We carry out E&S due diligence (ESDD) of investment projects between 1 Mio US$ and 500 Mio. US$ for financial institutions and investment funds working in developing countries. In more than 100 such projects (30 + countries) we have covered sectors like infrastructure, energy, food processing, agriculture, renewables, manufacturing, chemical industry, textiles.
The Environmental and Social Due Diligence of your investment projects will be based on your own E&S standards or IFC Performance Standards and typically involve the following:
- Assessing E&S risks / performance of investment projects
In the beginning we will suggest an E&S risk category to the investment project (high risk = A, medium risk = B, low risk = C). The procedures we then follow strongly depend on this category. For category C projects our ESDD will be simple, category A projects normally demand our presence on-site, unless the project has already been assessed by suitable external experts.
- Gap analysis between IFC Performance Standards and local E&S standards
We will screen existing environmental and social impact assessment papers, monitoring reports, national legislation as well as other relevant information that is already existing. Additionally, we will acquires missing information through targeted interviews with management and key stakeholders (sample questions for IFC Performance Standards 1). Having a clear understanding of what exactly the IFC requires for each particular project type and project circumstance, we are in a position to pinpoint those issues where gaps exist between IFC PS, local E&S standards as well as the (planned) project performance.
- Preparation of an E&S Action Plan (ESAP) specifying necessary activities in order to reach compliance with IFC PS, responsibilities, budgets, performance indicators.
Once the gaps are identified, we develop and suggest a set of actions that – overtime – will put the client into compliance with IFC PS requirements. These actions take the form of an ESAP which further outlines performance indicators, cost estimates, target completion dates as well as responsibilities. We always make sure that these actions are being fully understood and supported by the client.
- Formulation of ready-to-use E&S review summaries in line with client requirements
Once the gap analysis and the ESAP are ready, we formulate the results of the E&S due diligence in the format as requested by our banking customer (often referred to as “Environmental and Social Review Summary – ESRS”). This ESRS summarises the main risks and related mitigation measures, suggests the contractual obligations of the project company and outlines the ESAP. The ESRS is formulated in a way that decision makers of financial institutions quickly get a good overview of E&S risks (information being prepared with the right degree of detail and as a non technical summary).
Since November 2013 we are offering a “retainer contract” based cooperation for the outsourcing of all your E&S management activities.