The road to respecting human rights

Banks, like other business entities, are expected to respect human rights in their own activities and in their business relationships. To meet this responsibility, Danske Bank has conducted a group-wide high-level human rights risk assessment supported by the Danish Institute for Human Rights and other consultants. This is an important step on the road to respect human rights.

“The financial sector has a unique opportunity to serve as a multiplier for human rights. By setting firm human rights expectations to the companies they invest in, and to their customers, banks can contribute to the human rights enjoyment on a massive scale. However, very few banks have performed a human rights risk assessment on the full scope of their activities. We commend that Danske Bank has embarked on this journey,” says Cathrine BlochPoulsen-Hansen, Programme Manager of the Corporate Engagement Programme, at the Danish Institute for Human Rights.

The human rights risk assessment provides suggestions on how the measures on human rights can be strengthened and improved. This includes suggestions on strengthening policy commitments, improving coordination of efforts for human rights management across business activities, and providing access to raise concerns and grievances.

Strengthening policy commitments

Danske Bank supports international frameworks on business and human rights in its Responsibility Policy. However, the assessment shows a need to further strengthening the policy statement and commitment to respect human rights, including how it relates to the business activities and relationships of Danske Bank.

“We appreciate the findings of the assessment and its recommendations for improvement which we take into account. Respecting human rights is core to us and essential for building and maintaining trust as a business. We will use the assessment to prioritise our efforts going forward. One of the first areas of emphasis will be to further clarify our commitment to human rights to the outside world,” says Dorte Eckhoff, Head of Corporate Responsibility at Danske Bank.

Coordination ofefforts

Danske Bank has a number of systems in place to identify, assess and address human rights impacts across its activities and is currently updating and strengthening its environmental, social and governance frameworks within responsible procurement, investment and lending. The assessment recommends actions to further support and strengthen the focus, coverage and coordination on human rights across its business activities.

"We support the current developments in Danske Bank, and recommend that Danske Bank further build capacity on human rights among employees and increase communication on the human rights. This will raise awareness internally and externally on the role, responsibility and leverage in relation to business activities," says Cathrine BlochPoulsen-Hansen.

Access to raise concerns

Danske Bank has a number of measures in place to receive and process concerns, complaints and grievances from all stakeholders, including employees, customers and communities. However, the assessment showed a need to assess these mechanisms, their use and application.

“Having in-place measures to receive, asses and respond to grievances is key to respecting human rights. Not only do these measures capture and enable companies to manage human rights impacts at a day-to-day level, they can also provide important feedback on company conduct directly from those affected. Danske Bank should ensure that their mechanism provide for this feedback from all affected rights-holders,” says Cathrine BlochPoulsen-Hansen.

The assessment also recommends that Danske Bank engage with external and internal stakeholders, from employees to civil-society, on the results of the assessment, and on an ongoing basis on human rights challenges and opportunities.