Environmental and Social Risks Assessment
In pursuance of the Aarhus Convention on Access to Information, Public Participation in Decision-making and Access to Justice in Environmental Matters (UNECE), JSB UKRGASBANK discloses information on its environmental impact, thus demonstrating its commitment to sustainable development.
Bank has its own Policy on Environmental & Social Responsibility. In accordance with its internal regulations, the Bank assesses, monitors and reports on the environmental and social risks of the financed projects.
All projects financed by the Bank are subject to proper verification and assessment of compliance with the social and environmental requirements of the Bank’s environmental and social policies.
The projects financed by the Bank are developed and implemented in accordance with the best Ukrainian and international practices. In order to help clients and their projects achieve a high performance level, the Bank is guided by the principles of sustainable development and the IFC Performance Standards on Environmental and Social Sustainability.
- Performance Standard 1: Assessment and Management of Environmental and Social Risks and Impacts
- Performance Standard 2: Labor and Working Conditions
- Performance Standard 3: Resource Efficiency and Pollution Prevention
- Performance Standard 4: Community Health, Safety, and Security
- Performance Standard 5: Land Acquisition and Involuntary Resettlement
- Performance Standard 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources
- Performance Standard 7: Indigenous Peoples
- Performance Standard 8: Cultural Heritage
Alternative energy and energy efficiency projects, as well as other projects worth more than the equivalent of $2 million, are assessed for environmental and social risks in accordance with the requirements of the Bank’s environmental and social policies.
During the assessment, the Bank takes into account the size of the project, its location and the potential environmental and social consequences of implementation. If the socio-environmental assessment finds that the potential loan project does not meet or does not fully comply with the requirements, the Bank develops and coordinates with the client an Environmental and Social Action Plan in order to achieve an appropriate level of the project within a certain timeframe.
Also, in case of occurrence of significant legislative deviations in social and/ or environmental aspects of the project, suspensive conditions of crediting are established, only after elimination of which the Bank will issue a loan to the Borrower’s project.
Environmental and social risk category - A, B and C – depicts the presence of potential impacts associated with the project, and defines the extent of environmental and social risk assessment, information disclosure and the degree of stakeholders engagement.
Category A: Projects that have potentially significant environmental and social impacts & require a detailed assessment process.
Category B: Projects that have moderate environmental and social impacts that can be assessed and managed.
Category C: Projects that will lead to minor or positive environmental or social impacts.
The Bank evaluates and establishes the appropriate risk indicators at the beginning of the project and applies monitoring system throughout the entire loan lifecycle of the project to ensure compliance with all relevant requirements.
The abovementioned project evaluation criteria are regularly reviewed, which ensures their compliance with the best international practices and principles of sustainable development, as well as the requirements of investors in the green investment market.
The main categories of environmental projects:
- Solar power plants
- Wind power stations
- Hydroelectric power plants
- Power plants on biomass
- Energy efficiency projects
- Biogas / degasation of landfills
- Transport
Internal environmental and social assessment also envisages the use of additional objective and transparent criteria based on the principles of tracking and exclusion of certain types of economic activity from crediting (Exclusion List).
The list of exclusions includes the types of economic activity for which the Bank does not grant credits, namely:
- Manufacturing or selling of any product or activity recognized illegal in accordance with the international conventions and agreements, or are the subject of international prohibition;
- Manufacturing or selling of items containing polychlorinated biphenols (PCBs);
- Manufacturing and selling of pharmaceutical products, pesticides/herbicides and other hazardous substances subject to removal from international turnover or falling under the effect of international prohibition;
- Manufacturing or selling of ozone-depleting substances subject to removal from international turnover;
- Manufacturing or selling of radioactive materials (including storing and processing of radioactive substances);
- Activity connected with the nuclear industry or nuclear materials (this does not apply to the purchase of medical equipment, and apparatus for quality control (of measuring machines) and any other equipment with insignificant radioactive measurements and/or adequate protection);
- Transportation of the oil and other hazardous substances in tankers that do not meet requirements of International Maritime Organization (IMO);
- Manufacturing or selling of the weapons (including hunting) and ammunition;
- Manufacturing or selling of alcohol drinks (excluding beer and wine);
- Manufacturing of tobacco products;Gambling (including on-line), casinos and similar activity;
- Manufacturing or selling of uncombined asbestos fibres (this does not apply to purchase and use of combined asbestos-cement sheets with the content of asbestos less than 20%);
- Drift-net fishing in the marine environment with the use of nets of more than 2,5 km long;
- Trade of regulated by Convention on International Trade in Endangered Species of Wild Fauna and Flora types of wild fauna and flora or products made of types of wild flora and fauna;
- Manufacturing or selling of forest or other products of forestry, except managed forest;
- Manufacturing, trade, storage, or transportation of significant scopes of hazardous chemical substances, or use of hazardous chemical substances in commercial scales.
- Manufacture or activity at the lands used for maintenance of livelihoods by groups of population in vulnerable situation (for example, at riverheads used for fishing and/or water supply, at the lands for grazing, hunting, and haying);
- Activity that may result in violent uprooting;
- Activity that may have negative influence on the places of cultural or archaeological heritage.
The Bank makes every effort for transparent and responsible activities in all sectors of the economy at various stages of project development. JSB “UKRGASBANK” carefully evaluates and controls all projects according to strict criteria to ensure compliance with the legislation of Ukraine and the best international practices for environmental protection and resource efficiency.
JSB "UKRGASBANK" fully supports Sustainable Development Goals and in particular, Goal №4 - Quality Education.
Questions, complaints and suggestions on environmental or social issues can be sent to grievances@ukrgasbank.com
More information about the achievements of the Bank in the development of the concept of sustainable development can be found in the Report , prepared under the standard of the Global Reporting Initiative.