By Abbas Nazil
The upcoming COP30 in Brazil is expected to mark a historic turning point by integrating human rights into global climate action, following the landmark International Court of Justice (ICJ) ruling in July 2025.
The ICJ affirmed that a clean, healthy, and sustainable environment is a fundamental human right, reinforcing the UN General Assembly’s 2022 resolution.
This ruling means that states party to international treaties must now treat climate change as part of their human rights obligations, adding a new dimension to global environmental governance.
The development also presents emerging opportunities for the financial sector to align with human rights and climate goals, as increased state actions to ensure compliance could open investment spaces for banks and insurers in adaptation and mitigation initiatives.
Experts say financial institutions that fail to integrate human rights into their operations risk facing higher regulatory scrutiny and reputational challenges.
The ruling is already accelerating the financial industry’s shift toward embedding human rights considerations into climate finance practices, with regulators and investors demanding greater accountability.
According to the United Nations Environment Programme Finance Initiative (UNEP FI), banks and insurers can leverage existing due diligence and know-your-client mechanisms to incorporate human rights into their climate strategies.
UNEP FI’s Human Rights Toolkit has been designed to guide institutions in integrating these principles into their risk and governance frameworks.
Financial institutions worldwide are demonstrating innovation through socially responsible financing.
For instance, Triodos Bank in the United Kingdom provided £3 million in senior debt and £500,000 in community bonds to fund a solar farm, now fully community-owned and generating renewable power for over 800 homes annually.
Similarly, BNP Paribas launched its “My Sustainable Home” initiative to help homeowners access grants and affordable loans for energy-efficient renovations.
Insurers are also adapting.
In the Philippines, Pioneer Life Insurance introduced MediCash Dengue Insurance to cushion families against health shocks linked to climate-induced disease outbreaks.
In Zambia, Hollard developed low-cost insurance packages for microbusinesses to enhance climate resilience.
These examples underline the growing recognition that financial institutions have a key role in protecting lives, livelihoods, and dignity while driving sustainability.
As COP30 approaches, stakeholders are expected to seize this moment to align climate finance with human rights, ensuring that the transition to a greener economy benefits both people and the planet.
