What New OECD Standards Mean for Investors

Investors need to understand that integrating environmental and human rights due diligence into their investment processes is no longer a question of personal preference or values. As Roel Nieuwenkamp, Chair of the OECD Working Party on Responsible Business Conduct, recently wrote, “businesses have a responsibility to avoid and address the adverse impacts of their operations.” The regulatory expectations that investors face have always changed over time. That investors must now broaden due diligence is just one more example of how societal concerns and evolving attitudes shape regulation. Ignoring these expectations will ultimately expose investors to financial and reputational risk.