Read the final statement published by the Dutch NCP - 27 February 2020
Read the follow up statement published by the Dutch NCP – 16 December 2022
On 29 January 2018, Obelle Concern Citizens (OCC), an indigenous people’s group in Nigeria, submitted a specific instance to the Dutch NCP concerning the Shell Petroleum Development Company of Nigeria Limited (SPDC), a subsidiary of Royal Dutch Shell (RDS), and its links to alleged adverse impacts resulting from a gas fire eruption in 1998. The gas leak impacted farmland and the environment, and the alleged impacts continue to have an effect today.
Initially, the OCC was advised to use the grievance mechanism of SPDC, however, the parties were unable to reach a solution which led the Dutch NCP to offer its good offices in June 2019. The offer of good offices was rejected by SPDC in July 2019, and as a result, the Dutch NCP published its final statement on 27 February 2020.
In its final statement, the Dutch NCP assessed that SPDC failed to demonstrate that its grievance mechanism functions in a consistent manner with the OECD Guidelines and the UN Guiding Principles on Business and Human Rights (UNGPs). The Dutch NCP recommended that SPDC provide more transparency regarding its grievance mechanism. Furthermore, it recommended RDS to use its leverage to develop the SPDC grievance mechanism and to ensure compliance with the OECD Guidelines and UNGPs. Finally, the Dutch NCP recommended that after one year of the publication of the final statement, a follow up evaluation be conducted of the NCP's recommendation.
On 16 December 2022, the NCP conducted a follow up generally noting that SPDC had failed to demonstrate the alignment of its grievance mechanism with the Guidelines and UNGPs. Based on the non-response from RDS, the NCP concluded that the parent company had failed to demonstrate that it had exercised its leverage to ensure its subsidiary had a grievance mechanism which performs in line with the requirements and expectations under the Guidelines and UNGPs.
The NCP stressed the importance of a well-functioning operational-level grievance mechanism. The NCP noted disappointment in not being able to identify any substantive progress made with regard to its recommendations on the issues raised in the specific instance, it did, however, thank both parties for their cooperation in the procedure.