The Materiality of Human Rights for Financial Institutions Respect for human rights is not just beneficial for people —it is also good for returns. Research has shown a positive correlation between attention to human rights risks and corporate financial performance. The Sustainability Accounting Standards Board (SASB) Materiality Map identifies human rights Financial System Benchmark risks, such as labor issues and privacy, as likely to affect business success. An example from a 2018 The World Benchmarking Alliance (WBA) has released a Financial study found the cost for investors when companies System Benchmark methodology fail to act with due diligence to respect the rights to assess the readiness of FIs to of Indigenous People in the Dakota Access tackle the social and environmental Pipeline project was no less than US$7.5 billion. transitions underway and contribute to the 2030 Agenda. In 2022, the WBA will assess 400 FIs at FIs increasingly face accountability stemming the group level and consider the from business relationships that undermine spectrum of their financial activities, human rights, such as from lawsuits, complaints such as investing, lending, investment banking, insurance through the National Contact Point system of underwriting, and advising. The the Organisation for Economic Co-operation and benchmark will measure FIs based Development (OECD), shareholder resolutions, on their governance and strategy, social protests, or worse. Courts have started respect for planetary boundaries, and their alignment to societal using the UNGPs to inform rulings and find conventions. Human rights due companies liable for human rights impacts (e.g., diligence is a key component of the a Dutch court ruling on human rights and climate methodology. change). How a company impacts people often affects its own financial success 9 HUMAN RIGHTS ROADMAP FOR TRANSFORMING FINANCE