AFD - 2019 Universal registration document

STATEMENT OF NON-FINANCIAL PERFORMANCE

Managing the risks and impacts of our action

2.3.2.2 Proparco system for processing complaints In 2019 Proparco set up a System for Processing Environmental and Social Complaints enabling any person or group of persons who feel they are negatively impacted by environmental or social aspects of a project whose funding has been implemented by Proparco to submit a complaint and to be heard by independent experts (1) . This is a joint initiative by Proparco and its German and Dutch counterparts, DEG - the German private sector bilateral development bank, member of the KfW group - and FMO - the Dutch private sector bilateral development bank. If the complaint does indeed concern a project the funding of which has been put in place by Proparco, if the complaint does not correspond to one of the exclusion cases specified in the System’s documentation, and if the complaint file is complete (complying with the contents described on the Proparco website), it is sent to a panel of independent experts who first of all give a ruling on its eligibility, in compliance with the System’s regulations. Once a complaint has been declared eligible, two processing methods are offered: P a compliance audit, in which the panel of independent experts will examine whether the project financing was implemented according to the applicable rules in terms of compliance and Proparco’s internal policies; P reconciliation, aiming for the out-of-court settlement of a dispute between the complainant and the recipient of the funding. Proparco then offers mediation services, but is not involved in the mediation process. In this case, the panel will work with the plaintiff and the project sponsor to develop an appropriate process to deal with the problems raised by the complaint. This may include information sharing, discussion support, or mediation to find a solution acceptable to all parties. The panel of independent experts does not then adopt a position concerning the truthfulness of the allegations, and will not seek to determine liability or to impose a solution. In certain particular cases, the two approaches can be combined.

The process is considered to be complete when an agreement is reached between the parties when resolving a dispute, or when establishing final recommendations by the expert panel in the case of a compliance audit. An action plan is then proposed, the implementation of which is monitored by the complaints office and the expert panel. In its first year of operation, the Proparco Environmental and Social Complaints Processing System did not receive any complaints. 2.3.3 Human rights due diligence The appraisal procedures of each operation obligatorily included the social risk assessment. The issue of applying international human rights standards is thus constantly on the agenda and integrated into the assessment and implementation of all projects, whatever the shape or form. To this end, AFD Group relies on the IFC’s performance standards and the World Bank’s environmental and social standards. The human rights issues covered by these standards enable us to address matters related to: P working conditions and labour protection (in particular the fight against forced and child labour); P the health and safety of communities potentially affected by projects (in particular potential violence against such communities); P the acquisition of land and involuntary resettlement (in Where necessary, the implementation of these standards is accompanied by the establishment of complaint management systems with respect to AFD and Proparco projects, making it possible to collect and process potential complaints by people affected by those companies. The financing agreements signed with partners and recipients must necessarily mention the commitments made by counterparties to respect the rights of persons potentially affected, and reiterate the compliance with the ILO’s fundamental conventions in such a manner as to make them legally binding. particular to prevent forced evictions); P the rights of indigenous populations.

2

(14) https://www.Proparco.fr/en/icm.

43

UNIVERSAL REGISTRATION DOCUMENT 2019