Environmental & Social Risk Management System (ESMS)
We develop or improve on the implementation of an Environmental and Social Risk Management System in your Financial Institution / Investment Fund. The risks are thus managed in a systematic way throughout the project life cycle with the help of the following activities:
- Top management motivation
- defining the objectives of the ESMS
- Reviewing current portfolio with regard to E&S risks
- Suggesting E&S procedures / tools / policies
- Assignment of roles, responsibilities & authorities,
- Documentation requirements, assessing the ESMS Gap, taking Environment & Social Action Plan ( ESAP),
- Integration of E&S procedures into credit procedures
- Training of E&S officers – including field visits
- Providing training on latest E&S management practices including IFC Performance Standards
- Monitoring success of E&S management system based on performance indicators
- Periodical review of ESMS, reporting methodology & verification of corrective action plans & their effectiveness.
- Integration of corporate governance, environmental and social issues into one single management process
How can CENGSSUD help you?
CENGSSUD can help you in all the aspects of an Environment & Social Management System by:
- Developing an Environment & Social Management System Framework
- Implementing an Environment & Social Management System
- Conducting Environment & Social Due Diligence (ESDD) as part of ESMS
- Capacity Building on ESMS
- Third party Independent Audit on ESMS
- Periodical Review of ESMS
- Aligning organizational ESMS system with the Central Bank of Nigeria’s Sustainable Banking Principles & guidelines
- Enhancing the E& S policy framework to reflect the new requirements of the Nigerian Sustainable Banking Principles (NSBP).
Key Benefits
The Environment & Social Management System (ESMS) benefits both the Financial Institutions/investor & the borrower by
- Preventing loses & damage to the project by identifying the risks & mitigating the same through Environment & Social Action Plan ( ESAP)
- Integrating the environmental & social aspects under a common framework
- Addressing the Environmental & Social risks in all phases of the project life cycle
- Ensuring effective & efficient management of the E & S Risks.
We help companies establish a robust Plan-Do-Check-Review cycle to deliver compliance, risk control, and impact negative reduction.