New guidance for private sector on addressing risks of retaliation against project stakeholders

IDB Invest and the International Finance Corporation (IFC) launched today practical guidance to support the private sector in efforts to address the risks of retaliation against project-impacted stakeholders.

Reprisals against those who voice concerns or opposition to development projects have grown in visibility worldwide, with CSOs such as the Business and Human Rights Resource Centre reporting an increase to over 600 incidents in 2020. Victims of reprisals can be both internal to a company or project, as well as external stakeholders, including community members, activists, and members of civil society organizations.

The COVID-19 pandemic has heightened the concerns around the risks of reprisals, as specific scenarios could become exacerbated in the context of the pandemic, such as physical lockdowns; increased presence of public security; and confidentiality and safety of community members.

The publication, Good Practice Note for the Private Sector: Addressing the Risks of Retaliation Against Project Stakeholders, responds to the need for companies to have practical guidance on screening, preventing, and responding to incidents of reprisals.

IFC and IDB Invest do not tolerate any retaliatory action by clients against those who voice their opinion regarding the activities of IFC, IDB Invest or their clients. Both institutions require, as part of their applicable policies and standards, that clients put in place meaningful stakeholder engagement and operational level grievance mechanisms without retribution to the party that originated the issue or concern, so that stakeholders have effective channels to share their concerns without fear of retaliation.

The ability of stakeholders to engage freely with IFC and its clients is critical to achieving positive development outcomes and for effective environmental and social risk management.” said Nessim Ahmad, Senior Director, Environmental & Social Policy and Risk Department, IFC. “The new note issued today is an important resource for our clients as it provides practical advice on how to screen for high-risk situations, identify mitigation measures, take early action to address risks, and respond promptly to reprisal allegations.”

Reprisal incidents can result in loss of life, infringe on basic rights and freedoms, spark community protests, disrupt business operations, reduce company credibility with shareholders, put financing at risk, and jeopardize a business’s social license to operate.

As reflected in the new IDB Invest Environmental and Social Sustainability Policy that went into effect in 2020, IDB Invest is committed to promoting the responsibility of business to respect human rights and takes seriously any credible allegation of reprisals. The partnership between IDB Invest and the IFC in developing this practical guidance provides a clear signal that stakeholder engagement and the ability of stakeholders to freely voice views and concerns is at the core of an inclusive development process” said Gabriel Azevedo, IDB Invest Chief of Environmental, Social and Governance Division.IFC and IDB Invest have also previously released institutional positions against retaliation of project stakeholders: IFC 2018 Position Statement; IDB Invest 2018 Commitment statement human rights.


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 $13.1 billion in asset management and 385 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. For more information, visit


About IFC

IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit