UN Urges Investors to Prioritize Human Rights in ESG and Sustainability Strategies

The report, presented at the 56th Human Rights Council session, underscored the necessity for investors to have access to comprehensive and actionable human rights information.

In a report presented today, UN experts have called on investors to integrate human rights considerations into their environmental, social, and governance (ESG) frameworks and sustainability strategies, aligning them with the UN Guiding Principles on Business and Human Rights.

Robert McCorquodale, Chairperson of the UN Working Group on Business and Human Rights, emphasized the need for investors to place risks to both people and the planet at the forefront of their decision-making processes.

"Investors bear the responsibility to conduct continuous human rights due diligence, engage meaningfully with stakeholders, and ensure access to remedy, all in line with the Guiding Principles," McCorquodale stated.

The report, presented at the 56th Human Rights Council session, underscored the necessity for investors to have access to comprehensive and actionable human rights information. It called for data providers, proxy voting agencies, and other actors in the data ecosystem to adopt clear and transparent methodologies for assessing human rights performance.

Furthermore, the Working Group emphasized the crucial role of meaningful consultation with communities affected by investment decisions. Ignoring the voices of impacted groups is no longer acceptable, according to the experts.

McCorquodale highlighted the role of states in facilitating alignment by drafting legislation and regulations that support the integration of ESG and sustainability practices with the UN Guiding Principles.

The report includes specific recommendations for governments, businesses, and stakeholders on how to effectively incorporate these principles into their ESG and sustainability frameworks.

Moving forward, the UN urges investors to prioritize human rights in their investment strategies, recognizing that robust ESG and sustainability approaches must uphold fundamental human rights standards to achieve lasting positive impact on society and the environment.