Mandatory Human Rights and Environmental Due Diligence Is Good for Investors and Business

When done responsibly, business can be a driving force for prosperity and inclusive economic development. Yet, far too often, companies in many different sectors harm people and planet in their operations or value chains.

Referencing the widely-accepted UN Guiding Principles on Business and Human Rights (UNGP), a growing number of investors are telling portfolio companies that they have a responsibility to respect human rights. They say the process of continuously conducting human rights due diligence is a core requirement for companies to fulfill that responsibility. The UNGP define human rights due diligence as an ongoing and iterative process to identify, prevent, mitigate, and account for how companies – and investors – address the most severe risks to people in connection with business activities.