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Better management of environmental and social risks

In 2011, Proxfin member institutions adopted an environmental policy to guide and improve their practices regarding environment protection. Since then, DID and its partners have developed a series of tools and measures to help them perform their activities in an environmentally sustainable and socially responsible manner by optimizing the management of environmental and social risks.

The policy on social and environmental responsibility drawn up in collaboration with the Entrepreneurs Financial Centres (EFC) operated by DID is central to this approach. EFCs that adopt this policy commit themselves to reducing the environmental footprint of their operations; limiting the social and environmental impact of the activities they finance; offering a work environment that is respectful of individuals and fosters professional development; and ensuring client protection and local capacity building.

In addition, since the great majority of environmental risks linked to a financial institution reside in the indirect impact of the activities that it finances, DID has also developed specific tools for the credit portfolio (relying on the tools produced by the FMO Dutch Development Bank):

  • a handbook for managing environmental and social risks (including the roles and responsibilities of each department and categories of risk)
  • a risk assessment form
  • sectoral information sheets and a list of exclusions.

DID has also prepared a one-day introductory seminar on the management of environmental and social risks. Intended for general managers and operations managers of financial institutions, this seminar is designed to make participants aware of the environmental and social risks their institutions face and to share the methodology and tools recommended by DID to optimize management of these risks.

The first financial institution to benefit from this seminar, the Entrepreneurs Financial Centre in Tunisia, has adopted the tools proposed by DID and formally integrated management of environmental and social risks into its credit management process.

Proxfin a vu le jour avec l'appui d'Affaires mondiales Canada et est animé par
Développement International Desjardins.