Use leverage to embed respect for human rights among clients and portfolio Illustrative actions set out by UNGPs companies. Use and maximize leverage to 10+ Roadmap require, facilitate, and/or incentivize respect for human rights. For example, FIs should ask “Set clear expectations that financial meaningful questions to portfolio companies support and investment will only be made where investees have put in place policies (and verify responses when necessary), file and human rights due diligence processes shareholder proposals with listed companies, and grievance mechanisms aligned with include human rights milestones in venture the UNGPs, can demonstrate performance capital term sheets, and create human rights improvements over time and provide data risk oversight structures at the board of to support effective investor monitoring.” 7 directors’ level. “Engage investees in constructive dialogue to promote: (1) the adoption Use leverage to move the ESG field of human rights policies, governance, toward respect for human rights. due diligence, and effective grievance mechanisms, and (2) the provision of The consistent integration of human rights remedy for victims of human rights due diligence into all leading ESG frameworks, abuse where the investee has caused standards, regulations, and taxonomies used or contributed to adverse human rights by the financial services sector is essential impacts.” for making progress. FIs are encouraged to use their leverage, either individually or through associations such as the PRI, to call for alignment of ESG benchmarks, data providers, 8 and reporting frameworks with the UNGPs. The Call to Action 03 Use the UNGPs as a Compass for Meeting Global Challenges Make respect for human rights a core element of the just transition. Climate change has profound consequences for the enjoyment of the full range of human rights, including the rights to life, a decent standard of living, and health. Respecting people’s 21 HUMAN RIGHTS ROADMAP FOR TRANSFORMING FINANCE