Finance and human rights

Finance and human rights is a key area for the Human Rights and Business Department at the Danish institute for Human Rights (the Institute). By providing capital for the market, investors have a unique influence on business that should be harnessed to scale up responsible business conduct across the global economy.

We support the development of policy and regulatory frameworks aiming at ensuring that financial systems operate in accordance with human rights. We work directly with financial actors to implement the UN Guiding Principles on Business and Human Rights across investment lifecycles. Finally, we develop analysis and know-how with the aim of scaling up respect for human rights by financial actors.

An enabling environment: policy, regulation and standards

Smarter policies and regulatory frameworks for responsible investment have the potential to drive change at a larger scale. We engage in relevant policy, regulatory and standard setting initiatives including through on-going analysis of regulatory developments, engaging with relevant consultations and by advising on inclusion of business and human rights standards in expert fora such as the EFRAG Sustainability Reporting Technical Expert Group, the EU Platform on Sustainable Finance or the OECD Advisory Group on Responsible Business Conduct in the Financial Sector.

• Read our submission to the consultation on FinDev Canada´s review of its Environmental & Social Policy
• Read our input to the UN Working Group on Business and Human Rights consultation on Business and Human Rights and ESG
• Read our submission to the European Commission consultation on the proposal for a regulation on ESG Rating Activities
• Read our EU explainer for a human rights lens to finance related regulation
• Read our input to the consultation on the EU Sustainable Finance Disclosure Regulation
• Read our Submission to consultation on the proposed IFC/MIGA Approach to Remedial Action and Responsible Exit
• Read our statement on a future EU Social Taxonomy.

Building good practices: collaborating with and advising financial actors

Investors such as pension funds, sovereign wealth funds, multilateral and bilateral development banks have a responsibility to respect human rights in their activities and throughout their business relationships. This means embedding human rights in investment due diligence and decision making, in engagement with investee companies as well as in exit and divestment considerations. We collaborate with financial actors, including institutional investors, to strengthen their capacities on human rights as part of approaches to environmental, social and governance (ESG) risk management as well as impact investing.

We also engage with the industry as expert advisers to industry led initiatives aiming to scale up respect for human rights in the financial sector. These include PRI Advance, the Investor Alliance for Human Rights and Finance in Common.

• Read about our collaboration with European Development Finance Institutions
• Read about our collaboration with Danish Development Finance Institution IFU
• Read about our collaboration with the European Investment Bank (EIB)

Producing and disseminating analysis and know-how

• Read our publication Documenting respect for human rights in the financial sector. A 2023 snapshot of Danish financial institutions
• Read our publications on Human Rights at Development Finance Institutions and Development finance for digitalisation: Human rights risks in Sub-Saharan Africa
• Watch a recording of webinar on mainstreaming the social agenda in sustainable finance, delivered for the Nordic Financial Union (external site)
• Watch a recording of a keynote speech on the case for embedding human rights in Impact Investing, delivered at a Phenix Capital event (external site)
• Watch a recording of a webinar on human rights impact assessments as a tool for investors delivered for Investor Alliance on Human Rights (external site)
• Read our blog post on deciphering human rights and finance in an EU context
• Read our Investor Expectation publication on Tech Giants and human rights
• Read the outcome report of an expert meeting on human rights impacts of Nordic investments.