The use of Human Rights Impact Assessments (HRIA) by credit institutions in financing processes for infrastructure projects

Resumen

The study examines the Human Rights Impact Assessment (HRIA) and financing processes, deliberated by credit institutions, in the context of large infrastructure projects. The research investigates the evolution of the HRIA and the way in which the instrument has been used by some of the actors who, recurrently, finance works with a high socio-environmental impact – especially with regard to the production of policies conditioning the financial contribution. From the data analyzed, when they adhere to guiding principles, progress is observed in terms of the performance of institutions in promoting and protecting human rights: this is the case of those that adhere to the Equator Principles or the UN Guiding Principles on Business and Human Rights. However, the lack of transparency on the part of companies, with regard to HRIA processing, constitutes a barrier to improving the instrument, the results of which are often mitigated in cases involving commercial secrets or confidentiality agreements. Even so, the HRIA is essential for decision-making on financing infrastructure projects, and may even be the basis for denying credit in cases of projects that are possibly harmful to human rights.