Views: Understanding ESG And Human Rights

• Published date: 06 February 2023
• Subject Matter: Environment, Government, Public Sector, Environmental Law, Human Rights
• Law Firm: AmerBON
• Author: Mr Edmund Bon

The popularity of ESG (environmental, social and governance) is a positive development, as regulators, companies and institutions recognise that business must not be conducted at the expense of the environment, workers and good governance. But how meaningful are the increasing awards for ESG achievements, penalties for non-compliance, and reporting standards?

Can ESG achieve what it is framed to do, which is to sustain us on this planet in a just manner? In the first part of my commentary, I will address this from two angles.

1. The roots of ESG are found essentially in human rights

In 1948, the Universal Declaration of Human Rights (UDHR) was proclaimed as the common standard for all people and all nations. Everyone is entitled to inalienable rights, irrespective of race, colour, religion, sex, language, political opinion, national or social origin, property, birth or status.

Not only were civil and political rights to be guaranteed by governments, economic rights ' such as rights to just and favourable conditions of work, equal pay for equal work, and social security ' were agreed upon as fundamental to human dignity.

The modern human rights movement then progressively evolved to encompass the right to a safe, healthy and clean environment, and included good governance as part of its fight against impunity and poverty.

In 2015, the 17 Sustainable Development Goals (SDGs) called for an end to poverty, hunger and inequality, setting targets to achieve gender equality, climate justice, as well as strong and just institutions, and deliver clean water and sanitation, decent work and economic growth, among others.

Each goal can be traced to a human rights convention. Without saying as much, the goals of human rights were repackaged through the SDGs to gain greater acceptance among non-state actors and corporations.

This is why some equate ESG standards to the "business and human rights" (BHR) principles found in the United Nations Guiding Principles on Business and Human Rights. But reporting guidelines that say the "S" in ESG comprises only a narrow subcategory of human rights or that labour rights only is human rights is not entirely accurate.

ESG, in actuality, calls for a rights-based approach that envisions the alignment of policy and business with scientific evidence, and centres on non-discrimination, accountability and informed participation, with special attention to the needs of vulnerable groups.

The growing toxification of the planet, which...