Compliance Review Report FINAL SECU0002 · grievances expressed against Bidco largely relate to...

SocialandEnvironmentalComplianceUnit

CaseNo.SECU0002 Page1of37

UnitedNationsDevelopmentProgramme–OAI,SocialandEnvironmentalComplianceUnit

SOCIALANDENVIRONMENTALCOMPLIANCEREVIEWFINDINGSANDRECOMMENDATIONS

Inresponsetoallegationsofnon-compliancewithUNDP’ssocialandenvironmentalstandardsandotherrelevantpoliciesinthecontextofUNDP's

BusinessCalltoActionProjectAlliancePhaseII2014-2016

FinalReport

CaseNo.SECU0002Date:8February2017

SECU’smandateinthisreportistoreachconclusionsaboutUNDP’scompliancewithitsownstandardsandprocedures,andtoprovideappropriaterecommendationsforremedialmeasures.ThisreportdoesnotprovideconclusionsaboutactivitiesofeitherBidcoAfricaorBidcoUgandainrelationtohumanrights,social,orenvironmentalstandards.

Social and Environmental Compliance Unit

Case No. SECU0002 Page 2 of 2

Basic Data

Case No. SECU0002

Category of Non‐Compliance: Primarily Social

Location: Various Locations, Uganda

Date Complaint received: 12 February 2016

Source of Complaint: Bugala Farmers Association

Eligibility assessment conducted by:

Richard Bissell, Lead Compliance Officer

Compliance Officer assigned: Anne Perrault, Compliance Officer

Other investigators assigned: Paul Goodwin, Research Analyst

Related Case(s): N/A

Helge S. Osttveiten, Director, OAI

Signatures:

Prepared by:

Date: 8 February 2017

Richard Bissell, Lead Compliance Officer,

SECU, OAI

Approved by:

BOP BaseoftheEconomicPyramidBFA BugalaFarmersAssociationBPPS BureauforPolicyandProgrammeSupportBCtA BusinessCalltoActionCSR CorporateSocialResponsibilityDIM DirectImplementationModalityDSC DonorSteeringCommitteeESSP EnvironmentalandSocialScreeningProcedureESG Environmental,SocialandGoodGovernanceFPIC Free,PriorandInformedConsentIDS InstituteofDevelopmentStudiesIFAD InternationalFundforAgriculturalDevelopmentKOPGA KalangalaOilPalmGrowersAssociationMDGs MillenniumDevelopmentGoalsOAI OfficeofAuditandInvestigationsOPUL OilPalmUgandaLimitedPSD PrivateSectorDevelopmentPAC ProjectAppraisalCommitteeProdoc ProjectDocumentPPP PublicPrivatePartnershipRAT RiskAssessmentToolSECU SocialandEnvironmentalComplianceUnitSESP SocialandEnvironmentalScreeningProcedureSES SocialandEnvironmentalStandardsSIDA SwedishInternationalDevelopmentCooperationAgencyUGX UgandanSchillingDFID UKDepartmentforInternationalDevelopmentPOPP UNDPProgrammeandOperationsPoliciesandProceduresUN UnitedNationsUNDP UnitedNationsDevelopmentProgrammeUSAID USAgencyforInternationalDevelopment

ListofAcronyms

1. TheBusinessCalltoActionAlliance(BCtA)projectisaUnitedNationsDevelopmentProgramme(UNDP)DirectImplementationModality(DIM)project,withastartdateofJune2014andanenddateofJune2017.ThebudgetisUS$9,175,404,withfundsprovidedbytheDutchMinistryofForeignAffairs,SwedishInternationalDevelopmentCooperationAgency(SIDA),UKDepartmentforInternationalDevelopment(DFID),USAgencyforInternationalDevelopment(USAID),andtheMinistryofForeignAffairsoftheGovernmentofFinland.2. Theproject’sprimarygoalistocreate‘aglobaladvocacyplatformprovidingpublicrecognitionfortheprivatesector’scontributiontodevelopment.’Itsmissionisto‘challengecompaniestoadvancecorebusinessactivitiesthatareinclusiveofpoorpopulationsandthuscontributetotheachievementofsustainabledevelopmentgoals.’Theprojectispremisedontheideathattheplatformwillencourageandsupportengagementsbetweenprivatebusinessesandlow-incomepeople‘asconsumers,producers,suppliers,anddistributors’andotherwiseincreaseemploymentopportunities.Toachievethis,companiesjointheBCtAbymakinginclusivebusinesscommitmentsaimedatimprovingthelivesandlivelihoodsofpeoplelivingatthebaseoftheeconomicpyramid.However,theprojectdoesnotlinkspecificbusinessestospecificindividuals;itencouragesandprovidesnon-financialsupporttobusinessestoadoptbusinessactivitiesthatengagelow-incomepeopleasdescribedabove.UNDPhoststheSecretariatandservesontheDonorSteeringCommittee(DSC)withtheaforementioneddonorinstitutions.CollaboratinginstitutionsincludetheUnitedNationsGlobalCompact.

3. On18February2016,theSocialandEnvironmentalComplianceUnit(SECU)withintheUNDPOfficeofAuditandInvestigations(OAI)registeredacomplaintfromtheBugalaFarmersAssociation(BFA)ofUgandarelatingtotheBCtAproject.ThecomplaintassertedthatBCtA’sadmissionofBidcoAfrica(Bidco),aKenya-basedmultinationalconsumer-goodscompany,ontotheBCtAplatformviolatedUNDP’sSocialandEnvironmentalStandards(SES).ThegrievancesexpressedagainstBidcolargelyrelatetoBidco’sinvolvementinapalmoilfarminKalangala,Uganda.4. InMayandJuneof2016,SECUconductedfieldworkinUganda,thelocationofthecomplainants,andTurkey,wheretheBCtASecretariatandrelevantUNDPstaffarelocated.InUganda,SECUinterviewedthecomplainants,Bidcostaff,localgovernmentofficials,andotherrelevantstakeholders,toinvestigatecomplaintallegations.InTurkey,SECUinterviewedseniormanagementattheUNDPIstanbulInternationalCenterforPrivateSectorinDevelopment,whichhousestheBCtASecretariat,togainadeeperunderstandingofBCtA–particularlyitsadmission,duediligence,andscreeningprocessesconductedonprospectivemember

I. ExecutiveSummary

companies.5. Theinvestigation,includingfieldwork,wasfocusedontheadequacyofUNDP’sduediligenceandrelatedtransparencyinthecontextoftheBCtAproject.ThemandateofthisinvestigationandreportrelatestoUNDP’scompliancewithitsownstandardsandprocedures.ItdoesnotincludedeterminationsrelatedtoBidco’scompliancewithhumanrightsandenvironmentalnorms.Thelatterdeterminationisbeyondthescopeofthisreport.

6. Afterthefieldworkandadditionalresearch,SECUconcludedthattheprocessesemployedbyUNDPforadmissionofBidcowerenotconsistentwiththefollowingrelevantUNDPpolicies:

I. SocialandenvironmentalcommitmentsreflectedintheProgrammeandOperations

PoliciesandProcedures(POPP);

II. SocialandenvironmentalcommitmentsreflectedintheBCtAProjectDocument(Prodoc);

III. ThesocialandenvironmentalscreeningprocessrequiredforUNDPprojectsandprograms;

IV. TheUNDPPolicyonDueDiligenceandPartnershipswiththePrivateSectorandthecomplementaryRiskAssessmentTool(RAT);and

V. UNDPpoliciesrelatedtoadequateaccesstoinformation.7. TohelpensureUNDP’scompliancewithitspolicies,SECUmakesthefollowingrecommendations,whicharedescribedingreaterdetailinSectionVI:

I. ScreentheBCtAPhaseIIprojecttoidentifysocialandenvironmentalrisksandmeasurestoavoidandmitigatetheserisksandimpacts;

II. Relatedly,forprospectivemembersoftheBCtA,requireuseofthePolicyonDueDiligenceandPartnershipswiththePrivateSectorcomplementedbythecompleteRiskAssessmentTool.IfthefullRATisnotapplied,explaininwritingandindetailwhyitisnot,andindicatehowkeyconcerns,e.g.humanrights,environment,andlabor,willotherwisebeaddressed;

III. ForBidco’smembershipinBCtA,providedocumentationconsistentwithUNDP’sfullPolicyonDueDiligenceandPartnershipswiththePrivateSector,completeRiskAssessmentTool,andGuidance,toensurethatduediligencewithrespecttoBidco’s

membershipinBCtAisadequateandoutcomesoftheduediligencesupportBidco’scontinuedmembershipinBCtA;

IV. Ensureattentiontothecorrectdefinitionof'risk'duringthescreeningprocess,and,inparticular,changeconsiderationof'risk'fromriskthatexistsafterpossiblemitigationmeasurestoriskasitexistspriortomitigationmeasures;

V. RevisetheProdoctospecifyhowkeystakeholders,includingindividuals/communities

potentiallysupportedthroughBCtA-relatedactivities,canknowaboutandbeinvolvedininitiatives;

VI. RevisetheProdoctoensurethatwhentheBCtASecretariatreliesonaffiliationswithotherentities,e.g.,theUNGlobalCompact,documentationrelatedtoapotentialmember’sadmissionintotheallianceindicateshowtheaffiliationsupportsmembership;

VII. ReviseBCtAmembershipcriteriatoensureattentiontosocialconcerns(includingfundamentalhumanrightsconcerns,e.g.,fairpay/wages,healthyworkingconditionsandnon-exploitationinthesupplychain,etc.),andenvironmentalconcerns;

VIII. Ensurethattheprocessforassessingeligibilityisclearandrobust.Morespecifically,describeingreaterdetailhoweligibilitydecisionsaremade;

IX. Ensurethatseparationexistsbetweenstaffinvolvedindevelopingrelationshipswith

privatesectorcompaniesandstaffmakingrecommendationsanddecisionsrelatingtomembershipinBCtA(consistentwithRATGuidelines);

X. Linkmembershipbenefitsandtenureexplicitlyandcloselytotheinitiativethathasbeenproposedandevaluated;and

XI. EnsurethataformalgrievancemechanismexistswithintheBCtAforreceivingand

respondingtocomplaintsallegingthatagivencompany’smembershiporrelatedinitiativemayharmcommunities.

II. Overview8. On18February2016,theSocialandEnvironmentalComplianceUnit(SECU)oftheUNDPregisteredacomplaintfromtheBFAconcerningtheUNDP-supportedBCtAProjectAlliancePhaseII2014-2016,(https://info.undp.org/sites/registry/secu/SECUPages/CaseFile.aspx?ItemID=7).

9. On1March2016,SECUdeterminedthecomplaintmetthecriterianecessaryforSECUtoinvestigateUNDP'scompliancewithitssocialandenvironmentalcommitments,andtheDirectorofOAI(UNDP/OAI)approvedtheeligibilitydetermination(https://info.undp.org/sites/registry/secu/SECUPages/CaseFile.aspx?ItemID=7).

10. SECUismandatedtoperformacompliancereviewforeligiblecomplaintsreceivedinrelationtoprojectsapprovedafter31December2014.TheBCtAPhaseIlProjectDocument(Prodoc)doesnotclearlyindicatewhentheprojectreceivedfinalUNDPapproval.TheBCtASecretariatindicatedina29August2016emailthattheProdocwasapproved‘afterthePAC[ProjectAppraisalCommittee]inJuly2014andbytheDSCinSeptember2014.’However,documentsandinterviewsimplythatthePACprocesswasnotcompletedinJuly2014;atthattimethePACrequestedarevisedProdocandanopportunitytocommentonthisreviseddocument.ItisnotclearwhenorifthePACsecuredareviseddocument,butUNDPprojectstaffprovidedSECUwithaProdocthathasa1March2015revisiondate,butnosignaturedate.UNDPstaffindicatedthatthebudgetandlogframewererevisedin2015.

11. Giventheuncleardateofapproval,butfacedwithasignedProdocwitharevisiondateof1March2015,SECUisinvestigatingintheinterestofafairprocesstocomplainants.SECU’sInvestigationGuidelinesnote,inthisregard,‘Inordertofosterconsistency,compliancereviewinvestigationsareconductedinaccordancewiththeseGuidelinestotheextentpossible;however,thecircumstancesofaparticularinvestigationmayaffecttheapplicationoftheGuidelinesintheinterestofafairprocesstothecomplainants’(pg.3).SECUwillfocusprimarilyonthestandardsthatappliedwhentheprojectwasreviewedbythePACinJuly2014.

12. Thisreportdescribestheinvestigation,includingthefollowing:(I)Anexecutivesummary(above);(II)overview;(III)backgroundandconcernsthatledtothecomplaint;(IV)socialandenvironmentalcommitmentsthatappliedinthecontextofthisproject;(V)findingsrelatedtoapplicationofthecommitments;and(VI)recommendations.

