NGOs and local stakeholders have become more vocal
Local communities, NGOs, governments and the media increasingly expect development banks to foster local prosperity through investments with a positive impact on local communities. For high-impact projects they expect sponsors and financiers to ensure that local communities are consulted early on, to ensure that negative effects are mitigated and local communities benefit from positive spin-offs of the project.
NGOs and local stakeholders call upon development banks to be more transparent about their investments. There is an increasing call to include dialogues with local stakeholders in the early stages of the investment cycle, and stakeholders wish to be informed through early disclosure of project information as well as progress reporting once projects are underway.
Risks, opportunities and dilemmas
FMO has implemented its updated sustainability policy, supported by various position statements, among other things regarding human rights, after fruitful consultations with a wide range of stakeholders including NGOs and the Dutch government. The increasing demand for transparency also leads to additional reporting requirements, such as EU reporting guidelines and the Dutch banking sector agreement on international responsible business conduct regarding human rights (IMVO).