GreenAdvisory

What We Do · 05

ESG, Risk & Impact

GreenAdvisory connects ESG due diligence and sustainability-framework alignment with the preparation and financing of African projects.

Our role is advisory. ESG evidence is considered alongside project economics, risk allocation and the requirements of capital.

Discuss your ESG requirements →
Forested hills in Bwindi, Uganda
Illustrative · Bwindi Forest, UgandaCLINTON MWEBAZE / Unsplash ↗

ESG in the financing process

Solar panels on a metal roof in Nelspruit, South Africa
Illustrative · Nelspruit, South AfricaSergio Martins / Unsplash ↗

Understand the requirements attached to financing

The IFC Performance Standards describe its clients’ responsibilities for managing environmental and social risks and impacts. Where a lender uses these standards, the relevant requirements and expected information need to be identified in the context of the project.

These requirements inform project preparation and the work programme. They connect with Project Development & Structuring.

IFC Performance Standards

ESG due diligence for investment transactions

GreenAdvisory advises on ESG due diligence for investment transactions. The purpose is to bring environmental, social and governance information into the financing decision alongside the project’s commercial model and contractual structure.

This practice complements Project Development & Structuring and Climate Finance & Capital Mobilisation.

Supply chains in the ESG context

In mineral value chains, the origin of materials and conditions of production can raise human-rights, conflict, corruption and environmental concerns. OECD guidance provides a risk-based approach to responsible sourcing.

These issues form part of the ESG context for mining and critical minerals.

OECD responsible-sourcing guidance

Different frameworks, different purposes

GreenAdvisory advises on CSRD, EU Taxonomy and SFDR alignment for European-exposed capital.

CSRD concerns corporate sustainability reporting; the EU Taxonomy classifies environmentally sustainable economic activities; SFDR addresses sustainability disclosures by financial-market participants and for financial products. The relevant framework depends on the entity, activity and financing counterparty.

This work connects with Climate Finance & Capital Mobilisation.

CSRD · EU Taxonomy · SFDR

Plan for commitments beyond financing

Environmental and social risk management continues through the life of a project. Commitments made in connection with financing can require ongoing monitoring and periodic reporting.

Responsibilities, expected information and any technical work need to be defined within the project and its financing arrangements.

IFC sustainability framework

Dam and reservoir in Blyde River Canyon, South Africa

Prepare the commercial model, risk allocation and financing evidence alongside the project’s ESG requirements.

Project Development & Structuring →
Illustrative · Blyde River Canyon, South AfricaHendrik Prinsloo / Unsplash ↗