted individuals and groups can submit complaints to the CORE regarding possible human rights abuses arising from the overseas operations of Canadian companies in our three sectors. If we were to receive a complaint from an impacted individual or community in Serbia, for example, the CORE would review this complaint and determine its admissibility according to our criteria. If admissible, the CORE would try to bring the complainant together with the Canadian company to seek early resolution. If that were not possible, we would bring in an external mediator, assuming both parties agreed. If mediation is not possible, then the CORE would launch a review or investigation, and once that is completed it would make recommendations to the company on how to remedy the harms caused, and possibly on changes to company policies. The CORE is required to publish its findings and recommendations, and monitor the extent to which they are implemented, which is an important means by which it can hold Canadian companies accountable. Who can file a complaint with you? Workers themselves, unions, governments, NGOs? - Complaints can be filed by or on behalf of an impacted individual, worker, community, or group. The mechanism for filing complaints is simple. Complaints can be submitted by email, by post, by phone and through our online complaints form, which is open to anyone around the world.

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There is no cost for filing a complaint, and complainants do not need a lawyer to engage in the complaints process. We have sought to make it as easy as possible for impacted groups. That being said, we also recognize that impacted groups may face the threat of retaliation, which we take very seriously. The CORE assesses the risk of retaliation before working with people and communities, and works to avoid possible harm. What kind of misconduct is the most commonplace; and how long does it take for you to establish the facts and reach a decision? - We launched our complaint process just over a year ago, and have to date - as of time of writing - received five admissible complaints that are either awaiting follow-up or have been referred to Canada’s National Contact Point for the OECD Guidelines for Multinational Enterprises. We recently received nine additional complaints related to the garment sector, which are currently under review. Once we receive a complaint, our office will assess the admissibility of a complaint within 30 working days and conduct an initial assessment within 90 working days. Our goal is to respond to complaints as soon as possible, while ensuring that we conduct thorough analysis and fact-finding. For the purposes of a complaint, it is important to note that human rights

include rights related to the environment, labor, health and safety. Our mandate covers all internationally recognized human rights. Under our mandate, a human rights abuse refers to an adverse impact on an internationally recognized human right arising from a Canadian company’s operations abroad. Human rights abuses can

Human rights abuses can arise in a wide range of matters, including occupational health and safety, access to land, and employment practices arise in a wide range of matters, including occupational health and safety, access to land, and employment practices like fair wages and reasonable working hours, sexual harassment, human trafficking and modern slavery. What happens then? Where do your institution’s strengths lie? - In addition to the tools of early resolution, mediation and investigation pursuant to a complaint, the CORE can conduct an Ombud-initiated review. This is a very powerful tool, as it allows me the discretion to launch a review when I receive information that would suggest that human rights

abuses are taking place. We do not have to wait for a complaint, but can be proactive in determining that an operating context requires that we take action. We also have the power to make recommendations to the Canadian government through the Minister of International Trade. These recommendations include the withdrawal of trade services and future financial support to the company in question, as well as recommendations on government policy regarding matters related to the CORE’s mandate. Good Canadian companies understand the importance of acting responsibly. They know that there is no conflict between running a successful enterprise and respecting human rights. They know that it is good for business. As such, we expect Canadian companies to cooperate in our dispute resolution processes, and to work with the CORE to address harm arising from their operations. Having said that, if they do not cooperate, the CORE will proceed to make findings of fact and recommendations that will be set out in a report. My mandate requires the publication of these reports, thus making the company’s lack of engagement accessible to consumers and investors. This publication requirement provides a significant lever to influence responsible business conduct by Canadian companies in the garment, mining and oil and gas sectors.

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BUSINESS

DUŠAN SIMIĆ, JANTAR GRUPA FOUNDER AND CEO

NO PROGRESS

WITHOUT GEOLOGY The experience of company Jantar grupa, a leading exploration and consulting firm in the fields of geology, mining and environmental protection, shows that every individual mine contributes to development at all levels, from local government to the state, provided it operates according to the standards controlled by the state

Serbia has good laws regulating these areas, but it’s also necessary to ensure good controls and the work of inspections. I also consider it necessary to update the Law on Mining and Geological Research, because the latest amendments introduced some positive things, but also created problems in the process of obtaining approval to conduct research. We need one central place where we can obtain all research and exploitation approvals (one-stop-shop) and procedures that will be immune to external influences. Bylaws should also be adopted and harmonized with the EU (PERC), because we’re still working in accordance with regulations that date back to the 1970s.

eological exploration is needed in all spheres of life, as it ensures that we have clean water, functioning roads and secure houses, the essential minerals required to produce almost everything we touch. That’s why they insist at Jantar grupa that geology be treated with the care and attention it deserves.

