Sustainability is beneficial for business and essential for lasting development.
To be sustainable requires keeping an eye on the big picture.
It’s not just about making an immediate windfall but about operating in a way that can be sustained over time. That simply makes good business sense. It also results in job creation, economic growth and greater development impact in the region. Using resources responsibly, reducing waste, promoting inclusion and fairness, laying a foundation of good corporate governance, implementing sound labor, health and safety practices—these are just a few of the ways businesses can act sustainably. Such behavior is not only in their self-interest; it is also attractive to investors, customers and the communities where they operate.
Sustainable businesses pose a lower risk and are more likely to have a positive, lasting impact on development. It’s no wonder that sustainability is a core value at IDB Invest. It cuts across every sector, whether we are supporting climate-smart agriculture, financing resilient infrastructure or expanding access to credit for women entrepreneurs. By working with our clients to put sustainability into practice, we are helping them become more profitable over time and reinforcing our commitment to development for the long haul. Our commitment to sustainable development is at the core of what we do. We support operations that can sustain their economic, social and environmental performance over time, for the benefit of the company, its investors and the communities where they operate.
IDB Invest has a new Environmental and Social Sustainability Policy. It was approved by the Board of Directors on April 10, 2020, and it became effective on December 15, 2020. The new policy is the result of over two years of inclusive and constructive dialogue with multiple stakeholders through a comprehensive public consultation.
The purpose of the new Policy is to enhance the environmental and social sustainability of IDB Invest’s financed projects through the application of robust risk management standards. The new policy exemplifies IDB Invest’s commitment to sustainable development, as the foundation of its approach to risk management.
What are the main changes in the policy?
IDB Invest decided to strengthen its policy focusing on a single set of standards, providing more clarity regarding roles and responsibilities, and outlining new priority areas. Among the featured changes are the following:
- Increased focus on human rights and stakeholder engagement, including the implementation of an Engagement and Grievance Mechanism.
- Increased focus on gender and gender identity.
- Greater protection for Indigenous Peoples particularly those in voluntary isolation.
- New section on disaster risk management.
- Increased focus on climate change and low-carbon development.
- Clarity about IDB Invest’s role and clients’ responsibilities and our approach to all new direct investments and FIs.
Our First Sustainability Report is Comming
At IDB Invest, everything we do is in pursuit of sustainable development in Latin America and the Caribbean – from our investments to our advisory services, to the way we operate. Like many of our clients and peers, we are on a journey towards greater development impact and transparency.
To achieve the greatest impact, we need to focus our efforts, so we have assessed which topics are most material to our business: those where we can deliver the most impact, as well as what’s most important to our stakeholders. This process involved thoroughly reviewing the ESG landscape in which we operate, then prioritizing the issues we identified. Over time, we plan to expand our approach, including the engagement of external stakeholders to continue benefitting from their valuable insight.
Our first Sustainability report – published in early 2023 – will report on these most material issues. Guided by global reporting standards, we hope the report will demonstrate the systemic nature of the challenges facing our region and beyond while capturing some of the stories of hope, resilience, and success that are paving the way for a brighter future. We look forward to sharing it with you.
We welcome your engagement on sustainability. Please reach out to: firstname.lastname@example.org.
Environmental and Social Management
More sustainable often means more competitive in today’s business environment.
Good corporate governance provides a solid foundation for investment and growth.
Our Knowledge in the Region
IDB Invest Sustainability Platform will develop demand-driven and user-centric knowledge and tools aimed to promote, amplify, and accelerate the application of sustainability solutions across markets. It will expand IDB Invest Sustainability Week to a 365-day user experience with access to sustainability solutions, tools, and knowledge with a keen focus on partnerships and collaboration, localized actions, and innovation by convening doers to share best practices that drive development impact.