EIB responsible lending hallmark
Assessment before and after
Before deciding to finance any project we conduct systematic, intensive due diligence to assessing the full impact of our work. Then afterwards, we monitor activities to check that our goals have been achieved and if any lessons can be learned.
The environment is central too, both in terms of the fight against climate change and quality of life. We follow EU environmental policy and assessment processes in the Member States, even if local law is less prescriptive. We abide by the same rules in the rest of the world too where practicable. We are specifically committed to biodiversity.
- Each project’s environmental impact is assessed by technical experts before we finance and after completion;
- This work is further appraised by a member of the Environment Assessment Group;
- Our Environment, Climate and Social Office develops and monitors the application of our policies and procedures.
We screen the social impact of our projects systematically, often using internationally recognised standards. We seek to promote individual well-being, social inclusion and sustainable communities, policies which are enshrined in five Guidance Notes (GN), published in EIB's Environmental and Social Practices Handbook.
- Involuntary resettlement (GN1)
- Rights and interests of vulnerable groups (GN2)
- Labour standards (GN3)
- Occupational and community health and safety (GN4)
- Public consultation and participation in project preparation (GN5)
Rating the overall environmental and social risk of finance projects
At the end of the project appraisal the EIB takes into account the mitigation measures and residual impacts of finance projects.
Projects that are said “acceptable” for EIB financing are categorised according to the following risks levels:
- low risk - positive or neutral impacts
- low or moderate risk– minor negative residual impacts
- moderate or high risk – major negative residual impacts.
Our project carbon footprint
We are developing methodology to assess the carbon footprint induced by the larger projects we finance. We are refining conclusions drawn from an initial pilot exercise with the first results to appear in 2013.