East Africa Clean Cooking Expansion

On 27 November 2024, the EIB Group Complaints Mechanism (EIB-CM) received a complaint that was submitted by an individual regarding the East Africa Clean Cooking Expansion project (the project). The complainant made allegations of incidents of sexual exploitation, abuse and harassment (SEAH) and unfair dismissal of employees of Burn Manufacturing Mauritius Ltd (the company) in relation to these incidents. 

Work performed

During its assessment, the EIB-CM found that in 2023 the European Investment Bank (the EIB or the Bank) had appraised the project in line with the then applicable environmental and social (E&S) procedures and rightly concluded that the company had an adequate environmental and social management system (ESMS) in place to manage social and labour risks. The EIB-CM reviewed the relevant documentation provided by the company to the Bank at appraisal and confirms the existence of company’s policies and procedures covering risks of SEAH and job security.

The EIB-CM found, however, that the gender assessment as documented by the EIB in the context of its appraisal of the project focused on the positive impacts on gender equality and did not include information on the identification and management of possible gender risks. The EIB-CM found that the company had taken measures to handle the SEAH incidents and related unfair dismissals according to its policies and reportedly improved further its processes to prevent and handle such incidents. On this basis, the EIB-CM does not find necessary to further investigate the company’s compliance with the regulatory framework.

The EIB-CM also found that the Bank was not informed of the incidents (SEAH and unfair dismissals) at the time of signature and thereafter, which is not in line with the requirements under the finance contract. The regular reporting requirements in the finance contract cover positive impacts on gender equality but not work-related gender risks, which is not in line with EIB E&S Standard 8. 

Conclusion

Therefore, the EIB-CM suggests that the Bank formally remind the company of the incident reporting obligation set forth in the finance contract and agree to add complementary gender indicators to the annual reporting of the company in line with EIB E&S Standard 8, so that these also cover gender (including GBVH) risks and grievances, if any.

The limited documentation of gender risks assessment in the project appraisal and with regard to the project’s monitoring by the Bank results from the fact that the EIB did not yet update its E&S procedures dating from 2013 (to operationalise the EIB’s 2022 E&S Standards) nor finalise guidance to ensure the systematic assessment and proper documentation of gender risks in EIB due diligence of the projects it finances. These elements were identified as priority items in the 2016 EIB Gender Strategy and action plans. The EIB-CM notes that this finding (insufficient consideration of gender risks at appraisal stage partly explained by the absence of procedures and implementation guidance) is shared by the independent evaluation of the EIB Group Strategy on Gender Equality and Women’s Economic Empowerment. The Evaluation function of the EIB made a recommendation to the Bank to strengthen EIB social due diligence guidance and procedures to ensure careful consideration of gender-specific risks. An action plan with the services of the Bank is currently being finalised to implement this and other recommendations issued in the context of this evaluation¹. 

Outcome

On this basis and in line with paragraphs 2.2.1 and 2.3.3 of the Complaints Mechanism Procedures, the EIB-CM finds that it is already able to form an independent and reasoned opinion on the allegations raised in the complaint at the initial assessment stage, and that a further compliance review is not justified. Therefore, the EIB-CM decides to close the complaint with the issuance of this Conclusions Report.

Monitoring

The EIB’s implementation of the suggestion for improvement mentioned above is under EIB-CM monitoring.

(1) As of the date of publication of the report, the EIB has updated its online procedures.