Understanding UNDRIP's Impact on Investment Deals

The United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) is an important international agreement that recognises and aims to protect the rights of Indigenous peoples around the world. It was adopted by the United Nations in 2007. UNDRIP is important for many areas, including investment deals, especially in places with many Indigenous people.

The United Nations Declaration on the Rights of Indigenous PeoplesThe United Nations Declaration on the Rights of Indigenous Peoples
Source: https://humanrights.ca/story/the-united-nations-declaration-on-the-rights-of-indigenous-peoples

UNDRIP provides a legal framework focusing on negotiation and collaboration among Indigenous leaders, international bodies, and states. It is crafted taking a long history of colonisation and marginalisation into consideration. Its declaration provided a clear direction for the Indigenous communities, especially in terms of business deals or investment. With its primary objective to affirm the rights of Indigenous peoples globally, it tightened loose ends, strengthening relationships between Indigenous and non-Indigenous communities.  

Advocacy and Negotiation 

The Indigenous communities experienced cultural suppression, systemic discrimination, and dispossession of lands. For decades, negotiations within the United Nations focused on the sensitivities and complexities surrounding Indigenous rights.  

Articulation of Rights 

UNDRIP provides a clear direction for Indigenous communities so they live a peaceful and undisrupted life where their culture and traditions are well-preserved. The blatant display of abuse of their lands and resources has marred the identity of the hapless Indigenous communities. UNDRIP not only addresses disparities but also creates a solid foundation for Indigenous peoples to experience mutual respect and equitable development.  

Self-Determination and Cultural Preservation 

UNDRIP highly recognises the rights of Indigenous people to identify their political status and pursue their social, cultural, and economic development. The principle behind UNDRIP is to let the Indigenous peoples decide for themselves. They can freely govern their thoughts and decisions according to their beliefs, customs and traditions.  

Control Over Lands and Resources 

For many years, Indigenous peoples live in fear, protecting their lands and resources. That fear drove them to hide behind the confines of silence misconstrued by many as a sign of approval. Since there is no national legal framework that would serve as their voice, non-Indigenous people indiscriminately invaded their land. Articles 25-30 enable Indigenous peoples to exercise their right to own, use, develop, and control their lands and territories. This recognition is crucial in protecting Indigenous ways of life and ensuring sustainable development respects ecological and cultural diversity. 

Collective Commitment and Equitable Development 

UNDRIP changes the narratives by promoting equitable development for Indigenous peoples. It acknowledges the role of states in recognising and respecting Indigenous rights within their national legal frameworks, fostering conditions for meaningful dialogue, cooperation, and partnership. 

Implementation Challenges and Progress 

Despite its adoption, the implementation of UNDRIP has faced challenges in various countries, influenced by political, legal, and cultural factors. Some nations have integrated UNDRIP principles into their laws and policies, while others continue to grapple with issues of compliance and enforcement. Ongoing efforts are needed to ensure that UNDRIP translates into tangible improvements in the lives of Indigenous peoples globally. 

Global Impact and Future Directions 

UNDRIP has had a profound impact globally, influencing legal frameworks, policies, and practices concerning Indigenous rights. Its principles continue to shape international discourse on Indigenous issues, including within the realms of development, human rights, and environmental stewardship. The implementation of UNDRIP presents opportunities for advancing social justice, reconciliation, and sustainable development in partnership with Indigenous peoples. 

Key Principles and Articles Relevant to Investment Deals 

Several principles and articles within UNDRIP are particularly pertinent to investment deals, providing a framework for the respectful and equitable engagement of Indigenous peoples. These articles emphasise the importance of self-determination, consent, and the protection of lands and resources. 

Article 3: Right to Self-Determination 

Article 3 of UNDRIP emphasises the right to self-determination, enabling Indigenous peoples to freely determine their political status and pursue their economic, social, and cultural development. This principle is foundational as it asserts that Indigenous communities have the authority to make decisions that affect their future. For investors, this means recognising and respecting the autonomy of Indigenous peoples in decision-making processes. Investments must align with the development goals and aspirations of Indigenous communities, rather than imposing external agendas. This respect for self-determination can lead to more sustainable and mutually beneficial projects. 

Article 32: Free, Prior, and Informed Consent (FPIC) 

Article 32 highlights the necessity of Free, Prior, and Informed Consent (FPIC) before any project affecting Indigenous lands or resources can proceed. FPIC is a critical component of ethical investment practices. It ensures that Indigenous communities are adequately informed about potential projects, have the opportunity to consider the information, and can consent to or reject the project without coercion. For investors, incorporating FPIC into project planning involves transparent communication, comprehensive impact assessments, and genuine engagement with Indigenous stakeholders. Adhering to FPIC can mitigate conflicts, build trust, and enhance the legitimacy of investment projects.

