Efic incorporates two globally recognised approaches in our Policy and Procedure for environmental and social review of transactions:
- The Organisation for Economic Cooperation and Development (OECD). Recommendation of the Council on Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence (the Common Approaches). As an OECD export credit agency, Efic is bound by the Common Approaches
- The Equator Principles, a globally-recognised approach used by many financial institutions to manage environmental and social risk in projects. Read more about our voluntary adoption of the Equator Principles.
Implementing our Policy and Procedure is also how we:
- integrate the principles of ecologically sustainable development into our consideration of transactions – a requirement of section 516A of the Environment Protection and Biodiversty Conservation Act 1999 (Cth)
- incorporate Efic’s Human Rights Statement into our consideration of transactions.
Our Policy and Procedure
Our Policy for environmental and social review of transactions (Policy) outlines the principles that we apply to meet our corporate values. Our Procedure for environmental and social review of transactions outlines how we implement this policy. The Procedure also incorporates a checklist to ensure a consistent review approach and provide an audit record.
We screen all transactions for their environmental and social risk (as per the diagram below). We also undertake a risk evaluation where a potential for environmental and/or social risk is identified. This evaluation is usually undertaken using the International Finance Corporation (IFC, a part of the World Bank Group) Performance Standards, a widely used and understood global standard, as our environmental and social benchmark. This risk management framework is explained in more detail in our Policy and Procedure, including the rare occasions where we may use a different, albeit equivalent or more stringent benchmark. For projects located in Australia, we consider our benchmark to have been met if relevant Australian government approvals have been obtained.