Parliamentary Search

Written question asked by Caroline Lucas (Green Party) on Tuesday, 29 March 2022, in the House of Commons. It was due for an answer on Thursday, 31 March 2022. It was answered by Amanda Milling (Conservative) on Wednesday, 6 April 2022 on behalf of the Foreign, Commonwealth and Development Office.

Mozambique: Gas Fired Power Stations

Question

To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, what assessment her Department has made of the environmental, social and governance risks associated with CDC Group’s commitment to finance the Temane gas project in Mozambique, via its subsidiary Globeleq.

Answer

BII (formerly CDC) is wholly owned by the UK Government through its shareholder FCDO. FCDO's shareholder interest is represented via the BII Board, which is accountable for all business and operational decisions. In line with best practice governance arrangements, FCDO is not involved in BII's individual investment decision-making.

Globeleq is not a subsidiary of BII but an independent company with two shareholders (of which BII is the majority shareholder), a fully constituted board, an Environmental, Social and Governance (ESG) committee and investment committee which examine the risks of any investments, including from ESG perspectives. The Temane gas project is a project developed and invested in by Globeleq, and ESG aspects and risks were discussed at the various boards and committees of Globeleq.

BII conducts business integrity and environmental, social and governance assessments for its direct investments. As part of its new strategy, BII has further enhanced its Policy of Responsible Investing applicable to future investments, available here: https://assets.cdcgroup.com/wp-content/uploads/2021/12/14074359/Policy-on-Responsible-Investing.pdf.

Secondary information

Type
Written question
Reference
149222
Session
2021-22
Subjects
Finance Gas fired power stations Mozambique CDC Globeleq
Link
View this Written question on www.parliament.uk