Only three of the Luxembourg financial sector actors analysed by ASTM mention human rights in their governance documents and even then, their focus is on voluntary action which the NGO qualifies as insufficient. Photo: ASTM

Only three of the Luxembourg financial sector actors analysed by ASTM mention human rights in their governance documents and even then, their focus is on voluntary action which the NGO qualifies as insufficient.  Photo: ASTM

Luxembourg’s financial sector’s commitments to human rights are insufficient says a report by human rights NGO Action Solidaire Tiers Monde (ASTM), which analysed the main players in the field.

Institutional actors, responsible for regulating other private entities, such as the Central Bank of Luxembourg (BCL), the Luxembourg Stock Exchange (LuxSE), as well as the Order of Chartered Accountants (OEC), were found lacking.

Those three were cited as having adopted governance documents but none of them mention human rights. The Commissariat aux Assurances (CAA) and the Commission de Surveillance du Secteur Financier (CSSF), who have a regulatory function in the financial sector, have not published any recommendations or draft laws covering human rights.

The ASTM’s report highlights the Luxembourg pension fund (FDC) and the Luxembourg Microfinance and Development Fund (LMDF) as entities who play a special role by setting standards for other entities. However, only the LMDF has taken any action regarding human rights by conducting human rights due diligence for its investments.

Only three of the Luxembourg financial sector actors analysed by ASTM mention human rights in their governance documents and even then, their focus is on voluntary action which the NGO qualifies as insufficient. None of the analysed entities were committed to the United Nations Guiding Principles on Business and Human Rights (UNGP).

In order to improve the situation in Luxembourg, ASTM recommends that the government adopt mandatory human rights due diligence legislation while ensuring that public institutions have the mandate to promote respect for human rights.

The NGO also says that financial sector actors must align their practices with the UNGP and those that do not uphold them would need to be held accountable. Consultations with relevant stakeholders such as civil society organisations and trade unions are also part of the ASTM’s recommendations.