Driving Environmental Justice through Corporate Responsibility: A Path Toward Sustainable Development

Written by Ms Akiko Sato

Akiko has over 10 years of experience in business and human rights, with a strong focus on Asia. Her background in international human rights law and development has informed her work in advocacy, including roles with the Business & Human Rights Resource Centre and Human Rights Now. She also provides expert advice on human rights due diligence. Since 2024, Akiko has served as a Business and Human Rights Project Liaison Officer at UNDP. She holds an MA in Development Studies with a specialization in Human Rights from the International Institute of Social Studies at Erasmus University Rotterdam in The Hague, as well as a JD from Hitotsubashi University.

In an era where environmental challenges threaten the very fabric of societies worldwide, the role of the private sector has never been more crucial. As businesses become increasingly aware of their impact on human rights and the environment, international standards like the UN Guiding Principles on Business and Human Rights (UNGPs) have emerged as vital frameworks to guide corporate actions toward sustainability and justice.

The International Framework: UNGPs and Corporate Accountability

Endorsed unanimously by the UN Human Rights Council in 2011, the UNGPs set the global standard for how companies should manage their impact on human rights. They rest on three pillars:

1. The State Duty to Protect Human Rights: Governments have a duty to protect human rights emphasising those linked to business activities including state-owned enterprises (SOE).
2. Corporate Responsibility to Respect Human Rights: Businesses must avoid infringing on human rights and address adverse impacts with which their business is involved throughout their value chains and supply chains.
3. Access to Remedy: Victims of human rights violations should have access to effective remedies.

Central to the UNGPs is Human Rights Due Diligence (HRDD), a proactive process that requires companies to identify, prevent, mitigate, and remediate human rights risks within their entire supply chains. This process encompasses not only labor rights such as living wages, decent work, and freedom of association but also extends to environmental rights, recognising that a healthy environment is fundamental to human dignity and sustainable development.

Central to the UNGPs is Human Rights Due Diligence (HRDD), a proactive process that requires companies to identify, prevent, mitigate, and remediate human rights risks within their entire supply chains. This process encompasses not only labor rights such as living wages, decent work, and freedom of association but also extends to environmental rights, recognising that a healthy environment is fundamental to human dignity and sustainable development.

The Interconnection Between Environment, Human Rights, and the Private Sector’s Role in Sustainable Development

Environmental degradation—manifesting through air and water pollution, soil contamination, biodiversity loss, and climate change—poses serious threats to fundamental human rights, including the rights to life, health, livelihood, and sanitation. When environmental integrity is compromised, vulnerable communities often face health crises, poverty, and diminished access to essential resources, illustrating the deep link between environmental health and human rights.

The private sector, as a central actor in the global economy, bears a significant responsibility in addressing these environmental challenges and their human rights implications. Corporate actions can either worsen environmental injustices or serve as catalysts for positive change. Achieving sustainable development requires companies to embed human rights considerations, including environmental rights dimensions. into their core operations. This involves conducting a comprehensive HRDD that not only assesses environmental impacts on people but also actively involves stakeholders, especially vulnerable communities, in decision-making processes. By doing so, businesses can better understand potential risks and develop strategies to mitigate them.

Furthermore, businesses should establish accessible grievance mechanisms within their operational frameworks, enabling affected people and communities to raise concerns. While governments hold primary responsibility for ensuring justice and accountability, the proactive role of the private sector is crucial in bridging gaps, especially where state-based grievance mechanisms fall short. Through responsible practices, stakeholder engagement, and effective grievance mechanisms, the private sector can significantly contribute to safeguarding both environmental integrity and human rights, fostering a more sustainable and equitable future.

Challenges in Implementing the UNGPs

Despite the informative guidance provided by the UNGPs, numerous challenges hinder their full realisation. These include:

• Lack of enforcement: Legal and regulatory frameworks vary globally, and enforcement remains inconsistent.
• Complex supply chains: Tracing human rights and environmental impacts across complex, often global, business activities is extremely difficult.
• Limited awareness: Many companies are still unfamiliar with or unwilling to fully adopt HRDD practices.
• Resource constraints: Small and medium-sized enterprises may lack the capacity to implement HRDD, although SMEs could also show some inspiring practices.

Lawyers and legal professionals can and should play a vital role on both sides—advising corporations on compliance with the UNGPs while advocating for stronger legal frameworks and accountability mechanisms through representing affected rights holders.

Lessons from the Minamata Case: The Power of Legal Action

A poignant historical example illustrating the importance of environmental justice is Japan’s Minamata disease crisis. Beginning in the 1930s, the Chisso Corporation discharged mercury-laden wastewater into Minamata Bay. Over decades, mercury accumulated in fish and seafood, leading to widespread neurological damage among local residents, which exposed profound failures in environmental regulation and corporate accountability.

The slow governmental response, coupled with corporate denial, underscored the need for stronger environmental laws and corporate responsibility. This led to the adoption of the Minamata Convention on Mercury, a global treaty aimed at reducing mercury emissions and protecting vulnerable populations. This case exemplifies how legal action and advocacy are necessary to catalyze systemic change, emphasising the importance of corporate accountability in safeguarding environmental and human rights and placing victims’ voices at the centre.

Moving Forward: The Private Sector’s Path to Environmental Justice

Achieving environmental justice requires a collective effort. Businesses must recognise their role not just as economic entities but as actors benefiting from the society of human rights and environmental health. This involves:

• Proactively assessing risks related to both human rights and environmental impacts.
• Engaging stakeholders, especially vulnerable communities, in every step of HRDD.
• Implementing effective and accessible grievance mechanisms for allegations and remediations.
• Aligning business strategies with international standards, including the UNGPs.

While challenges persist, the lessons learned from past tragic cases across the globe demonstrate that meaningful change is possible when legal, social, and corporate actors work collaboratively toward shared goals and values.

Environmental justice is not merely an ethical imperative but a legal and human rights obligation that requires concerted action from all sectors. The private sector, with its vast resources and influence, holds the potential to drive positive change for ensuring sustainable development that respects human rights and preserves the environment for future generations.