Rahman Ravelli consider how MDBs can tackle ESG violations

The possibility of multilateral development banks (MDBs) playing a leading role in tackling ESG (environmental, social and governance) violations was assessed by Rahman Ravelli.

In an article, they say that MDBs would probably have to adopt a new sanctionable practice in relation to ESG. They also state that MDB investigators would require specific training in this area as ESG violations would need to be examined differently to corrupt practices.

Rahman Ravelli emphasise both the wide range of ESG violations and that it is unlikely that MDBs will be equally responsive to all of them. This, they explain, is due to investigators not being appropriately trained and lacking awareness of how to examine all violations and prioritise ESG considerations.

Rahman Ravelli argue that as public scrutiny increases in ESG matters, MDBs will need to take a more considered approach to tackling such violations. They outline the argument regarding whether debarment is an appropriate sanction for ESG violations and refers to how the scope and length of such a course of action can determine its effectiveness.

They conclude that MDBs have a major role to play in tackling ESG violations but warns that this is a matter that requires more than a “one size fits all’’ approach.

Rahman Ravelli article was published by MIPA (the MDB Integrity Professionals Association).