123 ii. Investors Must Exert Social, Political, and Economic Pressure on the Fossil Fuel Industry to Transition to Clean Energy by Divesting Therefrom The Commission calls on investors to invest in protecting the climate for present and future generations. Conventional investing, where profit is the sole driving force, should no longer be the norm. The imperatives of sustainability and protection of the environment and the climate system for present and future generations must now also be investment considerations. As owners of capital, investors have the power to influence and direct company policies and actions. Thus, investors should be more circumspect in their investments and mindful of their obligation under the UNGP-BHR to respect human rights. They must ensure that the companies they invest in do not tolerate, propagate or contribute to human rights abuses in all phases of their operations, including within their value chains. The consistent use of environmental, social and governance (ESG) criteria in investment decisions is likewise encouraged. ESG criteria are standards used by socially-responsible investors in screening potential investments. Human rights impacts are necessarily included therein. The Commission joins in encouraging networks such as the Investor Alliance for Human Rights, whose members integrate ESG considerations in investment decision-making processes, in using their leverage as investors to influence responsible business conduct. The Commission also notes the work of the Transition Pathways Initiative (TPI) in creating tools and generating resources for investors to assess companies’ preparedness to transition to a low-carbon economy. By integrating TPI’s data in ESG assessments, investors can better understand how their holdings fare with the pathways set by the Paris Agreement and, consequently, make better and more informed socially responsible investment decisions. The Commission fully supports the Fossil Fuel Divestment Movement in its action to mitigate climate change. This movement calls on individual and institutional investors to divest from financial instruments connected with the fossil fuel industry to exert social, political and economic pressure upon fossil fuel companies to transition to clean energy. The movement puts to public discourse the ethics and morality of knowingly profiting from activities that

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