We are hearing increasing demands to ban geological exploration and the opening of mines coming from part of the public. Are those demands justified? - A country that doesn’t invest in geological exploration, or doesn’t allow others to do so, is doomed to being eternally dependent on other countries; dependent for energy, fuel, water, all kinds of goods and resources, even food. Serbia, as a country with natural resources – ranging from water, via energy, to ferrous and non-ferrous metals – shouldn’t and mustn’t abandon its research and exploitation, nor should it permit certain interest groups, under the patronage of various “green” organizations and others (NGOs) to prevent the country’s progress. Of course, we shouldn’t launch a hunt for geologists, as some politicians claim, just as uncontrolled exploitation shouldn’t be allowed either. Exploitation should be conducted exclusively in accordance with the law and the fulfilling of all conditions prescribed by the state. And the state has institutions via which it can and must control all steps, from the stage of designing geological exploration and exploitation projects, to the final stage of mine closure and complete land reclamation.

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We need one central place where we can obtain all research and exploitation approvals (onestop-shop) and procedures that will be immune to external influences Does this mean that the problem isn’t geological exploration and exploitation, but rather a lack of regulations, standards and laws, or a failure to comply with them? - Geological exploration and mining must certainly be carried out in accordance with the law and with care and attention to respecting environmental protection.

How can tensions in society be reduced? - Numerous different professional associations exist in Serbia, some of which – like the Serbian Geological Society - have existed for more than 130 years, while some are new – like the Chamber of Mining and Geological Engineers of Serbia, which was founded this year. Some are closing down, some are only just being created, but what they all have in common is that they don’t do enough to deal with the problems of their members. Too much attention is devoted to personal interests, and too little to the interests of society. I think that forming a single cluster that would encompass all stakeholders – investors, mine owners, banks, architects, contractors, equipment suppliers, NGOs, green movements, local governments, government institutions, institutes, laboratories etc. – would contribute significantly to improving understanding and reducing tensions in society.

BUSINESS

THRIVING AND GROWING TOGETHER WITH THE LOCAL COMMUNITIES Dundee Precious Metals is a Canadian-based international mining company with a proven track record of responsible mining. DPM continuously invests in upgrading and modernizing its facilities, respecting the highest standards to minimize its impact on the environment. The company’s mining operations rank among the lowest GHG intensity mines globally

Ada Tepe – DPM mine in Krumovgrad, Bulgaria

n addition to its successful Ada Tepe and Chelopech mining operations in Bulgaria, DPM also operates a smelter in Namibia and has ongoing exploration activities in Bulgaria, Canada, Ecuador and Serbia. At the core of each of the company’s successful project developments is mutual respect, for the people in DPM and the communities where the company works. One of the company’s key priorities is ensuring that its operations are fully compliant with local regulations while also reflecting the same values, ethics, and business principles globally that meet the highest standards in Canada, a country with standards for responsible

and sustainable mining that are among the highest in the world. DPM’s purpose is to unlock resources and generate value to thrive and grow together with the local communities where it operates, and it is therefore highly focused on supporting long-term sustainable development. During its 15 years of operating in Bulgaria, the company has received several recognitions for its corporate philanthropy programs. The company employs local people at all levels. The senior management teams comprise primarily local national talent. DPM is committed to gender equality 44% of its senior managers are women.

European Bank for Reconstruction and Development (EBRD) is a DPM shareholder, which guarantees respect for the highest European industry standards. The foundation of the company is built on its core values: safety and well-being, environmental stewardship, transparency and accountability, respect and inclusion, innovation with courage, and partnership with communities. Sustainability is a key part of DPMs culture and is integrated at all levels of the organization. We unlock resources and generate value to thrive and grow together! www.dundeeprecious.com

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INTERVIEW MIRJANA DONČIĆ BEATON, MANAGING DIRECTOR OF THE CANADIAN-SERBIAN BUSINESS ASSOCIATION

