ESG Litigation Guide

Honduras

With thanks to Aguilar Castillo Love for the below content.

Governance

Financial reporting. 

In force.

All government entities and private organizations managing public fund.

This law promotes transparency and access to public information and establishes the basis for the exercise of the right to information. It encompasses all entities of power (Legislative, Judicial, Executive), autonomous institutions, municipalities, Non-Governmental Organizations (NGOs), Private Development Organizations (PDOs), and all natural or legal persons receiving or managing public funds, regardless of their origin.

Institutions are required to publish information related to their management or, where appropriate, provide all information related to the application of public funds that they manage or have been guaranteed by the State. All procedures for selecting contractors and the contracts concluded must be published on the site administered by the Office for Standardized Contracting and Acquisitions (ONCAE).

To comply with their duty of transparency, institutions must maintain subsystems with sufficient human and technical support, allowing the systematisation of information, provision of a consultation service, and citizen access, as well as its publication when appropriate through available electronic or written means. Each institution will designate a Public Information Officer responsible for the subsystem and supply the requested information, provided it is not declared reserved in accordance with Article 17 of the law.

The law also mandates that obligated institutions must continually train and update their staff in the culture of access to information, the culture of informational openness, transparency of public management, among other items.

In terms of transparency in commercial and contractual relationships with the State, the law obliges all private individuals, the State, and all public institutions to govern their commercial relationships with the obligated institutions by the principles of good faith, transparency, and fair competition when participating in bidding processes, contracts, concessions, sales, auctions of works, or competitions.

The law prohibits any person from forcing another to provide personal data that could originate discrimination or cause property or moral harm or risk to individuals.

Environmental

Law

In force

Honduran state, sociedades mercantiles (business entities), comerciantes individuales (sole traders), non-proft organizations and all natural persons and legal entities.

Article 82 of R-LGA requires the Honduran state, business entities, sole traders, non-profit organizations and all natural persons and legal entities to prepare, authorize and implement an environmental accidents prevention plan which provides for effective solutions in case of risk of environmental damage to air quality, local populations, and natural resources.

Environmental

Law

In force

Solid waste producers (e.g., business entities, sole traders, and all other legal entities).

Article 22 and 25 R-MIRS require solid waste producers (e.g. business entities, sole traders, and all other legal entities) to develop prevention and awareness campaigns and management plans aimed at reducing solid waste production, both in terms of quantity and potential hazardousness.

Environmental

Environmental Policy.

In force.

All natural or legal persons in the national territory, continental, insular, surface and underground waters, maritime waters, and other waters over which the State of Honduras exercises sovereignty.

This law, the General Water Law, aims to ensure the protection, conservation, and sustainable use of water resources in Honduras. It places a strong emphasis on maintaining natural areas that are critical for the water cycle, including areas of water production, recharge areas, and riverbanks.

The law mandates reforestation and afforestation efforts in these critical zones, based on specific laws or relevant planning instruments. The specifications for the critical zones include:

  • Water sources within a radius of 250 meters as a core zone.
  • A forest strip along river courses depending on the slope. In urban areas, this forest strip can be reduced to a minimum width of five (5) meters on each bank.
  • A forest strip along the banks of lakes and lagoons of 100 meters.
  • In aquifer recharge areas, the radius will be a minimum of 100 meters.

The law ensures that these areas (“critical zones”) are kept in a natural state to protect water resources. This forms part of wider efforts to manage water sustainably, protect water-dependent ecosystems, and maintain the delivery of vital ecosystem services.

Governance

Law

In force

Regulated Entities as defined in Article 2.11 of Decree No. 131-2014 which contain the Law for the Regulation of Designated Non-Financial Activities.

L-APNDF sets forth an array of measures and evaluation of risk standards that must be implemented by Regulated Entities engaged in Non-Designated Financial Activities and Professions (APNFD) to prevent participation in money laundering or financing of terrorism activities.

Governance

Law

In force

Regulated Entities (as defined in Article 2.27 of Decree No. 144-2014 which contains the Special Law Against Money Laundering).

L-CLA sets forth an array of measures and actions that must be implemented by Regulated Entities to prevent participation in money laundering or financing of terrorism activities.

Governance

Law

In force

Regulated Entities (as defined in Article 2.8 of Decree No. 241-2010 which contains the Law Against the Financing of Terrorism).

L-CFT sets forth an array of preventive, localization, suppression and control measures that must be implemented by Regulated Entities to prevent participation in financing of terrorism activities.

Social

Labour practices, social.

In force.

Honduran State, Civil Society, Business entities (Employers and Employees).

The purpose of this Law is to integrate and coordinate actions that the State and civil society need to execute to eliminate all forms of discrimination against women. It seeks to achieve equality between men and women under the law, prioritising areas such as family, health, education, culture, media, environment, work, social security, credit, land, housing, and participation in decision-making within power structures.

The law also covers providing appropriate and accessible technology, responsive to the needs of women in urban and rural areas that contribute to environmental protection. It also promotes their active participation in decision-making on projects in favour of their natural environment.

For labour, equal pay is mandated for equal work, without any discrimination, provided that the position, working hours, efficiency conditions, and length of service are also the same. Employers must provide equal opportunities in similar conditions to women, in aspects of selection, employment, work assignment, and promotion, as well as in training, education, and capacity building. It also prohibits gender discrimination in staff cuts and layoffs.

The law also mandates that businesses and other workplaces  hire men and women under equal work and pay conditions. Employers are prohibited from advertising job offers that specify gender, age, religion, or marital status as a requirement unless the nature of the job requires special characteristics. In this case, employers must previously have authorisation from the Ministry of Labour Inspectorate to publish such notice.

The law promotes the adaptation of spaces that allow for the satisfaction of basic needs in workplaces. The inclusion of childcare centres is mandatory for employers with more than 30 female employees.

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