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50.
Chris Bray (Head of Environmental Risk Policy, Barclays) discussed Barclays approach
to human rights. Barclays is a member of the Business Leaders’ Initiative on Human Rights,
which gathers companies from a variety of sectors to explore how to integrate human rights
issues into business decision-making. Issues addressed include managing workforces in
different countries and managing human rights in supply chains. Barclays developed a group
statement on human rights in 2004; although not a policy, it is reflected in a range of other group
policies. Mr. Bray shared the origins of the new human rights work programme of the UNEP
Finance Initiative: in April 2006, financial institutions convened to discuss business drivers
behind human rights and how those drivers were reflected in different organizations. The FIs
agreed the need to establish a common understanding of human rights - not to recreate
information in the public domain, but to examine the components of human rights: where the
boundaries are for FIs; which issues are material and where they have impact; and to break down
the issues into a practical format, so a front-line FI officer facing client meetings will be
equipped with laymen’s terms for human rights considerations in different industries. The
guidance will be supplemented by a CEO briefing designed to inform and promote support from
the senior management of financial institutions.
51.
Peter Frankental (Economic Relations Strategy Adviser, Amnesty International International Secretariat) stated that many financial institutions have shown willingness to
address human rights issues when there is a regulatory requirement or a clear business case, or
when steps can be taken that will not affect profitability. The human rights community, on the
other hand, expects companies to respect human rights and avoid complicity even when there are
no such requirements. Given this point of departure, what are the prospects for convergence?
Mr. Frankental stated that the IFC Performance Standards and the Equator Principles are a step
in the right direction, and that next steps should be to align these standards more closely with
international human rights law and address their ambiguities. He suggested that human rights
impact assessments (HRIAs) can help bridge the gap between good intentions and practice,
provided they address all human rights contained in the International Bill of Rights, ILO
conventions and other relevant instruments. They should be conducted at the feasibility stage of
a project and inform the decision as to whether to invest, as well as the design of the project
throughout its lifecycle, and their findings and recommendations should be embodied in a
management plan that is monitored by an independent, competent body.
52.
Paul Clements-Hunt (head of the secretariat, UNEP Finance Initiative) stated that human
rights must be embedded in the “DNA” of a financial institution at every level. Materiality in
financial terms is key, and it is critical to focus attention where pools of capital are concentrated.
Launching the Principles for Responsible Investment (PRI) at the New York Stock Exchange
was an important signal to the market. FIs that have endorsed the PRI now represent $6 trillion
in assets and 150 institutions in 22 countries; the next phase of the initiative will focus on
performance, monitoring, metrics, and governance. The second concentrated pool of capital is
the private banking community servicing ultra-high net worth individuals, which by 2010 will
control 50 per cent of the world’s assets or US$ 44 trillion; only 2 to 5 per cent of their capital is
currently managed on an ethical basis. Mr. Clements-Hunt cited the case of a company having
paid to settle a claim for environmental damage but publicly claiming “the strong support of its
bankers”. Mr. Clements-Hunt concluded by stating that voluntary initiatives can be used to
create a framework of understanding to promote best practice with respect to human rights.
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