RESPONSIBLE TO SOCIETY,

PEOPLE, AND PLANET The Canadian-Serbian Business Association (CANSEE) has operated in a socially responsible manner from the start and strongly supports Canada’s new Responsible Business Conduct Abroad Strategy for The Future

he actions of companies have a significant impact on the lives of citizens around the world, not just in terms of the products and services that they offer or the jobs and opportunities they create, but also in terms of working conditions, human rights, health, the environment, innovation, education, and training. A responsible business is essentially one that benefits society and addresses any possible negative impacts it might have on society, people, and planet. This way of looking at a business can help decision makers make more responsible decisions, ensuring that considerations of social and environmental impact are balanced against those of financial gain. Responsible business conduct is central to Canada’s trade diversification strategy, inclusive trade and sustainable and inclusive economic growth. It complements Canada’s approach to taking action on climate change, sustainable development, multilateralism and a rules-based trading system. This five-year strategy is led by Global Affairs

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Canada and its Trade Commissioner Service. CANSEE, the Canadian-Serbian Business Association, has been operating in a socially responsible manner from the start and is today providing strong support to Canada’s five-year Responsible Business Conduct Abroad Strategy for The Future (2022-2027) by responsibly promoting trade and development between Canada and Serbia. Our association brings together local and international corporations and SMEs with the goal of facilitating bilateral trade and investments through active participation between governmental bodies and our members, and by helping our member companies achieve and exceed world leading responsible business practices. Amongst our members and founders are Canadian businesses that are widely recognized as leaders in responsible business practices. These businesses know that integrating best practices throughout every facet of their operations is not only good for our collective society and the environment, but also improves their

bottom line, makes them more competitive, and drives innovation. Canada’s extractive companies in the mining, oil and natural gas industries provide a major contribution to Canadian prosperity and are making substantial contributions to economic development in the countries where they operate, including Serbia. CANSEE member Dundee Precious Metals is an international mining company based in Canada with proven experience in responsible mining. As part of its successful business, the company bases its operations on the principles of mutual respect of people in DPM and in the communities in which it operates. One of the company’s key priorities is to ensure that business complies with local regulations, as well as the same global values, ethics and business principles that meet the highest standards in Canada, a country with standards for responsible and sustainable mining that are among the highest in the world. Also, one of our Canadian companies, Mundoro Capital, is working with local communities and partners to create positive engagements and new opportunities by donating medical equipment, renovating a local medical clinic, renovating a children’s playground and supporting folklore festivals in Bor, Kučevo and Boljevac. As part of the global Molson Coors Beverage Company group, one of our founders, Apatinska Pivara [Apatin Brewery] operates in accordance with globally-established guidelines and goals, with the concept of social responsibility woven into its entire operation. Apatin Brewery is among the first companies in Serbia to build a wastewater treatment plant, representing an investment worth 13 million euros, and it has also been initiating and implementing projects to reduce packaging waste.

Throughout different projects, this company has raised awareness of the need to improve the packaging waste collection system, which is one of its company priorities. In 2009 and 2014, the federal government of Canada released RBC strategies focused on supporting Canadian companies in the extractive sector abroad. The RBC Strategy is a continuation of these strategies that builds on existing UN Guiding Principles and the OECD Guidelines, the 2030 Agenda for Sustainable Development Principles and the UN Guiding Principles for Business and Human Rights. Among our members, Schneider Electric was awarded in 2021 as the “Most Gender Sensitive Company”withintheproject“EqualityintheChain of Value”, which is jointly implemented by the Association of Business Women of Serbia, the Coordination Body for Gender Equality and the Embassy of the Kingdom of the Netherlands in Serbia. Recognition is given to large companies that apply Principle 5 of the United Nations for the Empowerment of Women and that have provided the best model for the inclusion of womeninsupplychains.DeltaHoldingandRudnik i flotacija Rudnik, both CANSEE members, were also awarded as the “Most Gender Sensitive Company” in 2018 and 2019 respectively. RBC can lead to investment attraction, increased brand value, and customer attraction and retention, as more consumers look to buy ethically-produced goods and partners (including financial partners) seek to meet Environment Social Governance (ESG) requirements. This can lead to the realizing of greater potential for increased access to capital. CANSEE member companies implement responsible business practices, meeting and exceeding widely recognized international standards, guidelines and frameworks. Among the tools to integrate responsible business conduct considerations into bilateral and multilateral engagements, lifelong education plays the key role. On that note, CANSEE promotes and organizes the LEADER Project, an economic development program founded in 1991 by MBA students from the Ivey Business School that not only educates, but also promotes RBC via real case studies. These cases simulate a real-life situation confronted by business leaders and forces participants to learn by doing and making confidentdecisionsinthefaceofuncertaintyand how to commit to doing business in responsible ways, contributing to more sustainable growth

