Swedwatch to work on business and human rights in Ukraine

Swedwatch has been granted nearly 1.7 million SEK in project support from the Swedish Institute (SI) to work on two projects in Ukraine over the next two years. One project focuses on responsible business conduct, while the other aims to strengthen cooperation on corporate responsibility within the Eastern Partnership, in collaboration with partner organizations from Ukraine, Moldova, and Georgia.

-Despite the war and the uncertainties surrounding a potential end to it, reconstruction efforts and future planning are already underway in Ukraine. Swedwatch is very pleased to contribute our expertise to this important work, says Alice Blondel, Director at Swedwatch.

Sweden’s aid to Ukraine consists of humanitarian support and civil crisis management, while also supporting Ukraine’s reform efforts and reconstruction. This includes support for democratic governance, EU integration, rebuilding infrastructure, and essential public services such as education and healthcare, as well as energy and food supply. These efforts involve both immediate actions and long-term planning.

In this context, Swedwatch has initiated a new collaboration with several Ukrainian actors to contribute expertise in corporate responsibility, sustainability, and human rights.

-Businesses play a central role in Ukraine’s reconstruction. At the same time, there are many risks and challenges associated with corporate activities during and after armed conflict, says Jessica Johansson, Project Manager at Swedwatch.

Responsible business conduct in crisis and conflict
One of the projects aims to identify risks and integrate responsible business practices into various reconstruction processes in Ukraine, as well as to strengthen the National Contact Point for Responsible Business Conduct (NCP). The project is being carried out in collaboration with Yaroslav Mudryi National Law University (NLU), the Ukrainian human rights organization Social Action Centre, and the NCP at Ukraine’s Ministry of Economy.

-From the very beginning, academia has been a key driver of the business and human rights agenda in Ukraine. For the past eight years, NLU has been proud to partner with the OECD NCP in Ukraine and witness significant progress in advancing BHR initiatives across the country, says
Olena Uvarova Research Coordinator at Law Group Wageningen University, and Chair of the International Lab on BHR at Yaroslav Mudryi National Law University (NLU).

The Ukrainian government has identified several key sectors for reconstruction, including agriculture and food production, construction, transport and logistics, IT and digitalization, critical raw materials, and energy. Other aspects relevant to both the private sector and society include the integration of internally displaced persons and war-injured individuals into the labor market, as well as anti-corruption efforts.

-From previous research and reporting, we know that many of the sectors identified as crucial for reconstruction are high-risk sectors in terms of human rights and environmental concerns. This makes it particularly important to uphold human rights and responsible business conduct, says Jessica Johansson, Swedwatch.

The project will include developing guidelines for responsible business conduct within various sectors, with a particular focus on due diligence - i.e. analyzing risks of human rights violations. These guidelines will be complemented by roadmaps for Ukrainian companies, EU businesses, foreign and domestic investors, civil society organizations, and government authorities. The project will also work to strengthen the National Contact Point (NCP) in Ukraine.

A National Contact Point is a governmental institution in OECD member countries that adhere to the OECD Guidelines for Multinational Enterprises on responsible business conduct. It serves as a non-judicial grievance mechanism where actors can report companies they believe have violated the OECD Guidelines. The NCP is also responsible for promoting the guidelines and serving as a forum for dialogue on their implementation.

-It is particularly positive that the Ukrainian NCP has expressed interest in strengthening its capacity in responsible business conduct to better support companies in applying responsible standards within the reconstruction efforts. This presents a great opportunity for Swedwatch to contribute, says Alice Blondel.

Strengthening corporate responsibility in the Eastern Partnership
The second project, led by Östgruppen, is a collaborative initiative aimed at enhancing knowledge-sharing and cooperation on corporate responsibility within the Eastern Partnership. This project takes place in the context of ongoing war and reconstruction efforts in the region, as well as reforms designed to bring partner countries closer to the EU by aligning their legislation and standards with EU regulations.

In this project, Swedwatch and Östgruppen are partnering with Yaroslav Mudryi National Law University (NLU), UN Global Compact Network Georgia, Public Association Institute for Business and Human Rights of the Republic of Moldova (IBHR Moldova), and Friedrich-Alexander University Erlangen-Nürnberg in Germany.

The goal is to increase focus and knowledge on corporate responsibility. Together with partners, Swedwatch will conduct digital training sessions and organize multi-stakeholder meetings to develop a roadmap for responsible business conduct within the Eastern Partnership.

-We look forward to collaborating with partner organisations in Ukraine and further developing the dialogue on how businesses can take responsibility for human rights and the environment, both during and after the war. The reconstruction efforts in Ukraine are already underway, and companies and investors must get it right from the start, says Alice Blondel.

FACTS About the projects
Swedwatch will lead an SI-funded project with a budget of approximately 1.5 million SEK and has also been granted approximately 150,000 SEK in SI funding through a project led by Östgruppen. The Swedwatch-led project, Responsible Business Conduct for the Recovery of Ukraine, started in December 2024, with the first activities beginning in early 2025. The project led by Östgruppen, Sustainable Business for Responsible Economic Development in Eastern Partnership (SustainableBiz4EaP), started in September 2024. Both projects will run for two years.

FACTS The Eastern Partnership
The purpose of the Eastern Partnership is to strengthen and deepen political and economic ties between the EU, its member states, and the six partner countries: Armenia, Azerbaijan, Belarus, Georgia, Moldova, and Ukraine. The partnership also supports sustainable reform processes in these countries.

FACTS About National Contact Points (NCPs)
Countries that have joined the OECD Guidelines for Multinational Enterprises on responsible business conduct also support and promote sustainable business guidelines through National Contact Points (NCPs). Various actors can submit complaints when they believe that companies have violated the OECD Guidelines.

NCPs are also responsible for informing about and promoting the application of the guidelines and serve as a forum for dialogue on their implementation. NCPs cannot override court decisions but can issue recommendations and mediate between parties.

Each member country is free to organize its NCP. For example, the Swedish National Contact Point operates as a tripartite collaboration between the government, businesses, and labor organizations. The NCP investigates cases and subsequently publishes a final statement with recommendations.