To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, what steps his Department is taking to ensure recipients of intermediated investments by British International Investment are not involved in human rights abuses.
Answered on
6 July 2023
Intermediated investments allow Development Finance Institution's to effectively: provide smaller levels of financing, raise standards in the wider market, support the development of local institutions, and mobilise other capital.
British International Investment's (BII) Policy on Responsible Investing [https://assets.bii.co.uk/wp-content/uploads/2022/03/22114326/Policy-on-Responsible-Investing.pdf] sets out BII's business integrity and Environmental, Social and Governance (ESG) expectations. This includes drawing on the standards set out in the UN Guiding Principles on Business and Human Rights. Legally binding Business Integrity and ESG action plans are developed to improve standards of all investees over a defined period; and investees are risk assessed on a quarterly basis across various dimensions of risk including ESG and business integrity.
High environmental, social and business integrity risks are reported to FCDO and there is an established process for escalation of significant incidents.