Compliance, Environmental and Social impact reportingHydro energy Solar energy
On the 19th of October, NORWEP in cooperation with Export Credit Norway, GIEK and NABA, organised a webinar on Compliance, Environmental and Social impact reporting.
Increased focus on negative environmental and social impact, anti-corruption, good governance and other reputational risk factors among financial institutions, governmental organisations, investors and other stakeholders, has increased the reporting and documentation burden for suppliers and project developers. At the same time, compliance, governance, supply chain control and corporate social responsibility (CSR), should be equally important to suppliers and project developers.
In this webinar, Export Credit Norway, GIEK, SANDS, Scatec Solar and Multiconsult, gave us some useful insights in how to navigate among the various reporting requirements and how to avoid unforeseen costs and overreporting. This includes strategies for good governance, environmental and social impact assessments (ESIA) as well as assessments of compliance and corruption risk.
We have listed some of the takeaways from the webinar below.
Key learnings in order to reduce risk:
- Conduct ESI assessments (ESIA) early in the planning phase and budget for unforeseen consequences associated with the project that may affect your technical plans and loan opportunities, such as roads, transmission lines, resettlement, possible compensations etc
- Combine local and international expertise and know-how
- All projects are unique with different conditions and needs to be assessed differently
- Openness and transparency with both local and international stakeholders
- Due diligence and background checks- also of the ones hired to do the due diligence for you
- Four main standards adhering to the reporting requirements of financial institutions and governments: IFC Performance Standards (“The Gold Standard”) / UNGP, OECD, and ILO