2018 United Nations Forum on Business and Human Rights

Session organized  by the Principles for Responsible Investment.

Brief description of the session:
In 2011, the UN Human Rights Council unanimously endorsed the UN Guiding Principles on Business in Human Rights (UNGPs), offering an international point of reference on how states should protect, and companies should respect, human rights. Moreover, the OECD, has integrated the UNGPs in its own policy frameworks, such as OECD Guidelines for Multinational Enterprises and the OECD Responsible Business Conduct for Institutional Investors.
Investors and businesses have responsibilities to respect human rights and should act with due diligence in line with the UNGPs and the OECD guidelines. However, despite the growing awareness and commitments by both investors and businesses regarding this responsibility, a recent report by the UN Working Group on business and human rights found that the “majority of companies do not demonstrate practices that meet the requirements set by the guiding principles,” and calls on investors to “more systematically require effective human rights due diligence by the companies they invest in.”
Investors are increasingly aware and concerned about the significant potential and actual operational, legal and reputational risks companies might face when they do not take adequate steps to manage human rights risks. These could include project delays and cancellations, lawsuits and significant fines and negative press coverage and reputational damage.
Investors can play an important role by proactively engaging with companies on developing policies and processes that can prevent and mitigate adverse human rights impacts, rather than only reacting to them once they have occurred.

Session objectives:
This session will explore how investors can engage portfolio companies, as well as with rights-holders and other local stakeholders, on human rights risks to promote the uptake of human rights due diligence and access to remedy for victims of adverse impacts.