abrdn Position Statement –Businesses and Human Rights
July 2024

This is a marketing communication. For professional investors only, not for retail investors. In Switzerland for qualified
investors only. In Australia for wholesale clients only.

Why is this important for investors?
From a financial perspective, companies and investors
have multiple incentives to ensure respect forhuman rights.

The issue
Human rights are typically under-researched in
the investment community. Human rights are often
narrowly associated with government policy andinternational relations. But, through their products
and operations, companies are intrinsically linked
to human rights. Over the last few decades,
globalisation and innovative technologies haveincreased the corporate influence on human rights.
Examples of business’s impact on human rights areeasy to find. Around the world there are allegationsof abuses including the prohibitive costs of lifesaving
medicines, the destruction of the environment on
which communities depend for their livelihood, andthe perpetuation of slave-like conditions in supply
chains. However, companies can also have a positive
influence on human rights. For example, companiescan use mobile technologies that provide access tofinance, help to distribute humanitarian aid, ensure
the safety and security of vulnerable women, andfacilitate social activism that addresses injustice.

. A strong corporate reputation can boost investor
confidence, strengthen business partnerships,
increase customer loyalty and help to attract andretain skilled staff.
. A robust human-rights approach allows companies

to operate more efficiently and effectively, particularly
in complex or unfamiliar environments, or in areas ofongoing or residual conflict.

. Regulators are increasingly calling for mandatory
human-rights due diligence and reporting.
Companies that can demonstrate a robust
approach will avoid penalties.

Our view
At abrdn, we draw upon a number of international,
legal and voluntary agreements for guidance on
corporate human-rights responsibilities and compliance.
Our primary source is the UN Guiding Principles on
Business and Human Rights (UNGPs).
We expect all the companies in which we invest,
regardless of their size, sector, operational context orownership and structure, to do the following:
1. work continuously to understand their actual andpotential impacts on human rights,
2. establish systems that actively ensure respect forhuman rights; and3. take appropriate action to remedy any infringementsof human rights.

abrdn.com

Our approach to investments
Reporting on human rights can help investors understandthe risks and opportunities arising from these issues.
However, corporate human-rights disclosures arecurrently very weak. So we need to take an active role inassessing and engaging with the companies in which weinvest on human- rights issues, working to protect the valueof our clients’ investments and influence positive changes
where needed.
We assess companies’ impact on human rights from botha top-down and bottom-up perspective.
. Top-down: Although companies can impact humanrights anywhere in the world, they face additionalrisks when operating in or sourcing key materials fromcountries that have a poor track record in humanrights, weak rule of law or ongoing or residual conflict.
Operating in complex environments requires a robust
approach to human-rights due diligence and a fullunderstanding of the unique challenges that the specificenvironment creates.
. Bottom-up: The salient human-rights risks that aEngagement
Many challenges remain, even for companies with themost advanced approaches to human rights. Given
the complexity and range of human-rights issues,
as well as limited disclosures from companies, an active
engagement approach is an extremely useful tool forinvestors. We use our ongoing engagement activities
to better understand our investments and encourage
improvements where needed.
Where companies are unwilling to engage or show limited
progress, we consider how to increase our influence
through collaborations or to exercise our influence throughvoting and shareholder resolutions if possible. As a lastresort, we may consider selling our holding. For further
information on our approach to engagement, please see
our Engagement Policy on our website.

company faces vary by the types of activities it
conducts. For instance, the human-rights impacts frommining operations are very different from those of an IT
software company. Land rights and community consent
are much more relevant to the former, but the right toprivacy would be more relevant to the latter.

Once the salient human-rights issues have been identified,
we use the UNGPS to guide our assessment of thecompany’s efforts. These may include reviewing supplier
mapping; policy commitments; due-diligence processes
to identify, assess, mitigate and track risks; and processes
to monitor impact and address any harm caused.

abrdn Position Statement – Businesses and Human Rights

2

Important Information
Investment involves risk. The value of investments and the income from them can go down as well as up and an investor may
get back less than the amount invested.
The information in this document is not for general circulation and should not be considered an offer, or solicitation,
to deal in any funds. The information is provided on a general basis for information purposes only, and is not to be reliedon as investment, legal, tax or other advice, as it does not take into account the investment objectives, financial situationor particular needs of any specific investor.
Any research or analysis used to derive, or in relation to, the information herein has been procured by abrdn for its own
use, and may have been acted on for its own purpose. The information herein, including any opinions or forecasts havebeen obtained from or is based on sources believed by abrdn to be reliable, but abrdn does not warrant the accuracy,
adequacy or completeness of the same, and expressly disclaims liability for any errors or omissions. As such, any person
acting upon or in reliance of these materials does so entirely at his or her own risk. Past performance is not necessarily
indicative of future performance. Any projections or other forward-looking statements regarding future events or
performance of countries, markets or companies are not necessarily indicative of, and may differ from, actual eventsor results. No warranty whatsoever is given and no liability whatsoever is accepted by abrdn, for any loss, arising directly
or indirectly, as a result of any action or omission made in reliance of any information, opinion or projection made inthis document.
The information herein shall not be disclosed, used or disseminated, in whole or part, and shall not be reproduced, copiedor made available to others. abrdn reserves the right to make changes and corrections to the information, including any
opinions or forecasts expressed herein at any time, without notice.
This communication constitutes marketing, and is available in the following countries/regions and issued by the respective
abrdn group members detailed below. abrdn group comprises abrdn plc and its subsidiaries:(entities as at 14 June 2024)
United Kingdom (UK)abrdn Investment Management Limited registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL.
Authorised and regulated in the UK by the Financial Conduct Authority.
Europe1, Middle East and Africa
1In EU/EEA for Professional Investors, in Switzerland for Qualified Investors - not authorised for distribution to retailinvestors in these regions.

