On October 13th 2022, FMO published the final version of its Position Statement on Impact and ESG for Financial Intermediaries (FI statement). As civil society groups which have engaged with FMO on this topic for more than four years, we are extremely disappointed with the result. In the statement, FMO does not show sufficient commitment to ensuring its investments into financial intermediaries – which represent the bank's largest investment sector* – do not violate human rights or contribute to environmental harms.
In a new Position Statement on Financial Intermediary (FI) Lending, Dutch development bank FMO argues for limited responsibility over the outcomes investments that are channeled through commercial banks, investment funds, and other financial intermediaries, representing by far the bigger sector of its portfolio. In doing so, FMO is undermining its development mission, including the protection of human rights and addressing the climate crisis. FMO intends to delegate these key responsibilities to its FI clients only, falling short of best practices of peer financial institutions. In a joint submission prepared by Both ENDS, Oxfam Novib, Recourse and SOMO, we argue that FMO can do much more to ensure the protection of human rights, the environment, and to measure the development impact of its indirect investments.
The Joke Waller-Hunter (JWH) Initiative creates opportunities for young people in the environmental sector in developing countries to unfold their full potential. By providing small grants to individuals to expand their knowledge, experience and training, the Initiative aims to strengthen environmental Civil Society Organisations capacity and efficiency. Grantee Brighton Aryampa wrote a column for Monitor about his journey to becoming a Human Rights Defender, and his work battling the EACOP.
and Kyra Pohlan
Communities throughout the Athi river basin rely on healthy and resilient semi-aquatic ecosystems, such as riparian and wetland areas, for their well-being and livelihoods. These habitats have become ever more important for local communities in adapting to the effects of climate change, in particular the more frequent and more extreme periods of drought and flooding. By conserving and re-establishing riparian lands and wetlands, groups from the Athi River Community Network do not only protect their immediate environment but also contribute to the well-being of downstream areas.
This letter by Both ENDS to the African Development Bank is a comment written in reaction to a draft version published by the Bank of its Environmental and Social Policy as part of a formal public consultation held by the Bank. This comment was sent to the bank along a joint submission letter with other CSOs, and specifically responds to the overarching Policy.
The bank's flexible requirements for clients and national standards for risky projects dilute safeguards. Project approval should be predicated on specific and binding targets for compliance and reflect input from communities involved.
Together with 29 other CSO's, we've submitted our comments and recommendations in the Public Consultation on the AfDB Integrated Safeguards System. These include that the Bank should prioritize community-led development and human rights-based approaches; protect natural resources and tackles environmental and climate crises; raise the bar on access to information, transparency and accountability; facilitate participatory processes in policies, programmes and projects; and end inequality, poverty, and the cutback and privatization of vital services.