Investor Toolkit on Human Rights provides guidance for investors on how to address risks to people & respect human rights in investments
The Investor Alliance for Human Rights has published an Investor Toolkit on Human Rights (with Executive Summary) 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 UN Guiding Principles on Business and Human Rights (UNGPs) and provides practical guidance for investors regarding how to apply the UNGPs in their work.
The guidance also highlights that financial actors have a tremendous opportunity to support recovery following the COVID-19 pandemic and positively contribute to new systems that embed respect for human rights.
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Amid COVID-19, new Investor Toolkit on Human Rights outlines roadmap for addressing risks to people in investments
Author: Investor Alliance for Human Rights
The Investor Alliance for Human Rights has published a new Investor Toolkit on Human Rights (with Executive Summary) for asset owners and managers to address risks to people posed by their investments... “In this global crisis, we see why investment-as-usual must change. An essential step in this process is recognizing that institutional investors, even minority shareholders, have a responsibility to address the risks to people present in their investment value chains. To do this, investors should know the human rights risks connected to their investment portfolios and show how they are taking action to manage those risks in line with globally agreed upon standards,” said Paloma Muñoz Quick, Director of the Investor Alliance for Human Rights.
... “Addressing human rights risks is an important component of financially responsible and sustainable investment strategies. By assessing human rights risks during investment-decision making and engaging portfolio companies to promote the adoption of human rights policies and due diligence, we are better able to avoid the financial and reputational risks associated with unmanaged human rights harms in investment portfolios,” said Lauren Compere, Managing Director and Director of Shareowner Engagement at Boston Common Asset Management.
Author: Investor Alliance for Human Rights
Institutional investors, as business actors, have a responsibility to respect human rights in line with the UN Guiding Principles on Business in Human Rights... The responsibility to respect means that business enterprises are expected to formally commit to respect human rights, have in place human rights due diligence processes, and, where appropriate, ensure that victims of human rights abuses have access to remedy. This responsibility exists independently of whether or not governments fulfill their human rights obligations.
... Institutional investors, even those with minority shares in a company, may be connected to adverse impacts on human rights caused by, contributed to, or linked to portfolio companies as a result of their ownership or management of stakes in those companies. Investors therefore need to know the risks to people connected with their investment activities and show how they take action to manage those risks... This Toolkit provides practical guidance for institutional investors in applying the UN Guiding Principles throughout their risk management systems to assess and address risks to people involved with their business, with a primary focus on investment activities.
Author: Investor Alliance on Human Rights
By fueling economies, institutional investors in particular have a systemic influence over financial markets and the behavior of companies within them... [A] role and responsibility of institutional investors is... to assess whether portfolio companies have robust and effective human rights policies, due diligence processes, and grievance mechanisms in place and take meaningful action based on those assessments. Investors should embed this approach across the whole of the investment lifecycle, including in their activities prior to investment decision-making, in their investment decision-making, and throughout investment stewardship.
... This role for investors in engaging with human rights is no longer a ‘nice-to-have’ proposition, as authoritative frameworks and standard-setting bodies at international, regional, and national levels have laid out the expectation that all business actors, including institutional investors, have a responsibility to respect human rights throughout their activities... This Toolkit provides a roadmap for action to help investors meet these growing expectations and tackle the challenge of cultivating responsible and sustainable economic systems that help, rather than hurt, people.