Embed in management systems

1. Embedded commitment: The company has a policy commitment to ongoing stakeholder engagement, and embeds it in its governance, culture, and management strategy.​

Create a Tailored Engagement Plan​

2. Inclusiveness: The company listens to a full range of rights-holders across the value chain and has a process to identify legitimate representatives.
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3. A Focus on Those Most at Risk​:  The company prioritizes engaging with the rightsholders who are most likely to be harmed by its operations​, and therefore where early engagement is critical.​​

Conduct appropriate  activities

​​4. Informed Participation: The company establishes ongoing, two-way communication with affected rights holders that provides affected stakeholders with relevant critical information well in advance of key decision points.

5. Trust and Accountability: The company establishes procedures, tailored to the context, to build rights holder trust and accountability for its actions.​

Ensure follow through

6. Stakeholder-informed Action Plan: The company analyzes information obtained through affected stakeholder engagement and collaborates with rights holders to formulate an action plan.

7. Monitoring, Transparency, and Continuous Improvement​: The company establishes and maintains a transparent and stakeholder-informed monitoring and evaluation (M&E) system.​

effectiveness criterion 3

our approach

financial materiality

Stakeholder Engagement Main Page > Four Pillars > ​Effectiveness Criterion 2

2. Inclusiveness​​​

The company listens to a full range of rights holders and has a process to identify legitimate representatives.

what this means

questions for portfolio companies

What to look for

Issue & SEctor considerations

for workers

High risk situations

In CAHRAs, to safeguard rights holders and account for regional conflict dynamics investors should engage with international civil society organizations before approaching local groups. 
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Stakeholder identification should be grounded in a regularly updated heightened HREDD process that considers both direct and indirect impacts on human rights and conflict. The process should prioritize outreach to displaced populations and historically marginalized groups, whose perspectives are often excluded—especially during conflict. Stakeholder mapping should extend to civilians potentially affected by the use of the company’s products, services, or facilities by combatants. When engaging with civilians or combatants linked to different sides of the conflict, companies should take care to avoid actions that could be perceived as legitimizing military governments that have come to power through a coup or as collaborating with groups designated as terrorist organizations.