Responsible business conduct in the financial sector
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Promoting responsible business conduct in the financial sector is vital to building a sustainable global economy. However, the inherent complexities in the sector such as extensive and complex business relationships or the rapidity of transactions make practical application of effective due diligence systems challenging.
Responsible Business Conduct for Institutional Investors explains the application of the OECD Guidelines for Multinational Enterprises in the context of institutional investors. The paper highlights key considerations for institutional investors in carrying out due diligence that will help to identify and respond to environmental and social risks.
European Parliament overwhelmingly approved an EU Regulation for Sustainability-related Disclosures in the Financial Services Sector. The Regulation is the second legislative agreement reached under the EU Sustainable Finance Action Plan. In calling on financial institutions to disclose sustainability risks and impacts, the Regulation represents a milestone in efforts to encourage financial institutions to take into account impacts to society and the environment.
The Regulation introduces transparency rules for financial institutions on the integration of sustainability risks and impacts in their processes and financial products, including reporting on adherence to internationally recognised standards for due diligence. It also notes that when reporting on due diligence, practitioners “should consider the due diligence guidance for responsible business conduct developed by the Organisation for Economic Cooperation and Development.”
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DATE OF PUBLICATION
DOCUMENTS AND LINKS The St. Petersburg International Economic Forum business event on OECD standards on Responsible conduct for development institutions convened representatives of different organisations across the world to discuss the future of responsible business conduct in project finance. OECD Centre on Green Finance and Investment UN Principles for Responsible Investment OECD Guidelines for Multinational Enterprises How the financial sector could and should contribute to responsible business conduct, blog by Roel Nieuwenkamp, 2016 Dutch Banking Sector agreement on international responsible business conduct regarding human rights, 2016
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