Banks and human rights due diligence: A critical analysis of the Thun Group's discussion paper on the UN Guiding Principles on Business and Human Rights

Abstract

The Thun Group's discussion paper The Guiding Principles on Business and Human Rights: An Interpretation for Banks lays the foundations for the first ever comprehensive guide on how universal banks should move from corporate social responsibility to human rights due diligence. As the arguments offered by the Thun Group are likely to influence not only public and private financial institutions but also companies belonging to other sectors, this article offers a critical assessment of the document. Notwithstanding several positive features, the Thun Group relies on a faulty subsidiary approach, avoids fundamental issues like access to effective remedy, and downplays the importance of engagement with affected stakeholders.