Jagger, who first became famous for her eight-year marriage to rock star Mick Jagger, shares the 2004 Right Livelihood Award with two others.
Russian human rights and civil liberties lobby group Memorial was also awarded the prize along with Argentine environmentalist Raul Montenegro, for his work with indigenous people and conservation of natural resources.
The award, founded in 1980, tries to compete with the prestigious Nobel prizes, set up in 1901 by Swedish industrialist Alfred Nobel who invented dynamite.
The Right Livelihood Award, worth 2.0 million Swedish crowns ($297,300) this year, was set up by Swedish- German philatelist and former European Parliament member Jakob von Uexkull.
Von Uexkull found the peace, medicine, physics, chemistry, economics and literature Nobels too academic and narrowly focused on the industrialised world.
He set up his alternative prize to recognise efforts to tackle pollution, poverty, human rights abuse and the danger of nuclear war. Joint awards are frequently made.
"Bianca Jagger has shown over many years how celebrity can be put at the service of the exploited and disadvantaged," the Right Livelihood Award Foundation said in a statement.
Past winners include Israeli nuclear whistleblower Mordechai Vanunu, Britain’s anti-nuclear lobby Trident Ploughshares and Kenyan environmental activist Wangari Maathai, who will receive the 2004 Nobel peace prize in Oslo on Friday.