What are the benefits for sponsors in complying       with sustainable development principles               Mekong Forum, ...
Proparco – Support SustainableDevelopment Principles
PROPARCO – At a glance Private sector arm of the French Development                   Proparco’s Shareholding Structure Ag...
Commitments – Proparco•   Proparco adopted the Environmental and Social Policies of    the AFD Group in June 2008.•   Prop...
Why Do We Have to Manage Project’s E & S        Risks?1.   Manage technical and natural risks : natural hazards, risks rel...
From Sponsor’s Perspective – Costsand Benefits of Complying with SustainableDevelopment Principles
From sponsor’s point of view – E & S Compliance1.   Additional costs : pre and post financing,2.   Time consuming3.   No a...
From sponsor’s point of view – Risk from E & S Non-Compliance•   Financial risks : project performance, profitability•   R...
In Public’s Eyes – What we see in the news?
In the News                                                                         MAE MOH POWER PLANT                   ...
In the News              Coal-fired power plant suspended              Bo Nok coal power plant project was suspended      ...
In the News                               Workers from the Philippines and Thailand                               staged p...
Sustainable Development Principles– Proparco’s Approach
Based on international good practices•   Declaration of human    rights (United Nations)•   IFC Performance    Standards a...
IFC “Performances Standards”•   PS1 : Social and Environmental Assessment and Management Systems•   PS2 : Labor and Workin...
Sustainable Development PrinciplesIn Practice – A Case Study
Case Study : A Palm Mill – Ivory Coast        •   Oil palm mills and plantation        •   Project Category A : High envir...
Case Study : A Palm Mill – Ivory Coast                       •   Safety problems : frequent                           and ...
Case Study : A Palm Mill – Ivory Coast                 •   Environmental Issues                 -   Waste management      ...
Case Study : A Palm Mill – Ivory Coast Implementation of E & S Action Plan : •   Improvement of E & S management at HQ and...
Case Study : A Palm Mill – Ivory Coast    •   Accidents record of client in 2009 :
Thank you       Nancy CHOOPHUNGART       Proparco South East Asia       choophungartn@proparco.fr
Upcoming SlideShare
Loading in …5
×

What are the benefits for sponsors in complying with sustainable development principles

2,160 views

Published on

By Nancy Choophungart, Proparco, Southeast Asia Regional Office

Presented at the Mekong Forum on Water, Food and Energy Phnom Penh, Cambodia December 7-9, 2011 Session 7: Financing and Revenue Management in water and energy resources development

Published in: Technology, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
2,160
On SlideShare
0
From Embeds
0
Number of Embeds
1,441
Actions
Shares
0
Downloads
9
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

What are the benefits for sponsors in complying with sustainable development principles

