Human Rights in EU Sustainable Finance.

The article focuses on the significant but underexplored integration of human rights into European Union (EU) sustainable finance legislation, specifically the Corporate Sustainability Due Diligence Directive (CSDDD), Sustainable Finance Disclosures Regulation (SFDR), Taxonomy Regulation, and Corporate Sustainability Reporting Directive (CSRD). These laws incorporate references to international business and human rights (BHR) frameworks such as the UN Guiding Principles on Business and Human Rights (UNGPs) and the OECD Guidelines, embedding human rights disclosure and conduct obligations for investors and portfolio companies, supported by established financial regulatory enforcement mechanisms. However, challenges arise from coherence issues between different EU laws and international frameworks, as well as terminological divergences between the financial and BHR communities, particularly regarding concepts like "risk" and "impact." The article underscores the need for enhanced guidance, human rights expertise, and improved data to support investors and stakeholders in effectively implementing these human rights obligations within sustainable finance.