Webinar: Corporate Human Rights Benchmark at Five: Using the 2022 Findings for Investor Action on Due Diligence
The Investor Alliance for Human Rights and the World Benchmarking Alliance’s Corporate Human Rights Benchmark (CHRB) were pleased to host a webinar to share with institutional investors the findings from the 2022 Benchmark assessment of 127 companies in the food and agriculture, ICT manufacturing, and automotive manufacturing sectors. Key insights from the assessment will assist investors with their engagement of benchmarked companies.
For the past five years, CHRB has assessed the largest companies across five sectors on a set of human rights indicators that reflect expectations for rights-respecting corporate conduct as detailed in the UN Guiding Principles on Business and Human Rights and the OECD Due Diligence Guidance for Responsible Business Conduct.
The CHRB 2022 Insights Report examines the evolution of the scores of 57 food and agriculture products companies over the past five years, 43 ICT manufacturing companies over three years, and 29 automotive manufacturing companies over two years. One key finding indicates that while corporate respect for human rights has gained momentum, policymakers need to take measures to accelerate action and close gaps through mandated corporate disclosures and human rights due diligence.
The Investor Alliance has been coordinating an investor engagement with companies that have lagged behind on the CHRB benchmark, scoring zero on all human rights due diligence indicators. In May 2021, an Investor Statement signed by 208 investors representing over $5.8 trillion in AUM launched the engagement, asking 106 zero-scorers to improve their human rights performance. The 2022 CHRB Insights Report shows that 10% fewer benchmarked companies are scoring zero on due diligence indicators, but even for those who have improved somewhat, they still have a way to go.
Through this event, the Investor Alliance and CHRB aim to support investors in:
- Understanding where benchmarked companies stand on their performance on key human rights indicators;
- Strategizing outreach to their portfolio companies and learning about leading indicators for improved performance on human rights due diligence; and
- Coordinating with experts and other investors to support companies in meeting their human rights responsibilities, as well as civil society and government expectations.
Speakers included: Talya Swissa, CHRB; Anna Pot, APG; and Dan Mitler and Maryellen Salliotte, General Motors.