Free, Prior, and Informed Consent (FPIC)Free, Prior, and Informed Consent (FPIC)
Source: https://www.thecanadianencyclopedia.ca/en/article/aboriginal-people#:~:text=Who%20are%20Indigenous%20Peoples%20in,contained%20in%20the%20Arctic%20region.

Articles 25-30: Rights to Land, Territories, and Resources 

Articles 25-30 elaborate on the rights to land, territories, and resources, reinforcing the need for equitable and respectful engagement with Indigenous communities. These articles highlight the deep connection between Indigenous peoples and their lands, which are central to their cultural, spiritual, and economic well-being. 

  • Article 25 emphasises the right of Indigenous peoples to maintain and strengthen their distinctive spiritual relationship with their traditionally owned or otherwise occupied and used lands, territories, waters, and coastal seas. 
  • Article 26 recognises the rights of Indigenous peoples to the lands, territories, and resources they have traditionally owned, occupied, or otherwise used or acquired. It also calls on states to give legal recognition and protection to these lands, territories, and resources, with due respect to Indigenous customs and traditions. 
  • Article 27 mandates the establishment of a fair and transparent process to adjudicate the rights of Indigenous peoples pertaining to their lands, territories, and resources, recognising their laws, traditions, customs, and land tenure systems. 
  • Article 28 stipulates the right to redress, including restitution or, when this is not possible, just, fair, and equitable compensation for the lands, territories, and resources which Indigenous peoples have traditionally owned or otherwise occupied or used, and which have been confiscated, taken, occupied, used, or damaged without their free, prior, and informed consent. 
  • Article 29 addresses the right of Indigenous peoples to the conservation and protection of the environment and the productive capacity of their lands, territories, and resources. It calls for states to establish and implement assistance programs for Indigenous peoples for such conservation and protection. 
  • Article 30 asserts that military activities shall not take place in the lands or territories of Indigenous peoples unless justified by a relevant public interest or otherwise freely agreed with or requested by the Indigenous peoples concerned. 

For investors, these articles emphasise the necessity of conducting thorough due diligence regarding land rights and ensuring that any project does not infringe upon these rights. Respecting land rights is not only a legal obligation but also a critical factor in maintaining good relations with Indigenous communities. Disregarding these rights can lead to significant legal, financial, and reputational risks. 

Integrating UNDRIP Principles into Investment Practices 

Incorporating the principles of UNDRIP into investment practices involves a commitment to respecting and upholding the rights of Indigenous peoples throughout the lifecycle of a project. This includes: 

  • Early and Ongoing Engagement: Establishing relationships with Indigenous communities from the outset and maintaining open lines of communication throughout the project. 
  • Cultural Sensitivity: Understanding and respecting the cultural practices, traditions, and values of Indigenous peoples. 
  • Capacity Building: Supporting the capacity of Indigenous communities to engage effectively in consultations and negotiations. 
  • Benefit Sharing: Ensuring that Indigenous communities receive fair and equitable benefits from projects that affect their lands and resources. 
  • Transparency: Providing clear, accessible information about the potential impacts of projects and the measures being taken to mitigate any negative effects. 

Integrating these principles enables investors to build positive, long-term partnerships with Indigenous communities, contributing to the social, environmental, and economic sustainability of their projects.

Investing in Indigenous Community InfrastructureInvesting in Indigenous Community Infrastructure
Source: https://www.sac-isc.gc.ca/eng/1526995988708/1526996020578

On June 21, 2021, the United Nations Declaration on the Rights of Indigenous Peoples Act received Royal Assent and immediately came into force. This legislation advances the implementation of the Declaration as a key step in renewing the Government of Canada's relationship with Indigenous peoples. 

UNDRIP and Canadian Indigenous Investment Summit

Understanding and respecting Indigenous rights as outlined in UNDRIP is key for making investment deals in areas with many Indigenous people. Following UNDRIP principles helps investors build good relationships with Indigenous communities, gain their trust, and support fair and lasting development. The Canadian Indigenous Investment Summit can guide investors to ensure their investments are responsible and respectful. As the world changes, the future of investments in these regions will depend more and more on respecting Indigenous rights.

Event Banner Series 4

Back to Blog