CANSEE is committed to working with relevant stakeholders to identify emerging best practices in this area and provide training to our members on Responsible Business Conduct policies and practices. We strongly support initiatives that strengthen local ecosystems, for instance by facilitating introductions between local suppliers and Canadian companies and the building of a better future for all by respecting human rights, including advancing the rights of under-represented groups, protecting the environment, advocating for gender equality, combating discrimination and furthering diversity and inclusion. Delta Holding, as one of our valued members, is committed to the principles of growth, equity, sustainability and resiliency, and is widely recognized as a leader in meeting the SDGs. Delta House, like most of Delta’s companies, has solar panels that ensure affordable and clean

energy and help attain Goal 7. As of 2021, all of this company’s vehicles run on electric power, rendering them much more energy efficient. The attaining of goals 1, 2 and 4 was achieved by Delta’s project Mokrin House, which enables farmers to use digital platforms and information technologies in their work. This pilot project in Serbia will be transferred to other villages throughout the country. Delta Holding’s Our Village [Naše Selo] project achieved Goal 17 by developing agricultural production, and thus improving social life.

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INTERVIEW VIOLETA JOVANOVIĆ, EXECUTIVE DIRECTOR, NALED

GENDER EQUALITY IS THE FOUNDATION

OF RESPONSIBLE BUSINESS There are many more women doing daily unpaid work than those making an average salary in Serbia. More than 60 percent of women living in rural areas are not formally employed or financially independent and are without permanent employment or a stable source of income

o change the statistic cited in the introduction, the Ethno Network, with support from the Canadian Embassy and the Canadian Fund for local initiatives, is implementing practical projects to economically empower women and young people making traditional crafts. This support system has also been tailored to cater for small organizations, with simple reporting procedures and resources available for more concrete interventions and responses to the needs of groups in the field. Thanks to this funding, we managed to provide economic and psychological support

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to over a hundred women in Sombor, Sremska Mitrovica, Loznica, and Pančevo during the pandemic. These women attended the “Entrepreneur and Independent” workshops in order to connect and gain empowerment during these difficult and unpredictable times. In addition, by speaking to local decision-makers with the support of the organization UN Women, we defined measures that need to be taken to economically empower women, and have organized groups and training in the field of weaving and weaving techniques. The most successful participants also received the necessary equipment to do the work. The

training in Pančevo was intended for teachers and educators, to help them organize more creative and successful workshops for children. Furthermore, after the weaving workshop in Sombor, a new society was founded that is now working to preserve national heritage. To make sure that continued support is not just an unfulfilled promise, we have mobilized the municipalities of Odžak and Knjaževac to secure a space for local groups to work and sell their products. The province supports public works in the culture sector, and we also encourage this at the national level. The Ministry of Education has made Ethno Network programs available for training teachers as well. State institutions occasionally use ethno-crafts made by the women of the Ethno Network as business gifts and, thanks to cooperation with “Serbia Creates”, their work was also prominently displayed in the Serbian Pavilion at the Expo 2020 Dubai. We continue to invest in particular programs that protect traditions and our heritage – by securing packaging and certifications, and by purchasing blocks of the products for the country’s protocol gifts and representation by our embassies abroad. While Ethno Gallery in Belgrade is one of the goals we are yet to achieve, we have in the meantime secured sales booths at highclass hotels – Hyatt, Indigo, Metropol and Crowne Plaza – that were willing to install presentation booths containing traditional and heritage-related items. The Initiative “1000 women” has helped enhance the results of this project, which we are running under the patronage of Deputy Prime Minister Zorana Mihajlović and the president of the Coordinating Body for Gender Equality. This is all done to ensure that, after decades of unemployment and being shunned in the labour market, hundreds of women will be job-ready

and empowered. They will gain useful weaving skills, which will enable them to make a living by doing this creative work. This initiative has been in force since 2017 and we have so far spent over 22,000 hours working to arrange training and public works, and on establishing craft items as business and diplomatic gifts. As we continue with the project with the support of the Canadian Fund, we are striving to restore the importance and status of these handmade crafts as symbols of our identity, and women as their guardians and promoters. In order to properly represent the crafts at expos and events, we have arranged for a booth to be used for the presentation and promotion of these products. We have also started exhibitions of authentic craftwork done by craftsmanship organizations from Pančevo, Odžak, Bela Palanka, Knjaževac, and Kladova in the Palace of Serbia building. The exhibition consists of recognizable elements thst are listed nationally as part of the not-for-profit cultural heritage, such as inspired motifs from Pirot and Stapar carpets, lavish Vlach embroidery from the Timočka Krajina region, and the famous Banat pattern by Jovanka Poznanov. It also promotes carving, embroidery, and weaving techniques. All of the products have the Ethno Network stamp of approval and are colorfully and visually integrated to create a harmonious composition. The exhibitions also harmonize with the goals of the “1000 women” initiative, which has ensured frequent presentations in the government building in Nemanjina Street (Serbian Salon) and the Banovina building in

