To develop and implement an Environmental and Social Risk Management System together with our financial institution clients is one of our key services / products. Our experiences with more than 40 FI clients worldwide allow us to compare results achieved, to build upon already existing tools, checklists, ideas (no re-inventing the wheel) and to offer very competitive prices.
We can set up an Environmental and Social Risk Management System in your Financial Institution / Investment Fund with the help of the following activities:
- Top management motivation
- Reviewing current portfolio with regard to E&S risks
- Suggesting E&S procedures / tools / policies
- Integration of E&S procedures into credit procedures
- Coaching of E&S officers – including field visits
- Providing training on latest E&S management practices including IFC Performance Standards
- Monitoring success of E&S management system based on performance indicators
- Integration of corporate governance, environmental and social issues into one single management process
Very often we offer this product in the framework of a technical assistance project financed by a Development Financing Institution (e.g. IFC, KfW, DEG, FMO, CDC, AFD, Proparco).
The purpose of a technical assistance project is…
To set up an Environmental and Social Management System (ESMS) in order to systematically assess and manage E&S risks, including:
- E&S policy
- E&S procedures (guideline, checklist, responsibilities…)
- E&S basic know how (training)
- E&S responsibilities (E&S officer, buy-in)
A typical technical assistance project offered by us includes:
- Phase 1: Assessment and action plan
- Phase 2: Development of procedures / tools as per action plan
- Phase 3: (Regional) training, start of trial testing, assistance for 2 projects
- Phase 4: Evaluation of pilot phase
- Phase 5: Fine tuning, final evaluation
What are we doing in …
… Phase 1 ?
- Understanding the credit process and setup
- Understand shortcomings of existing E&S management system
- Reviewing the portfolio (E&S risks)
- Development of an ESMS structure
- Preparation of a detailed action plan on how to proceed
- Feedback by Top-Management
- Getting “buy-in” from key people (change agents)
… Phase 2 ?
- Developing the documents identified in the Action Plan as necessary to develop an ESMS and E&S risk management capacity
- E&S Policy
- E&S Procedures
- Supporting tools such as checklists and guidelines reflecting the company’s investment focus
… Phase 3 ?
- Providing training in the application of the company’s E&S Procedures
- A pilot to test the ability of staff to implement the ESMS on pipeline deals
- A site visit to one pipeline investment to provide relevant E&S Due Diligence input and to demonstrate best practice E&S Review
… Phase 4 ?
- Evaluation of the pilot efforts
… Phase 5 ?
- On-going support to the company
- Final evaluation of the effectiveness of its ESMS