III. BackgroundandConcernsthatLedtoComplaint13. TheBCtAinitiativebeganin2008,whenover60companiesagreedtoadvance

‘inclusivebusiness.’TheeffortwasdesignedtorespondtothecallforanewglobalpartnershiptohelpdelivertheMillenniumDevelopmentGoals(MDGs).A2011reviewofinclusivebusinesspracticesdescribedtheirsignificantpotentialbenefitsnoting,forexample,‘Inclusivebusinessmodelsengagepeoplelivingatthebaseoftheeconomicpyramid(BOP)incorporatevaluechainsasconsumers,producers,andentrepreneurs.Suchmodelsoffergreatpromise:toenablebusinessgrowthinmarketsthatcovertwothirdsoftheworld’spopulation,whilecreatingeconomicopportunityandbetterstandardsoflivingforthepoorintheprocess.’1

14. In2013,afterareviewofbenefitsprovidedbyPhaseIoftheBCtA,includinggreaterattentionto,visibilityof,andsupportforinclusivebusiness,BCtASteeringCommitteemembersagreedtopursuePhaseIIofBCtA.TheydeterminedthatPhaseIIwouldaddressoutstandingchallenges,includingprovidingconsistentvalueandservicestodonorsandprivatesectormembers,andincreasingmeasurementandevaluationofresults(Prodoc,pgs.4-5).2

15. TheBCtAAlliancePhaseII(hereinafter‘BCtA’)ProdocwasreviewedbyUNDP'sPACinJuly2014andrevisedinMarch2015.ItindicatesastartdateofJune2014andanenddateof30June2017.ItisDIMproject.TheprojectbudgetisUS$9,175,404,withfundsprovidedbytheDutchMinistryofForeignAffairs,SwedishInternationalDevelopmentCooperationAgency(SIDA),UKDepartmentforInternationalDevelopment(DFID),USAgencyforInternationalDevelopment(USAID),andtheMinistryofForeignAffairsoftheGovernmentofFinland.TheUNDPhoststhesecretariatandservesontheDonorSteeringCommittee(DSC)withtheaforementioneddonorinstitutions.CollaboratinginstitutionsincludetheUNGlobalCompactandtheInter-AmericanDevelopmentBank'sOpportunitiesfortheMajorityInitiative.

16. TheBCtAAlliancePhaseIIProdocdescribesBCtAas‘aglobaladvocacyplatformprovidingpublicrecognitionfortheprivatesector’scontributiontodevelopment.BCtA’smissionistochallengecompaniestoadvancecorebusinessactivitiesthatareinclusiveofpoorpopulationsandthuscontributetotheachievementofsustainabledevelopmentgoals’(Prodoc,pg.2).BCtAdoesnotfunddevelopmentactivitiesbetweenmembercompaniesandtargetedlow-incomepopulations.Theprojectispremisedontheideathattheplatformwill,invariousotherways,encourageandsupportengagementsbetweenprivatebusinessesandlow-incomepeople‘asconsumers,producers,suppliers,anddistributors’andotherwiseincreaseemploymentopportunities.Toachievethis,companiesjointheBCtAbymakinginclusivebusinesscommitmentsaimedatimprovingthelivesand

1Gradl,ChristinaandBethJenkins(2011).“TacklingBarrierstoScale:FromInclusiveBusinessModelstoInclusiveBusinessEcosystems.”Cambridge,MA:theCSRInitiativeattheHarvardKennedySchool.2BCtAPhaseIIwasascale-upoftheoriginalBCtAPhaseIproject.AccordingtotheProdoctheprojectismeantto‘...buildonitsplatformandactivitieswhilecontinuingtodeepenitsengagementwithinclusivebusinessinordertoincreaseitsscaleandimpactuptoandpost-2015.’

livelihoodsofpeoplelivingatthebaseoftheeconomicpyramid.17. Beforecompaniesapplytobemembers,theBCtASecretariatoutreachteam‘conductsaduediligence/riskscreeningreviewofallpotentialapplicants’usingaUNDP/PSD[PrivateSectorDevelopment]duediligenceform(Prodoc,Annex2,pg.70).AccordingtotheProdoc,thisreview‘consistsofascanofanymajorcontroversiesthatmayinfluencethePartners’willingnesstoacceptthecompanyasamember,aswellascheckingthecompanyagainsttheBCtA’sexclusionarycriteria’(Prodoc,Annex2,p.70).

18. Whenacompanyappliestobeamember,itsubmitsanapplicationform,andUNDP-astheBCtASecretariat–createsan‘ApplicantSummary’form.ThisformcontainsasummaryofinformationderivedfromtheBCtAmembershipapplicationformthatisfilledinbythecompany,asummaryof‘RiskAssessment‘findingsexcerptedfromtheUNDP/PSDform(describedherein,inpara.10),andabriefassessmentofwhetherandhowthecompanymeetsBCtAeligibilitycriteria(describedherein,inpara.14).

19. UNDPsendstheApplicantSummaryformtoDonorSteeringCommittee(DSC)membersandleadsaprocesstodetermineifDSCmembersagreethatmembershipshouldbegranted‘basedonthequalityofacompany’sproposedinitiative’(Prodoc,Annex3,pg.74).ThefullapplicationandUNDP’sduediligenceinformationareprovidedifDSCmembersrequestthemandsignanon-disclosureagreement.

20. Accordingtoan11March2016emailfromtheGlobalProgrammeAdvisorandactingBCtAProgrammeManageratthetime,totheSECULeadComplianceOfficer,underBCtAprocedures,‘Ifnoobjectionsareraisedtotheapplicationwithintwoweeks,thenwemoveforwardwiththeacceptanceoftheapplication.’

21. OfthethreeprimarycriteriaBCtAusestoassessacompany’seligibilitytobecomeamemberofBCtA,thecriterionfocusedonhowthecompany’sinitiativepotentiallyimprovesthelivesofcommunitiesisCriterion2,‘Demonstratespotentialtocreateeconomic/socialreturnsforlow-incomecommunitiesindevelopingcountries’(Prodoc,Annex3,pg.74).Thiscriterionincludestwoquestions,‘Doestheinitiativeintegrateunderservedpopulationsintocompanyvaluechainsassuppliers,producers,distributorsand/oremployees?’and‘Istheinitiativelocatedinoneormoredevelopingcountries?’Othercriteriainclude‘1.Demonstratepotentialtocreatefinancialreturnsforthecompany’and‘3.Abletogeneratemeasurableresults.’3

22. BidcoAfricaappliedtobeamemberofBCtAin2015.Accordingtothesummaryoftheapplication,theinitiativeuponwhichtheapplicationwasbasedwas‘Bidco’sFullValue

3TheapplicationtoBCtAhas2separatesteps.Thefirstistheduediligenceprocess.ThesecondstepistoassesstheeligibilityoftheInclusiveBusinessCommitmentofthecompanyinrelationtothesecriteria.

ChainInitiative’withacommitmentto‘integrateover30,000Kenyansmallholderfarmersintoagriculturalvaluechains’and‘createover60,000directandindirectjobsthroughopeningitsvaluechainsforsmallscaleentrepreneurs’(ApplicantSummary,7September2015).

23. UNDPconcludedfromtheapplicationthatthisinitiativewouldhelppoorpopulationsprimarilybyemployingthemassuppliersthroughtheagriculturalsupplychain.

24. On11September2015,UNDPcirculatedasummaryofBidco’sapplication–a‘BCtAApplicantSummary’-totheDSCmembersfortheirconsideration.Itrequested‘feedbackandcomments’totheBCtASecretariatby16September,andstatedthat‘ifnoobjectionsariseduringthereview,theSecretariatwillextendmembershiptotheapplicants.’

25. BidcoAfricawasinformedofitsacceptanceintotheallianceon18September2015throughaletterfromMr.SobhanitoMr.VimalShah,whichstated,‘BidcoAfrica’sinitiative,approvedbypartnerson16September2015,istobuildlivelihoodsofsmallholderfarmersandentrepreneursinthevaluechain.’Whentheletterwassent,threeDSCmembersrelayedsupportforBidco’sapplication.TheSIDArepresentativetotheDSCraisedaquestionon16SeptemberrelatedtoBidcoandpalmoil,andaresponsewasprovided17September.TheremainingDSCmembersraisednoobjection,andthiswasinterpretedbytheSecretariatasacquiescencetotheapplication.Theciteddateofapproval–16September-was5daysaftercirculationofinformationtoDSCmembers,andtheemailtoMr.ShahofBidcowas7daysaftercirculationofinformationtoDSCmembers.

26. Bidco’smembershipintothealliancewaspubliclyannouncedinJanuary2016throughapressreleaseonBCtA’swebsite.

27. On28January2016,theBFAdeliveredtotheUNDPofficeinKampalaa‘petition’addressedtoUNDPAdministratorHelenClarkandotherUNDPandUNemployeesraisingconcernsaboutBCtA’sinclusionofBidco.

28. Shortlythereafter,on12February2016,theBFAfiledacomplainttotheSECU.Thecomplaintreferencestheallegationsinthe28January2016petitionthatapprovalofBidcoAfricaLtd.asamemberoftheBCtAallianceisa'tragedyforsmallholderfarmers'inUganda.Thecomplaintclaimsthat100suchfarmershaveaccusedaBidcoAfricaLtdventureinUganda,OilPalmUgandaLimited(OPUL)of'violatinghumanrights,destroyingtheenvironmentandgrabbinglandfromsmallholderfarmers.’Accordingtothecomplainants,itwasatthistimethattheywereattemptingtosecurearesponsetotheseconcernsinthecontextofthisUgandaproject,andwereawaitingacourtdecisionintheirlawsuitagainst

OPUL.429. Thepetitionstates,'Inshort,BidcoAfrica,whichclaimstoadheretotheU.N.GlobalCompact,isinfactinviolationofallU.N.GlobalCompactprincipals,fromhumanrightstoprotectionoftheenvironment.Againstthebackdropofsuchrepeatedviolations,theUNDP/BCtA'spartnershipwithBidcoAfricaisaviolationofUNDP'scoremissionandprincipals....Toeventhecasualobserver,UNDPandBCtAarewillfullynegligentfortheirdecisiontoignorewelldocumentedviolationsofBidcoAfrica,tofailtoconductproperduediligenceintoBidcoAfrica,orboth.TheBFAcallsonUNDPanditsseniorleadershiptoexaminethemorallyquestionableassociationofsuchadistinguishedU.N.organisationwithsuchablatantviolatorofhumanrightsthatisBidcoAfrica.'

30. SeveralpossibleharmsaresuggestedbyBFA’scomplaint.ThefirstisthatUNDP’ssupportforBidco’smembershipprovidesanendorsementofBidcothatimpairsBFA’sefforts–throughtheUgandancourtsystemandelsewhere–tosecureredressforharmsallegedlysufferedinthecontextoftheOPULproject.

31. ThesecondisthatendorsementcouldservetofacilitatefutureharmfulactivitiesbyBidcoinUgandaand/orimpactUgandancommunities.

32. Additionally,BCtA’sendorsementofBidcocouldservetofacilitateBidcoprojectsthatadverselyharmcommunitiesinKenyaandothercountries.

IV. UNDP’sSocialandEnvironmentalCommitmentsintheContextoftheBCtAAlliance,

PhaseIIProject33. SocialandenvironmentalcommitmentsthatapplytoUNDPprojectsarereflectedinUNDP'sProgrammeandOperationsPoliciesandProcedures(POPP)andineachProdoc.WhenUNDP’sPACreviewedtheprojectinJuly2014,relevantcommitmentsincludedtheEnvironmentalandSocialScreeningProcedure(ESSP),andenvironmentalandsocialcommitmentslistedinthePOPPatthattime(seeAnnex1tothisreport).Socialandenvironmentalcommitmentsthatwereeffectiveafter31December2014,whentheProdocwasrevised(andtheapplicationforBidcoAfricaLtd.wasapproved),includedanupdated

4ThisreportmakesnoformaldeterminationconcerningthefinancialorlegalrelationshipbetweenBidcoAfricaandBidcoUganda.Thisreportdoesconclude,however,thatthetiesbetweenBidcoAfricaandBidcoUgandaaresufficientforpurposesofBCtA/UNDPconductingitsduediligenceandriskassessmentandthatUNDPshould(andindeeddid)considerbothentities’activitiesandriskswhendecidingtoacceptBidcointotheBCtA.BidcoUgandaandBidcoAfricabothrefertothemselvesas“Bidco”ontheirwebsitesandpublications.BidcoAfricanotesithasafactoryinUganda.Thebrandingofbothcompaniesissimilar,usingthesameshadesofgreenandyellow,aswellasasimilarovalaroundtheirnames.BidcoUgandadescribesitselfasajointventurebetweenanumberofgroupsincludingBidcoOilRefineriesLtdofKenya(BidcoAfrica’spriorname).VimalShah,CEOofBidcoAfrica,hasfinancialinterestsinBidcoUganda.

versionofthescreeningprocedure–theSESP,andrecently-enactedSocialandEnvironmentalStandards(SES).

