Global survey: Funding for business and human rights plunges as defenders face growing risks

A global survey by Swedwatch, the European Coalition for Corporate Justice and the Business and Human Rights Centre reveals a funding crisis in the business and human rights field. Organisations working with business and human rights reported losing an average of 40% of their funding since 2024, and one in eight say they will shut down if nothing changes. These funding cuts are felt most deeply by Global South-based organisations who are often closest to those most vulnerable to business-related harms, and impact wide-ranging development priorities.

“The results are alarming. At the very moment when governments are increasingly introducing mandatory due diligence laws - laws that require companies to identify, prevent, mitigate and remedy adverse human rights and environmental impacts throughout their value chains - the organisations needed to make those laws meaningful for impacted workers and communities are losing the resources they depend on”, says Ben Claeson, programme officer at Swedwatch and focal point for the survey.

Irresponsible behaviour by companies in global value chains have significant and often harmful impacts on workers and communities, which affect a wide range of development priorities from poverty reduction, public health, climate and bio-diversity protection to peacebuilding.

Despite the significant contributions of the business and human rights field in advancing development priorities, it has been facing a growing funding crisis - leaving workers, communities, defenders and their support ecosystem without the resources necessary to respond to harmful human rights and environmental impacts. At the same time civil society is experiencing significant restrictions on civic space and defenders raising concerns about business continue to face physical, legal, and narrative attacks.

”NGOs are not a nice-to-have in the fight for corporate accountability, they are essential to it. Whether by documenting corporate abuse, supporting victims or by shaping the policy debate on the role of business in tackling climate change, they play a vital role. That role cannot survive on goodwill. Governments and philanthropy need to invest in it”, says Nele Meyer, Director of the European Coalition for Corporate Justice.

Four key findings from the global survey
The survey gathered responses from 93 organisations in 40 countries, across the Global South (57%) and Global North (43%) about funding trends, their impact on organisations and communities, and related risks.

1.Funding cuts are experienced across the business and human rights field
Organisations reported an average funding cut of 40% between 2024 and 2026. One in eight say they will shut down (13%) if current trends continue, while almost a third expect to drastically reduce their activities and nearly half anticipate scaling back their work.

The consequences extend far beyond individual organisations. Nearly three-quarters say the cuts threaten the long-term sustainability of partner organisations, while almost one-third say they also undermine partner safety. The survey estimates that more than 450 full-time positions amongst the 87 civil society organisations that responded have already been lost or are projected to disappear from 2027 and onwards. Two thirds of all respondents reported reducing staff.

2.Global South organisations hit hardest
Organisations in the Global South report deeper cuts than those in the Global North (49% compared with 28% in the Global North). They are also more likely to shut down (17% in the Global South compared to 8% in the Global North) or significantly reduce their work, despite often being closest to affected workers and communities.

As local organisations lose resources, companies and investors conducting due diligence will also lose access to vital information about human rights and environmental risks and harms. This can increase businesses’ legal, financial and reputational risks. Workers and communities will lose already limited support and pathways to justice and remedy for harm.

3.Funding quality is deteriorating
The survey also reveals that funding is becoming less flexible and shorter-term. Nearly half of all funding cuts affected unrestricted funding, while almost three-quarters of respondents reported shorter grant periods.

-“Previous Swedwatch research has demonstrated how the flexibility and length of funding have strong influences on the effectiveness of accountability strategies. These significant reductions in long-term flexible funding risk undermining workers and communities who already face a large inequality of arms when engaging with businesses, says Ben Claeson.

4.Defenders across the globe are under attack
Nearly two-thirds of respondents reported experiencing physical, legal, or narrative, attacks linked to their work (including 72% of respondents in the Global South and 63% in the Global North). One in three had received threats (Global South, 45%), while 13% reported physical violence (Global South, 17%).

13% have experienced a SLAPP (Global South, 17%). 18% have experienced digital attacks (Global South 26%), and 14% have experienced smear campaigns online (Global South 21%).

”In 2025, Business and Human Rights Centre documented nearly 800 attacks against defenders in 80 countries raising concerns about business. This survey reveals a dangerous double pressure: defenders are facing widespread attacks and restrictions on civic space while the resources they need to continue their work are being drastically reduced. Cutting support at a time when defenders are already under such pressure increases risks to them, their communities, and environments, says Christen Dobson, Co-Head, Civic Freedoms and Human Rights Defenders Programme, Business and Human Rights Centre.

FACT BOX:
Survey at a glance

• 93 respondents from civil society (87), multilateral (3) and government organisations (3)
• 40 countries.
• 57% Global South.
• Average funding cut: 40%..
• 13% risk closure.
• Nearly one-third expect major reductions.
• Nearly half expect reduced activities.
• Estimated loss: more than 450 full-time equivalent positions within the answering civil society organisations, while two thirds of all respondents reported reducing staff.
• Nearly two-thirds of respondents reported experiencinged attacks.

Figures in the fact box and in the text of the press release have been rounded to the nearest whole number. The survey questionnaire and the full analysis of the survey findings are attached.

More info can be found here: https://swedwatch.org/ul/funding-cuts-threaten-progress-on-business-and-human-rights-at-a-critical-moment/