Overlooking Indigenous Peoples and communities directly impacted by climate change and large-scale projects is not only unethical but also financially and strategically shortsighted. The path to a swift, just energy transition must be grounded in a corporate duty of care for human rights and environmental due diligence; a commitment to free and fair negotiations; and shared prosperity with Indigenous Peoples, frontline communities, and workers - and neglecting this responsibility could lead to social unrest, legal challenges, and financial setbacks. It will also require meaningful engagement with Indigenous Peoples and communities.

This idea should be high on the agenda when the 5th Finance in Common Summit (FiCS) meets in Cape Town between the 26th and the 28th of February. The convention of global leaders, public development banks (PDBs), philanthropists, and financial institutions will be discussing sustainable finance, and this year’s theme, “Fostering Infrastructure and Finance for Just and Sustainable Growth,” reflects a critical truth: infrastructure for climate resilience must be inclusive. As PDBs pledge new financial commitments, they must prioritise these key stakeholder groups often overlooked – Indigenous Peoples and those communities impacted by climate change and large-scale projects.

Here are three compelling reasons why PDBs should shift their approach.

FiCS already emphasises inclusive finance and climate resilient infrastructure -now PDBs must deliver

The FiCS movement was established to promote sustainability and equity in global finance and strengthen the role of PDBs within the global financial system.
PDBs wield immense power. They control USD18.7 trillion in assets, have responsibility for 10% of global investments, and play a significant role in the development of many nations by providing funding for crucial sectors such as health, education, and crisis response.

However, there is a contradiction in development finance. Many PDBs make public commitments to sustainability yet still finance projects which are carbon-intensive resource-heavy or contribute to human rights violations and environmental harm. This marginalises Indigenous Peoples and communities.

It is therefore vital for the public and governments to hold them accountable for the adverse human rights and environmental impacts of their investments.

FiCS 2025 highlights “inclusive finance” and “infrastructure for climate change” as two of its three core pillars to address key challenges. This commitment should translate into concrete policies which integrate rightsholders into decision-making. Climate and clean energy infrastructure - dams, wind farms, transition minerals such as copper, lithium, nickel, zinc etc, cannot be built without the participation and consent of the people living near these projects as has previously happened with some PDB projects. Indigenous Peoples and local communities must not be sidelined; their involvement strengthens climate resilience and ensures sustainable development.

Neglecting critical stakeholders’ fuels social unrest, litigation, and conflict

When Indigenous Peoples and communities are excluded from climate infrastructure planning, the consequences are severe. The Business & Human Rights Resource Centre’s 2024 report Stop and Listen demonstrates that failing to engage rightsholders leads to unrest, legal battles, and financial instability for investors.

Examples abound. Major renewable energy projects have sparked protests due to land displacement and environmental concerns. Mining for transition minerals often disregards local rights, leading to violent clashes and lawsuits. The Resource Centre’s 2023 report Financing Mining for Transition Minerals in South Africa  exposed how, despite an apparent commitment to human rights, many commercial banks lack concrete policies to mitigate human rights risks in resource extraction. This must change. PDBs and their commercial counterparts, should demand Free, Prior, and Informed Consent (FPIC) from Indigenous Peoples and ensure effective participation of local communities without fear of reprisal before financing projects and conduct rigorous environmental and human rights due diligence.

Excluding Indigenous Peoples and communities threatens the speed and success of the energy transition

The world is racing toward a net-zero economy, but cutting corners on Indigenous Peoples and community engagement will slow progress. Protests and legal disputes over land rights can stall projects for years, delaying the renewable energy transition.
Trust and collaboration are vital. Without them, climate infrastructure will face mounting resistance.

PDBs must recognise that a just transition is not just about shifting away from fossil fuels – it is also about ensuring that those most affected by climate change have a voice in shaping the solutions. When Indigenous Peoples and communities are treated as genuine partners, projects are more likely to succeed, creating stability for investors and accelerating the shift to clean energy.

The cost of inaction: financial and reputational risk

The stakes are high. If PDBs continue to sideline Indigenous Peoples and affected communities, they expose themselves to financial losses, reputational damage, and increased regulatory scrutiny. Investors and corporations associated with controversial projects risk being labeled as exploitative, harming their brand and bottom line.

FiCS 2025 offers a crucial opportunity for PDBs to reaffirm their commitment to sustainable, equitable development. This means embedding human rights policies into financing decisions, ensuring Indigenous Peoples’ right to FPIC and effective participation of affected communities, and holding clients accountable for human rights and environmental due diligence.

PDBs must not only fund climate solutions—they must build them with the people on the frontlines of climate change. The future of sustainable finance depends on it.

By Manson Gwanyanya, Researcher and Representative for South and Anglophone Africa, Business & Human Rights Resource Centre