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P R O P A R C O - SUS TAINABLE DE VELOPMENT REPORT
Taking environmental, social and governance risks into account and assisting our clients Development operations have risks by nature with
tenure, the guidelines relative to companies and
regard to the environment and to people. Proparco’s
to human rights as well as the resources of the
approach aims to master environmental and social
Corporate Governance Development Framework.
(E&S) risks as well as governance (G) risks. The goal?
This approach consists of evaluating the envi-
To avoid, mitigate or offset the negative impacts of
ronmental and social risks and impacts of each
projects financed.
project presented to Proparco’s decision-making
Our ESG approach
bodies. Based on internal or external expertise, we then propose to the financial beneficiaries’ actions to implement in order to manage these
Our approach, similar to that of AFD and to best
risks and to improve their environmental and
practices of international financial institutions, is
social practices. During the operation phase, we
based on the performance standards of the IFC, the
monitor the implementation of these actions and
norms of the International Labour Organization
we ensure that the project properly manages any
(ILO), the guidelines of the United Nations Food
risks and unforeseen negative environmental and/
and Agriculture Organization (FAO) on land
or social contigencies. Finally, if necessary, we can provide specific in-depth support for the client to strengthen their capacities in the management and implementation of their environmental, social
Environmental and social issues in projects financed by Proparco
and governance performances.
ESG: added value for every project
These are all subjects concerning or possibly having an impact on the
Common sense says that a project/client which
environment and people. Based on IFC performance norms, E&S issues
masters the full set of its ESG risks according to the
include the following main themes:
best standards is a financially more viable project/
A ssessment and management of E&S risks and impacts;
client. And this has now been proven by crosscutting
L abor force and working conditions;
studies on the consequences of applying the best
R ational use of resources and prevention of pollution;
environmental, social and governance practices in
H ealth, security and safety of communities;
enterprises. Beyond better risk management, the
A cquisition of land and involuntary resettling;
project creates additional value. This added value
Conservation of biodiversity and sustainable management of living
appears in the form of coherence in decisions,
natural resources;
access to new markets via certifications, greater
I ndigenous peoples;
attractiveness thanks to securing new financing,
C ultural heritage.
better productivity and competitiveness, and finally, a contribution to the improvement of
