Since 2013, Redeia conducts regular due diligence analyses covering all Group companies to identify potential human rights risks arising from their direct and indirect activities.
Due diligence is the process by which a company's human rights impacts are identified, assessed, addressed, mitigated, and prevented. This mechanism, which is regulated by the company's internal regulation “Human rights due diligence Guide for own operations”, consists of three stages:
- Determination of potential and actual human rights impacts: based on the human rights and rights holders that Redeia is most likely to impact, potential and actual negative impacts are identified, prioritized and evaluated using a proprietary methodology based on the probability of occurrence of the impact and its severity. The result is a map of human rights risks on which Redeia is most likely to have an impact, that is updated on an annual basis.
- Implementation of measures to prevent and mitigate risks related to human rights: based on the results of the prioritisation of impacts, Redeia integrates the conclusions into the company's functions and processes and proposes and implements measures to prevent and/or mitigate the risks identified with specific improvement objectives. In the event of any human rights violation identified, Redeia must repair the damage caused and guarantee access to justice for the victims.
- Monitoring of the implemented measures: to assess the effectiveness of the measures implemented, Redeia conducts regular evaluations based on previously defined qualitative and quantitative indicators, at least every twelve months. If the measure has not produced the desired results and/or the damage caused persists, the measures implemented should be reviewed and, if necessary, employees and external stakeholders should be consulted to build new solutions in collaboration with the affected parties.
The result of this analysis has always shown that the company has a low level of risk, applies adequate controls for its management and, therefore, it has not been necessary to implement any remediation action. In order to ensure continuous improvement in this area, Redeia periodically reviews the internal regulations governing this mechanism.
According to this procedure, a human rights risk mapping of the companies that are part of the Group was carried out in 2022. International regulations, current trends and emerging rights have been considered. This mapping shows that, due to the sectors in which it operates, Redeia’s main human rights risks are forced labor, child labor, human trafficking, freedom of association, collective bargaining, equal pay, discrimination, health and safety, decent work, privacy and data security, identity and social, cultural and economic rights of indigenous peoples, private property, healthy environment and ethical management. In this sense, there are policies, commitments and control mechanisms in place to minimize these risks, ensure respect for human rights and remedy possible violations.
The due diligence process has also determined that the activities of Redeia in no case infringe on the human rights of any rightholder. It should be noted that, although Peru has an indigenous population, there are no indigenous settlements or communities in the area directly influenced by the Group's activities and, therefore, there is no impact on the indigenous population. In the Commitment to the promotion and respect of human rights, Redeia undertakes to respect the freedom and rights of ethnic minorities and indigenous communities.
Furthermore, the company transfers its commitment to integrity and human rights to third parties with which it maintains or intends to maintain relations of any kind, applying due diligence measures according to the risk of the third party. This is regulated in the company's internal regulations “Integrity and Human Rights Guide for third parties”. Redeia will conduct an analysis prior to the formalization of relationships with third parties to obtain information about their integrity and respect for human rights focusing on employees, vulnerable groups, landowners and the society as a whole. For this purpose, a series of due diligence measures have been established to be applied depending on the risk of the third party and the characteristics of the intended relationship. Relationship with the following third parties are obliged to carry out the process: corporate operations, business partners, external agents, administrators, management team, collaborating entities in the social environment, landowners and holders, suppliers and customers.