  1. 1. What are the benefits for sponsors in complying with sustainable development principles Mekong Forum, Cambodia December 2011
  2. 2. Proparco – Support SustainableDevelopment Principles
  3. 3. PROPARCO – At a glance Private sector arm of the French Development Proparco’s Shareholding Structure Agency (AFD), rated AAA International Ethical Funds & Financial Founded in Paris in 1977 Foundations 1% Institutions 11% Investors 4% Combines long-term developmental objectives and private sector returns French AFD 59% Financial Covers developing and emerging countries Institutions 26% (Africa, Middle-East, Asia, Latin America and Caribbean) Present in South-East Asia since 2004 Offers a wide range of long term financial instruments (debt / mezzanine / equity) Not tied to French Interests Aga Khan Fund For Economic Development
  4. 4. Commitments – Proparco• Proparco adopted the Environmental and Social Policies of the AFD Group in June 2008.• Proparco, also in 2008, committed to apply for co- financing, the E & S procedures common toEDFI as defined in the "Rome Consensus"• Proparco signed, in May 2009, «Principles of Responsible Financing », common to EDFI – E&S Risk management for projects financed, – Contribution to the improvement of project quality and E & S performance of client companies, – Measurement of project’s development positive impacts Promote responsible financing E & S integrated throughout project life cycle – Pre and Post financing
  5. 5. Why Do We Have to Manage Project’s E & S Risks?1. Manage technical and natural risks : natural hazards, risks related to human activities, public health risks2. Control financial, legal, and reputational risks: pollution, social unrest, social acceptances of the projects3. Improve performance and quality of project operations : E & S management, natural resources consumption, profitability4. Identify the costs of E & S compliance : to finance the projects properly!
  6. 6. From Sponsor’s Perspective – Costsand Benefits of Complying with SustainableDevelopment Principles
  7. 7. From sponsor’s point of view – E & S Compliance1. Additional costs : pre and post financing,2. Time consuming3. No apparent benefits : local laws vs international standards Is it worth it ?
  8. 8. From sponsor’s point of view – Risk from E & S Non-Compliance• Financial risks : project performance, profitability• Reputation risks : immediate / long-term impact on the sponsors’ reputation• Legal risks : local laws vs international standards There is often a correlation between E & S Management and operational performance !
  9. 9. In Public’s Eyes – What we see in the news?
  10. 10. In the News MAE MOH POWER PLANT Power Plant loses Lampang pollution case By Ekkapong Praditpong The Nation Published on March 5, 2009Court awarded THB 3.0 billion (US$100 million) to the villagers for pollution caused by the plant
  11. 11. In the News Coal-fired power plant suspended Bo Nok coal power plant project was suspended due to communities’ concerns over health and environmental impacts
  12. 12. In the News Workers from the Philippines and Thailand staged protest at an international garment manufacturer’s Headquarters in Hong Kong. The workers submitted a joint appeal denouncing and resisting the anti-worker and unjust retrenchment of workers Mon, 17/08/2009 - 19:45 | by prachatai
  13. 13. Sustainable Development Principles– Proparco’s Approach
  14. 14. Based on international good practices• Declaration of human rights (United Nations)• IFC Performance Standards and associated EHS guidelines, www.ifc.org/ifcext/enviro.n sf/Content/EnvSocStandar ds• Fundamental conventions of the ILO, www.ilolex.org
  15. 15. IFC “Performances Standards”• PS1 : Social and Environmental Assessment and Management Systems• PS2 : Labor and Working Conditions• PS3 : Pollution Prevention and Abatement• PS4 : Community Health, Safety, and Security• PS5 : Land Acquisition and Involuntary Settlement• PS6 : Biodiversity Conservation and Sustainable Natural Resource Management• PS7 : Indigenous Peoples• PS8 : Cultural Heritage New version applicable in January 2012 : => Supply Chain, Energy Efficiency, Biodiversity, Carbon Footprint, Consent of Indigenous People (FPIC)
  16. 16. Sustainable Development PrinciplesIn Practice – A Case Study
  17. 17. Case Study : A Palm Mill – Ivory Coast • Oil palm mills and plantation • Project Category A : High environmental risks (pollutions, biodiversity…) and social (safety risks, employment conditions…) • E&S Audit per IFC standards for E & S project monitoring and a potential new loan - Visits to mills, plantations and villages, - Meeting with the managers, employees, communities around the site
  18. 18. Case Study : A Palm Mill – Ivory Coast • Safety problems : frequent and serious accidents => lack of workers protection and training, machinery’s maintenance and protection
  19. 19. Case Study : A Palm Mill – Ivory Coast • Environmental Issues - Waste management - Emissions to air - Waste water from palm mills - Biodiversity
  20. 20. Case Study : A Palm Mill – Ivory Coast Implementation of E & S Action Plan : • Improvement of E & S management at HQ and site levels (définition of responsabilities, training…) • Development of Environmental and Social Management Plan (ESMP) to ensure compliance with applicable local regulations and IFC E & S standards • Appointment of an experienced Safety Manager • Identification of risk areas and development of an action plan for risk reduction with immediate actions for key risks • Development of E & S Policy and Procedures • Monitoring : Annual Audit (3 years) by an independent E&S expert on the progress of the E&S Action Plan
  21. 21. Case Study : A Palm Mill – Ivory Coast • Accidents record of client in 2009 :
  22. 22. Thank you Nancy CHOOPHUNGART Proparco South East Asia choophungartn@proparco.fr

×