Human rights-based approach

Respect for universal human rights is fundamental to sustainable development. BIO implements the principles of duty of care/do no significant harm regarding human rights in order to avoid causing harm and to maximise positive impact. Integrating human rights in the investment process is essential for BIO to deliver on its mission, while sending a strong signal of our commitment to staff, clients and external stakeholders

HRBA

BIO commits to respect all human rights listed in the International Bill of Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work. We commit to act in accordance with international human rights standards as set out in the United Nations Guiding Principles on Business and Human Rights (UNGPs) and the OECD Guidelines on Multinational Enterprises, including the OECD Guidelines for Responsible Business Conduct for Institutional Investors. To deliver on this human rights commitment, BIO has integrated human rights into its organizational structure and investment process, as detailed below.

BIO will implement this approach in its direct investments in SMEs and infrastructure projects. Projects, sectors and countries with the highest human right risks, such as agricultural value chain projects, projects in fragile countries, and projects with land legacy issues will be prioritized. For indirect investments, BIO ensures that the investee has an E&S Management System in place, and will expect clients operating in more risky sectors to implement a human rights approach.

Assessing impact

BIO's impact assessment begins by screening potential investments against exclusion lists (including child labour and forced labour) from BIO's management contract and the Harmonized EDFI Exclusion List. Eligible projects are then categorised by environmental, social, and human rights risks, and undergo reputational checks. BIO uses a contextual human rights risk analysis tool to understand country/sector-specific risks. Approved projects receive in-depth analysis based on IFC Performance Standards and UNGPs, covering various E&S and human rights topics. Due diligence is adapted based on the contextual risk analysis, with targeted assessments (e.g., worker rights, child labour in supply chains) conducted as needed. Direct engagement with rights-holders and stakeholders (workers, communities, unions, NGOs, UN agencies, etc.) is essential to identify adverse impacts and design mitigation measures. BIO assesses the client's capacity and willingness for ongoing stakeholder engagement, and may commission additional studies for more complex human rights risks.

Taking action

Upon identifying human rights risks in a project, BIO will either create an Environmental & Social Action Plan (ESAP) to mitigate and prevent potential impacts, or terminate the project if the risks are deemed too severe. For systemic or sector/country-specific risks, BIO will foster dialogue with stakeholders in Belgium, international human rights centres, and partner countries to advocate for improved laws, practices, or capacity building. All measures agreed upon with the client, including general E&S clauses requiring respect for human rights, will be incorporated into the contractual agreement.

Tracking performance

Monitoring is crucial for preventing and addressing human rights risks, just as the pre-contractual stage is. BIO closely monitors human rights prevention and mitigation measures outlined in the ESAP and contractual agreement, engaging with stakeholders during monitoring visits to incorporate their views. Clients are expected to maintain continuous engagement with workers and communities. BIO includes human rights in client reporting requirements and regularly reassesses contextual risks to identify emerging issues. Any adverse human rights impacts are addressed in collaboration with clients and affected rights-holders.

Grievance mechanism

BIO maintains a grievance mechanism, aligned with UNGP effectiveness criteria, enabling stakeholders to raise concerns before they escalate. An independent review confirmed its adequacy for BIO's operations. BIO also mandates that clients have their own grievance mechanisms for addressing project-related issues. Critically, BIO protects human rights defenders and whistle-blowers, prohibiting any retaliation against those who criticise or protest its investments.

Access to remedy

BIO's responsibility for remedying adverse human rights impacts depends on its level of involvement: causing, contributing, or being directly linked. If BIO causes an impact, it must cease the action and provide remedy. If it contributes, it must cease the action, use leverage to mitigate remaining impacts, and contribute to remediation. If only linked, BIO must use leverage to prevent/mitigate and facilitate remediation. While investors may sometimes contribute (e.g., with significant managerial control), they are usually only linked, requiring them to demand remediation from the investee. Each party (business, state, BIO) is responsible for its own involvement. Remedies vary depending on the harm, context, and rights-holders' views, but must prioritise repairing injustice and restoring dignity. A key limitation is the unclear legal framework regarding BIO's use of funds for remediation. Remedy is distinct from legal liability, which is determined by national legal systems. Nevertheless, BIO is committed to improving its approach, implementing UNGP and OECD Guidelines, working with clients on remedies, and being transparent.

Responsible exit

BIO integrates human rights considerations into its exit assessments and strategies, evaluating E&S achievements and lessons learned in Project Completion Reports. More detailed human rights exit assessments may be conducted for high-risk contexts, projects with ESAP compliance delays, or those with complaints/grievances. Early exit is an option when BIO lacks leverage to mitigate adverse human rights impacts, though such decisions are complex, involve trade-offs, and require careful, case-by-case consideration.

Organisational learning

To ensure proper implementation of its human rights policy, BIO will provide training to all staff, both upon onboarding and through regular refreshers. The policy itself will be reviewed after two years to assess its effectiveness and ensure BIO is meeting its human rights responsibilities.