Expectations of portfolio companies
AP2 expects its portfolio companies to comply with international norms and rules that protect against human rights violations, and their operations must be in accordance with the UN Guiding Principles on Business and Human Rights and the principles of the UN Global Compact.
- Portfolio companies shall have a human rights policy or other governing document that regulates human rights issues.
- Concerned companies must operate in line with the UN Guiding Principles on Business and Human Rights, alternatively the principles of UN Global Compact or the OECD’s Guidelines for multinational companies.
- Portfolio companies should have a long-term target to pay living wages within their own operations and their supply chains.*
- Portfolio companies must have a well-functioning grievance mechanism.
- Portfolio companies must have a well-functioning remediation mechanism.
- Portfolio companies shall promote freedom of association and collective bargaining agreements.
- These sub-goals/policies shall be anchored in the relevant company boards.
- The above targets apply to the company, its suppliers both downstream and upstream and customers.
* This is not presented as a requirement at present, but dialogues with companies include the concept and how the company works with the issue in the long term.