19
Recommendation
Ninth Report - Investment for developme…
Accepted in Part
BII must ensure that its entire portfolio is aligned with the UK Government’s development agenda. With a diminished ODA budget there is more pressure to target development assistance towards the poorest and most marginalised groups: consequently, there is a greater responsibility for BII to actively manage its portfolio. It should …
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BII must ensure that its entire portfolio is aligned with the UK Government’s development agenda. With a diminished ODA budget there is more pressure to target development assistance towards the poorest and most marginalised groups: consequently, there is a greater responsibility for BII to actively manage its portfolio. It should place a greater emphasis on the impact delivered with the money it controls.
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Government response AI summary
The government partially accepts, agreeing ministers should maintain scrutiny over ODA and BII allocations. While stating BII annually monitors development impact for active investments since 2012 and current monitoring is appropriate, the FCDO will review in 2024 whether additional external spot checks are needed to …
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Foreign, Commonwealth & Development Office
20
Recommendation
Ninth Report - Investment for developme…
Accepted in Part
To deliver accountability and transparency and to operate in lockstep with the International Development Strategy, BII must assess the impact of its portfolio under previous strategy periods and actively manage its portfolio. BII must perform annual assessments of the impact delivered by all of its portfolio investments, including those businesses …
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To deliver accountability and transparency and to operate in lockstep with the International Development Strategy, BII must assess the impact of its portfolio under previous strategy periods and actively manage its portfolio. BII must perform annual assessments of the impact delivered by all of its portfolio investments, including those businesses that are invested in through financial intermediaries. BII must divest from those investments that do not have a clear development objective and do not 58 Investment for development: The UK’s strategy towards Development Finance Institutions align with the International Development Strategy. In conclusion to these concerns expressed by the Committee and some that submitted evidence, we recommend the Minister maintain closer scrutiny on the whole budget and the proportion of the ODA budget allocated to BII. At a time of limited availability of the development budget, the taxpayer needs assurance that Official Development Assistance is used to support the world’s poorest people in the most effective way.
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Government response AI summary
The government partially accepts, agreeing ministers should scrutinize the ODA budget and BII allocations. While stating BII already annually monitors impact for active investments since 2012 and that current monitoring is considered appropriate, the FCDO will review in 2024 whether additional external spot checks are …
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Foreign, Commonwealth & Development Office
22
Recommendation
Ninth Report - Investment for developme…
Accepted in Part
BII must prioritise the monitoring and reporting of investment activity and transparently report its financial and impact data. This should include, but not be limited to: (a) the number and type of jobs created, (b) types and value of capital mobilised, (c) the 2X Challenge assessment of its portfolio according …
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BII must prioritise the monitoring and reporting of investment activity and transparently report its financial and impact data. This should include, but not be limited to: (a) the number and type of jobs created, (b) types and value of capital mobilised, (c) the 2X Challenge assessment of its portfolio according to the five 2X Challenge criteria, (d) how the 2X classification has improved an investee company above employment levels currently found in the market for a given country. BII must also adhere to publishing a full annual listing of its investments in coal, oil and gas so an external assessment can be made on its progress against its Climate Change Strategy and a net zero portfolio, as previously recommended within our 2021 report on UK Climate Action and International Development around COP26. The data should be complete for all BII’s investments, published in a timely manner and allow for comparability over time. Where investments have not achieved their planned annual impact outcomes, BII should disclose the reasons for any short-comings and set out its plan for recourse.
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Government response AI summary
The government partially accepts, agreeing on the importance of monitoring and reporting. BII will publish a Transparency Roadmap and begin disclosing qualifying criteria for new 2X investments, while already reporting on some impact data. However, it does not explicitly commit to publishing a full annual …
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Foreign, Commonwealth & Development Office