Environmental and Social Reviews
Finance Case Development
Siecap can assist you in preparing an Environmental and Social Review supporting your Project Finance Case.
The International Finance Corporation’s (IFC’s) Performance Standards and the Equator Principles are a set of norms developed by leading reputable banks for managing social and environmental issues related to the financing of projects.
Working with various banks and investment organisations, Siecap has developed a tested assessment process for the Environmental and Social Review (ESR) of projects seeking financing from reputable financial institutions.
Siecap’s ESR process uses both the International Finance Corporation’s (IFC’s) Performance Standards and the Equator Principles to evaluate the social and environmental change caused by a Project and provides an assessment regarding the implementation and effectiveness of proposed mitigation measures.
Together the IFC’s Performance Standards and the Equator Principles (EPs) are internationally recognised as the most comprehensive and practical set of standards by which to manage environmental and social risks for investments in emerging markets. An assessment of a project against these standards, when applying for project finance, is considered an international requirement and benchmark.
The IFC, a sister organisation of the World Bank and member of the World Bank Group, is the largest global development institution, working with more than 2,000 businesses worldwide, using capital, expertise, and influence to create markets and opportunities. In 2019, the IFC delivered more than $19 billion in long-term financing. The Equator Principles (EPs) Association is made up of Financial Institutions of good standing and as of today there are at least 103 of these financial institutions in 38 countries which are signatories to the Equator Principles.
Siecap’s developed review and audit process focusses on evaluating social and environmental change brought about by the Project, and also provides an assessment on the implementation and effectiveness of proposed mitigation measures.
In addition to general climate change requirements i.e. sea level rise, land use change etc. the EPs have specific requirements regarding Greenhouse Gas Emissions (GHG). The application of EP 2 requires an alternatives analysis when a project is expected to emit more than 100,000 tonnes of CO2 equivalent annually during the construction and/or operational phase. The EP 10 also requires that reporting of GHG emissions is undertaken for the operational phase of the Project over the life of the loan.
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