From analysis to action: Credendo’s Environmental and Social Due Diligence process
As part of the underwriting process for officially supported export credits, Credendo – Export Credit Agency applies the OECD Common Approaches for Environmental and Social Due Diligence (ESDD). That way, we analyse environmental and social issues related to exports of capital goods and services. This analysis is conducted by our Environmental & Social (E&S) team. Some projects require on-site visits. Recently, our E&S team visited such a project to assess and address stakeholder concerns.
The ESDD process involves analysing a wide range of information to support the final decision on coverage, ensuring necessary E&S measures are considered to prevent, minimise, mitigate or remedy adverse impacts and/or to improve E&S performance. Projects are classified into category A, B, C or N, based on their potential environmental and social impacts. You can find more information on these categories here.
The recent visit to a new port construction in Senegal was classified as an A-project because, beside its importance for the economic development of the country, it might have significant potential adverse impacts on social and environmental aspects. During such visits, it is crucial to engage with local stakeholders to understand the project’s consequences, assess implemented measures and gather expectations. The E&S team had the opportunity to meet with local mayors, women’s associations, fisher’s organisations and nature reserve managers. These interactions help Credendo identify possible prevention and mitigation measures, and analyse opportunities for improving environmental efficiency. Those measures can be integrated as necessary conditions for insurance coverage, ensuring responsible and sustainable project development.