- Date filed
- 21 October 2019
- Keywords
- Countries of harm
- Current status
-
No resolution
- Sector
- NCP
Allegations
On 21 October 2019, West Virginians for Sustainable Development (WVSD) filed a specific instance against Rockwool International A/S and its subsidiary Rockwool North America (formerly ROXUL USA Inc.) (together, ‘Rockwool’) at the Danish NCP. The complaint concerns Rockwool’s activities in Jefferson County, West Virginia related to a proposed mineral wool manufacturing facility.
The complaint alleges Rockwool has breached its due diligence, human rights and environmental responsibilities under the OECD Guidelines. Specifically, the complaint raises concerns about the potential risks of Rockwool’s facility to the environment and public health, primarily due to air and water pollution. The complainant alleges that Rockwool has failed to engage with impacted stakeholders and has not been transparent about its project plans. The complainant also raises concerns about Rockwool’s improper involvement in local political activities.
The complainant seeks an immediate end to construction of the factory. Alternatively, the complainant makes several requests, including for Rockwool to conduct health and environmental risk assessments, as well as conduct additional air and water quality monitoring.
Relevant OECD Guidelines
Outcome
On 5 December 2019, the Danish NCP accepted the complaint and offered mediation to the parties. On 17 September 2020, Rockwool declined mediation. The Danish NCP subsequently initiated an investigation of the complaint.
On 3 June 2021, the Danish NCP concluded its investigation. The NCP determined that Rockwool had breached aspects of the Guidelines in its operations:
- Rockwool had not documented any risk-based due diligence in the initial phases of the manufacturing facility project and therefore did not comply with the Guidelines. The NCP stated: “The submitted documentation indicates that the initial phases of the project were based on a transactional due diligence approach and thereby too narrowly focused on risks to the company itself rather than a risk-based due diligence process, identifying actual and potential adverse impacts on people, the environment, and society in accordance with the OECD Guidelines.”
- Rockwool did not carry out meaningful stakeholder engagement in the initial phases of the project in accordance with the Guidelines.
The Danish NCP’s statement regarding the failure of Rockwool to comply with the due diligence provisions of the Guidelines is unique for a company operating in the USA.
The NCP found that Rockwool had not been improperly involved in local political activities as alleged by the complainants.
The NCP also recognized Rockwool’s attempts to rectify the issues raised in the complaint “by improving internal risk-management processes related to societal impacts, attempts to engage with the local community and the implementation of voluntary measures to accommodate community concerns. NCP Denmark recognizes that these measures qualify as acts of remedy in accordance with the OECD Guidelines.”
The complainants expressed their satisfaction with the NCP’s review of Rockwool’s business practices. However, they did not consider Rockwool’s risk assessment and stakeholder engagement processes to be sufficient.
The Danish NCP also made several recommendations to Rockwool, including to integrate risk-based due diligence in accordance with the OECD Guidelines into its decision-making, for the company to regularly review its new ‘Community Engagement Manual’ and ensure its implementation, and to publicly communicate about its due diligence processes and its responses to the Danish NCP’s recommendations.
The Danish NCP will follow-up on Rockwool’s process in complying with the Guidelines in one year.
On 19 July 2022, the NCP published its follow-up statement in which it found that Rockwool had made “an extensive effort towards increased organization al knowledge and integration of risk-based due diligence as described in the OECD Guidelines. Thus, NCP Denmark concludes that Rockwool has sufficiently observed NCP Denmark’s recommendations…”
More details
- Defendant
- Company in violation
- Other companies involved
- Complainants
- Affected people
- Date rejected / concluded
- 3 June 2021