While thanking the diplomatic community, we invite our government officials to recognize this forgotten societal and economic value and to contribute directly, through tangible support measures. We also call for a more equal political regime that would not only benefit women, but society as a whole Novi Sad (Vojvodina Salon). The reasoning behind displaying them in these institutions is to show these crafts in a gallery-like setting, bringing back the dignity of the craft through

the promotion of the heritage and cultural identity of Serbia as a foundation for the development of the local economy and the empowerment of women and young people. Supporting these efforts is the wife of the Ambassador of Canada, Valerie Lane, who readily engages as a host and sponsor of Ethno Network initiatives, our exhibitions, workshops, and groups. Mrs. Lane, supported by her husband, helps us selflessly. She actively encourages her diplomatic colleagues and heads of donor organizations to offer full support to the programs that empower women. While thanking the diplomatic community, we invite our government officials to recognize this forgotten societal and economic value and to contribute directly, through tangible support measures. We also call for a more equal political regime that would not only benefit women, but society as a whole. By creating specific programs that do not cast women from rural areas in a particular social category, and creating a society more accepting of employed and successful women, we can create a culture in which more women would be encouraged to assure they are employable and can live independently, with the help of their community, and furthermore to take leading positions in our society. For this to happen, women need to believe in themselves and their abilities, work hard and make decisions independently. To advance more rapidly, everyone involved must work together: the government, businesses/politicians, media, and women themselves, who need to take ownership of their careers and not hesitate to present the results of their hard work publicly, something they often leave to men.

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CORPORATE RESPONSIBILITY AND RESPECT TO HUMAN RIGHTS

STEPPING IT UP Until recently, human rights have generally been viewed as the responsibility of governments, not companies. Now things have been changing and companies are proactively demonstrating their respect for human rights

LUC ZANDVLIET, DIRECTOR ,TRIPLE R ALLIANCE

ntil recently, human rights have generally been viewed as the responsibility of governments, not companies. After all, governments have adopted the Universal Declaration of Human Rights (UNDHR). By doing so, states committed to protecting human rights and promoting “social progress and better standards of life in larger freedom”. Still, the question about companies’ role in relation to human rights have been nagging, especially as companies have become more powerful players in society. In 2012, the UN Guiding Principles on Business and Human Rights (UNGP) provided the first comprehensive direction for companies on human rights issues. Since, it has become the standard across industries. The UNGPs changed the dynamics of human rights not only by formalizing the role of businesses, but also by creating a reporting structure for companies to proactively demonstrate their respect for human rights. Emerging from this is an emphasis on companies both “knowing and

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showing” that they respect human rights, or, in other words, demonstrating through policies, systems, programs and practices that they do not “infringe” on the rights of other. These disclosure and verification systems should bolster public confidence in companies’ respect for human rights and social responsibility. Legislation in a number of states, particularly in Europe and increasingly also in countries such as Canada, compliments the UNGP by requiring companies to conduct human rights due diligence and disclosure. Furthermore, the emphasis in financial markets on company environmental, social and governance performance (ESG), including human rights, has accelerated the adoption of the UNGPs by companies.

The more communities and civil society understand about corporate human rights requirements and disclosure, the better they are at discerning which companies are leading and which are lagging in this area Company practices have evolved with the change in expectations around human rights and social responsibility. They recognize that they need not only regulatory permits to operate but also the acceptance of local communities. To achieve this, companies have increased their capacity to listen to community concerns and aspirations, and to jointly develop acceptable prevention, mitigation and monitoring measures. Companies have also grown to understand that how they work with communities is at least as important as what they

