Environmental and Social Due Diligence

Credendo – Export Credit Agency assesses the potential environmental and social impacts and risks relating to all applications of officially supported export credits for exports of capital goods and/or services as well as project-related cash transactions and investments.

How is Environmental and Social Due Diligence (ESDD) exercised at Credendo – Export Credit Agency? 

The Environmental and Social Due Diligence process is based on the principles described in the OECD Common Approaches. We can identify 4 steps in that process:

• Step 1: Screening of applications for cover: A new application is first screened to determine whether an environmental and social review is required. This screening is based on the information provided by the applicant and on additional information that may be requested by Credendo to get a good view of the nature and size of the transaction. The parties involved in an application, including applicants (exporters and lenders) and project sponsors, should provide all information necessary to carry out the screening.
• Step 2: Classification of projects: The applications will be classified into categories based on their risk of negative impacts.
  • A project is classified as category A if it has the potential to have significant adverse environmental and/or social impacts, which are diverse, irreversible and/or unprecedented. These impacts may affect an area broader than the sites or facilities subject to physical works. Category A, in principle, includes projects in sensitive sectors or located in or near sensitive areas.
  • A project is classified as category B if its potential environmental and/or social impacts are less adverse than those of category A projects. Typically, these impacts are few in number, site-specific, few if any are irreversible, and mitigation measures are more readily available.
  • A project is classified as category C if it has minimal or no potentially adverse environmental and/or social impacts.
• Step 3: Assessment of the impacts: Based on the classification of the application, Credendo will conduct an environmental and social review of the transaction and/or project submitted for cover. The scope of this environmental and social review is adapted to the assigned classification, the size of the transaction and the type of risks that have been identified, also taking into account the industry sector, location and other information available. To conduct this review, Credendo applies international standards such as the Performance Standards developed by the International Finance Corporation and defining the clients' responsibilities for managing their environmental and social risks.

Credendo will only take an insurance application into consideration if:

1. the application is compliant with applicable national and international sanction regulations;
2. the applicant (exporter or investor) conforms to the environmental and social national legislation;
3. the project and transactions are compliant with local laws and regulations;
4. Credendo receives all information requested to assess the environmental and social risks and impacts;
5. Credendo considers that the environmental and social impacts are acceptable.

• Step 4: Decision and monitoring: The final outcome of this assessment is an integral part of the underwriting process and may include conditions that need to be fulfilled prior to or after the final commitment for cover, such as measures to prevent, minimise, mitigate or remedy potential adverse environmental and social impacts, covenants, and monitoring requirements.

Issued policies

All category A projects that fall under the OECD scope will be published on our website at least 30 days prior to the day that the offer of cover or the insurance policy is issued. Category A and B projects will be made available after Credendo has made a final commitment with respect to providing support.

• Click here to consult the history of transactions assessed since 2011.
• Click here to consult the history of transactions assessed since 2019.

This section contains transactions in categories A and B where a policy has been issued.

• Click here to consult the list of issued policies.