GENEVA (26 June 2024) – UN experts* today presented a report urging investors to integrate human rights considerations into their environmental, social and governance (ESG) and sustainability approaches, to align them with the UN Guiding Principles on Business and Human Rights.
“Investors must place risks for people and the planet at the centre of their decision-making,” said Robert McCorquodale, Chairperson of the UN Working Group on Business and Human Rights.
“Investors have the responsibility to conduct ongoing human rights due diligence, prioritise meaningful stakeholder engagement, and promote access to remedy in alignment with the Guiding Principles,” McCorquodale said.
The Working Group’s report to the 56th Human Rights Council session stressed that investors need more decision-useful information concerning human rights. “Data providers, proxy voting agencies, and other data actors must provide clear and transparent methodologies on human rights performance.”
To improve the availability and quality of human rights data, the Working Group also highlighted the importance of meaningful consultation with potentially affected groups. “Investors cannot ignore the voices of those impacted by the investments they make,” the experts said.
“States will play a key role by drafting legislation and regulations to facilitate alignment of ESG and sustainability approaches of investors with the Guiding Principles,” McCorquodale said.
The Working Group’s report contains recommendations for States, businesses, and other stakeholders as to how to incorporate the Guiding Principles into ESG and sustainability approaches.
*The experts: Mr. Robert McCorquodale (Chairperson), Ms. Fernanda Hopenhaym (Vice-Chairperson), Ms. Pichamon Yeophantong, Mr. Damilola Olawuyi, and Ms. Elżbieta Karska, of the Working Group on human rights and transnational corporations and other business enterprises.
The Special Rapporteurs, Independent Experts and Working Groups are part of what is known as the Special Procedures of the Human Rights Council. Special Procedures, the largest body of independent experts in the UN Human Rights system, is the general name of the Council’s independent fact-finding and monitoring mechanisms that address either specific country situations or thematic issues in all parts of the world. Special Procedures’ experts work on a voluntary basis; they are not UN staff and do not receive a salary for their work. They are independent from any government or organization and serve in their individual capacity.