offer to communities. Many companies now recognize that despite government approvals to operate, companies are still guests to host communities and need to behave as such. In the past, companies’ approach to corporate social responsibility was often defined by how much money they donated to local initiatives. Just spending money spent though has proven insufficient in forging lasting working relationships with local communities. By moving from a transactional to a more relational approach, companies become more transparent, accountable, and inclusive. The Government of Canada supports responsible business conduct through resources and tools that cover not only community relations, but also governance, workforces and supply chains. Furthermore, the Government of Canada established the Canadian Ombudsperson for Responsible Enterprise to respond to complaints about possible community by Canadian companies working outside of Canada in the garment, mining, and oil and gas sectors. Through transparent disclosures, policies, training, and evolving practices, companies are creating systems that protect and respect human rights. When there are breaches, company complaints mechanisms, and programs like the Canadian Ombudsperson for Responsible Enterprise present avenues for resolution and remedy. Civil society can play an important role in education, monitoring and advocacy. The more communities and civil society understand about corporate human rights requirements and disclosure, the better they are at discerning which companies are leading and which are lagging in this area. Working with those companies that are demonstrating respect for human rights and community relations can help bolster responsible economic development.

APATIN BREWERY BUSINESS

FOCUSED ON PEOPLE AND THE PLANET

Apatin Brewery announces several projects by the end of the year that will have a strong impact on increasing the use of green energy, but also respect for the principles of the circular economy

his year’s World Environment Day saw employees of Apatin Brewery plant Canadian maple trees along the promenade near Belgrade’s Ušće Confluence, in the area around the Museum of Contemporary Art. Apatin Brewery celebrated World Environment Day by planting Canadian maple trees in the Serbian capital. As a responsible company, Apatin Brewery is focused on issues that it can have the greatest impact on across two key pillars: People and Planet. What does that really mean? If we care about people, water, climate, and packaging, we will protect our planet and leave it healthier for future generations. One of the most recent activities to this end was the aforementioned marking of World Environment Day in a unique way. The magnificent Canadian maple trees planted by the company’s employees in the beautiful area around the Museum of Contemporary Art,

alongside the confluence of the Sava and Danube rivers, has enriched this promenade with these new trees that will attract everyone with their recognizable copper-red leaves.

SERVICES

www.abkons.com

Apatin Brewery’s employees came by bicycle to the tree-planting event – organized by the Serbian Chamber of Commerce, with the support of the ‘Plant Your Own Shade’ organization and other responsible companies and organizations – thereby strengthening the message they sought to convey about impacting on environmental protection issues. Accordingtothecompanyitself,“ApatinBrewerycaresabouttheprotectionoftheenvironment and continuously and systematically implements activities that support the green transition and a sustainable future. Today we came by bicycle to plant trees, and we are proud to continue the tradition of cooperation with the organization ‘Plant Your Own Shade’ and the Serbian Chamber of Commerce & Industry. What we can announce from our side is several projects by the end of the year, which also have a strong impact on increasing the use of green energy and respect for the principles of the circular economy.”

SECTORS

Environmental, Social Services & Performance Land Management & Rural Development Architecture, Cultural & Historical Heritage Services Socio-Economic Impact Assessment Engineering Services Project Management Business Management Services Health & Safety

Mining, Oil & Gas, Renewables Transport & Infrastructure Water/Wastewater Telecommunications Public Administration and Governance Environment Agriculture and Rural Development Tourism ICT and Digital Economy

Managing ESG Risks for Exploration and Mining ases of community and Government push back on exploration C and mining projects linked to environmental concerns Increasing scrutiny of mineral supply chains by investors, regulators and civil society on governance and social performance Importance of EU strategy and regulation in shaping outcomes for responsible mineral production in South-East Europe Opportunity for new and established players to demonstrate their credentials, track record and transparent and constructive approach Abkons Proposal - Strategic ESG Risk Review From local, national, EU and global perspectivesIn collaboration with corporate and local teamsIdentifying ESG threats and opportunities

OUTCOMES: Strategic ESG and reputational risks map Secure social licence to operate Conformance with IFI standards community, national and wider stakeholder map Actionable recommendations to prevent, anticipate and mitigate ESG threats, adverse reputational impact and risk of “spill-over effect” particularly in the EU Actionable recommendations and strategic support in local and national engagement, with communities, NGOs and regulators Actionable recommendations and strategic support in permitting, approvals and protection of tenure Presentation to local and corporate leadership and client engagement

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INTERVIEW TEO DECHEV, CHIEF EXECUTIVE OFFICER, PRESIDENT & DIRECTOR OF MUNDORO

