NGO briefing analyses key features of new OECD guidance on Due Diligence for Responsible Corporate Lending and Securities Underwriting

On 28 October 2019, the OECD launched new guidance on Due Diligence for Responsible Corporate Lending and Securities Underwriting - an important step towards encouraging responsible conduct by financial sector actors and establishing when and how they are accountable for adverse social and environmental impacts. A month on, OECD Watch and BankTrack released an analysis and briefing on the strongest elements of the guidance to explain some of the key highlights of the guidance to civil society for their advocacy purposes. 

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Article
20 November 2019

An analysis and briefing for civil society organisations on the strongest elements for use in advocacy

Author: OECD Watch, BankTrack

On October 28th, 2019, the OECD launched new guidance on Due Diligence for Responsible Corporate Lending and Securities Underwriting (hereinafter “the guidance”)...

It provides authoritative clarifications of government-backed expectations of banks, making particularly important clarifications on issues related to when a bank has “contributed” to an adverse impact through its lending or underwriting and what role a bank can and should play in remediating adverse impacts associated with its activities...

Some key areas in which the new paper provides important clarifications and guidance related to the due diligence and responsible conduct expected of banks include:

  1. Relationship of banks to adverse impacts and remedy

  2. Bank-level grievance mechanisms

  3. Transparency and client confidentiality

  4. Sustainability responsibilities

  5. Public policy advocacy

  6. Engagement with rightsholders

  7. Disengagement and divestment

This briefing provides further elaboration on each of these areas...

Read the full post here

Article
20 November 2019

OECD Watch & BankTrack briefing on OECD corporate lending due diligence guidance

Author: OECD Watch, BankTrack

On 28 October 2019, the OECD launched new guidance on Due Diligence for Responsible Corporate Lending and Securities Underwriting. The guidance is based and elaborates on the OECD Guidelines for Multinational Enterprises, representing an important step forward in encouraging responsible conduct by financial sector actors and outlining when and how they are accountable for adverse social and environmental impacts associated with their financial activities. To explain some of the key highlights of the guidance to civil society, OECD Watch and BankTrack have prepared this analysis and briefing on the strongest elements of the guidance to use in advocacy.

Read the full post here