In today’s financial landscape, ethical practices are not just the right thing to do – it is a smart business move. Institutions that prioritize human rights not only reduce risk but also gain the trust of investors, regulators, and consumers – positioning themselves as leaders in a rapidly evolving market. On the other hand, those that fail to adapt risk reputational damage, legal consequences and missed opportunities in an increasingly values-driven economy. To help financial institutions navigate this, the United Nations Environment Programme Finance Initiative (UNEP FI) has launched its updated Human Rights Toolkit. This toolkit offers practical tools and guidance to help financial institutions align with international human rights standards, providing the necessary resources to integrate human rights into their decision-making processes effectively.
The toolkit is not just another compliance checklist—it’s a comprehensive guide designed to empower financial institutions to take meaningful action. With tailored advice across specific industry sectors and geographies, it helps businesses understand the unique challenges they face when it comes to human rights.
For those unfamiliar with human rights principles, the toolkit also offers educational resources that explain key international frameworks, with a focus on the United Nations Guiding Principles on Business and Human Rights (UNGPs). These materials help financial organizations make informed, ethical decisions in their everyday operations. The toolkit provides detailed guidance on the Protect, Respect, and Remedy framework outlined in the UNGPs, covering key actions such as developing a policy commitment, conducting human rights due diligence, and enabling access to remedies for affected parties.
One of the most compelling aspects of the toolkit is its emphasis on continuous monitoring. Rather than being a one-time checklist, the toolkit gives resources to support institutions track their progress over time, ensuring that human rights considerations are integrated into every stage of a project or investment.
By using the resources of the toolkit to integrate Human Rights into their operations, financial institutions will not only strengthen their adherence to the Principles for Responsible Banking (PRB) but also ensure that their financial practices respect and promote fundamental human rights, further contributing to a more ethical and sustainable global economy. The toolkit is designed for banks but will also be useful to a broader range of stakeholders, including investors, insurance companies, civil society, states, and national Human Rights Institutions.
The launch of this resource is timely, as global investors, regulators, and consumers demand more from businesses, including banks, in terms of transparency and ethical behavior. By adopting the Human Rights Toolkit, financial institutions not only comply with global standards but also strengthen their credibility, reduce risks, and contribute to a more responsible and sustainable financial system.
Additionally, it includes case studies that provide insights and inspiration from organizations already leading in human rights practices.
The toolkit is the outcome of a collaborative effort between UNEP FI and the European Investment Bank (EIB), with EIB providing development and financial support for the project. It is a vital step forward in equipping financial institutions to play a pivotal role in promoting healthier, more inclusive societies
UNEP FI members can join the Human Rights Community of Practice , a forum for discussion on human-rights-related topics, and facilitate peer sharing of best practices to help banking and insurance members align with the UNGPs.
Join the virtual launch of the updated UNEP FI Human Rights Tool for Financial Institutions on 28 January here.