EXIAR follows the best practice and international experience to manage environmental and social risks relating to supported export credits to prevent and minimize negative environmental and social impacts and to achieve positive effects. These include:
Increasing operation and energy efficiency,
Reduction of greenhouse gases and air pollutants emissions,
Creation of new jobs and compliance with health&safety requirements
Extension of transport infrastructure and life supporting facilities (water supply, district heating), and
Increasing of share of raw materials recycling.
Social and environmental impacts include project-related impacts on environment and its components, such as air emissions, greenhouse gas emissions, effluents, hazardous waste, noise and vibrations and also impacts on local population directly affected by the project, personnel involved in project construction and operation as well as general effects on community health, safety, security and human rights.
To manage environmental and social risks of potentially supported projects the Agency undertakes Environmental and Social Due Diligence following Recommendation of The Council on Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence of 07.04.2016 (The “Common Approaches”) and internal procedures.
Social and environmental aspects of export-related projects are taken into account at every stage of decision-making process on applications for officially supported export credits. The Agency informs its counterparties about its environmental and social values, standards and requirements.
Social and environmental due diligence process consists of the following steps:
Screening – preliminary assessment of initial data to identify applications that should be classified and, where appropriate, subsequently reviewed.
Classification - the following categories are identified depending on amount of support and environmental and social risks of the project
- Category A: a project has the potential to have significant adverse environmental and/or social impacts, which are diverse, irreversible and/or unprecedented.
- Category B: a project with medium potential environmental and/or social impacts less adverse than those of Category A projects.
- Category C: a project has minimal or no potentially adverse environmental and/or social impacts.
Environmental and Social Review - in case of high or medium environmental and social risks (projects of category A or B) the Agency undertakes detailed environmental and social analysis of compliance with national requirements and international standards. The Applicable International standards include:
- IFC Performance Standards,
- World Bank Safeguard Policies,
- World Bank Group Environmental, Health, and Safety Guidelines.
- UN Guiding Principles on Business and Human Rights.
Evaluation and Decision-making taking into account the set of parameters including financial, economic, reputational, environmental and social. In order to assure effective optimisation of transactions intended for official support, the Agency together with its clients and partners agrees on measures on prevention, minimization or mitigation of potential environmental and social impacts of the project and (or) improvement of its positive environmental and social effects, considering the particular project parties, size of their business, specific features of their activities, type and scale of potential negative impacts, existing international standards applicable to the project and the Agency leverage in the project
Monitoring to obtain up-to-date information on actual project impacts and project participants actions on the revealed risks mitigation.
Where Major Multilateral Financial Institutions also participate in supporting the project, environmental and social review may include a benchmarking against the relevant aspects of the standards of these Institutions as well.
When supporting large scale socially important projects, the Agency actively participates in the process of environmental and social impacts assessment, liaises with independent recognized experts in this field, encourages maximum transparency including arrangement of public consultations with those groups potentially affected by the project.
Therefore, the Agency contributes to implementation of projects involving Russian export in line with national and international social and environmental standards and best international practice.
In accordance with the OECD “Common Approaches” and internal procedures the Agency publishes information on Category A projects under consideration (ex – ante disclosure) as well as information on Category A and B projects covered each year (ex – post disclosure). The publication includes brief project description, international standards applied and type of documentation analyzed.
For further information on environmental and social due diligence, read Disclosure of information