In July 2016, Vigeo Eiris, one of the world’s leading Corporate and Social Responsibility (CSR) rating agencies, completed its biennial assessment of the African Development Bank (AfDB) and found the Bank’s overall CSR performance as advanced in absolute terms, a one notch upgrade from the previous rating of robust.
AfDB was given a score of 63 out of 100 possible points, a 10-point increase from the previous rating, and is ranked third within its peer group, which, since the last rating review, has expanded from eight to 10 multilateral development banks. The rating and accompanying scores mark a significant improvement in Vigeo Eiris’ assessment of AfDB’s CSR performance, reflecting an ever-increasing focus and attention dedicated to all environmental, social and governance (ESG) related matters at the Bank.
According to Vigeo Eiris, “AfDB displays a homogenous approach to the management of its ESG impacts, achieving an advanced performance in all three pillars (environment, social and governance). The institution’s Environmental strategy pillar addresses the material issues related to its business operations, and environmental and climate safeguards are implemented. As for the Governance pillar, ESG issues appear to be integrated in the governance strategy with material ESG issues discussed at board meetings and the related risks covered by internal controls. As regards the Social pillar, AfDB discloses extensive measures to foster consultation of Stakeholders in its projects and thematic policies. In addition, tools have been set up to monitor the achievement of its development goals in its member countries.”
AfDB saw improvements in five out of six CSR categories, including the Environment, Human Rights, Community Involvement, Business Behavior and Corporate Governance.