34. WhenBCtAwasprepared,theESSPrequiredscreeningofprojects‘submittedtoaPACwithabudgetofUS$500,000ormore’(ESSPGuidanceNote,March2012,pg.5).Thisscreeningensuredthatpossiblesocialandenvironmentalrisks,particularlyriskstolocalcommunities,wereidentifiedandthepotentialsignificanceofrisksdetermined.Projectswerecategorizedaccordingtothepotentialsignificanceofrisks.Ifrisksweremoderateorsignificant,additionalassessmentlikelywasnecessary,andmeasurestoavoidandmitigatetheseriskshadtobeidentifiedandapplied.5

35. Relevantproject-relateddocuments,includingtheenvironmentalandsocialassessmentandenvironmentalandsocialmanagementplan,weretobedisclosedpublicly.Transparencyinthiscontextwastoenablepotentially-impactedlocalcommunitiesandotherstakeholderstobothknowofpotentialadverseandpositiveimpactsrelatedtoaUNDP-supportedproject,andtoengageindiscussionsrelatedtosuchimpacts(ESSP,pg.17).

36. TheESSPhelpedensureconsistencywithenvironmentalandsocialcommitmentsofthePOPP,whichincludedattentiontoconsultationandparticipationoflocalcommunitiesinprojectdesignandimplementation,consistencywithinternationallaw,andrespectforhumanrights,biodiversityprotection,resettlement,culturalheritage,indigenouspeoples,etc.(SeeAnnex1tothisreport).

37. Issuesraisedinthecomplaintappeartorelatetoseveraloverlappingareasreflectedinthesecommitments,includingprimarilythefollowing:screeningandimpactassessment,duediligence,humanrights,andtransparency.

V. FindingsRelatedtoApplicationofUNDP’sSocialandEnvironmentalCommitmentsin

theContextoftheBCtA,PhaseIIProjectScreeningandAssessmentofBCtAProject38. Asdescribedabove,whentheBCtAProdocwasbeingprepared,thePOPPrequiredUNDPtoscreenprojectsforimpacts/riskstolocalcommunitiesandtheenvironmentusingtheESSP.

39. TheESSPprovidedaseriesofquestionstheanswerstowhichallowedUNDPstafftoidentifyandassessthesignificanceoftheserisks,determinethe‘category’oftheprojectbasedonthisassessment,and,inturn,choosetheappropriatemeasuresforaddressingrisks.

5ThecurrentSES,whichhadbeenapprovedwhenBidco’sapplicationwasapproved,coverthesamesubstantiveareasasthosereflectedinthePOPPwhenBCtAwasconsidered,(andafewmore),andprovidemoreextensiveguidance.

40. UNDPdidnotapplytheESSPtotheBCtAproject,anddidnotundertakeanalternativeformalevaluation(explicitlyasleast)ofthesocialandenvironmentalrisksrelatedtoUNDP’ssupportfortheBCtAplatformforengagementofprivatesectorcompanieswithpoorcommunities.

41. Asdescribedbelow,thefailuretorobustlyassesssocialandenvironmentalrisksthatmightoccurthroughsuchaplatformappearstohaveleftmeasurestoavoidandmitigatetheserisksoffUNDP’sradarandoutoftheProdoc.

42. Forexample,althoughtheProdocdescribes‘RisksandAssumptions’associatedwiththeBCtAproject,risksidentifiedweremostlyunrelatedtosocialandenvironmentalriskstocommunities(Prodoc,pg.19).Risksidentifiedwerefocusedon‘strategicrisks’e.g.,negativepress,donorsandcompaniesshiftingawayfrominclusivebusiness,companiesnotfollowingthroughoncommitments;‘reputationalrisks’–memberscontactedtoofrequently,BCtAprovidinglowvalueandperceivedasalobbyinggroup;poorconductbymembercompaniesand/orconsequentnegativepressthatadverselyimpactsBCtAbyassociation;and‘operationalrisks’–companiesnotmeasuringorreportingprogressadequately,donorsinsufficientlyengaging,highBCtAstaffturnoverleadingtoweakmemberrelationships,BCtAover-expandingorcommittingwithoutadequateresources,andcomplexityofchangeatUNDPdelayingtheSecretariat’sabilitytodeliverplannedactivities.

43. Theidentifiedriskmostrelevanttosocialandenvironmentalrisksis‘poorconductbyBCtAmembercompaniesand/orconsequentnegativepressmayadverselyaffectBCtAbyassociation.’Theidentified‘mitigationapproach’is‘Carefullyscreencompaniesintheapplicationstageforsuchrisks’and‘Instituteclearcriteriaforcompaniestomaintainmembership.’

44. Theidentifiedmitigationmeasureto‘Carefullyscreencompaniesintheapplicationstage’clearlycanbeausefulmeasureforavoidingormitigatingriskstocommunities,buttheProdocdoesnotclearlydescribewhatthisshouldentailorwhat‘poorconduct’mightinvolve.Asdetailedbelow,theriskassessment/screeningreviewprocessusedbyBCtAforBidcowasnotasrobustasthescreeningprocessrequiredbyUNDPforotherprivatesectorentities.

45. Theidentifiedmitigationmeasureto‘Instituteclearcriteriaforcompaniestomaintainmembership’canbeusefulaswell,butcouldnotbeidentifiedasaprojectrequirement.Tothecontrary,theProdocindicates,‘MembersarecompaniesthathavecompletedtheBCtAapplicationprocessandmadeaformalpubliccommitmenttoaninclusivebusinessinitiative.MembersthathavecompletedtheircommitmentswillremainmembersofBCtAaslongastheyexpressaninterestinparticipatinginandcontributingtotheBCtAcommunity’(Prodoc,pg.18).

46. IfUNDPhadappliedtheESSPtotheBCtAProdoc,itcouldhavedeterminedthat,in

additiontopotentialbenefits,risksassociatedwithsupportforprivatesectorcompaniesengagedwithpoorcommunitiesassuppliers,consumers,producers,anddistributorsofgoodsandservices,includerisksrelatedtopowerimbalancesandthepotentialforexploitation.Forexample,afundamentalissuefortheBCtAprojectisthatpopulationstargetedinitsmemberinitiativesforassistance–‘thepoor’–arefinanciallymarginalizedbydefinition,andoftenalsopoliticallymarginalizedinpractice.Inthiscontext,intheabsenceofexplicitattentiontosocialsafeguards,includingtheprotectionofrightsofmarginalizedpopulationsandtheirabilitytoaccessinformationrelatedtoBCtAmemberinitiatives,participateinkeyinitiativedecisions,andhaveaccesstoadequateremedyforharms,etc.,exploitationispossible.Forexample,if,whilepromotingtheintegrationoftheimpoverishedinasupplychainofaBCtAcompany,UNDPfailstoconsiderandpromoteadequateprice/wageandlaborconditions,UNDPcouldsimplybefacilitatinginexpensivelabororsuppliesforthemembercompany.TheseimpactscouldadverselydamageUNDP’sreputationandthecommunitiesitseekstohelp.

47. TheESSPcouldhavehelpedUNDPdeterminehowtoidentifyandrespondtoBCtA-relatedrisks.PlatformssuchastheBCtAposespecialchallengestoUNDPfortheidentificationofrisks.WhileUNDPisprovidingaplatformandother(nonfinancial)supportforcompanyinitiativesthatincludethepoorasproducers,entrepreneursandconsumers,companiesthatbecomemembersdirectlyengagewithcommunities,andsocialandenvironmentalrisksarelargelyassociatedwiththisengagement,thequalityofwhichreflectsbackontheBCtAandUNDP.

48. TheESSPdescribedthat,forsuchprojects(likely‘Category2’projectsundertheESSP),‘therearepossibleenvironmentalandsocialbenefits,impactsand/orrisksassociatedwiththeproject(oraprojectcomponent)butthesearepredominantlyindirectorverylong-termandsoextremelydifficultorimpossibletodirectlyidentifyandassess…Inthesecases,UNDPwilloftenhaveanimportantroletoplayinsupportinganddevelopingcapacitiesfortakinganintegratedapproachtodevelopment’(ESSP,pg.10).

49. Indeed,evenintheabsenceofESSPscreeningresults,documentsandinterviewsdemonstratetheconcernsofnon-projectUNDPstaff.Aspartofprojectappraisal,thesestaffidentifiedpotentialenvironmentalandsocialrisksassociatedwiththeBCtAproject,andrecommendedthattheProdocreflectarights-basedapproach,incorporateUNDP’senvironmentalstandards,anddescribehowthebeneficiaries’perspectivesareincorporated.Inresponsetoadraftofthisinvestigationreport,UNDPBCtAprojectstaffindicatedthattheProdocwasrevisedinresponsetotheserecommendations,noting:‘StressingtheapplicationofthemandatoryUNDPPolicyonDueDiligenceandPartnershipswiththePrivateSectoraswellasthefocusongenderandhumanrightsintotheBCtAPhaseIIProdocwerepartlyinresponsetofeedbackreceivedfromnon-projectstaffduringtheappraisalprocess.’6

6ProdocAnnex2describesthattheBCtASecretariatoutreachteamshouldconducta‘duediligence/riskscreeningreview’which‘consistsofascanofanymajorcontroversiesthatmayinfluencethePartners’willingnesstoacceptthecompanyasamember,aswellascheckingagainsttheBCtA’sexclusionarycriteria…’andtheAnnexincludesan

Unfortunately,asdetailedbelow,anysuchwrittencommitmentstotheUNDPPolicyonDueDiligenceandPartnershipwiththePrivateSectorandgenderandhumanrightswerenotclearlyadequatelymet.

50. UndertheESSP,forsuchprojects,UNDPstaffhadtoidentifythekeydecision-makingpointsandprocessesintowhichitcould‘mainstream’considerationofenvironmentalandsocialconcernsandmeasurestoensurethatenvironmentalandsocialrisks/impactswereaddressedinfutureactivitiesthatcouldharmcommunitiesand/ortheenvironment.

51. InthecontextoftheBCtAproject,oneobviousdecision-makingpointandprocessforsuchmainstreamingiswhenandhowcompaniesareevaluatedformembershipinBCtA.Measuresthatcanbemainstreamedduringsuchanevaluation(toensurethatenvironmentalandsocialrisksandimpactsareaddressedinfutureactivities)includepoliciesandtoolsthatassessthecapacityandwillingnessofacompanytoaddresssocialandenvironmentalconcernsandthatidentifymeasurestosupportcompanycapacitybuildingtoimproveitsperformance.

52. OnesetofmeasuresrelevantinthisregardincludesthePolicyonDueDiligenceandPartnershipswiththePrivateSector(thePolicy,SeeAnnex2),complementaryRiskAssessmentTool(‘RAT’-SeeAnnex3)-designedtosupportimplementationofthePolicy-andtheGuidelinesforPrivateSectorPartnerRiskAssessmentTool(Guidelines),-designedtoguidecompletionoftheRAT.Thesemeasuresincludeattentiontosocial(humanrights)andenvironmentalconcerns,althoughprimarilytoavoidriskstoUNDP’sreputation.

53. Asdescribedingreaterdetailbelow,applicationofthePolicytoUNDPengagementswithprivatesectorentitieshasbeenrequiredsinceDecember2013,andtheRAThasbeena‘mandatoryrequirementforanytypeofpartnershipbetweenUNDPandaprivatesectorentity’since2014.ThePolicyandRATrequirescreeningandassessmentofpotentialUNDPpartners,aswellasapplicationofkeyprinciples‘regardlessofthenatureofUNDP’sengagementorpartnership’(emphasisadded)withotherentities(Policy,pg.12).

54. TheProdocimpliesacommitmenttoapplythePolicyandRAT.TheProdoc,forexample,notesthattheduediligence/riskscreeningreviewperformedbytheBCtASecretariat‘complieswithUNDPandPartnerpoliciesforpartnershipswithcorporations(BCtAutilizestheUNDP’sPrivateSectorPartnerRAT),aswellasensuresthatwedonotdamageanyrelationshipsbyengagingcompaniesthatcannotbeacceptedasmembers’and‘BCtAutilizestheUNDP’sPrivateSectorPartnerRAT’(Prodoc,Annex2,pg.70).

