Response to IFC Operating Principles for Impact Management
In its response, the Investor Alliance welcomes the opportunity to review and comment on the consultation draft and commends this important effort to align investments with sustainable development priorities, including the Sustainable Development Goals (SDGs) of the 2030 Agenda for Sustainable Development.
At the same time, the Investor Alliance recommends that the Operating Principles be further aligned with relevant frameworks on the responsibility of companies and investors to respect human rights by:
Clearly stating that “Managers” should consider real and potential negative impacts of investment on ESG issues, including human rights, at every stage of the investment process (i.e. strategy, origination and structuring, portfolio management, exit, and independent verification); and
Explicitly referring to the UN Guiding Principles on Business and Human Rights as the framework “Managers” should refer to when engaging companies on their real and potential negative human rights impacts, and to the OECD guidance on Responsible Business Conduct for Institutional Investors as a tool to inform investor efforts to prevent or address negative impacts related to human and labor rights, the environment, and corruption in their investment portfolios.
In its response, the Investor Alliance also extends an invitation to the IFC for further discussion on how investment funds can be leveraged to drive transformative change at scale by integrating respect for human rights throughout the investment process.