Financial Institutions (FIs) – from pension funds, to asset owners and managers, private and commercial banks – have systemic influence in driving better outcomes for people and planet in global supply chains.
FIs have a responsibility to respect human rights by knowing and addressing the risks to people and the environment associated with their products, services, clients and investment activities. This is enshrined in the United Nations Guiding Principles on Business and Human Rights (UNGPs), which require all businesses – including FIs – to carry out meaningful and ongoing due diligence that includes consulting with (potentially) affected rightsholders, and provide or cooperate in remedy for adverse impacts where appropriate.
In addition, financial actors and the rise in Environmental Social Governance (ESG) investing are receiving increased attention as a significant leverage point for advancing corporate respect for human rights. For example, the UN Working Group on Business and Human Rights in its UNGPs 10+ Roadmap, released in 2021, placed a particular emphasis on the crucial role of the financial sector in scaling up implementation of the UNGPs.
FIs are also facing increasing attention from governments, particularly in Europe with the the EU Action Plan on Financing Sustainable Growth.
This portal collects guidance and other documents outlining the human rights responsibilities of different financial institutions, as well as statements, reports and other useful resources to catalyse action on human rights.
Essential Guidance
UN Guidance on applying the UNGPs to the finance sector
Since their adoption in 2011, the UN Working Group on Business and Human Rights has been working to shine a light on the responsibilities of financial actors under the UNGPs, and has prioritised research and consultation in the areas of development finance and institutional investment within the context of the UNGPs 10+ project.
OECD Guidance for the financial sector
OECD
In order to promote the effective observance of the Guidelines, the OECD has developed sectoral guidance for the financial sector. This includes key considerations for institutional investors, as well as banks and other financial institutions in the context of their corporate lending and underwriting activities.
Further guidance & tools
Find here select guidance and tools for FIs on respecting human rights.
Investor Toolkit on Human Rights
The Investor Alliance for Human Rights (IAHR) published this toolkit for asset owners and managers to address risks to people posed by their investments. The toolkit explains that investors have a responsibility to respect human rights as outlined in the UNGPs and provides practical guidance for investors regarding how to apply the UNGPs in their work.
Gender Benchmark: Investor Guidance
This guidance for investors elaborates on the five key findings from the World Benchmarking Alliance’s 2023 Gender Benchmark.
Human Rights Roadmap for Transforming Finance
Business for Social Responsibility (BSR) provides an overview of key areas where the financial sector must make progress, and builds on the call to action outlined in the UNGPs 10+ Roadmap by providing recommendations on how financial institutions can do more to drive respect for human rights.
BankTrack 2022 Global Human Rights Benchmark
The benchmark provides key human rights performance data and analysis for 50 of the world’s largest commercial banks.
Investor briefing: EU Corporate Sustainability Due Diligence Directive
This briefing note summarises the requirements of the CSDDD, with particular focus on how it will affect the investment sector.
UNGPs 10+ stocktaking report on institutional investment
Taking stock of investor implementation of the UN Guiding Principles on Business and Human Rights
Investor statements
Find here select statements by investors calling for improved human rights performance by companies and stronger regulatory requirements, among others.
Investors with US$861 bn AUM support findings of BankTrack’s 2022 Global Human Rights Benchmark
In September 2023, a group of 47 investors representing US$861 billion in assets under management and advisement, coordinated by the Investor Alliance for Human Rights, has released an investor statement in support of the BankTrack Global Human Rights Benchmark.
IIGCC, PRI, Eurosif, ICCR & IAHR reiterate support for the EU CSDDD
In February 2024, the Institutional Investors Group on Climate Change, the Principles for Responsible Investment, Eurosif, the Interfaith Center on Corporate Responsibility, and the Investor Alliance for Human Rights reiterated their support for the EU Corporate Sustainability Due Diligence Directive.
Investors say tech companies are failing to address systemic human rights risks inherent in business models & exacerbated by AI
A suite of 14 shareholder proposals for the 2024 proxies of Alphabet, Amazon and Meta call out the deleterious human rights impacts of the tech sector’s products and services as well as its governance structures and revenue models.