MUNDORO FOLLOWS

WORLD BEST PRACTICES

Mundoro is a Canadian company focused on exploration, development and investment in copper and gold. Over the last 20 years of exploration, Mundoro has pursued strong governance coupled with environmental and social standards within all jurisdictions in which it operates

e support health care and education systems, and promote the preservation of local traditions and cultural heritage for future generations to com ~ says Teo Dechev proudly. Could you tell us more about your operations around this region? How many licenses do you possess in Serbia? - Mundoro is a publicly listed royalty generator on the TSX-V in Canada (MUN) and the OTCQB in the U.S. (MUNMF), with a portfolio of mineral properties focused primarily on base metals. The portfolio of mineral properties is currently focused predominately on copper and gold porphyry systems in two mineral districts: the Western Tethyan Belt in Eastern Europe (Serbia and Bulgaria) and the Laramide Belt in the southwest U.S. (Arizona and New Mexico). Mundoro has partnered with major mining operators, such as Vale Inc (a Brazil-based international mining conglomerate) and Japanese Oil and Gas Metal Economics Corporation (JOGMEC – an investment arm of the Japanese government in international mineral resources), who fund the exploration programs, with Mundoro operating

Canada 2022

In Serbia, Mundoro is operating six properties for Vale and one for JOGMEC those exploration programs. In Serbia, Mundoro is operating six properties for Vale and one property for JOGMEC. In the past, Mundoro has had similar exploration partnerships with Freeport McMorran (a U.S.based international mining con-

glomerate) and First Quantum Minerals (a Canada-based international mining conglomerate). Do you devote great attention to protecting and preserving the environment, respecting all laws and regulations, during

all phases of your research and exploration activities; do you operate in accordance with the world’s best practices? - Our guiding principles during all stages of exploration activities are concentrated on the protection and conservation of the land and wildlife. We follow all legal regulations of the countries where we operate and the world’s best practices. We adhere to standards to protect wildlife and plant life in the surrounding habitat, restore the landscape post exploration, work with drilling contractors to minimize emissions and work with certified independent labs. Mundoro is committed to remaining engaged with the communities in the areas around our projects, in order for us to work cooperativelytowardsthediscovery and responsible development of new deposits and mines. We support health care and education systems, and promote the preservation of local traditions and cultural heritage for future generations to come. Over the last 20 years of exploration, Mundoro has pursued strong governance coupled with environmental and social standards within all the jurisdictions in which we operate, building relationships on the basis of trust and respect, and working with local communities and partners to create positive engagement and new opportunities.

FACT AND FIGURES

HUMAN RIGHTS ABOVE ALL

In today’s turbulent times, when numerous global challenges confront us, it will only be possible to achieve progress in all segments of our lives through the nurturing of diversity, tolerance, understanding, inclusiveness and unwavering respect for human rights and equality. A big job lies ahead for the governments of all countries, and we all have a long way to go

WE HAVE THE “RIGHT TO DISCONNECT” In an increasingly work-focused culture, it can be pretty hard to disconnect and leave that stress behind at the office. The lines of demarcation between work and personal life can become pretty murky, especially in a society that’s always on-call and connected to devices. Finding an appropriate work-life balance is essential to our overall physical and mental health and well-being. Recognizing that fact, in 2016 the French government passed a law protecting employees’ “right to disconnect”. Forming part of a larger French labor law that came into effect in 2017, it stipulates that employers must not require their employees be available for workplace communications, such as calls or emails, beyond their regular working hours, or during their free time. Even then, it was obvious that this constant connectivity was becoming a detriment to employee health, and this is a theory that’s since been supported by many studies. In the time since France enacted this law, several other countries have introduced similar legislation to protect worker rights and employee health. However, this measure is still a long way from being widespread.

