This is a practical guidance report for investors outlining the human rights risks prevalent in the Uyghur region of China. The report recommends investors undertake enhanced human rights due diligence to assess their exposure to risks in the region and engage with portfolio companies to implement mitigation strategies. The report highlights the severity of human rights impacts, including forced labour, as a key ESG issue investors should be aware of.

Investors must assess whether their portfolio companies have robust and effective human rights policies in place, as well as the means to implement human rights due diligence in line with the UN Guiding Principles on Business and Human Rights. Investors must also seek collaboration with stakeholders, including peers and industry bodies, to exert collective influence and facilitate action on human rights abuses in the region.

The guidance also emphasises responsible divestment as one of the key actions investors can take when portfolio companies cannot or will not effectively manage the human rights risks of their business activities in the region. Investors must ensure their divestment strategy is responsible and transparent, including an explanation to portfolio companies and relevant stakeholders as to the reasons for divestment.

With over 170 members representing a total of over $5 trillion in assets under management and 19 countries, The Investor Alliance for Human Rights is a collective body that helps investors ensure their portfolio aligns with international human rights norms. The guidance report provides investors with essential insights and practical guidance to promote the protection of human rights while creating long-term value for clients.