55. TheUNDP/PSDDueDiligenceform(UNDP/PSDform)similarlyexplicitlyacknowledgedtheRAT,stating,‘ThisformispartoftheduediligenceprocessthatUNDPundertakesin

additionalassertionthatthisreview‘complieswithUNDPandPartnerpoliciesforpartnershipswithcorporations(BCtAutilizestheUNDP’sPrivateSectorPartnerRiskAssessmentTool)…”Annex6isdescribedasproviding‘TheBusinessCalltoAction’sFocusonGenderInclusionandHumanRights’

consideringcompaniesandotherprivatesectororganizationsforpotentialpartnerships….ThisproceduretemplatecomplementstheRATandprovidesanoverviewofcorporatecontroversiesandother,relevantcorporatesocialresponsibilityinformation.’

56. SeveraladditionalfactorssupporttheideathatUNDPshouldhavetreatedmemberstoBCtAaspartnersand/orassessedthemusingUNDP’sRAT,andinamannerconsistentwiththePolicy:(1)thedefinitionof‘partner’inthePolicyisbroad,andthereasonsforthePolicysupportitsbroadapplication;and(2)examplesinthePolicyof‘typesofengagements’UNDPhaswithpartnersaresimilartoUNDP’sengagementswithmemberstoBCtA.

57. Regarding(1),above,thePolicydefinespartnershipas‘avoluntaryandcollaborativeagreementorarrangementbetweenUNDPandtheprivatesector,aswellaspotentiallyotherentities,inwhichallparticipantsagreetoworktogethertoachieveacommonpurposeorundertakeaspecifictaskandtosharerisks,responsibilities,resources,andbenefits’(Policy,pg.12).ItnotesthefollowingpurposeofthePolicy:‘Thegrowingroleoftheprivatesectorinthechangingdevelopmentlandscapebringsbothnewopportunitiesandrisks.AsUNDPaimstoscaleupitsengagementwiththeprivatesectoritneedstodosoinawaythatmanagesriskstoitsreputation.…ThepurposeofthisPolicyistofacilitateandguidetheselectionofprivatesectorpartnersandtheformulationofpartnershipsinsuchawaythatenableseffectiveandcreativecollaboration,whilemaintainingaprincipledapproachthatmanagesrisksandensurestheintegrityandindependenceofUNDP’(Policy,pg.1).

58. ThroughBCtA,UNDPandDSCmembershavea‘voluntaryandcollaborative’arrangementwithmemberstotheplatformtoworktogethertoachieveacommonpurpose:toincrease‘inclusivebusiness’towardpovertyalleviation.UNDP,DSCmembers,andothers,areprovidingbenefitsandresourcestothemembers–including‘globalvisibilityandvalidation’,‘adirectchanneltoprovideinputs’intopolicy,and‘initiativeadviceandlinkageswithothercompanies,donors,governmentsandotherkeystakeholders’-inexchangeforvarious‘commitments’bythemembersthatwillincreaseinclusivebusiness(Prodoc,pgs.5-6).AndasUNDPishostingtheSecretariat,itisassumingalargerrolethanotherfundingpartnersinthefunctioningofBCtA.

59. Finally,thePolicy’sdescriptionoftypesofengagementsindicativeofpartnershipsincludesengagementssimilartothoseofUNDPwithBidcoandothermembercompaniesthroughBCtA.ThePolicy’sdescriptionofengagementsindicativeofpartnershipsinclude‘Harnesstheprivatesector’scorebusinessstrengths(expertise,services,technology,etc.)toimplementorpromoteinclusivebusinessmodels’and‘Influenceandencouragetheprivatesectortobringaboutachangeinthewaybusinessisdonethroughmoreresponsibleandsustainableapproaches’(Policy,Annex2,pgs.15–18,See,also,Annex2tothisreport).7

7ThePolicy’sAnnex2:TypesofEngagement,labelsthisfirsttypeofengagementas‘CoreBusinessforInclusiveMarketDevelopment,’anddescribesitasfollows,‘Inthiskindofpartnership,UNDPhasanagreementwithoneormorecompaniesandotherdevelopmentactorstocarryoutcertainactivitiesthatcanhelptoimplementmore

60. BCtAdocumentationreviewedbySECUsuggeststhattheintendedpurposeofthecooperationwasatypeofpartnership.8

61. Forallengagements,thePolicyrequiresattentiontocertainprinciples.Itnotes:‘RegardlessofthenatureofUNDP’sengagementorpartnershipwiththeprivatesector…theyshouldbeguidedbytheprinciplesoutlinedbelow.’Theseincludeto:(1)advanceUNDPgoals–‘aclearpurposeforthepartnership…shouldbeclearlydefined’;(2)maintainintegrity,independenceandimpartiality;(3)ensuretransparency–‘cooperationwiththeprivatesectormustbetransparent,withinformationonthepurposeandscopeofthecollaborationbeingavailable…RelevantinformationaboutthepartnershipshouldbemadeavailableonUNDP’swebsite’;and(4)ensure‘non-exclusivityandnounfairadvantageorimpliedendorsement…whichmightleadtounintendedconsequences’(Policy,pgs.12-13).

62. DespitetheapparentapplicabilityofthePolicyandfullRATtoUNDP’sengagementwithBidcothroughBCtA,thefullPolicyandfullRATwerenotappliedtothescreeningandassessmentofcompaniesformembershipintotheBCtA.Asdetailedbelow,theUNDP/PSDformusedwasnotfullyconsistentwithPolicyandRATrequirements.

63. TheSecretariatacknowledged,inresponsetoadraftofthisinvestigationreport,thatapplicationofthefullPolicyandRATwasrequired,indicatedthatuseoftheUNDP/PSDformwasa‘mistake,’andsuggestedthatfullduediligencewascompletednevertheless.

64. However,asdescribedbelow,documentationrelatedtomembercompanies’admissionintotheBCtAAlliancedoesnotsupporttheassertionthatduediligencewascompleteandconsistentwithUNDPPolicy.ThefollowingsectionevaluatesthemeasurestakenbyUNDPstaff,throughBCtA,toassessandaddresssocialandenvironmentalrisksrelatedtoengagementswithprivatesectorcompanies.ItprimarilyconsidershowthesecomparetoUNDP’sPolicy,RAT,andGuidelines,butalsotouchesuponotherpossiblemeasures(in

inclusivebusinessmodelsatthesecompanies.TheseactivitiesmightincludeupgradingthesupplycapacityoflocalproducersandSMEs,improvingtheabilityofproducerstocomplywithindustrystandards,ortransferringknowledgeandrelevantskillsformoreefficientproductionprocesses,forexample’andthesecondtypeofengagementas‘AdvocacyandPolicyDialog’,describingitas‘‘Inthistypeofpartnership,UNDPwillmainlyactasafacilitatorandbrokerofpublic-privatedialogandcooperationmechanisms’byconvening‘public-privatedialogsandcollaborativeplatformsaimedatcatalyzingandincentivizingsustainableprivatesectorsolutionsandinvestment,andbuildingsustainableandinclusivemarkets.’8ThePolicyimpliesthat‘partnerships’neednotinvolveaformalagreementorfinancialimplicationsforUNDP.Itnotes,‘WhenapartnershiparrangementwillhavefinancialimplicationsforUNDP,aformalwrittenagreementshouldbeestablishedbetweenUNDPandtheprivatesector’(Policy,pg.13).Thisstatementimplicitlyacknowledgesthatapartnershipmayexistwithoutthesetwoconditions.Asnotedearlier,whilenoformalwrittenagreementexistedbetweenUNDPastheBCtASecretariatandBidco,Bidco’swrittenapplicationandagreementtocertaincommitments,BCtA’sexplicitwrittendescriptionofbenefitstobesecuredthroughmembership,andBCtA’sapprovalofBidco’sapplicationandnoticeofsuchapprovalinwriting,constituteatleastaninformalagreement.

additiontothePolicyandRAT)toaddresssocialandenvironmentalrisksrelatedtoBCtAmemberactivities-includingthosefocusednotprimarilyonriskstoUNDP’sreputation.

MeasurestoAddressPotentialRisks:ThePrivateSectorDueDiligencePolicy,RAT,andGuidelinesasComparedtoUNDPDueDiligenceEffortsintheContextofBCtA65. Asnotedearlier,UNDPdidnotfullyapplytheUNDPPolicyandRATforscreeningandassessmentofBidcoasamemberofBCtA,butdidapplyanotherriskassessmenttool-theUNDP/PSDform.ThisformwasusedtoassessrisksrelatedtoUNDP’spossibleassociationwiththeapplicantcompany.Informationfromthisformwas,additionally,summarizedinBCtA’s‘ApplicantSummary’formsenttoDSCmembers.

66. ThisformprovidedimportantrecognitionoftheneedtoscreenpotentialmembersofBCtA,reflectedaneffortbyUNDPtopursueduediligencerelatedtoitsassociationwithmembercompaniestoBCtA,andcapturedmanyoftheissuesandconcernsreflectedinthePolicyandRAT.

67. However,asdetailedbelow,thestepsandquestionsintheUNDP/PSDformarenotascomprehensiveasthosereflectedinthePolicyandRAT,theapproachtogatheringandverifyinginformationislessrobustthanrequiredbytheRAT,andconclusionsdrawnaboutnextstepsarelesssoundthanrecommendedbythePolicyandRAT.

68. DifferencesbetweenUNDP’sRATandtheUNDP/PSDformmaybemostevidentintheirlengthandwhentheyareapplied.TheRATisatwelve-pagedocumentwithquestionstowalkstaffthroughafive-stepprocess(SeeAnnex3tothisInvestigationReport).Thedescribedprocessbeginspriortooutreachtoaprivatesectorpartner(ifUNDPpursuesoutreach),andcontinuesafteroutreachifthepartnerisnotdisqualifiedfromengagingwithUNDP.Incontrast,theUNDP/PSDDueDiligenceformincludesthreepagesofquestions,withprimarily‘yes’and‘no’responses,andappearsexplicitlytailoredforuseonlyinprescreening.

MeasurestoAddressPotentialRisks:ExclusionaryCriteriaand‘SignificantControversies’forPre-Screening69. ThefirststepofthePolicyandRATistoconsiderlisted‘exclusionarycriteria’toexcludefromconsiderationprivatesectorentitiesthatinvolve‘highestrisk’engagements‘withsectorsoftheeconomyorbusinesspracticesthatareincompatiblewithUNDP’svision,missionandvalues,orcompaniesthatareinviolationofUNresolutionsorincludedonUNineligibilitylists.(Policy,pg.2).

70. Thesecriteriainclude,primarily,thoserelatedtothemanufacture,sale,etc.ofharmfulproducts,e.g.,gunsandtobacco,butalsoinclude,‘Violationofhumanrightsorcomplicityinhumanrightsviolations’andquestionsrelatedtolaborrights(Policy,pgs.3-5).

71. Thesecriteriaarerelevantwhenpotentialpartnersareinvolvedinactivitiesthroughsubsidiariesorthroughsupplychain/distributionactivities(Policy,pgs.3-5).9Morespecifically,UNDPisdirectednottoengagewithagivencompanywhenanexcludedactivityisoccurringviaabusinessrelationshipandtherelationshipmeetsacertainthreshold,i.e.,theexclusionarycriterion‘Violationofhumanrightsorcomplicityinhumanrightsviolations’requires‘Noengagementifpotentialpartnerowns>20%ofsubsidiary’(Policy,pgs.3-5).

72. TheBCtAProdoc’sAnnex2,whichdescribesthe‘DueDiligenceReviewProcess’forBCtA,similarlyreflectstheimportanceofexclusionarycriteriausedbyUNDP.Inonesection,theAnnexindicatesBCtAwillapplyallexclusionarycriteriausedbyUNDP–includingthecriteriadealingwithhumanrights.Itstates,‘TheRiskScreeningFrameworkapplies(sic)followingprocedure:Checkingagainstexclusionarycriteria…companiesfromanyindustrysectorareeligibleforparticipation,exceptthosecompaniesthatareinvolvedwith:…i)Violationofhumanrightsorcomplicityinhumanrightsviolations,j)Useortolerationofforcedorcompulsorylabor,k)Useortolerationofchildlabor’(Prodoc,Annex2,pg.71).

73. Annex2indicateselsewhere,however,thatBCtAwillcheck‘thecompanyagainsttheBCtA’sexclusionarycriteria’(Prodoc,Annex2,pg.70).TheseincludeonlythreeofUNDP’sexclusionarycriteria-tworelatingtothemanufactureofarmamentsandonerelatingtomarketingofbreastmilksubstitutescontrarytoWHOguidelines.Itomitsthehumanandlaborrights-relatedcriteriafromexclusionarycriteria.

74. ThelatterwastheapproachemployedintheUNDP/PSDduediligenceform;humanrightsandlaborcriteriawerenotincludedas‘exclusionarycriteria.’

75. ThisomissionofhumanrightsfromexclusionarycriteriaintheUNDP/PSDformcontrastsnotonlywiththeassertioninAnnex2thatBCtA’sRiskAssessmentFrameworkwouldincludethesecriteria,butalsowiththeexplicitattentiontohumanrightsfoundinAnnex6totheProdoc,titled,‘TheBCtA’sFocusonGenderInclusionandHumanRights’(Prodoc,pgs.85-87).

