Responsible business conduct due diligence for project and asset finance transactions

This paper provides a common framework for financial institutions - and particularly development finance institutions - on how to carry out due diligence to identify, respond to, and publicly communicate on environmental and social risks associated with projects and assets they finance. Financial in...

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Bibliographic Details
Corporate Author: Organisation for Economic Co-operation and Development
Format: eBook
Language:English
Published: Paris OECD Publishing 2022
Series:OECD Business and Finance Policy Papers
Subjects:
Online Access:
Collection: OECD Books and Papers - Collection details see MPG.ReNa
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520 |a This paper provides a common framework for financial institutions - and particularly development finance institutions - on how to carry out due diligence to identify, respond to, and publicly communicate on environmental and social risks associated with projects and assets they finance. Financial institutions are increasingly being called to enable provisions of financing towards projects, infrastructure and other assets that will help achieve societal and development objectives, including the Sustainable Development Goals and the Paris Agreement. Embedding responsible business conduct (RBC) into their activities and across their value chains can help them meaningfully contribute to these objectives. This paper is designed for financial institutions that wish to implement the recommendations of the OECD Guidelines for Multinational Enterprises with respect to RBC due diligence in the context of project and asset finance transactions. It will provide practical recommendations to financial institutions on key aspects of the RBC due diligence process, including on stakeholder engagement, managing client's confidentiality, providing for or contributing to the remediation process, etc