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ENVIRONMENTAL AND SOCIAL POLICY
The environmental and social policy is fundamentally based on an environmental and social evaluation process as well as on some of the international declarations of which COFIDES is a signatory.
Procedure for environmental and social analysis and monitoring
The environmental and social analysis of the project requiring funding is carried out in parallel to the economic and financial analysis, and involves three phases:
Phase 1: Preliminary socio-environmental Categorisation
As with the Institutions of financial development, multilateral and bilateral partners, COFIDES has a List of Activities and Excluded Sectors in relation to its funding.
After confirming to COFIDES that the proposed project is not included in this list, a preliminary assessment is carried out, based mainly on the sector of activity, size of the project and its location. A preliminary social and environmental rating is then assigned.
Phase 2: Analysis of environmental and social risk
Once the environmental and social impact assessment for each project is carried out, two ratings are assigned, one for environmental risk and another for social risk. There are four category ratings: A, B +, B and C.
Depending on the nature and relevance of the risks and impacts, COFIDES demands that the project is operated in accordance with local law. In the absence of such laws, with poor development, or with practices being far removed from international practices, COFIDES promotes the application of standards that are in line with the international guidelines of the European Union, the World Bank, International Labour Organisation and Organisation for Economic Cooperation and Development.
Phase 3: Monitoring the socio-environmental risk.
Once the project becomes part of the portfolio, a follow up analysis will be carried out to ensure that the established contractual requirements have been fulfilled and to assess the proper progression of the project throughout the investment period.