76. ThisAnnexdescribes‘areasinwhichtheBCtAincludesahumanrightsperspective,andagenderperspective’initswork,andexpressesacommitmenttoactonhumanrightsprinciplesthrough‘usingtheappropriatecriteriainscreeningapplicantcompanies’and‘trackinganyrelevantcontroversiesthroughthelifetimeofcompanies’affiliationwithBCtA(Prodoc,pg.85).SimilartothePolicy,theAnnexprovidesattentiontobothviolationofhumanrightsand

9Additionally,theGuidelinesfortheRATstate,‘BasedontheUNGuidingPrinciplesonBusinessandHumanRights,responsibilityforrespectinghumanrightsrequiresthatcompaniesseektopreventormitigateadversehumanrightsimpactsthataredirectlylinkedtotheiroperations,productsorservicesbytheirbusinessrelationships(businesspartners,entitiesinitsvaluechain,othernon-StateorStateentity),evenifthecompanyitselfhasnotcontributedtothoseimpacts’(Guidelines,pg.9).

complicityinhumanrightsviolations(usinglanguagesimilartothePolicyonthispoint).10Theparagraphconcludeswiththeobservationthat‘Shouldanyevidencebefoundofongoingviolationsduringtheduediligencereview,BCtAwillfollowUNDP’spolicytodiscontinueengagementwiththecompany’(Prodoc,pg.85).

77. DespiteBCtA’swrittencommitmentinAnnex6toactingonhumanrightsprinciplesthrough‘appropriatecriteriainscreening,’theformusedbyBCtAtoscreenpotentialpartners–theUNDP/PSDform-omittedexplicitattentiontohumanrightsnotonlyintheexclusionarycriteria,butalso,asdescribedbelow,inotherrelevantquestions.

78. Moreover,thisformabbreviatedattentiontoothersocialandenvironmentalconcerns(inadditiontohumanrights)inboththeexclusionarycriteriaandsubsequentquestions,includingthoserelatedto‘controversies.’

79. TheUNDP/PSDform,forexample,didnotincludethefollowinglistofillustrativeissuesthatareincludedintheRATtoensurefullconsiderationofpotential‘controversies.’(SeealsoAnnex4tothisreportforfullRAT):

2.1PotentialControversiesPotentialpartnercompaniesmaybeexposedtocontroversies.Annex2oftheRATGuidelinescontainsguidanceonhowtogatherinformation.Listbelowanycontroversiesthatarenotalreadycoveredinstep1.1.,i.e.controversiesnotdirectlyrelatedtoexclusionarycriteria.Usethecommentboxtoprovidedetailsofthecriticism.Controversiesmayrelatetoissuessuchas:Labor Governance

• Discriminationatwork• Freedomofassociationandtheright

tocollectivebargaining• Occupationalhealthandsafety• Pooremploymentconditions

• Corruption• Fraud• Taxevasion

Communities Product-related• Communityhealthandsafety• Impactonlivelihoods• Localparticipation

• Productsafety• Controversialproductsorservices• Marketingofbreastmilksubstitutes

10Itstates,‘BasedontheUNGuidingPrinciplesonBusinessandHumanRights,responsibilityforrespectinghumanrightsrequiresthatcompaniesseektopreventormitigateadversehumanrightsimpactsthataredirectlylinkedtotheiroperations,productsorservicesbytheirbusinessrelationships(businesspartners,entitiesinitsvaluechain,othernon-StateorStateentity),evenifthecompanyitselfhasnotcontributedtothoseimpacts.Theseincludeviolationofhumanrightsorcomplicityinhumanrightsviolations,useortolerationofforcedorcompulsorylabor,anduseortolerationofchildlabor,amongothers’(Prodocpg.85).

• Socialdiscrimination• Indigenouspeoples

contrarytotheWHO'sInternationalCodeofMarketingofBreast-MilkSubstitutes.11

Environment Ownershipormanagement• Pollution(includingclimatechange)• Impactonecosystemsand

landscapesOveruseofresources• Wastemanagement• Mistreatmentofanimals

• Controversiesrelatedtotheindividualsowningormanagingthecompany

SignificantcriticismfromlocalorglobalNGOs/media/socialmediaorothersignificantpartnersofUNDP(includingCSOadvisorycommittee,marginalizedpeopleetc.)locallyorglobally

Noevidence

EvidenceNot

knownSignificantcriticismfromgovernmentalagencies/politicalpartiesthatmakesUNDPparticipationpoliticallysensitive

Noevidence

EvidenceNot

knownRecurringlocalpubliceventsagainstthecompany(e.g.localdemonstrations)

Noevidence

EvidenceNot

knownGlobalpublicevents(e.g.significantdemonstrationsatseverallocations,significantonlineprotests)

Noevidence

EvidenceNot

knownRelevantlegalcaseinprogress/incourtetc. No

evidenceEvidenceNot

knownOther(specify): No

evidence

EvidenceNot

knownComments:[Comments]80. Finally,theRATdirectsUNDPstaffto‘providedetailsofthecriticism’inthecommentbox,andfurtherto‘Researchpubliclyavailablesources(e.g.searchforpublicstatementsfromthecompany),orcontactthecompanytoassesshowitaddressestheidentifiedsignificantcontroversies’andto‘Listtheseelementsinthecommentboxbelow’(RAT,pg.5).81. Incontrast,theUNDP/PSDformrequeststhatcontroversiesrelatingtoenvironmental,social,andcorporategovernancebedisclosed.82. DespitethelessdetailedrequestintheUNDP/PSDform,BCtAstaffdidlist,inthisformforBidco,severalrelevantcontroversiesinresponse.Itnotes,‘Thefollowingmoderate-risk

11TheWHO'sInternationalCodeofMarketingofBreast-MilkSubstitutesisavailableatWHOwebsite

controversieswereidentified:-LandgrabcontroversyinUganda:BidcowasaccusedoflandgrabbinginKalangalaDistrictinUganda,leavingthousandsdisplaced.Otherrelatedaccusationsincludedpoorlaborstandardsanddeforestation.However,UgandangovernmenthasclearedBidcoinlandclaim.Nevertheless,Ugandanfarmerswhowereevictedhavetakenthecasetocourt.Theproceedingsareongoing.IfthedecisionisnotinfavorofBidco,thereputationalrisksaresignificantgiventhecompany’scommitmenttoworkingwithsmallholderfarmers;-BidcoAfricainKenyasufferedfromissueswithpoorworkingconditionsforanumberofyears:2011workersstrikeparalyzedthefactory.ProtestsresurfacedinMarch2015;-Taximproprietyallegationsin2012:BidcoAfricacontestedincourtahugetaxbillfromtheKenyanTaxAuthoritieswherethecompanylostthecaseandhadtopay.”

83. Theidentificationoftheserisksatleastpartiallyfulfilledtherequirementtoassessrisks,butUNDPdidnotcharacterizetheserisksaccurately–orclearlyfollowupinasatisfactoryway.SeveraloftheseactivitiesclearlyposedrisksforUNDP,includingallegationsofso-called‘landgrabbing’inUganda,therelatedpendinglawsuitfiledbyUgandanfarmersclaimingtohavebeenevictedfromtheirlandfortheBidcoUgandaproject,andtheoccasionalworkerstrikesoverpoorworkingconditions.84. Moreover,theUNDP/PSDformdidnotprovidemoredetailsofthecriticism,indicatewhetherand/orhowUNDPstaffevaluatedthecontroversies,e.g.,whetherstaffeddiscussedthecontroversieswiththecompanyorothers,orindicatehowthecontroversieshadbeen,orwouldbe,addressed.NoanalysisofpossibleimplicationsfortheBCtAinitiativewasprovided(orrequestedintheform),and,perhapsmostsignificantly,theformdidnotincludeaspacetoidentifymeasuresthatmightpreventsimilarconcernsinthecontextoftheBCtAinitiative.85. Instead,inresponsetocontroversiesthatwerelisted,andverybriefanswerstoafewadditionalpre-outreachquestionsrelatingtosocialandenvironmentalconcerns,12UNDPstaffcharacterized(indocumentsandinin-personinterviews)socialandenvironmentalrisksrelatedtoBidcoas‘moderate,’andindicatedthatBidcowasastrongcandidateformembershipinBCtA.AcknowledgmentintheUNDP/PSDformthat‘ifthe[court]decisionisnotinfavorofBidco,thereputationalrisksaresignificantgiventhecompany’scommitmenttoworkingwithsmallholderfarmers’appearstohavebeenignored.86. IfUNDPstaffhadusedtherequiredRATform(withattentiontothefullPolicy),thisdecisiontoproceedwithengagementwithBidco,e.g.,viamembershipinBCtA,atthispoint-withoutanyadditionalduediligence,andwithoutanexplanationofhowpossibleriskscouldbeaddressed-likelywouldand/orshouldhavebeendifferent.Useoftheformwouldhavepromptedgreaterattentiontorisksandriskmitigationmeasures.

12ThesequestionsincludedhowthesectorisviewedbylocalcommunitiesatlargeandwhetherthecompanyisaparticipantintheUNGlobalCompactand/oradherestosustainabilityorethical-relatedprinciplesorguidelines,e.g.,VoluntaryPrinciplesonSecurityandHumanRights,EquatorPrinciples,etc.

87. UndertheRAT,ifthepartner’sfinancialcontributionislessthanUS$100,000andthesectorofactivityatthecenterofthepartnershipisnota‘highrisk’sector,adecisiontoadvance(ornot)withthepartnershipisappropriatewithoutadditionalduediligenceunlessthereisevidencethecompanyshouldhavebeenexcludedfromengagement(pursuanttotheexclusionarycriteria)orevidenceof‘significantcontroversies’(RAT,pg.12).88. BidcomadenofinancialcontributiontoBCtA,butthesectorofactivityatthecenterofthepartnershipmaybeconsideredrisky.Promotinginclusivebusinessisnotinherently‘highrisk,’butBidco’sproposedinitiativeforBCtAmembership–theFullValueChainInitiative–involvedagriculturalsupplychains.AsnotedinthePolicy,the‘Growingofcrops,includingpalmoilorotherlargemonocultures’maybeconsideredhighrisk,andforsuchsectors,‘anextracarefulapproachisrequired’(Policy,pg.5).89. Itisnotclearthecompanyshouldnothavebeenexcludedfromengagement–notallexclusionarycriteriawereincludedandconsideredduringduediligence.And,asdescribedingreaterdetailbelow,theevidencewasrelativelyclearerthatidentifiedcontroversieswere‘significant’andnotjustmoderate.Afindingof‘significant’controversieswouldhaverequiredafullassessment.90. UndertheRAT,afullassessmentrequiresattentiontoresponsestoarelativelylonglistofenvironmental,social,andgovernancequestions(RAT,pgs.7-10,andsee,also,Annex2tothisreport).91. ThesequestionswerealmostentirelyabsentfromtheUNDP/PSDform.Asnotedinparagraph78,theUNDP/PSDformaskedafewofthesequestions,includingthoserelatedtomembershipintheUNGlobalCompactandadherencetosustainabilityorethics-relatedprinciplesorguidelines,butthemajorityofotherpertinentquestionswereomitted.92. IfallquestionsintheRAThadbeenused,orifothermeasurestoidentifyandaddressrisksassociatedwithUNDPengagementwithmembercompaniestoBCtAhadbeenadoptedbyUNDP,staffmighthavegivenmorethoroughconsiderationtopossibleconcernsidentifiedintheUNDP/PSDformandApplicantSummary–someofwhichweremirroredinthecomplaint.93. Itispossible,forexample,thatifUNDPhadrespondedtoquestionswithanexplicitfocusonhumanrightsandcomplicity,UNDPmighthavegivenmorethoroughconsiderationtoBidcoAfrica’srelationshiptoBidcoUganda,theOPULproject,andthelandrightsanddisplacement-relatedclaimsandtheirrelevance(orirrelevance)totheBCtAinitiative.94. Tobeclear,thisobservationinnowayimpliesthatBidcohas,orhasnot,violatedhumanrightsoriscomplicitinhumanrightsviolations.ThemandateofthisinvestigationandreportextendsonlytodeterminationsrelatedtoUNDP’scompliancewithitsown

standardsandprocedures.95. However,amorethoroughconsiderationofconcernslikelywouldhavebeenprudent.BidcoAfricaanditsFullValueChainInitiativemaynothavebeendirectlyinvolvedinactivitiesthatwerethesubjectofthecomplaint–indeed,severalintervieweesindicatedthatthecomplaintwasunwarrantedbecauseBidcoAfricaandtheproposedinitiativeinKenyawerenotdirectlyrelatedtoactivitiesofBidcoUgandaandOPULinUganda.However,BidcoAfricahasatleastfinanciallinkstoBidcoUgandaandtheKalangalaoilpalmprojectreferencedinthecomplaint.13AUNDPstaffmemberwiththeBCtASecretariatindicatedinanemailthatBidcoUgandais‘ajointventurebetweenWilmarGroup…andBidco[Africa]withfinancingfromIFAD.’Accordingtoseveralwebsites,includingtheOPULwebsite,OPULisasubsidiaryofBidcoAfrica.14ArecentIFADreportstates,‘Kalangalaisthefirstphaseofalonger-termPPPbetweenthegovernmentandBidcoOilRefineriesLtd.ofKenya(Bidco)’15(nowknownasBidcoAfrica).Additionally,sinceBidcoAfricalendsitsnametoBidcoUganda,thereisbrandingandreputationalsupportfromBidcoAfricatoBidcoUganda.96. Additionally,moredetailedquestionslikelywouldhaveledtomorein-depthconsiderationoflaborrights-relatedconcernsatBidcoAfrica’soperationinKenya(concernspreviouslyraised),andpossibleimplications(includingthepossibilityofnoimplications)forsupplychainlaborersinKenyainvolvedinBidco’sBCtAInitiative.

