Statement on Social and Environmental Compliance Unit (SECU) report on Business Call to Action (BCtA)

Feb 10, 2017

The United Nations Development Programme (UNDP) is committed to upholding the highest social and environmental standards in all its programmes and projects and related partnerships.

UNDP’s Social and Environmental Standards seek to ensure that adverse risks and impacts of UNDP programmes to people and the environment are avoided, minimized, and mitigated. Application of the standards is mandatory across UNDP.

UNDP therefore welcomes the recommendations of the Office of Audit and Investigation’s (OAI) Social and Environmental Compliance Unit (SECU), in response to allegations of non-compliance in UNDP’s Business Call to Action (BCtA) Project Alliance Phase II.

UNDP is taking urgent and concrete measures to ensure the report’s recommendations are implemented.

In light of the report, the UNDP Administrator has called on BCtA to adopt UNDP’s Policy on Due Diligence and Partnerships with the Private Sector in screening all BCtA applicants.

In addition, the Administrator requested the BCtA Secretariat to present a plan that will ensure compliance with UNDP’s corporate policies and Social and Environmental Standards and will strengthen risk mitigation throughout the engagement with private sector partners. 

Finally, in line with the recommendation of SECU’s report, UNDP commits to conducting by 31 March 2017 a full due diligence process of the company “Bidco” in accordance with UNDP’s Policy on Due Diligence and Partnerships with the Private Sector. This due diligence process should inform follow-up decisions of the BCtA Donor Steering Committee regarding future engagement with Bidco.

UNDP fully recognizes the important role that the private sector plays in the achievement of the Sustainable Development Goals and values opportunities for partnership with corporations in line with our social and environmental safeguards and the due diligence policy.

 

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