Belgium, Cyprus, Denmark, Finland, France, Greece, Iceland, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal,Spain, and Sweden: Produced by abrdn Investment Management Limited which is registered in Scotland (SC123321) at
1 George Street, Edinburgh EH2 2LL and authorised and regulated by the Financial Conduct Authority in the UK. Unlessotherwise indicated, this content refers only to the market views, analysis and investment capabilities of the foregoingentity as at the date of publication. Issued by abrdn Investments Ireland Limited. Registered in Republic of Ireland(Company No.621721) at 2-4 Merrion Row, Dublin D02 WP23. Regulated by the Central Bank of Ireland. Austria, Germany:
abrdn Investment Management Limited registered in Scotland (SC123321) at 1 George Street, Edinburgh EH2 2LL.
Authorised and regulated by the Financial Conduct Authority in the UK. Switzerland: abrdn Investments Switzerland AG.
Registered in Switzerland (CHE-114.943.983) at Schweizergasse 14, 8001 Zürich. Abu Dhabi Global Market (“ADGM”):
abrdn Investments Middle East Limited, Cloud Suite 205, 15th floor, Al Sarab Tower, Abu Dhabi Global Market Square, AlMaryah Island, P.O. Box 764605, Abu Dhabi, United Arab Emirates. Regulated by the ADGM Financial Services Regulatory
Authority. For Professional Clients and Market Counterparties only. South Africa: abrdn Investments Limited (“abrdnIL”).
Registered in Scotland (SC108419) at 1 George Street, Edinburgh EH2 2LL. abrdnIL is not a registered Financial ServiceProvider and is exempt from the Financial Advisory And Intermediary Services Act, 2002. abrdnIL operates in South Africa
under an exemption granted by the Financial Sector Conduct Authority (FSCA FAIS Notice 3 of 2022) and can renderfinancial services to the classes of clients specified therein.

abrdn Position Statement – Businesses and Human Rights

3

Asia-Pacific
Australia and New Zealand: abrdn Oceania Pty Ltd (ABN 35 666 571 268) is a Corporate Authorised Representative (CARNo. 001304153) of AFSL Holders MSC Advisory Pty Ltd, ACN 607 459 441, AFSL No. 480649 and Melbourne Securities
Corporation Limited, ACN 160 326 545, AFSL No. 428289. In New Zealand, this material is provided for information
purposes only. It is intended only for wholesale investors as defined in the Financial Markets Conduct Act (New Zealand).
Hong Kong: abrdn Hong Kong Limited. This material has not been reviewed by the Securities and Futures Commission.
Japan: abrdn Japan Limited Financial Instruments Firm: Kanto Local Finance Bureau (Kinsho) No.320 Membership: Japan
Investment Advisers Association, The Investment Trusts Association, Type II Financial Instruments Firms Association.
Malaysia: abrdn Malaysia Sdn Bhd, Company Number: 200501013266 (690313-D). This material has not been reviewed
by the Securities Commission of Malaysia. Thailand: Aberdeen Asset Management (Thailand) Limited. Singapore: abrdn
Asia Limited, Registration Number 199105448E.
AmericasBrazil: abrdn Brasil Investimentos Ltda. is an entity duly registered with the Comissão de Valores Mobiliários (CVM) as
an investment manager. Canada: abrdn is the registered marketing name in Canada for the following entities: abrdn
Canada Limited, abrdn Inc, abrdn Investments Luxembourg S.A., and abrdn Alternative Funds Limited. abrdn Canada
Limited is registered as a Portfolio Manager and Exempt Market Dealer in all provinces and territories of Canada as wellas an Investment Fund Manager in the provinces of Ontario, Quebec, and Newfoundland and Labrador. United States:
abrdn is the marketing name for the following affiliated, registered investment advisers: abrdn Inc., abrdn Investments Ltd.,
abrdn Asia Limited, abrdn ETFs Advisors LLC.

For more information visit abrdn.com
AA-250624-179922-4

abrdn.com

STA0624642804-001