DRAFT IFC/MIGA INDEPENDENTACCOUNTABILITY MECHANISM (CAO) POLICY

Background, Overview of Policy, and Key Changes to CAO Process
Public Consultation
Informational Session
April 12, 2021

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What is the IFC/MIGA
Compliance Advisor
Ombudsman (CAO)?
CAO is the independent accountability and recourse
mechanism for IFC and MIGA. CAO’s purpose is to:• facilitate the resolution of complaints from people
who may be affected by IFC & MIGA projects;• enhance the environmental and social outcomes ofIFC/MIGA projects; and• foster public accountability and learning to improveperformance and reduce the risk of harm to people
and the environment.

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Background: External Review & Policy Development
We are here
Roadmap
endorsed by IFC& MIGA Boards

JuneOctober

External Review
completed;
CAO/IFC/MIGA
Working Group tasked
to prepare roadmap

Informal stakeholder
feedback from
Reference GroupJanuary

Policy outline
developed andendorsed by IFC &MIGA Boards

February

Draft CAO Policy
to Board
committees

MarchProgress report
to Board
committees onpolicy draftingApril

Revisions todraft Policy
following public
consultation

May45-day public
consultation on draft
CAO Policy begins

June

Approval ofCAO Policy &shift of CAO’s
reporting line toBoards, July 1,2021

Final draft CAO
Policy to Board
committees
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Overview: Draft IFC/MIGA Independent
Accountability Mechanism Policy (“CAO Policy”)• Draft Policy responds to recommendations from Board-led External Review• Drafted by Joint CAO/IFC/MIGA Working Group using a principles-based
approach which generated constructive solutions to a range of issues.

• Builds on CAO’s Operational Guidelines and 20+ years of practice; reflects
review recommendations and internal/external stakeholder feedback.
• Articulates CAO’s mandate, principles, and functions, with clear andtransparent processes—ready for shift of CAO’s reporting line to the Boards.
• Feedback from public consultation will inform final draft Policy for review
and approval by Boards in June 2021.

Draft Policy remains subject to change following further review &comments from Boards

Official UseDraft Policy Builds on Current CAO Framework
Proposed Final Framework

Current Framework
CAO Terms ofReference
External Review recommendations
and internal & externalstakeholder feedback
CAO OperationalGuidelinesCAO, IFC & MIGA
Guidance Documents(including CAO
Handbook)

IFC/MIGA
Independent
Accountability
Mechanism
Policy(CAO Policy)

CAO, IFC & MIGA
Guidance Documents

Official UsePublic Consultation Process
Draft Policy provided for 45-day public consultation April 5 May 19, 2021

Series of virtual meetings with complainant groups, civilsociety, IFC/MIGA clients, development finance institutions,
independent accountability mechanisms, other stakeholders.
Consultation website will host draft Policy documents,
translations and information materials. Written comments
can be submitted in an online form or by email.
Feedback from consultations will be used by Working Groupto inform finalization of the Policy for review and approval by
the Boards in June 2021.
Disclaimer: The draft CAO policy is a consultation draft that has not been endorsed or cleared by the IFC and MIGA Boards.
The draft remains subject to change following further review and comments from the Boards.
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Policy Highlights
1. Balanced to Optimize Effectiveness••••

Reinforces CAO’s independence with Board oversight
Affirms value of all 3 CAO functions
Procedural fairness & transparency
Project-level outcomes & institutional learning

2. Promotes Access to CAO with Early Resolution ofComplaints• Complainant choice• Opportunities for IFC/MIGA & client early
engagement/early resolution• Project-level information about CAO & other grievancemechanisms• Integrated threats & reprisals approach

3. Clear and Predictable Processes• Clarified eligibility criteria• Clarified compliance processes, including Management
Action Plans• Clear timelines/expectation for case handling

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Key Changes to CAO Process #1:
Governance
Change in CAO’s reporting line from the President to the Boards
strengthens CAO’s governance and independence from Management,addressing a key recommendation from the External Review.
✓ CAO’s reporting line – Changed from the President of WorldBank Group to the IFC and MIGA Boards of Directors tostrengthen CAO’s governance and independence.
✓ Head of CAO – Title changed from CAO Vice President to CAO
Director-General (CAO-DG) to align with reporting line to theBoard.

