Investing in Human Rights. Overcoming the Human Rights Data Problem

Journal of Sustainable Finance & Investing, Forthcoming

19 Pages Posted: 6 Apr 2022

See all articles by Jaap Bartels

Jaap Bartels

affiliation not provided to SSRN

Willem Schramade

Nyenrode Business University

Date Written: March 21, 2022

Abstract

Human rights concerns are hardly integrated in investment decisions. That is a missed opportunity given investors’ crucial role in putting pressure on corporations to produce better information on adverse human rights impacts and addressing these impacts. This article investigates why human rights abuses by companies are so persistent. Explanations include the inherent complexity of global value chains; a lack of integration of human rights in business; insufficient legal enforcement; and inadequate data and limited pressure on corporations by investors. Although investors have launched several initiatives to improve their human rights performance they seem not yet able to solve the identified challenges and fulfil the requirements set out in the OECD guidelines and UNGP. We make suggestions to improve human rights data for investors by expanding the existing ecosystem and build two types of new institutions: specialised human rights data gatherers and dedicated human rights investment funds.

Keywords: sustainable finance; ESG; human rights

JEL Classification: G20; K33;

Suggested Citation

Bartels, Jaap and Schramade, Willem, Investing in Human Rights. Overcoming the Human Rights Data Problem (March 21, 2022). Journal of Sustainable Finance & Investing, Forthcoming, Available at SSRN: https://ssrn.com/abstract=4062669

Jaap Bartels

affiliation not provided to SSRN

Willem Schramade (Contact Author)

Nyenrode Business University ( email )

Straatweg 25
P.O. Box 130
Breukelen, 3620 AC
Netherlands

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