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Our approach to promote sustainable development in our operations
Selecting projects for their impacts
As a development finance institution and for the purpose of accountability, Proparco evaluates and reports on the impact of its action through a process to measure the results and impacts of its financing. This process is part of the project cycle and aims to inform the financing decision by characterizing the expected impacts of financing, in particular with regard to Proparco’s three main strategic objectives: scale up its direct impacts on supporting jobs and improving access to essential goods and services, strengthen the mobilization of private finance towards sustainable development investments (SDIs) and accelerate Proparco’s contribution to the emergence of the tomorrow’s actors and sectors.
1 Impact measurement in the project cycle, from identification to ex post evaluation
Identification Pre-identification of impacts
To measure the real impact of funded projects, identify the most effective ways to support the impact objectives and address the increasingly important issues of accountability, Proparco also collects key indicators at the impact measurement monitoring stage and carries out ex post project evaluations. In 2020, Proparco continued to strengthen the monitoring of its projects (see chapter “Monitoring of our operations”) and, as part of the updating of AFD Group’s evaluation policy, conducted a review of the evaluations carried out from 2014 to 2019. The objective was to inform the work on recommendations for the Group’s future evaluation policy.
In 2020, to improve prospective knowledge of the impacts by sector and type of operation, the Impact Proparco's Sustainable Development Report 2020
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Appraisal
Decision
Monitoring
Evaluation
Annual reporting on the main results indicators
Ex post study on the results and impacts of projects
Analysis of the contribution to the impact objectives and sustainable development
2020: Further strengthening of the results achieved by projects
A constantly improving impact measuring tool
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Presentation of the results of the analysis to the Project Committee and Investment Advisory Committee
Measurement unit (IMP) developed sector impact frameworks, working closely with the operational divisions. These frameworks are designed for investment officers and offices and aim to support operational staff during projects’ identification and appraisal. The objective is to help them gain a more rapid and relevant understanding of the potential impact of projects. These frameworks were developed in 2020 for the textile, cement and other building materials, off-grid electricity and fertilizer sectors. Other sectors will follow in 2021. In addition, to obtain an initial estimate of the potential impacts in terms of the jobs supported and greenhouse gas emissions avoided by a project prior to the identification phase, the IMP Unit has developed a tool based on data from the Joint Impact Model (JIM – see focus opposite), which is itself based on data from the GTAP (Global Trade Analysis Project) and UNIDO (United Nations Industrial Development Organization). Using information about the project, the tool produces an initial estimate of the expected impacts. For the time being, it is deployed by the agribusiness, financial institutions, telecommunications and textiles sectors.
