Bill C-584

2nd Session, 41st Parliament,

62-63 Elizabeth II, 2013-2014

house of commons of canada

BILL C-584

An Act respecting the Corporate Social Responsibility Inherent in the Activities of Canadian Extractive Corporations in Developing Countries

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

SHORT TITLE

1. This Act may be cited as the Corporate Social Responsibility of Extractive Corporations Outside Canada Act.

INTERPRETATION

2. The following definitions apply in this Act.

“corporation” includes any company or legal person incorporated by or under an Act of Parliament or of any province.

“developing countries” means countries and territories named in the list of countries and territories eligible for Canadian Official Development Assistance established by the Organ-ization for Economic Co-operation and Development.

“extractive activities” means mining, oil or gas development or prospecting operations carried out directly by a corporation or indirectly by its foreign affiliate or by a foreign affiliate acting under the control of the corporation.

“gas” has the same meaning as in section 2 of the Canada Oil and Gas Operations Act.

“IFC” means the International Finance Corporation affiliated with the World Bank Group.

“Minister” means the Minister of Foreign Affairs.

“oil” has the same meaning as in section 2 of the Canada Oil and Gas Operations Act.

PURPOSE

3. The purpose of this Act is to ensure that corporations engaged in extractive activities in developing countries act in a manner consistent with international environmental best practices and with Canada’s commitments to international human rights standards.

OFFICE OF THE OMBUDSMAN

4. The Office of the Extractive Sector Corporate Social Responsibility Counsellor, established under the Corporate Social Responsibility Strategy for the Canadian International Extractive Sector, is continued as the Office of the Ombudsman, which is responsible for

(a) creating guidelines respecting the best practices to be followed by corporations in their extractive activities in developing countries; and

(b) monitoring the corporations’ extractive activities to ensure compliance with the guidelines.

5. The Ombudsman is appointed by the Governor in Council to hold office during pleasure for a term of three years, which term may be renewed, and may only be removed for cause by the Governor in Council.

6. The Ombudsman is to be paid such salary, fees or other remuneration as is fixed by the Governor in Council and is entitled to be paid reasonable travel and other expenses incurred in the course of performing his or her duties under this Act.

7. In carrying out his or her mandate under this Act, the Ombudsman may

(a) prepare, compile, publish and distribute information and provide consulting services;

(b) receive complaints concerning the extractive activities of corporations in developing countries;

(c) on his or her own initiative, at the request of the Minister or after deciding, based on a summary evaluation, that the complaint is well founded, conduct an inquiry to determine if the extractive activities of a corporation comply with the guidelines issued under section 10;

(d) advise the Government of Canada and Export Development Canada in order to help them ensure that corporations not in compliance with the requirements set out in this Act do not receive their support;

(e) advise corporations in order to help them ensure that their extractive activities respect the guidelines issued under section 10;

(f) formulate recommendations respecting any legislative amendment required for the administration of this Act; and

(g) inform the Minister of situations that may justify the Minister’s invoking the Special Economic Measures Act or any other act against a corporation conducting activities in a foreign country.

REQUIREMENTS

8. Every corporation that conducts extractive activities in developing countries must

(a) take all necessary measures to minimize the negative impact of its activities on the environment or on human rights in the developing country;

(b) comply with international human rights standards; and

(c) follow the guidelines issued under section 10.

DUTY TO REPORT

9. (1) A corporation conducting extractive activities in a developing country must, within one year after the coming into force of this Act or within six months prior to commencing extractive activities in the developing country, whichever is later, report to the Office of the Ombudsman on its activities.

(2) The report must contain, for each site of extractive activities, the following information:

(a) the name of the corporation and the name of its foreign affiliate conducting activities, if any; and

(b) the location of the extractive activities.

(3) The Ombudsman may, for the purpose of assessing the extractive activities of a corporation in a developing country, require the corporation to provide the Minister with any additional information that the Ombudsman considers appropriate that may be in the possession of the corporation or to which the corporation may reasonably be expected to have access.

(4) The corporation must submit to the Ombudsman a report to update the information that was previously sent to the Ombudsman or to describe any new activity.

GUIDELINES

10. (1) Within three years after the coming into force of this Act, the Ombudsman must issue guidelines respecting the best practices to be followed by corporations in their extractive activities in developing countries and, in issuing those guidelines, the Ombudsman must take into account any factors that the Minister considers relevant, including, but not limited to,

(a) the Guidelines for Multinational Enterprises established by the Organisation for Economic Co-operation and Development;

(b) the IFC's Performance Standards on Environmental and Social Sustainability and the Guidance Notes for those standards;

(c) any relevant document prepared by the United Nations’ sessional Working Group on the working methods and activities of transnational corporations, including the Interpretive Guide for the Guiding Principles on Business and Human Rights; and

(d) the National Roundtables on Corporate Social Responsibility and the Canadian Extractive Industry in Developing Countries Advisory Group Report.

(2) In carrying out his or her duties under subsection (1), the Ombudsman must offer to consult with any government department or agency, representative of the extractive industry or other interested person in or outside Canada that the Ombudsman considers appropriate in the circumstances.

(3) Guidelines issued under this section are made available to the public, and the Ombudsman must give notice of them in the Canada Gazette and in any other manner that the Ombudsman considers appropriate.

REGULATIONS

11. The Governor in Council may make regulations

(a) prescribing the form of the report to be made under subsection 12(1) and any additional information to be contained in the report; and

(b) generally, for carrying out the purposes and provisions of this Act.

REVIEW AND REPORT

12. (1) Within three years after the coming into force of this Act and each year thereafter, the Ombudsman must submit to the Minister a report on the provisions and operation of this Act, including any recommendations for amendments to those provisions.

(2) The Minister must cause a copy of the annual report to be tabled in each House of Parliament on any of the first 15 days on which that House is sitting after the Minister receives the report.

(3) A committee of the House of Commons as may be designated or established by the House of Commons for that purpose must review the report and submit a report on the review to the House of Commons within 60 days after the review is undertaken.

13. (1) Five years after the coming into force of this Act, a comprehensive review of the operation of this Act must be undertaken by such committee of the House of Commons as may be designated or established by the House for that purpose.

(2) The committee referred to in subsection (1) must, within one year after a review is undertaken pursuant to that subsection or within such further time as the House of Commons may authorize, submit a report on the review to the House of Commons.

TRANSITIONAL PROVISION

14. As of the day on which this Act is assented to and for the remainder of his or her term, the Extractive Sector Corporate Social Responsibility Counsellor is to be styled the Ombudsman.

CONSEQUENTIAL AMENDMENTS

Export Development Act

15. Section 10 of the Export Development Act is amended by adding the following after subsection (1.1):

Department of Foreign Affairs, Trade and Development

16. Section 10 of the Department of Foreign Affairs, Trade and Development Act is amended by adding the following after subsection (3):

REPEAL

17. Order in Council P.C. 2009-0422 of March 25, 2012 is repealed.