COVID-19 Guidance for investors and financial institutions on job protection

Who’s behind it? – CDC Investment works and Ergon Associates (2020)

How can it help? – This is guidance for financial institutions (FIs) and investors, including debt and private equity (PE) investors and private equity fund general partners (GPs), on responses to the jobs-related challenges raised by COVID-19. Although it focuses on job protection measures, other related considerations such as employee health and safety should be addressed in parallel.

Wherever possible, investors and FIs should support companies to integrate job protection considerations into broader COVID-19 planning such as business continuity measures or emergency management planning. This guidance builds on a strong business case for companies to take such measures. These business case arguments are also relevant to investors and FIs in terms of preserving company value or the integrity of borrowers. Additionally, investors, FIs and companies should consider applicable requirements under IFC’s Performance Standard 2 (PS2). Although businesses may be considering retrenchment due to difficult economic circumstances, PS2 directs companies to first analyze alternatives to retrenchment. The job protection approaches discussed in this guidance offer some potential alternatives.

This guidance is a work in progress that reflects some initial and ongoing thinking on COVID-19 and jobs, it will be updated as circumstances evolve and on the feedback we receive.