DueDiligenceandFindingof‘ModerateRisk’forBidcoMembershipinBCtA97. WhenaskedabouttheprocessforarrivingatthefindingofmoderateriskwithnoobviousrecommendationstoavoidconcernsinthecontextoftheBCtAinitiative,staffprovidedthefollowingreasons:16(1)thegovernmentofUgandaandthecompanyhad

13http://www.bul.co.ug/about-us.html14Thewebsitenotes,forexample:“…OilPalmUgandaLimitedaBIDCOsubsidiarybasedonKalangalaIsland,signedanagreementwiththeUgandaGovernmenttoundertakeanintegratedpalmoilprojectontheislandintheyear2002.KalangalaOilPalmProjectwasandstillispartoftheUgandanGovernmentVegetableOilDevelopmentProject(VODP)initiativegearedtowardsincreasingVegetableoilproductioninUganda.TheprojectissupportedbyIFADandtheWorldBankwithBIDCOandWilmarPlantationsplayingamajorroleastheprivateinvestors.”athttp://www.bul.co.ug/palm-oil-uganda.html,and:“TheOilPalmprojectinKalangalaisaGovernmentinitiatedandledprojectthroughVODP(VegetableOildevelopmentProject)withotherinvestorsthroughaJointVenturebetweenWilmarGroupofMalaysia,JosovinaCommoditiesofSingaporeandBidcoOilRefineriesofKenyaeachaleaderintheirfield.ThejointventurebetweenthethreeformedOilPalmUgandaLimitedandBidcoUgandaLimited”athttp://www.bul.co.ug/palm-oil/history.html.Seealso.http://www.bul.co.ug/about-us.html;http://www.monitor.co.ug/Business/Commodities/Bidco-dismisses-land-grab-claims-Kalangala-farmers/-/688610/3091206/-/jrgpktz/-/index.html15IFADandInstituteofDevelopmentStudies(IDS).(2015)BrokeringDevelopment:EnablingFactorsforPublic-Private-ProducerPartnershipsinAgriculturalValueChains,SummaryofUgandaCaseStudy16BCtAStaffalsodeclaredrelianceonIFC’sduediligencerelatedtoaprojecttoexpandBidco’sThika-basedplantandconstructanewfactoryonthesamelandinKiambuCounty,Kenya.Noneoftheduediligencedocumentation

indicatedthatBidcowasnotinvolvedinthelandacquisitionprocess–andthegovernmenthad,inthatsense,‘clearedBidco’intermsofland-relatedclaimsandconcerns;(2)therehadyetbeennofinding–specificallynodeterminationofculpability-inthelawsuitrelatedtoBidco,Bidcoexpressedawillingnesstoabidebyanycourtdecisionandindicatedallotherissueshadbeenresolved,andtheexternalentityusedbyUNDPtoinformunderstandingsofrisksrelatedtoagivenprivatesectorcompanyindicatedthatpendinglawsuitsposeonlymoderaterisks;(3)the2013IFADreportsupportedtheideathattheprojectwasmorebeneficialthanharmfulandsocialandenvironmentalconcernswerelargelyaddressed,andotherlocalfarmerassociationssubmittedstatementsindicatingasmuch;and(4)BidcowasamemberoftheUNGlobalCompact.

UNDP’sDueDiligenceFindingthatLand-relatedClaimsWerenotSignificant98. AmongtheseveralreasonsUNDPstaffprovidedfortheirdecisionthatcontroversieswerenot‘significant’includedpoint(1)-thatBidcodidnotdirectlyengageinlandtransactionsfortheproject;thesewerehandledbytheUgandangovernment.99. UgandangovernmentofficialsandaBidcoUgandarepresentativeconfirmedthatthegovernmentwasresponsibleforacquiringtheland.SaidarepresentativefromBidcoUganda,‘Allthestakeholderswaswillingbuyer/willingseller….Alllandmustbepurchasedbythegovernmentandthengiventousforuse.’17Agovernmentrepresentativeindicated:‘Thedistrictidentifiedthisland,surveyedit,andgaveittoUgandaLandCommissionwhothenleasedittoBidco.Therewasprivate–youownitandyousellittotheUgandaLandCommission.Theycalledpeopleandtheycametobuyandsellwillingly.TheGovernmentwasbuying,inthenameofLandCommission.’18100. Moreover,bothdescribedthatBidcoUgandahadindicateditdidnotwantthegovernmenttoacquirelandthatwasbeingclaimedbyindividuals,andthatitsoughttoresolveoutstandingdisputeswithindividualsafterlandwasacquired.‘Wenevertouchedaplacewheresomeonewasalreadycultivatinganarea.Wewalkedparceltoparcel,didthesurvey.Iftherewerecropswedidn’ttouchit.Wealsoleft200metersofbuffer.Thismeant2,500haendedupnotbeingused.’19101. InformationgatheredduringtheinvestigationindicatedthatwhileBidcoUgandawasnotdirectlyinvolvedinacquiringlandforcropsforitsrefinery,itknewof,reliedon,andencouragedthispurchasebythegovernment.BidcoUgandaalso,apparently,wasengagedindecisionsanddiscussionsrelatedtothepurchase.TheseactivitiesmeanIFhumanrights

forBidco’ssupplychaininitiativereferredtothisIFCprojectand,asaresult,there’snounderstandingoftherelationshipbetweentheIFCduediligenceandtheduediligencenecessaryforBidco’smembershipintotheBCtA.1725May2016in-personinterviewwithSECU.1827May2016in-personinterviewwithSECU.1925May2016in-personinterviewwithSECU.

violationswereestablished(thisreportdoesnotreachadeterminationofBidco’sculpabilityornotwithregardtoviolationsofhumanrights),Bidcocouldbecomplicitintheseviolations.102. Inthisregard,asindicatedbrieflybelow,thisinvestigationdeterminedthathumanrightsconcerns(includingcomplicityissues)relatingtothelandacquisitionaboutwhichcomplainantshaveconcerns,were‘live’–ofgreatconcerntoatleastsomecommunitymembersandunresolvedlegally.PotentialimpactsbothtoUNDP’sreputationandforlocalcommunitiescouldandshould,therefore,havebeenmorerobustlyconsideredduringtheduediligencereview.103. AlthoughBidcoUgandabelievesthedisputeisaboutonlyonelocation,stating,‘Thedisputeweweretalkingabout-thereisonlythisoneplace…’20morethanonepersonclaimstohavebeenimpactedbytheBidcoUgandaproject(butstillintheKalangalaDistrict);in-personinterviewsindicatedconcernsfromotherindividuals.Meetingswithagroupofindividualsincludedassertionsthat29familieswerewronglydisplaced.MeetingswithseveralwomenwhoclaimtohavebeenresettledfromlandnowusedbyBidco(forthe‘nucleusestate’),providedthefollowingassertions:(1)theywereeithernotcompensatedornotinformedoftheiroptionsanddidnotfeelabletonegotiateorrejecttheoffermade;(2)whenmoneywasprovided,theamountwasmuchlowerthananamountthatwouldhaveallowedthemtopurchasenewland–thepriceoflandincreasedsignificantlyafterplansbythegovernmentandBidcobecameknown;(3)theyarenowlivinginashantytown,wheregrowingfoodisnotpossible,andtheyhavenomeansofmakingmoneytopayfortheirneeds;(4)theyarelivingwithoutthefathersoftheirchildrenbecausethereisnowayforthesementomakealivingintheshantytown.Someofthesewomenclaimtohavebeenonthelandformorethantenyearsandbelievetheyhadcustomaryrightstothisland.Othershadoccupiedthelandforlessthantenyears.21SECUmakesnodeterminationregardingtheseassertions,asthisisbeyondthescopeofthisinvestigation.TheseclaimsarenotedbecausetheypresentcontroversiesthatshouldhavebeenfurtherconsideredduringBCtA’sdue-diligenceprocess.

104. Frominterviewsitappearsthat,foratleastsomeofthelandacquired(possiblymostofthelandrelatedtothecomplaints),negotiationsoccurredwiththeregisteredownersoftheland–someofwhomweremailoownerswhoseownershiprelatedtocolonialoccupationandhadnotlivedonorusedthelandforasignificantnumberofyears.Inthissituation,theoccupantshadbeenpayingtheregisteredlandownernominalrent,but,apparently,werenotinvolvedinnegotiationsrelatingtogovernmentexpropriationoftheland.Occupantswereexpectedtodiscusscompensationand/orotherformsofredressfortheirevictionwiththeregisteredowner.Oneintervieweeexplainedthearrangement,‘…thiswasalocalarrangementbetweenthelandlordandhistenants.Thedistrictwasnotinvolved.Theydidtheirpart.Thestandwasthatyounegotiatewithyourtenants.Someofthemwantedtogoto

2025May2016in-personinterviewwithSECU.2126May2016in-personinterviewwithSECU.

courtcallingthemsquattersanditwassaidifyoutakethemtocourtwearenotbuying....Itwassaidgositwiththesepeopleandagree.Ifyouagree,thenyoubringevidencetheyhavesigned,andyouwillbepaid[forpurchaseoftheland].’22

105. Oneintervieweewhohadfarmedlandformorethantwentyyearsdescribedthatnegotiationsbetweenhimandthemailoownerbrokedownbecausehebelievedtheoffertohimfromthetitledownerwasinadequate.Heclaimshehascustomaryrightstolands,butwithoutformalregistration–aprocessthatisunclearanddifficultforhim.23

106. AUSAIDanalysisindicatesthatUganda’s2009LandActrecognizesthatoccupancyofcustomarylandforacertainnumberofyearsconveyslegalrights,butalsonotesthatUgandantenantswithunregisteredcustomaryrightsdofacesignificantchallengesandpressures.Itnotes,‘Thereare13stepstoregisteringpropertywhichtake227daystocompleteandcostseveralmillionUgandaShillings(Ush)(WorldBank2009a;2009b).Mostunregisteredlandisundocumentedcustomaryland.Themajorityofpoorpeopledonotholdgrantedrightsofoccupancy,oftenbecausetheylacktheknowledge,capacity,andresourcesneededtonavigatetheapplicationprocessandmeetthetitleconditions.Unregisteredlandisvulnerabletoexpropriationbythegovernmentandgrabbingbypoliticalandeconomicelites—anincreasinglycommonoccurrence.’24

107. Someinterviewees,includingrepresentativesfromBidcoandthegovernment,indicatedthatoutstandingclaimstolandwereexaggeratedandrequestsforcompensationoutsidereasonablebounds.25

108. Otherinterviewees–includingindividualswithknowledgeofthesituationbutnotapparentlybenefitingfromorharmedbyBidcoactivities–believebothsideshavevalidpoints.Onesuchintervieweeindicatedaperceptionthatwhilesomeclaimsbycomplainantswereexaggerated,otherswereaccurateandwarrantedaresponse.Thisindividualconcurredthatoptionslikelywerenotcleartoindividualsoccupyingthelandand‘negotiating’withtitledowners,thatmostoccupantslackedthecapacitytounderstandthepersonalandeconomicimplicationsofsellingtheirland(e.g.,‘peoplewantedthatquickmoney’‘but‘Ifyousellyourlandyouarejustmakingyourselflandlessanddeprivingyourself’),andthatthepriceoflandskyrocketed(e.g.,landthatwaspurchasedfor80thousandshillingmaynowbeworth10millionshilling).Thispersonfurthernoted,forexample,thatatleastoneindividual,‘hadalegitimateclaim.Exceptnow…isinflating.Theonlyproblemwiththisissueisagreeingontheamountofcompensation.Andeventheseotherpeople…itwasnotgrabbingland…itwas

2228May2016in-personinterviewwithSECU.2326May2016in-personinterviewwithSECU.24USAID,August2010.USAIDCountryProfilePropertyRights&ResourceGovernanceUganda,http://www.usaidlandtenure.net/uganda.2525May2016and28May2016in-personinterviewswithSECU.

failingtoagreeoncompensation.’26Thisintervieweealsoindicatedthattheprojecthasbeenbeneficialforothers.

