COP 30 – a turning point for climate, human rights and the finance sector

November 3, 2025

This year’s COP30 takes place in the wake of the International Court of Justice’s (ICJ) ruling in July 2025, positioning the discussions in Brazil this November to break new ground for human rights. This article explains how the ruling not only has far-reaching implications for States’ obligations but outlines the business opportunities it opens up for financial institutions, the risks of ignoring a consideration of human rights, and provides examples of innovation already taking place in the finance sector. 

The conclusions of the ICJ confirmed the UN General Assembly’s 2022 resolution recognizing a clean, healthy and sustainable environment as a foundational human right, acknowledging that it is necessary for the enjoyment of all other human rights. This means States that are party to international treaties, such as the Universal Declaration of Human Rights, must now address climate change as part of their human rights obligations. COP30 therefore presents a unique opportunity to build on this momentum and place human rights at the heart of climate action. 

The ruling has far-reaching implications for States’ obligations, but the increased actions taken by States to ensure compliance could create business opportunities for financial institutions (FIs) to support mitigation and adaptation measures. The ruling might also generate greater regulatory incentives or pressure on those States seeking to avoid liability for the omissions or inaction of non-state actors such as real-economy companies and financiers. Exactly what this will mean for commercial enterprises remains to be seen, however, it does make clear the direction of travel, and as such, provides new momentum to opportunities that centre human rights alongside climate change. 

This development is part of a broader shift ushering the finance sector towards adopting practices that embed human rights considerations into its response to climate change. Impacts of climate change that may once have seemed irrelevant are steadily becoming material risks to banks and insurers, including the human impact of the changes that are occurring. Regulators and investors are increasingly seeking to drive positive action on this front, and that trend looks set to continue. Financial institutions now have a chance to be proactive, demonstrate leadership, and position themselves at the forefront of emerging opportunities in sustainable finance.  

Banks and insurance companies already have in place many processes that can effectively support this agenda, and some are already forging ahead. Indeed, due diligence and know–your–client mechanisms, for instance, provide opportunities to integrate human rights into their processes. UNEP FI has developed tools for financial institutions, such as the Human Rights Toolkit, specifically designed to assist with the integration of human rights due diligence into standard practice. However, the Court’s ruling sets an even broader challenge: addressing the interdependence between environmental protection and restauration including climate action, and human rights protection and promotion will require stronger collaboration across teams within financial institutions and greater efforts to integrate environmental and social processes that too often operate in isolation.

Another powerful way forward for the integration of human rights into finance is through adopting Just Transition principles into strategy and operations. Key to the concept is the idea that the transition to a greener economy can, and must, be done in such a way that individuals and communities also benefit, from creating new jobs, improving existing livelihoods, or cleaner air quality. For banks, among other things, this means directing capital towards enabling the real economy to shift towards environmental sustainability while fostering societal resilience. For insurers, there is scope to contribute both as investors and in the provision of products and services that enhance resilience and bolster the economic viability of businesses that generate livelihoods. 

There are many examples of banks grasping these opportunities and innovating in a socially positive way. For example, Triodos Bank, United Kingdom provided GBP 3 million of new senior debt alongside over GBP 500,000 from a community bond offer to bring a solar farm to full community ownership, generating enough renewable electricity to power 825 homes each year. BNP Paribas’s My Sustainable Home initiative supports the decarbonisation of residential real estate by assisting customers to find the subsidies and grants available to make their homes more energy efficient and identifying accessible and affordable lending solutions for younger customers.  

Insurers too are responding in innovative ways to emerging challenges. In the Philippines, for example, Pioneer Life Insurance recognized that climate change—through rising temperatures and increased flooding—was driving the spread of mosquito-borne diseases like dengue. They launched MediCash — Dengue Insurance to help families manage the resulting financial shocks. Hollard Zambia, an insurer that is part of the Hollard Group from South Africa, developed a bundled solution for micro business owners, offering insurance for about 2 USD per month to help them strengthen their climate resilience. 

These examples all illustrate the innovative and positive ways that financial institutions can engage with the human impact of climate change to protect the life, dignity and livelihoods of communities around the world. COP30 represents an opportunity to refocus our collective efforts on maintaining a liveable world for the flora and fauna, as well as the many and diverse people that inhabit it. 

For further information and guidance, access the UNEP FI Human Rights Toolkit and the UNEP FI-ILO report Just Transition Finance – pathways for banking and insurance guidance.  

To learn more, please join the UNEP FI Human Rights Day webinar in December 2025.