(Version française ci-jointe)
(Versión en español adjunta)Interpretation available in English, French and SpanishSession organized by the UN Working Group on Business and Human Rights Brief Description of the Session:What are the responsibilities of development finance institutions (DFIs) to human rights under the UN Guiding Principles on Business and Human Rights (UNGPs)? Multilateral DFIs have long been scrutinised for their impacts on communities and workers, such that many have developed their own environmental and social safeguard policies, guidelines, and grievance mechanisms—with some even predating the UNGPs. Even so, major concerns persist with respect to, for instance, the effectiveness of these efforts on the ground; the persecution of human rights defenders speaking out against large-scale development projects; and ongoing challenges faced by communities in accessing remedy. Moreover, considering the growing role played by national, sub-regional and regional DFIs, this raises additional questions about how and to what extent these actors are applying a human rights-centered approach to their financing, and whether the potential and actual adverse impacts of their financed projects are being adequately addressed.
This hybrid session will explore new and emerging issues, actors and trends in the development finance landscape. Attention will also be directed to discussing the opportunities and challenges that rights holders as well as DFIs face in implementing and enforcing the UNGPs. Structured as a consultation that will feed into the UN Working Group’s report to the Human Rights Council in 2023, this session features two speakers from OHCHR and the Organisation for Economic Co-operation and Development (OECD), who will provide ‘trigger’ remarks based on their new guidance on DFIs, to jumpstart constructive dialogue on these questions. Interventions from the floor—both in person and online—in response to these remarks and the key discussion questions contained in this concept note are welcomed and encouraged.
Key Objectives of the Session:This session aims to:
- Identify key issues, actors, and trends that should be covered in the UN Working Group’s report to the Human Rights Council;
- Highlight the specific challenges that rights holders (e.g., communities affected by development projects, workers, and human rights defenders) face in holding DFIs accountable, as well as the key human rights issues that they would like DFIs to address;
- Discuss the opportunities and challenges for DFIs in integrating human rights into their policies and practices;
- Share ‘good practice’ examples of DFI policies and financed projects that are human rights-responsive.
Key Discussion Questions:- What are the responsibilities of DFIs to respect human rights under the UNGPs? And how should these responsibilities be discharged?
- What principles, frameworks and policies exist to govern how DFIs implement human rights due diligence in their project financing?
- What are the key challenges faced by rights holders in holding DFIs accountable for the negative human rights impacts of their project financing, and in gaining access to effective remedy?
- What are the key challenges faced by DFIs in incorporating human rights considerations, specifically the UNGPs, human rights due diligence and access to remedy, into their policies, risk management systems, and practices?
- What role should States play in ensuring that DFIs abide by their responsibility to respect human rights?
- How can rights holders, DFIs, and States work collaboratively to ensure the monitoring, implementation and enforcement of the UNGPs in development finance?
Additional Background or Relevant Links:- UNWG,
Financial sector and human rights- OHCHR,
Remedy in Development Finance: Guidance and Practice (2022)
- OHCHR,
Consultation Draft - OHCHR Benchmarking Study of Development Finance Institutions' Safeguards Policies (to be finalised in 2022)
- OECD,
Responsible business conduct in the financial sector