Investor Responsibility

By fueling the economy and businesses within it, investors pose risks to the broader interests of society in the same way portfolio companies might. In response, authoritative global standards such as the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises have since 2011 established that all companies, including investors, have a responsibility to respect human rights throughout their operations and broader value chains. Investors also have fiduciary responsibilities for ensuring that portfolio companies respect human rights since where there are the most severe risks to people and planet, there are material risks to business, including reputational harm, financial loss, and legal liabilities.

The Investor Alliance supports its members in engaging with the investor responsibility to respect human rights through a number of capacity-building activities, the development of practical tools and case studies, and opportunities for investor-to-investor engagement on respect for human rights.