109. ThedeterminationofBidco’sculpabilitywasbeingconsideredbytheUgandancourtsystemthroughapendinglawsuit.Giventhesignificantrisksrelatedtoissuesraised,itwouldhavebeenprudenttoreservejudgmentonmembershipuntilthiscourtcasewasresolved.

UNDP’sDueDiligenceFindingthatPendingCourtCasePresented‘ModerateRisk’110. Regarding(2),andUNDP’sduediligencedeterminationthatthependinglawsuitagainstBidcobylocalfarmerswarrantedafindingofonlymoderaterisk:staffagreedthat,althoughBidcohadnotbeenfoundculpable,Bidcohad,conversely,notbeenfoundnotculpable.Assuch,staffacknowledgedthat,ifBidcoweretolosethelawsuit,impactstoUNDPandBCtA,e.g.,reputationalrisks,wouldbesignificantgiventhatthecompany’sinitiativethroughBCtArelatestoworkwithsmallholderfarmers.

111. Thisacknowledgmentsuggeststhatstandarddefinitionsof‘risk’inthiscontext–including,inparticular,riskascorrespondingtoafutureuncertaineventthatmayimpacttheachievementofobjectives-maynothavebeenconsideredfullybyUNDPwhenfillingouttheUNDP/PSDform.IfafutureverdictagainstBidcomightsignificantlyimpactUNDPandBCtA,asacknowledgedbyUNDPstaff,risksrelatedtoinvolvementwithBidcolikelyshouldhavebeenconsideredsignificant.Moreover,aculpableverdictmightnotonlyposesignificantreputationalrisksforUNDP,butalsoindicatepossiblysignificantrisksforlocalcommunities.

UNDP’sDueDiligenceFindingthatExternalReviewsProvidedAdequateReassurancethatRisksWereInsignificant112. Concerningpoint(3),above,UNDPwasreassuredbyanIFADreport,aswellastatementandrepresentationsbysomefarmers’associations,thatbenefitsoftheprojectaresignificant,andkeysocialandenvironmentalconcernsaddressed.

113. Indeed,anApril2013IFADreport–IFAD’sfirstcountryprogrammeevaluationinUganda,whichassessedtheIFAD-Ugandapartnershipovertheperiod1997-2011,27indicatesthatsupportforoilpalm(includingIFAD’sfinancialsupport),‘hasahighprobabilityofhelpinghouseholdsescapepovertyforgoodwhilealsohavingahighlypositiveimpactonthefuturetradebalance.’Additionally,Bidco’s‘refinery,millandnucleusestateprovidemuchneededjobs;andBidco’slocalfirmOPULhasbecomeoneofUganda’slargesttaxpayers.’Itnotestheconcernthat‘smallholdershavenoalternativemarketoutletandareentirelydependentonthebehaviorandperformanceofBidco.Thus,potentiallythereisariskofexploitation.’It

2627May2016in-personinterviewwithSECU.27IndependentOfficeofEvaluation,IFAD.Number23,April2013,‘Valuechaindevelopmentthroughpublic-privatepartnerships:opportunitiesandchallengesforsmallfarmers.’

indicatesinresponse,‘However,Bidcohas,inlinewithitspastrecord,demonstratedsocialandenvironmentalresponsibility…andsignificanteffortswerealsoinvestedinorganizingandempoweringthesmallholdersandensuringthemafaircontractwithBidco/OPUL.’Anin-personmeetingwithanIFADrepresentativeindicatedmuchthesame,‘Webelievetheprojecthasoneofthehighestimpactsintheregion-1,700farmerssofarearning900-1000netperhectare,whichisabsolutelymuchhigherthanwhatevertheyweregettingbefore.Overallimpactisabsolutelyimpressive….’28

114. UNDPstaffandtheIFADreportnotedthattheKalangalaOilPalmGrowersAssociation(KOPGA),anassociationoflocalfarmers,indicatedsupportfortheBidcoinitiative.AFebruary2016lettersubmittedbyKOPGAtoUNDPAdministratorHelenClark,afterthecomplaintwasfiledtoSECU,describesthatKOPGAincludes1800farmerswhosupportandbenefitfromtheinitiative.

115. However,asubsequentreportbyIFADandtheInstituteofDevelopmentStudies(IDS)highlightsnotonlymanyofthebenefitsdescribedintheearlierIFADreport,butalsoseveralnegativeunintendedconsequences–includingsomereflectedinthecomplaint.Intermsofbenefits,theExecutiveSummarystates,‘EvidencesuggeststhatthePPPhascertainlygeneratedsignificantlivelihoodandemploymentopportunitiesinKalangala–formerlyoneofthecountry’spoorestandmostremotedistricts,withlimitedlivelihoodoptionsbasedonsubsistencefarmingandfishing(dominatedbymen).ThePPPhasincreasedhouseholdassets,formalizedtenurerightsformanysmallholders(andexpandedlandholdingsforsome,includingwomen)andprovidedmorestableincomes(manyfamiliesreportedbeingabletoaffordtosendchildrentoschoolasaresult).Ithasovercomethechallengesfacingsmallholdersbyprovidingaguaranteedmarketfortheirproduce,andthroughmechanismstosetpricesbasedonmarketrates.Ithasalsobroughtmanynewjobopportunities(inthemill,processingplant,andtheconstructionandservicessectors),whileimprovementstoinfrastructure(particularlyroadsandanewferryservice)havebenefitedtheentirelocalpopulation.’29

116. OnnegativesdescribedintheExecutiveSummary:‘Buttherehavealsobeensomelesspositiveoutcomes.Manyofthenewjobopportunitieshavebeenfilledbymigrants,puttingpressureonlocalhealthandeducationservices.Therisingpriceoflandasaresultofthedevelopmenthasincreasedtensionsandledtorisingconflicts,particularlyassomeabsenteelandownershavebeguntoreturn.Thereareconcernsaboutlonger-termimpactsonhouseholdfoodsecuritywhentheoilpalmtreesbecometoolargetoallowintercropping.Andtheenvironmentalimpactshaveledtoagreatdealofpublicscrutiny,particularlygiventhesizeoftheinvestment.Finally,athouseholdlevel,therehasbeenareportedincreasein

2825May201629InstituteforDevelopmentStudies(IDS)andIFAD.2015.BrokeringDevelopment:EnablingFactorsforPublic-Private-ProducerPartnershipsinAgriculturalValueChains,AcasestudyoftheOilPalmPPPinKalangala,Uganda.https://www.ifad.org/documents/10180/479f2ed6-c77f-4acc-8474-62e7cc0d1b90

domesticconflict,althoughmorepositiveimpactsareevidentintermsofwomen’sempowermentandbuildingcapacityoffarmers’organisations.’30

117. Anadditionalobservationechoingcomplaintconcernsisprovided:‘Anotherunintendedconsequenceisthesignificantriseinthepriceoflandontheisland(fromUGX150,000peracrein2002to800,000in2008).Whilethisisbeneficialforpoorfarmerswantingtoselllandoruseitascollateralforloans,itriskspoorerfarmerslosinglandtheyusedtoaccessthroughtraditionaltenuresystems.Alawsuithasrecentlybeenfiledbyfarmerswhoclaimtheywereevictedfromtheirlandillegally.Absenteelandownershavealsobegunreturningtothearea,causingproblemsforfarmerswhohadnotregularisedtheiroccupancyrights.Aroundtwo-thirdsofparticipantsinthefocusgroupsreportedgreaterincidenceoflandconflictssincetheintroductionofoilpalm.’31

118. Althoughallofthesereportssupportapparentbenefitsforalargepercentageofthepopulation,thelatestreportreflectssignificantsocialandenvironmentalconcernsthatwerenotclearly,robustlyconsideredinUNDP’sduediligence.

UNDP’sDueDiligenceFindingthatMembershipinUNGlobalCompactReducedRisk119. UNDPstaffalsofeltreassuredaboutBidcobecauseofBidco’smembershipintheUNGlobalCompact,andexpressed,‘…themoderateriskmeansthereareissuesweshouldbeawareof,butthecompanyhaspoliciesinplacetomitigateimpactssuchasthecommitmenttoGlobalCompact,theirinternalpoliciesandcommitmenttohumanrights.Thegrievancemechanismthatcompanyhasinplace.’32

120. Itappearsthatdetailsaboutthismembershipwerenotrequested,anditisnotapparentfromtheUNDP/PSDformorApplicantSummaryhowthecommitmenttotheGlobalCompactensures‘policiesinplacetomitigateimpacts’orthatBidcohasaneffectivegrievancemechanisminplacetorespondtoindividualandcommunityconcerns.

121. CommentsprovidedbytheUNGlobalCompactinresponsetoadraftofthisinvestigationreportsuggestthatUNDPshouldnotrelyonUNGlobalCompactscoresforitsduediligenceinthiscontext.Thesecommentsareasfollows:‘AsmentionedontheUNGlobalCompactwebsites"TheUNGlobalCompactisnotaperformanceorassessmenttool.Itdoesnotprovideasealofapproval,nordoesitmakejudgmentsonperformance."ItisalsoexplainedthatnewapplicationsforparticipationarecheckedagainstaglobaldatabasetoseeifthecompanyconcernedisthesubjectofasanctionorothermeasurebytheUNSecurityCouncilorotherinternationalinstitution,whichisreasonforexclusion,aswellasbeinginvolvedinthemanufacture,saleetc.ofanti-personnellandminesorclusterbombs.Anyotherinformation

30Id.31Id.3230May2016in-personinterviewwithSECU.

fromthedatabaseissharedwiththeLocalNetworkwherethecountryislocatedaskingifthereisanygoodreasontheyareawareofwhythecompanyoughtnottobepermittedtojointheinitiative.NoobjectionswereraisedonBidcoAfricaattimeofitsapplicationtojointheUNGlobalCompact,hencethecompanywasadmittedasaparticipantinOctober2009.However,itshouldbenotedthatthecomplaintthatistheobjectofthisreportwasnotraisedatthetimeofthecompany'sapplicationtojointheinitiative.TheUNGlobalCompactisavoluntaryinitiative,andthereforedoesnotpoliceorenforcebehaviororactionsofcompanies.RathertheinitiativeencouragescompaniestoreporttheirsustainabilityactionstotheirstakeholdersthroughtheUNGlobalCompactplatform-theCommunicationonProgress(COP),anannualreportthatdetailsthecompany'sworktoembedtheTenPrinciplesintostrategiesandoperations,aswellaseffortstosupportsocietalpriorities.BidcolastsubmittedaCommunicationonProgresson25October2016andisin“Active”standing(COPthatmeetstheminimumrequirements).“Active”levelisthemiddleratingfortheUNGlobalCompact,above“Learner”andbelow“Advanced.”Thenextoneisdue25October2017.’

UNDP’sDueDiligence,ApplicantScreening,andInformationGathering122. Abroaderissuemadeapparentduringtheinvestigationrelatestoinformationgatheringandverificationinthecontextofduediligenceandevaluatingtheinitiative.Staffappearedtorelyheavilyonassurancesfromthecompanythat(1)theinitiativewas/wouldbesupportedbylocalcommunities;(2)thegoalsstatedintheinitiativewereattainableandrealistic;and(3)pastconcernsrelatedtoBidcowereresolved(orwouldbeafterthelawsuitconcluded)andirrelevanttotheinitiative.

123. TheApplicantSummaryformdidnotincludeanyadditionalevidencethatintendedbeneficiaries(the‘poor’)oftheinitiativebelievedpotentialcommitmentsproposedbyBidcowouldbeachievableandfairandthatthesebeneficiarieswelcomedtheinitiativeasproposed.

124. Similarly,theUNDP/PSDDueDiligenceformdoesnotindicatehowcompany-providedinformationwasverified.

125. ThePolicy,RATandGuidelinesindicatethatcollectinginformationfromacompanyisaneffectiveandefficientapproachtoinformationgathering,butalsonotethatassertionsshouldbeverified–includingthroughdocumentationfromthecompanyandconsultationswithcommunitiesifcommunity-relatedconcernsarepartoftheBCtAinitiative,etc.

DueDiligenceandMemberCompanies:MakingaDecision126. UnderthePolicy,RAT,andGuidelines,thefourthstepintheduediligenceprocessisadecisionaboutwhetherornottoproceedwithengagement,basedonthecompletedduediligenceandincludingarisk/benefitanalysisofthepartnership.Thisdecisioncanincludeconditionsthatshouldbeputinplaceforthepartnershiptobeworthpursuing.

