Investor Letter for UK Human Rights Due Diligence
Investor Letter for UK Human Rights Due Diligence
"We, the undersigned 39 investors representing over £4.5 trillion in assets under management and advice support a ‘Business, Human Rights and Environment Act’, ambitious UK primary legislation to mandate companies to carry out human rights and environmental due diligence across their own operations and value chains.
All businesses, including investors and other financial actors, have a responsibility to respect human rights and the environment. The process of continuously conducting robust human rights and environmental due diligence (HREDD) is a core requirement for businesses and investors in fulfilling that responsibility, as framed in the recognized international standards of the UN Guiding Principles on Business and Human Rights (UNGPs) and the OECD Guidelines for Multinational Enterprises.
The investment community views rigorous due diligence legislation as good for businesses, investors, the economy, and the people it serves, as detailed in The Investor Case for Mandated Human Rights Due Diligence, released in April 2020 and supported by over 100 global investors representing $5 trillion in assets under management. The UK government – a member of the UN Human Rights Council at the time of unanimous endorsement of the UNGPs in 2011 - has an opportunity to play a leading, proactive role both within the G7, where mandatory due diligence is currently high on the agenda, and globally where UK companies operating internationally are facing a growing web of due diligence legislation..."