Human rights in intermediated finance at development finance institutions

Please join us for a webinar following the publication of the report Fit for Purpose? An analysis of development finance institutions´ management of human rights risks in intermediated finance.

The webinar uses the recommendations and findings in the report to discuss the state of affairs on the management of human rights risks in intermediated financing by development finance institutions.

The tentative programme and background information are included below.

Programme

15.00 – 15.10: Opening remarks / Signe Lysgaard, Chief Adviser, the Danish Institute for Human Rights

15.10 – 15.40: Stock taking of human rights concerns

• Margaret Wachenfeld, Managing Director, Themis Research
• Kate Geary, Co-Director Recourse
• Angela Bushnell, Legal Consultant, Cambodian League for the Promotion and Defense of Human Rights

15.40 – 16.20: Emerging good practices and opportunities for action

• Ioana Tuta, Senior Adviser, the Danish Institute for Human Rights
• Kristin Sjöblom, ESG Director, Swedfund
• Georgi Dzhartov, Social Development Specialist, European Investment Bank
• Mikkel Klim, Chief Advisor, Danish Ministry of Foreign Affairs

16.20 – 16.30: Closing remarks / Signe Lysgaard, Chief Adviser, the Danish Institute for Human Rights

Background

In April 2024, the Danish Institute for Human Rights (the Institute) launched the report Fit for Purpose? An analysis of development finance institutions´ management of human rights risks in intermediated finance.

Development Finance Institutions (DFIs) are increasingly making use of intermediated finance as an instrument to catalyze economic development in low- and middle-income countries. It is difficult to find comparable numbers, but the Institute's report suggests that 30% to 50% of DFIs´ financing is channeled through a range of financial intermediaries such as commercial banks, microfinance institutions, private equity funds and venture capital funds that then on-lend or on-invest DFI financing to their clients (such as small and medium-sized enterprises) or they in turn on-lend or on-invest DFI funding to another layer of financial intermediaries that then on-lend or on-invest the DFI funds. This raises new challenges from the perspective of ensuring these investments do not harm people and the environment, not least because DFIs´ environmental and social policies still tend to reflect typical project finance transactions where DFIs lend or invest directly in projects. The report raises concerns about the human rights preparedness of DFIs as it relates to this growing area of business, but also provides clarity on what can and should change.

Against the backdrop of the findings and recommendations in this report, the webinar aims to:

• raise broad awareness about the human rights risks than can materialize in DFIs´ transactions with financial intermediaries;
• generate a multi-stakeholder discussion about the actions needed to strengthen DFIs´ systems to prevent and address negative human rights impacts in intermediated finance activities.

Registration

The webinar will take place via Teams - please register via this link