Commentary: Is the Asian Infrastructure Investment Bank a Responsible Investor?
"Is the Asian Infrastructure Investment Bank a Responsible Investor?", 27 October 2021
Safeguarding the Rights of Those Impacted by AIIB Projects
With the new ESF now in effect, attention must turn to implementation and ensuring accountability for noncompliance. The AIIB has expressed a commitment to learning as it grows, and nowhere is this as important as environmental and social protection. [...] Adequate disclosure is crucial to ensure that the public is informed when the AIIB is involved in a project—both directly and indirectly. This will require full transparency about projects and companies that receive AIIB support, as well as the recipients of its intermediary lending. A major question mark remains around the bank’s capital market projects. [...]
Another crucial test of the AIIB’s commitment to responsible and sustainable investment will be the independence and effectiveness of the bank’s accountability office, the Project-affected People’s Mechanism (PPM). [...]