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illuminem summarizes for you the essential news of the day. Read the full piece on Responsible Investor or enjoy below:
🗞️ Driving the news: The UN Working Group on Business and Human Rights has completed a draft report on the responsibilities of ESG index and data providers in assessing human rights risks
• The report, aimed at guiding these providers, is expected to be submitted to the UN Human Rights Council and published in June
🔭 The context: This initiative is part of a broader effort to incorporate financial sector accountability into the UN’s Guiding Principles on Business and Human Rights
• It reflects the growing expectation for investors and financial institutions to assess and address human rights risks in their portfolios and the companies they finance
🌍 Why it matters for the planet: By highlighting the role of ESG index and data providers in assessing human rights risks, the report underscores the importance of responsible investing
• This approach aligns with global efforts to ensure that investments support sustainable development goals and do not contribute to human rights abuses
⏭️ What's next: The report’s recommendations may lead to increased pressure on index providers to integrate human rights considerations into their products
• This could improve the quality and consistency of human rights data available to investors, facilitating more informed and ethical investment decisions
💬 One quote: "The lack of consistent and quality human rights data prevents investors from integrating human rights systematically across their portfolios," said UK financial giant Aviva, emphasizing the need for reliable data to support responsible investing.
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