GEF policies: progress and next steps Roland Sundstrom Senior Policy Officer September 25, 2018

timeline Project and Program Cycle (June 2016) Monitoring Agencies’ Compliance (Oct 2016) Gender Equality (Nov 2017) Stakeholder Engagement (Nov 2017) Co-Financing (June 2018) Environmental and Social Safeguards (Dec 2018) Access to Information (Dec 2018) Minimum Fiduciary Standards (2019) Monitoring and Evaluation (2019) timeline

environmental and social safeguards: process IEO review (May 2017) GEFSEC plan (Nov 2017) Working Group (Feb 2018) Gap Analysis (March-April) 1st draft for input (June) 2nd draft for input (August) Sept 30: comments Oct: draft guidelines Dec: Council meeting

environmental and social safeguards: draft policy at a glance agency minimum standards portfolio monitor. and reporting projects and programs environmental and social safeguards: draft policy at a glance GEF Conflict Resolution Commissioner

environmental and social safeguards: comments agency minimum standards portfolio monitor. and reporting projects and programs environmental and social safeguards: comments application scope time frame no weakening of existing provisions GEF Conflict Resolution Commissioner

environmental and social safeguards: comments agency minimum standards portfolio monitor. and reporting projects and programs environmental and social safeguards: comments purpose scope timing Secretariat’s role GEF Conflict Resolution Commissioner

environmental and social safeguards: comments agency minimum standards portfolio monitor. and reporting projects and programs environmental and social safeguards: comments role capabilities GEF Conflict Resolution Commissioner

environmental and social safeguards: implementation guidelines for documentation, monitoring and reporting; compliance assessment assessment of agency compliance capture of data and information through GEF Portal sharing knowledge

For further details, please find the latest draft policy on the GEF website: http://www.thegef.org/events/consultations- updated-gef-policy-environmental-and-social-safeguards Please send any comments on the draft policy by September 30, 2018 to Mr. Roland Sundstrom (ksundstrom@thegef.org); Ms. Minna Kononen (mkononen@thegef.org); and Ms. Seo-Jeong Yoon (syoon@thegef.org)

minimum fiduciary standards Minimum Fiduciary Standards for GEF Agencies (2007) Pilot Accreditation of GEF Project Agencies (2011) all Agencies in compliance (2015) Secretariat’s plan (Nov 2017) AML-CFT (June 2018) review (ongoing) Findings, proposal to close immediate gaps on AML-CFT (Dec 2018) Complete, updated standards (2019) minimum fiduciary standards

minimum fiduciary standards: current policy objective: to strengthen the financial and programmatic accountability of the GEF core principles: professional standards, independence, transparency, monitoring and response, and value for money I. Project/Activity Processes and Oversight Criteria I.1 Project Appraisal Standards I.2 Procurement Processes I.3 Monitoring and Project-at-Risk Systems I.4 Evaluation Function II. Governance Framework Criteria II.1 External Financial Audit II.2 Financial Management, Control Framew. II.3 Financial Disclosure II.4 Code of Ethics II.5 Internal Audit II.6 Investigation Function II.7 Hotline & Whistleblower Protection

minimum fiduciary standards: AML-CFT “The Council requests the Secretariat […] close any immediate gaps related to [AML/CFT] in accordance with the [following] principles […]”: standard practices and procedures; United Nations Security Council decisions taken under Chapter VII of the UN Charter; and inform the Council if funds are not being used or have not been used for the implementation of a project or of any illegal or corrupt practice

minimum fiduciary standards: Agency responses Questionnaire sent out on Sept 13 minimum standards have catalyzed efforts to strengthen Agency systems Agencies have arrangements to monitor the effectiveness of their policies and systems, although some still have limited implementation experience many Agencies have in place a policy/ procedure/ standard practice/ approach on AML-CFT 2/3 of Agencies have not yet responded

minimum fiduciary standards: other areas for further consideration monitoring and reporting on implementation information on investigations related to GEF-financed projects implementation and execution functions risk-based approach? addressing the diversity of the GEF Partnership

minimum fiduciary standards: next steps complete questionnaire by Oct 5 follow-up interviews proposal on AML-CFT

assessing Agencies’ compliance Agency policies, procedures, systems and capabilities E&S safeguards fiduciary standards gender equality stakeholder engagement

assessing Agencies’ compliance: process questionnaire completed/ relevant sources of evidence provided by Agencies initial review by the Secretariat for availability and completeness of information expert review and recommendation Council review and decision

assessing Agencies’ compliance: next steps Fall 2018: draft guidelines for assessment on E&S safeguards, gender, stakeholder engagement Jan 2019: guidelines finalized, assessment process launched Fall of 2019: first report to Council 2020: assessment against revised fiduciary standards (TBD)

thank you ksundstrom@thegef.org Project and Program Cycle (June 2016) Monitoring Agencies’ Compliance (Oct 2016) Gender Equality (Nov 2017) Stakeholder Engagement (Nov 2017) Co-Financing (June 2018) Environmental and Social Safeguards (Dec 2018) Access to Information (Dec 2018) Minimum Fiduciary Standards (2019) Monitoring and Evaluation (2019) thank you ksundstrom@thegef.org