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Key Changes to CAO Process #2:
Eligibility of Complaints
CAO’s eligibility criteria clarified and refined while maintaining
complainant access and choice.
✓ FIs & supply chain – Greater clarity in policy regarding
eligibility of complaints related to financial intermediaries(FIs), suppliers, sub-contractors.
✓ Pre-Board approval – Complaints on projects yet to beapproved by Board will not be eligible.
✓ Post-Exit – Complaints on projects post-IFC/MIGA exit will
now be eligible in exceptional circumstances up to 15 months
post-exit.
✓ Prior efforts – Not a requirement, but a new check made by
CAO during eligibility screening on prior efforts to address
issues with IFC/MIGA or client. Complainant retains choice ofaccess to CAO.
Official UseKey Changes to CAO Process #3:
Assessment
Assessment process largely the same with reduced timeframe andopportunity for early resolution of issues by IFC/MIGA and client.
✓ Timeframe – Assessment period reduced to 90 business days.
CAO-DG may extend assessment to 120 business days basedon defined criteria.
✓ Early resolution – IFC/MIGA may support constructive
resolution of issues during assessment process, with theconsent of complainants and client/sub-client.
✓ Disclosure of complaint – Complaints posted on website
together with CAO assessment report at end of assessment
process. Client may choose to provide response, which will
also be posted.
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Key Changes to CAO Process #4:
Dispute Resolution
Dispute resolution process now includes explicit complainant consent
for transfer to compliance and potential for IFC/MIGA engagement.
✓ IFC/MIGA engagement in process – IFC/MIGA may be invited
to participate in CAO dispute resolution process whereappropriate and agreed by complainant and client.
✓ Transfer of Cases – Cases no longer automatically transferredto compliance where partial / no agreement reached throughdispute resolution. Complainant to provide explicit consent,otherwise case will close. Exception made if concerns ofthreats & reprisals.

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Key Changes to CAO Process #5:Compliance (Appraisal)
Clarified appraisal process with opportunity for early action by IFC/MIGA
to address compliance concerns before investigation.
✓ Compliance appraisal – Criteria clarified and IFC/MIGA management
and/or client may provide a response when case transfers tocompliance.
✓ Decision to investigate – CAO-DG makes decision to investigate.
IFC/MIGA Executive Vice President may request Board review inexceptional circumstances. Board review will be based on technicalcriteria and timebound.

✓ Deferral – CAO-DG may defer decision to investigate if
Management response includes specific commitments commensurate
to the issues raised in the complaint. Timeline for deferral typically nomore than 6 months.
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Key Changes to CAO Process #5:
Compliance (Investigation)
Investigation process strengthens roles of complainant, client andIFC/MIGA in remedial actions to address non-compliances and harm.
✓ Complainant review & comment – Opportunity for factual review
and comment on draft investigation report, with appropriate
confidentiality measures in place.
✓ Client review – During factual review, IFC/MIGA may share thedraft investigation report with clients.
✓ Management Action Plans (MAPs) – Timebound remedial
IFC/MIGA action plans to address non-compliances and related
harm. MAP process includes consultation with complainants &engagement with clients.
✓ Monitoring – CAO will verify effective implementation ofcorrective actions in Board-approved MAP.
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Key Changes to CAO Process #6:
Advisory
Advisory process enhances collaboration with IFC/MIGA and provides
greater flexibility in format of advisory work.
✓ Collaboration with IFC/MIGA – CAO will seek ways of working
collaboratively with IFC/MIGA, and other actors as appropriate,when developing advisory work while maintaining independence.
✓ Greater flexibility in the format of advisory work – Written
reports, interactive tools, and in-person learning will enhance
impact through well-targeted and timely products.

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Key Changes to CAO Process #7:
Threats & Reprisals
Threats & reprisals approach integrated in the draft Policy.
✓ Explicit reference to Threats & Reprisals – Draft Policy explicitlyindicates CAO, IFC and MIGA’s commitment to take threats
and reprisals seriously.
✓ Steps to address retaliation concerns – Includes steps for CAO toaddress concerns and risks arising from threats and reprisals
related to its processes or activities.
✓ Integrated in policy – Threats and reprisals referenced in core
principles, complaints processes, and outreach.

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Key Changes to CAO Process #8:
Outreach
Outreach mandate reiterated, including the role of IFC/MIGA inraising awareness about CAO and applicable grievance mechanisms.
✓ Project-level disclosure – IFC/MIGA to work with clients todisseminate information at the project-level about CAO and its
availability as a recourse in case other mechanisms for dealing
with harmful project impacts are not successful.

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Key Changes to CAO Process #9:
Access to Information andDisclosure
Full CAO access to IFC/MIGA project-related information and clarified
regime for information disclosure in CAO reports.
✓ Access to client information – Required contractual provisions to permit
CAO access to client's project records and to project site for purpose ofcarrying out CAO’s role under the policy.
✓ Disclosure of E&S information – Presumption in favor of disclosure ofE&S information in CAO reports while maintaining confidentiality ofsensitive commercial information. Disclosure by CAO of non-public
environmental and social information in summary form, subject toIFC/MIGA Access to Information Policy and other applicablerequirements.

✓ Resolution of disclosure issues – Resolution of disclosure issues between
CAO and IFC/MIGA through dialogue, including with Board Committee
Chair and Vice-Chair.
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Key Changes to CAO Process #10:
RemedyAccess to remedy defined in policy and reflected explicitly and implicitly
throughout CAO process.
✓ Access to remedy – Explicit reference that CAO facilitates access toremedy for project-affected people in a manner that is consistent withinternational principles related to business and human rights included
within the Sustainability Framework.

✓ Compliance – Focus on harm and remediation in compliance process,including Management Action Plans✓ Advisory – Advisory work to help reduce risk of harm
✓ Responsiveness – Early resolution and increased responsiveness byIFC/MIGA and support to clients.
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For more information about the consultation process through May 19, 2021, visit:

http://www.cao-policy-consultation.org
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