Clara Serva was a speaker to discuss investment and human rights during a challenging time.
On November 25th, Clara Serva – head of the Business and Human Rights practice at TozziniFreire Advogados –, participated in a session of the 14th Business and Human Rights Forum at the United Nations (UN) Forum in Geneva. The panel “Investors and Human Rights in Challenging Times” addressed the complex intersection between human rights and investments in the context of the green economy.
In the context of over 50 active conflicts and growing demand for transition minerals, financial institutions face significant human rights challenges, such as displacement and environmental degradation, exacerbated by a lack of accurate data. It is essential that investors adopt practices that respect these rights, aligning themselves with the United Nations Guiding Principles on Business and Human Rights (UNGPs), through due diligence, stakeholder engagement, and support for effective grievance channels, thus strengthening the protection of human rights within the investment ecosystem.
During the session, moderated by Sinisa Milatovic, Clara emphasized the necessity for specific due diligence for each context when dealing with human rights, particularly in high-risk supply chains. “Analyzing human rights is like going to the doctor,” Serva compares, highlighting the importance of understanding the company, its operations, and context before understanding the risks and appropriate “remedies”.
Clara shared insights from her practice in Brazil, pointing out the challenges posed by insufficient public data in conflict-affected areas. She underscored the need for investors to look beyond surface-level compliance, stating that “a lack of data on human rights violations often signifies deeper issues that require comprehensive investigation.”
Throughout the discussion, Clara advocated for the application of the UNGPs, urging investors to reassess their practices and engage meaningfully with local communities. She stressed the importance of preventive measures and proactive engagement, noting that “investors must monitor human rights risks throughout the investment lifecycle.”
The panel also featured perspectives from other experts on the role of investors in holding companies accountable and enhancing grievance mechanisms. Clara"s contributions reinforced the message that human rights considerations are critical for sustainable investment practices, ultimately aiming to foster a just and rights-respecting economy.
Access the full recording of the panel “Investors and Human Rights in Challenging Times”.
