IDB Invest Launches its First Annual Report for its Management-Led Grievance Mechanism
- The mechanism is a platform promoting stakeholder engagement
IDB Invest launched its inaugural Annual Report for its Management-led Grievance Mechanism (MGM), which provides a direct channel to file environmental and social grievances for project stakeholders, in an effort to promote social inclusion, stakeholder engagement and accountability in its projects.
The report Management Led Grievance Mechanism: A New IDB Invest tool to Address Environmental and Social Grievances from Projects provides an overview and lessons learned of 10 grievances managed by IDB Invest since the MGM launched in 2021.
The MGM is a tool for addressing social and environmental grievances complements IDB Invest’s broader transparency and accountability agenda and its Social and Environmental Policy. It serves as a platform to hear from communities and external stakeholders who seek resolution to project-related issues. This allows direct liaising with clients so that risks can be discussed and addressed before they escalate.
The mechanism also offers a capacity-building component. IDB Invest clients must build out their in-house grievance mechanism capabilities to participate in IDB Invest projects. This strengthens their environmental and social knowledge and performance while mitigating the likelihood for unexpected risks throughout the project cycle.
“Since the beginning, we are continuously looking for further ways for key stakeholders to take part in project development and implementation. The MGM offers a space for building trust and listening to project stakeholders, helping IDB Invest and clients to understand our project beneficiaries’ experience and context as well as broader trends and systemic issues in and beyond the project area,” said Rachel Robboy, Chief Risk Officer of IDB Invest.
Since the MGM was launched, IDB Invest has been promoting continuous learning, which is folded back into the project cycle and higher-level decision-making.
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of US$15.3 billion in asset management and 375 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.