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FACT AND FIGURES WOMEN NOT AFFORDED EQUAL OPPORTUNITY Around 2.4 billion women of working age are not afforded equal economic opportunity and 178 countries maintain legal barriers preventing their full economic participation, according to the World Bank’s 2022 report Women, Business and the Law. Women face some form of employment restriction in 86 countries, while 95 countries do not guarantee equal pay for equal work. Globally, women still have only three quarters of the legal rights afforded to men – with an aggregate score of 76.5 of a possible 100, denoting full legal parity. However, the report noted that, despite the disproportionate impact of the global pandemic on women’s lives and livelihood, 23 countries nonetheless reformed their laws in 2021 to take much-needed steps towards advancing women’s economic inclusion. “As we move forward to achieve green, resilient and inclusive development, governments need to accelerate the pace of legal reforms so that women can realize their full potential and benefit fully and equally”, said Mari Pangestu, World Bank Managing Director of Development Policy and Partnerships. HEALTH IS A HUMAN RIGHT New Zealand’s new Pae Ora (Healthy Futures) Act, due to have taken effect as of 1st July, 2022, will be a once-in-a-generation chance to reset the country’s public health system. This is a welcome effort to protect, promote and improve the health of all New Zealanders, reduce health disparities (in particular for the Māori people) and give effect to The Treaty of Waitangi. These aims align with the international legal framework on human rights and the rights of Indigenous peoples. And yet, New Zealanders will continue to miss out, as the new act fails to incorporate the right to health explicitly. Doing so would have provided another (legal) mechanism to hold the government and its various health authorities accountable for their actual delivery on their noble objectives. The act will set out a series of obligations and expectations for health providers and consumers, which are to be applauded. The failure to include the right to health may derive from a view that this is not a “real” right. Various reasons are posited to support such a view, but they can all be refuted. EQUALITY, DIVERSITY, AND INCLUSION ARE THE FOUNDATIONS OF GOOD BUSINESS Establishing cultural diversity and an inclusive workplace isn’t only the right thing to do, it’s also good for business. It not only presents the company in a positive light, but rather also brings many different perspectives to the table and develops a business’s operations. Research conducted recently has shown that companies ranked in the top 25% for national diversity are 35% more likely to generate profits above the median for their sector. The likelihood of higher profits is 21% higher for gender diverse companies. In addition to this, companies with higher diversity and inclusion achieve a better business performance in numerous areas where it is important to have creativity – which will be one of the three most important business skills – diversity, productivity, and the retention of employees. The result of making inclusion a top priority is employees with a higher number of skills, which leads to improved internal exchanges of knowledge. And this is not just about objective skills. Diversity also improves employees’ subjective skills, for example management, cooperation and communication skills, which are skills identified by company managers (57%) as being the most important. (Microsoft)

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FACT AND FIGURES UK UNVEILS BILL TO OVERRULE EUROPEAN HUMAN RIGHTS DECISIONS The UK’s new Bill of Rights could see the country refuse to follow certain rulings of the European Court of Human Rights. The move comes after a judge in Strasbourg stopped flights from transporting UK asylum-seekers to Rwanda. The British government announced plans for a bill that would mean British courts do not have to follow decisions of the European Court of Human Rights. The move comes just over a week after the ECHR blocked UK ministers’ efforts to send people seeking asylum in the UK to Rwanda. Announcing plans for a new Bill of Rights, UK Deputy Prime Minister Dominic Raab said Britain would not abandon the European Convention on Human Rights, but that the bill would assert that the UK Supreme Court in London is the ultimate arbiter on human rights issues. PANDEMIC CAUSED SLOWDOWN IN STRUGGLE FOR WORKPLACE GENDER EQUALITY Recent studies show that, despite all efforts, not only is there a failure to improve gender equality in the workplace, but the situation is actually worsening. And that regression was only accelerated by the pandemic. According to recent IBM study ‘Women, Leadership and Missed Opportunities’, gender equality still isn’t a top business priority for 70% of organizations. Furthermore, the study shows that the number of women in leadership positions is declining, indicating a worsening of gender inequality in business leadership positions. Fewer women held senior vice president, vice president, director and manager positions in 2021 than was the case in 2019. This is particularly the case in the CEE region, as shown by the World Economic Forum’s Global Gender Gap Report. The index that forms part of the 2021 Report ranks Serbia 19th, while, for instance, Czechia is in 78th place, Romania is 88th, and Hungary is ranked 99th.

SDGS SHOULD BE MORE STRONGLY LINKED TO COMPANY OPERATIONS The importance of further connecting the Sustainable Development Goals to companies’ operations and raising awareness of the importance of this issue within the business sector were the main topics of Business SDG Week, which attracted representatives of the state, business and civil sector, but also a large number of SMEs. The 2030 Agenda for Sustainable Development is nothing less than a massive transformative process towards a sustainable world. This can only be achieved through an integrated approach and the joint responsibility of governments, academia, the business sector and civil society, which must act in unison. Serbia’s private sector should accept the UN Global Compact and participate actively in the public dialogue on the 2030 Agenda, which was established within the framework of the “SDGs for All” Platform and is being jointly supported by the governments of Switzerland and Germany.

Canada 2022

Canada 2022 - Canada Championing The Fairer World

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RESPONSIBLE TO SOCIETY, PEOPLE, AND PLANET

LEADING BY EXAMPLE H.E. GILES NORMAN AMBASSADOR OF CANADA TO SERBIA