OeEB signs EDFI's "Principles for Responsible Financing"
At yesterday's annual meeting in Cologne, Germany, the 16 members of EDFI, the Association of European Development Finance Institutions, including OeEB, signed a declaration on principles that all members will follow when co‐financing projects.
Focus on local communities
With the Principles on Responsible Financing the EDFI emphasised that a cornerstone of their investment activities is to have a positive impact on the local communities where they invest. The Principles especially underline that the respect for human rights and environmental sustainability is a prerequisite for any financing by EDFI institutions.
Mutual standards in risk-evaluation
The Principles give an important and clear signal to the market that all EDFI members follow harmonised standards in their evaluation of environmental and social risks of projects. This forms another cornerstone in the harmonisation of policies and procedures of these 16 European institutions.
Harmonised Environmental and Social Standards since 2007
Already in 2007, the EDFI members had agreed on harmonised Environmental and Social Standards for any mutual financing activities. Benchmarks for the EDFI members are the UN Declaration of Human Rights, the ILO Core Conventions and the IFC Performance Standards on Economic and Social Sustainability and associated Environmental and Health & Safety Guidelines.