Human rights defenders play a critical role in fostering corporate transparency and respect for human rights, such as by monitoring supply chains, exposing corruption, and protecting our shared environment. In 2019, the Business & Human Rights Resource Centre tracked 572 attacks against human rights defenders focused on business-related activities, up from 492 in 2018. So far, the numbers in 2020 do not show any improvement and the COVID-19 pandemic is putting defenders at greater risk during a time when their contribution to society is increasingly vital. 

The growing violence against human rights defenders who speak out against negative social and environmental impacts of business activities, coupled with government-imposed restrictions on the freedoms of expression, assembly, and association, pose profound risks to people and the environment. The most dangerous countries for defenders working on business-related impacts are Colombia, Brazil, the Philippines, India, Guatemala, Mexico, and Honduras. Most attacks have been related to business activities that are linked to the mining, agribusiness, and renewable energy sectors, and increasingly the information and communications technology (ICT) sector.

The responsibility to safeguard the rights of defenders stems from the UN Guiding Principles on Business and Human Rights, which clarify that all business enterprises have a responsibility to respect human rights. In 2017, the OECD further elaborated on this framework for the investment community in Responsible Business Conduct for Institutional Investors: Key Considerations for Due Diligence Under the OECD Guidelines for Multinational Enterprises. The expectation that companies and investors conduct human rights due diligence to understand, manage, and account for risks to people is also an emerging regulatory requirement, particularly in the European context.

Institutional investors can be connected to these impacts through their investments in companies that cause, contribute to or are directly linked to actions that undermine the rights of defenders. Institutional investors may be connected to these abuses through portfolio companies that are involved with such harms via their own operations or through business relationships. By identifying and sharing the ways in which business activities affect people’s fundamental rights, defenders are instrumental in helping portfolio companies prevent and address human rights risks. As a result, investors have a responsibility to assess whether their investment activities pose risks to the work and safety of human rights defenders, and show they are taking action to prevent and mitigate harms.

This publication provides targeted guidance for minority shareholders with investments in public equities as well as limited partners in private equities on how to identify, prevent, and mitigate risks to defenders throughout their investment activities. Including relevant case studies, guidance on policy development and questions for company engagement which support investors to engage and evaluate portfolio companies’ efforts to manage risks to human rights defenders in their value chains.

1. Human rights defenders are individuals who, individually or with others, act peacefully to promote or protect human rights.
2. Institutional investors can be connected to attacks on human rights defenders through their investments in companies that cause, contribute to or are directly linked to actions that undermine the rights of defenders.
3. Investors have a responsibility to assess whether their investment activities pose risks to the work and safety of human rights defenders, and show they are taking action to prevent and mitigate harms.
4. The responsibility to safeguard the rights of defenders stems from the UN Guiding Principles on Business and Human Rights which clarify that all business enterprises have a responsibility to respect human rights.
5. The expectation that companies and investors conduct human rights due diligence to understand, manage, and account for risks to people is also an emerging regulatory requirement, particularly in the European context.
6. Portfolio companies should have human rights policies that are aligned with the UN Guiding Principles and applicable to the company’s own operations with expectations communicated across the full value chain.
7. Portfolio companies should identify, prevent, mitigate, and account for how they address adverse human rights impacts on defenders by carrying out human rights due diligence.
8. Portfolio companies should ensure that human rights defenders have access to remedy.