Focus on the role of businesses integrating and addressing human rights within their operations has steadily grown since the introduction of the UN’s Guiding Principles on Business and Human Rights in 2011. In recent years, new regulations, such as the EU’s disclosure regulations, are increasingly shaping the global sustainable finance landscape and human rights is steadily claiming attention.

Respecting human rights is a core element of any economic activity framed as sustainable or responsible. We advocate that labels need to integrate human rights and propose a set of criteria aligned with the United Nations Guiding Principles on Business and Human Rights (UNGPs). This framework allows labels to assess respect for human rights by looking at the business adhesion to the UNGPs.

The objective of the research project described in this report is to document the current status of human rights implementation in the European finance industry, generate insights relating to the integration of human rights considerations into the activities of financial institutions, and offer guidance on how to advance human rights in the finance industry.

In this paper, the regulatory aspects linked to human rights in investments by financial service entities, including latest legal development and expectations for various stakeholders, are discussed. The paper finally provides practical recommendations on how to integrate human rights into the investment decision-making process aligned with the UNGPs.

This paper sets out the proposed and adopted changes in the Equator Principles (“EPs”) after their fourth iteration with a specific focus on human rights. It addresses the human rights concerns articulated by civil society and how financiers can take the lead and go beyond EP4.

This short paper is intended as a general overview of the development of different legislations and frameworks that apply in the area of finance and human rights, underlining key aspects. It comprises EU regulation (in force and upcoming); national regulations and developments in Europe and, finally, voluntary frameworks.