127. ThereisnoindicationintheUNDP/PSDformthatanyadditionalassessmentorconditionswerepossibletoaddressanyidentifiedrisks.

DueDiligenceandMemberCompanies:MonitoringImplementationofPlans128. ThefinalstepinthePolicy,RAT,andGuidelinesistodeveloparisklog,amonitoringplantofollowpossiblecontroversiesrelatedtothepartnerandassesswhetherpartnerismeetingconditionsofpartnership,andcommunicationsmaterial.

129. TheUNDP/PSDDueDiligenceFormincludesnosuchstep.

DueDiligence–ObservationsbyBCtAstaff130. InameetingheldwithUNDPstaffintheBCtASecretariat,UNDPstaffagreedthatarobustduediligenceprocesstoavoidexploitationisimportant,asisatransparentrobustgrievancemechanism.Communities,itwasagreed,shouldbeempowered.33

OtherConcerns–Transparency131. Inadditiontoscreeningandassessmentofpotentialmemberinitiativesandduediligencetoassesspotentialpartners,UNDPrequiredattentiontotransparency,includingtransparencyrelatedtoresultsofthescreening,assessmentandduediligence.

132. InthecontextofBCtAthiswouldhaverequiredmakingresultsofscreeningandassessmentoftheBCtAProdocpublic.

133. Atthelevelofengagementwithpotentialmembercompaniestotheplatform,thePolicysimilarlyrequiresattentiontotransparency.‘UNDPisapublicorganizationandcooperationwiththeprivatesectormustbetransparent,withinformationonthepurposeandscopeofthecollaborationbeingavailabletothepublic.Developingaccountableandtransparentgovernancestructures,settingmeasurabletargets,andhavingarobustmonitoringandreviewingframeworkalsoreinforcesthetransparencyofthepartnership.RelevantinformationaboutthepartnershipshouldbemadeavailableonUNDP’swebsite(Policy,pg.12).ResultsofsuchduediligenceareimportantforcommunitiespotentiallyhelpedandharmedbytheBCtAinitiatives–itisespeciallyimportanttoprovidethesecommunitiesinformationandanopportunitytoexpresssupportfororconcernaboutapotentialBCtAmembercompanyinitiativeintendedtobenefitthem.TheentireBCtAprojectisdescribedascommunity-focused,toempowerthoseinpoverty,andthusthereleaseofBCtAmemberinitiativedetails,inappropriatelanguagesandexplainedatalevelwherepeoplecan

3330May2016in-personinterviewwithSECU.

understandtheissues,isparticularlyimportant.VI. RecommendationsScreeningofBCtAandDueDiligenceRelatedtoMemberInitiativesWerecommendthattheUNDPProject/ProgrammeManagerintheBCtASecretariatperformthefollowingtasks:134. ScreentheBCtAPhaseIIprojecttoidentify:(a)socialandenvironmentalrisksandpotentialimpactsassociatedwithprovidingaplatformforinclusivebusinessandwithdownstreamengagementsofUNDPwithprivatesectorentities;and(b)measurestoavoidandmitigatetheserisksandimpacts;135. Relatedly,forprospectivemembersoftheBCtA,requireuseofthePolicyonDueDiligenceandPartnershipswiththePrivateSectorcomplementedbythecompleteRiskAssessmentTool(RAT).IfthefullRATisnotapplied,explaininwritingandindetailwhyitisnot,andindicatehowkeyconcerns,e.g.humanrights,environment,andlabor,willotherwisebeaddressed.34136. ForBidco’smembershipinBCtA,providedocumentationconsistentwithUNDP’sfullPolicyonDueDiligenceandPartnershipswiththePrivateSector,thecompleteRiskAssessmentTool,andGuidance,toensurethatduediligencewithrespecttoBidco’smembershipinBCtAisadequateandoutcomesoftheduediligencesupportBidco’scontinuedmembershipinBCtA.137. Ensureattentiontothecorrectdefinitionof'risk'duringthescreeningprocess,and,inparticular,changeconsiderationof'risk'fromriskthatexistsafterpossiblemitigationmeasurestoriskasitexistspriortomitigationmeasures,e.g.,riskascorrespondingtoafutureeventthatmayimpacttheachievementofUNDP’sobjectives.138. RevisetheProdoctospecifyhowkeystakeholders,includingindividuals/communitiespotentiallysupportedthroughBCtA-relatedactivities,canknowabout,andbeinvolvedin,initiatives,i.e.,describehowtheprimarybeneficiariesofBCtAinitiativeswillhaveadequateinformationandopportunitiestoengageinBCtAinitiative-relatedprocessesandtosharetheirthoughtsonhowtheprojectandinitiativescanbestsupportthemand/ornotimpactthem.139. RevisetheProdoctoensurethatwhentheBCtASecretariatreliesonaffiliationswithotherentities,e.g.,theUNGlobalCompact,topartiallyallaypotentialconcernsrelatedto

34TheBCtAhasindicatedtoSECUtheyhavebeenusingtheapplicableRATsinceOctober2015

socialandenvironmentalrisks,documentationrelatedtoapotentialmember’sadmissionintotheallianceindicateshowtheaffiliationsupportsmembershipandindicatesthefullextenttowhichthememberiscomplyingwithstandardsofthatentity.

EligibilityofMemberCompaniestotheBCtAWerecommendthatUNDPSeniorManagementensurethefollowing:140. BCtAmembershipcriteriaisrevisedtoensureattentiontosocialconcerns(includingfundamentalhumanrightsconcerns,e.g.,fairpay/wages,healthyworkingconditionsandnon-exploitationinthesupplychain,etc.,inadditionto‘integrationintocompanyvaluechains’),andenvironmentalconcernsinthecontextofeachinitiative.141. Theprocessforassessingeligibilityisclearandrobust.Morespecifically,describeingreaterdetailhoweligibilitydecisionsaremade.IsUNDPtheprimarydecisionmaker?HowmuchtimedoDSCmembershavetoaskquestionsandreceiveinformation?Issilenceclearlyacquiescence?etc.142. SeparationexistsbetweenstaffinvolvedindevelopingrelationshipswithprivatesectorcompaniesandstaffmakingrecommendationsanddecisionsrelatingtomembershipinBCtA(consistentwithRATGuidelines).143. Membershipbenefitsandtenurearetiedexplicitlyandcloselytotheinitiative.MembershipinBCtAisfocusedonthecapacityandwillingnessofthemembertoadvanceinclusivebusinessinthecontextofaspecificbusinessinitiativeproposedbythemember.BenefitsofBCtAmembership,including,particularly,BCtA‘verificationandvalidation’shouldbetiedtheinitiative-includingonthememberwebsiteandinmembermaterialsandpresentations.Additionally,thecriteriaandprocessforcontinuedmembershipin,andbenefitsfrom,BCtAaftertheconsideredinitiativehasendedshouldbemoreexplicitandinwriting.SuchanactionwouldrespondtothePolicyrequirementtomaintainimpartialityandprovide‘noimpliedendorsement’ofanyprivatesectororganization‘whichmightleadtounintendedconsequences….’Additionally,createformalstandardsforhowamemberwouldbedelisted.

RespondingtoGrievancesWerecommendthatUNDPSeniorManagementensurethefollowing:144. AformalgrievancemechanismexistswithintheBCtAforreceivingandrespondingtocomplaintsallegingthatagivencompany’smembershiporrelatedinitiativemayharmcommunities.ThismechanismshouldbeprominentlyadvertisedontheBCtAwebsite.

Monitoring

145. ConsistentwithSection11ofSECU’sInvestigationGuidelines,SECUwillmonitortheimplementationofalldecisionsbytheUNDPAdministratoronthebasisofthisreportwithinoneyear.

Annex1.UNDP’sminimumEnvironmentalandSocialStandards(priorto31December2014)–asreflectedinUNDP’sPOPPSocialandenvironmentalsustainabilityisfundamentaltotheachievementofdevelopmentoutcomesincludingtheMDGs,andshallbesystematicallymainstreamedintoUNDP’sProgrammeandProjectManagementCycles.Opportunitiestostrengthensocialandenvironmentalsustainabilityshallbeidentifiedattheearlieststageofprogrammeandprojectdesign,realizedthroughimplementationandtrackedthroughmonitoringandevaluation.Aprecautionaryapproachshallbeapplied,andpotentialadverseimpactsandrisksshallbeavoidedor,whereavoidanceisnotpossible,adverseimpactsshallbeminimized,mitigatedandmanaged.Assuch,UNDPshallstrivetoensurethatitsprogrammesandprojects:

• Shallnotknowinglyengageinprogrammesorprojectsthatareincontraventionofdomesticorinternationallaw.

• Ensureeffectiveandinformedparticipationofstakeholdersintheformulationandimplementationofprogrammesandprojects.

• Providefairandequitableaccesstobenefitsinamannerthatisculturallyappropriateandinclusiveanddoesnotimpedeequalaccesstobasicservices(includinghealthservices,cleanwater,energy,education),safeanddecentworkingconditions,housing,andlandrights.

• Contributetoreducinggenderinequalitiesinaccesstoandcontrolovertheresourcesandbenefitsofdevelopment.

• Respectandpromotethehumanrightsprinciplesoftransparency,accountability,inclusion,participation,non-discrimination,equalityandtheruleoflaw,andstandardsderivedfrominternationalhumanrightslaw.

• Fosterfullrespectforindigenouspeoplesrighttoself-determination,humanrights,andculturaluniqueness;ensureindigenouspeoplesfullandeffectiveparticipationindesigning,implementing,andmonitoringprogrammesorprojectsthataffectthem;applytheprinciplesoffree,priorandinformedconsent(FPIC)asitisdefinedintheUNDGguidanceonIndigenousPeoples.

Annexes

• Avoidtheneedforinvoluntaryresettlement.Wheninvoluntaryresettlementisunavoidable,UNDPshallstrivetoensurethatdisplacedpersonsareinformedoftheirrights,consultedontheiroptions,andofferedtechnicallyandeconomicallyfeasibleresettlementalternativesorfairandadequatecompensation.

• Enhanceclimateresiliency,reducewaste,maximizeenergyefficiency,andminimizematerialresourceuse(includingharmfulchemicalsandpesticides),inordertominimizethereleaseofpollutantstotheenvironment,avoidunwarrantedincreasesingreenhousegasemissions,andavoidpotentialriskstohumanhealth.

• Supportthesustainablemanagement,protection,conservation,maintenanceandrehabilitationofnaturalhabitatsandtheirassociatedbiodiversityandecosystemfunctions.Thisincludesavoidingtheintroductionofknowninvasivespecies,andtheconversionordegradationofcriticalnaturalhabitats,includingthosethatare(a)legallyprotected,(b)officiallyproposedforprotection,(c)identifiedbyauthoritativesourcesfortheirhighconservationvalue,or(d)recognizedasprotectedbytraditionallocalcommunities.

• Conservephysicalculturalresourcesandavoidthealteration,damageorremovalofanyphysicalculturalresources.Physicalculturalresourcesincludearchaeological,paleontological,historical,architectural,andsacredsitesincludinggraveyards,burialsites,anduniquenaturalvalues.

Annex2.SummaryofIndividualswhomSECUInterviewedduringInvestigationBusinessCalltoActionAllianceStaff

- Director,IstanbulInternationalCentreforPrivateSectorinDevelopment- ProjectDirector,BusinessCalltoActionAlliance- FormeractingProjectDirector,BusinessCalltoActionAlliance- InclusiveBusinessKnowledgeandPartnershipsLead,BusinessCalltoActionAlliance- OutreachandCountryWorkLead,BusinessCalltoActionAlliance

Complainants

- 4individualswiththeNationalAssociationofProfessionalEnvironmentalists- 1namedComplainant

ResidentsofKalangala,Uganda

- 20(approximately)localresidentsofKalangaladuringatownhallmeeting- SeverallocalwomeninshantytownsonKalangala

IndependentExpertsandotherRelevantStakeholders

- ManagingDirector,BidcoUganda- CountryRepresentative,UgandaCountryProgrammeManager,IFAD- ProjectManager,VegetableOilDevelopmentProject,MinistryofAgriculture,Animal

IndustryandFisheries,GovernmentofUganda- DistrictChairperson,KalangalaDistrict,Uganda

UNDPStaff

- SeniorAdvisor,CorporateStrategyandGovernanceUnit,ExecutiveOffice- ProgrammeSpecialist,ExecutiveOffice- PolicySpecialist,SocialandEnvironmentalStandards,BPPS

Annex3.AttachedUNDPPolicyonDueDiligenceandPartnershipswiththePrivateSectorAnnex4.AttachedUNDPPrivateSectorRiskAssessmentToolAnnex5.AttachedUNDP/PSDForm

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