BankTrack contact persons for this campaign:
Ryan Brightwell, BankTrack humanrights@banktrack.org
Article 1 of the Universal Declaration of Human Rights: "All human beings are born free and equal in dignity and rights.". Photo: riacale/flickr. Original artwork from UN "human rights wall", Geneva.Banks can cause human rights violations themselves, such as through discrimination in their hiring or service provision, and they can contribute or be linked to human rights violations through lending or other financial support for the companies responsible (see Further Information, below). For example, banks have provided finance for agricultural companies involved in land grabs; loans for large dams which displace Indigenous Peoples; lending to mining companies which have benefitted from paramilitary violence around their operations; and supported companies with forced or child labour in their supply chains.
BankTrack's human rights campaign pushes for banks to fully meet their responsibilities to respect human rights and human dignity across their operations. The UN Guiding Principles on Business and Human Rights, unanimously endorsed by the UN Human Rights Council in June 2011, provide the clearest expression of these responsibilities. Since 2011 we have focused on the following three areas:
BankTrack's Human Rights Benchmarking report benchmarks large international banks on their progress towards implementing the UN Guiding Principles. The third version of the report, released November 2019, assesses and scores the human rights policies, processes and reporting of 50 banks against criteria based on the UN Guiding Principles. It found that, of the 50 banks ranked, 40 were considered 'laggards' or 'followers', meeting less than half of the UNGPs criteria.
In 2016 BankTrack began a series of Human Rights Impact Briefings examining bank links to specific human rights impacts. For each briefing, the banks involved are asked to describe the actions they have taken to address these impacts, in line with their responsibilities under the UN Guiding Principles.
Responses received from banks have varied, but the majority did not provide a substantive response. Rather, they provided general descriptions of their human rights policies and due diligence processes, which shed little or no light on the actions taken by the bank. If bank policies work, we would expect to see better responses from banks which score well on their human rights policies. We hope to be able to draw firm conclusions about whether this is the case in future. However early indications are that this is not necessarily the case.
Dodgy Deals on the BankTrack website also provide details of the human rights impacts of the project or company concerned.
BankTrack also engages with banks individually and collectively on human rights matters. This has included engagement with the the informal "Thun Group of banks", which was formed to discuss the implications of the UN Guiding Principles for the banking sector. We welcomed the Thun Group's first Discussion Paper in October 2013 and provided a response highlighting some key concerns. We also responded to the Thun Group's second Discussion Paper in January 2017, coordinating an open letter calling for it to be withdrawn, and produced a Fact Sheet summarising UN advice which the paper had failed to take into account. After the Thun Group updated its paper in December 2017, clarifying but not substantially changing its position, BankTrack responded with an open letter urging the Thun Group to follow a robust process of stakeholder consultation for any subsequent papers, in line with the advice of the UN Working Group. Unfortunately its response did not indicate a willingness to do so.
In December 2017 we produced a further briefing paper, "How banks contribute to human rights violations", presenting eight case examples.
In 2018 we published "Developing Effective Grievance Mechanisms in the Banking Sector" with Oxfam Australia, to encourage banks to meet their responsibilities to ensure access to remedy. This was presented to banks via two webinars (see recording here).
We are also engaged in the Advisory Group to the OECD Proactive Agenda Project for Responsible Business Conduct in the Financial Sector, through which we aim to encourage higher standards in the implementation of the OECD Guidelines for Multinational Companies, particularly in the field of human rights.
BankTrack has been a regular presence at the UN Forum on Business and Human Rights since 2012. In 2013 we presented our response to the Thun Group. In 2014 we convened a panel on human rights and the finance sector. In 2015 we participated in a panel on "providing access to effective remedy in the financial sector". In 2016 we co-organised a panel on "Banks & the UNGPs: implementation case studies and dilemmas". In 2017, although we did not participate in a panel discussion, we contributed an article to the UN Forum Blog, titled "steps forward and steps back on the road to access to remedy in the banking sector".
The Universal Declaration of Human Rights clearly states that "every organ of society", including business enterprises and therefore banks, has human rights obligations. Human rights are typically grouped into (1) civil and political rights, and (2) economic, social and cultural rights. Banks have the potential to impact upon all these rights, both positively and negatively, and in a multiplicity of ways. For example, a bank may engage with a client with a disputable track record on human rights, enabling them to continue operating. Banks may also provide essential finance to clients that are involved in activities that directly impact upon human rights, such as manufacturing and trading of arms.
The United Nations Guiding Principles on Business and Human Rights, (UNGPs) unanimously endorsed by the Human Rights Council in June 2011, provide clarity on the expectations of the international community regarding the human rights responsibilities of corporations. With the Guiding Principles, the UN Human Rights Council defined the corporate responsibility to respect human rights, which is entirely and unambiguously binding for the financial sector.
The UN Office of the High Comissioner for Human Rights (OHCHR) and the UN Working Group on Business and Human Rights are the two UN bodies with a mandate to interpret the UNGPs. They have provided advice clarifying the responsibilities of the finance sector under the UNGPs. In particular, the OHCHR provided a detailed guidance note in June 2017 in a response to BankTrack.
Download the OHCHR guidance note here
Download the OHCHR’s cover letter here
Download BankTrack’s letter to the OHCHR here
Further advice regarding the banking sector's responsibility was published in response to a paper by the Thun Group in January 2017, and is collected on the website of the Business and Human Rights Resource Centre.
