Human rights and environmental organisations accuse Marsh of violating OECD guidelines

Insurance broker, Marsh, has been hit with allegations of breaching OECD Guidelines in its role as East African Crude Oil Pipeline's broker.

Related topics:  Complaint,  insurance,  Legal
Warren Lewis
8th February 2023
"An insurance broker’s role is often invisible to the public, which allows them to avoid accountability, but Marsh deserves to be scrutinised."

Ten Ugandan and Tanzanian human rights and environmental organisations lodged the complaint alongside IDI. However, due to security risks, they have chosen to remain anonymous.

The formal complaint, which was announced by Inclusive Development International, was filed on February 7th and alleges that, as a service provider, Marsh is "contributing to the serious harm that the project has already or is expected to cause."

According to the complainants, view, OECD Guidelines have been breached by Marsh in the areas of adverse impacts, due diligence, disclosure, and sustainable development.

The complaint claims that "the EACOP cannot be constructed without insurance. It is a legal requirement under Ugandan law that the EACOP must be insured, and large-scale construction projects such as the EACOP are unlikely to be financially viable without insurance."

"Through its engagement as insurance broker for the EACOP, Marsh is enabling the construction of the pipeline and is therefore contributing to the… adverse impacts," it concluded. 

“The complainants have contacted Marsh numerous times to attempt to engage in a dialogue in relation to the EACOP and to inform Marsh of potential risks that should be reflected in its due diligence process. Marsh did not respond to any of this correspondence. Accordingly, the complainants have turned to the US National Contact Point to resolve this dispute."

Commenting on this complaint, Coleen Scott, IDI legal and policy associate, has said:

“An insurance broker’s role is often invisible to the public, which allows them to avoid accountability, but Marsh deserves to be scrutinised. Marsh is playing a critical role enabling the East African Crude Oil Pipeline to move forward in the face of widespread opposition and overwhelming evidence that the project will be a disaster for Ugandans and for the planet.”

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