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What is Oikocredit’s policy on child labour?

Oikocredit has a list of activities/projects that it will never finance, including arms productions, explosives or other dangerous materials, which would cause serious damage to the environment. This list includes the use of child labour, as this is regarded as unacceptable. Exploiting children for cheap labour immediately excludes a project from Oikocredit financing.  Child labour, as defined by the ILO, is children’s work of such a nature or intensity that it is detrimental to their schooling, health and/or development.

How does Oikocredit monitor the possible occurance of child labour by project partners?

When Oikocredit monitors projects, there are financial and social indicators that are discussed with the project partner. Child labour is one of those issues. In case there are incidences of child labour (as defined above), this disqualifies the project from any loan with Oikocredit. Verification of indicators reported by the project partner is done through an area visit that occurs at least once a year. In cases of suspected child labour, Oikocredit field staff specifically request to see working areas and see the working conditions of the staff and workers. In the process, incidents of child labour are checked and associated issues are directly dealt with. 

What does Oikocredit do when it finds a project partner is using child labour?

Observations, both positive and negative, are discussed with the project partner during the project visit. If there are negative findings, such as exploitation of child labour, our field staff explains why we do not support such practice. The project partner is requested to immediately cease the practice in order to maintain its relationship with Oikocredit. If for some reason a non-unity in vision and practice occurs between Oikocredit and the project partner, any further disbursement of a loan is suspended or cancelled. The legal possibilities to cancel the entire loan are analyzed. If full repayment cannot be enforced due to legal constraints, the loan is phased out according to the repayment schedule agreed by contract and no renewal of the loan will take place. 

Investment possibilities depend on the legal and regulatory situation for your country. The answers to the questions below are subject to laws in the country in which the offers are made. For more information, click here.

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