The UNEP FI Human Rights Toolkit is designed to assist finance professionals in integrating human rights considerations into their governance, policies, and practices. It offers practical steps, case studies, and guidance to help financial institutions respect and promote human rights across their operations and value chains.

The business case for human rights

The toolkit outlines the importance of human rights for financial institutions, highlighting reputational risks, regulatory compliance, and the growing demand for ethical investments. It presents evidence showing that companies with strong human rights practices often outperform peers, with lower risk profiles and better long-term returns.

Human rights due diligence

This section provides a detailed framework for conducting human rights due diligence. It includes identifying, preventing, mitigating, and accounting for human rights impacts. The toolkit suggests engaging with stakeholders, conducting impact assessments, and integrating findings into decision-making processes. A step-by-step guide is provided to help finance professionals implement due diligence practices effectively.

Integrating human rights into governance

The toolkit emphasises the role of governance in promoting human rights. It recommends embedding human rights policies at the board level, ensuring leadership commitment, and establishing oversight mechanisms. Evidence shows that firms with strong governance structures are better at managing human rights risks.

Engaging with clients and investee companies

Engagement is highlighted as a critical strategy for promoting human rights. The toolkit provides practical advice on how to engage with clients and investee companies to encourage better human rights practices. It suggests using dialogue, advocacy, and collaboration as tools for influence. Case studies demonstrate successful engagement strategies and their positive impacts.

Reporting and transparency

Transparency and reporting are crucial for accountability. The toolkit advises on best practices for human rights reporting, including the use of internationally recognised frameworks such as the UN Guiding Principles Reporting Framework. It highlights the importance of disclosing human rights risks, impacts, and mitigation measures.

Recommendations

The toolkit concludes with several recommendations for financial institutions:

• Adopt a Human Rights Policy: Develop and implement a policy that aligns with international standards.
• Conduct Regular Due Diligence: Continuously assess and address human rights impacts across all operations.
• Enhance Governance Structures: Integrate human rights considerations at the board level and within senior management.
• Engage Stakeholders: Maintain active dialogue with stakeholders, including affected communities, to understand and address human rights concerns.
• Improve Reporting: Ensure transparency by reporting on human rights practices and impacts, using established frameworks.