The Human Rights Due Diligence Tool for Real Estate Investors, developed by the Principles for Responsible Investment (PRI), provides a structured framework for identifying, assessing, and managing human rights risks in property investments. It aligns with international standards, including the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises.

Organisation

The tool was developed by the Principles for Responsible Investment (PRI), a United Nations-supported network of investors promoting responsible investment practices.

Target audience

The primary audience for this tool includes institutional investors, asset managers, and other finance professionals involved in real estate investments. It is designed to assist these stakeholders in integrating human rights considerations into their investment processes.

Relevance to finance professionals

For finance professionals, the tool offers a practical approach to incorporating human rights due diligence into investment decision-making. By following the framework, investors can better identify potential human rights risks associated with real estate assets, assess their severity, and implement measures to mitigate adverse impacts. This proactive approach not only aligns with international standards but also helps in managing reputational and financial risks.

Key features

• Risk identification: The tool guides users through the process of identifying human rights risks in real estate investments, considering factors such as location, type of asset, and stakeholder engagement.
• Assessment framework: It provides a structured methodology for assessing the severity and likelihood of identified risks, enabling prioritisation of actions.
• Mitigation strategies: The tool outlines strategies for mitigating identified risks, including stakeholder engagement, policy development, and monitoring mechanisms.
• Alignment with standards: It ensures that investment practices are in line with international human rights standards, promoting responsible investment and compliance with emerging regulatory requirements.

Conclusion

The Human Rights Due Diligence Tool for Real Estate Investors serves as a valuable resource for finance professionals seeking to integrate human rights considerations into their investment practices. By providing a structured framework aligned with international standards, it supports the identification, assessment, and management of human rights risks in real estate investments.