CFA Sustainable Investing Certificate 2025 Practice Exam – Your All-In-One Resource to Master the ESG Certification!

Free, Prior, Informed Consent (FPIC) is a crucial principle recognized in international law concerning the rights of indigenous peoples. This principle is particularly relevant when it comes to resource extraction or development activities that may affect their ancestral lands, territories, and natural resources. It ensures that indigenous communities have the right to give or withhold consent to projects that may affect their rights and livelihoods.

In the context of resource uses on indigenous peoples' ancestral land, FPIC requires that any development or resource extraction initiative occurs only after the affected indigenous communities have been fully informed about the likely impacts of the project. Furthermore, they must provide their consent freely and without coercion, ensuring that their voices and rights are respected prior to any activity taking place.

The other scenarios do not engage FPIC in the same manner. Developments affecting public infrastructure typically involve government agencies and broader community considerations rather than specific consent from indigenous groups. Similarly, consumer rights in product liability cases and workplace equity investigations focus on legal and ethical standards relevant to businesses and employees, rather than the specific rights of indigenous populations regarding their ancestral lands and resources.