Day 1: Business Case and Concept for a Sound ESMS Managing Environmental and Social Risks For Energy Efficiency and Renewable Energy Investment Projects  in Global emerging and developing markets Training workshop – GCPF FI Partners Day 1: Business Case and Concept for a Sound ESMS

13:30-14:30 ESMS Components Staffing Needs Checklists Consultants Credit Analysis Integration Implications for FIs

Environmental and Social (E&S) Management System Components Policy Overarching Environmental and Social Policy Statement Describes Objectives and Principles to achieve sound E&S performance 1 2 3 4 5

Environmental and Social (E&S) Management System Components Policy Endorsement and Sharing 1 Policy signed by Company Representative who is responsible for putting Policy into effect - shared with all employees and stakeholders Policy signed by Company Representative who will ensure conformance with the Policy 2 3 4 5 .

Environmental and Social (E&S) Management System Components Procedures 1 2 Write procedures: tasks to convert Policy into actions Create document management system accessible to all 3 4 5

Environmental and Social (E&S) Management System Components Job Profiles and Work Instructions 1 2 T 3 Prepare job profiles to describe required actions, tasks, duties and responsibilities Incorporate actions, tasks, duties and responsibilities into employee contracts 4 5

Environmental and Social (E&S) Management System Components Orientation, Training, Performance Reviews 1 2 . 3 4 Ongoing employee orientation and training using procedures and job (position) profiles Performance reviews and improvement plans based on assigned responsibilities in procedures and job profiles 5

Environmental and Social (E&S) Management System Structure Ultimate Objective Overarching Environmental and Social Policy Statement Describes Objectives and Principles to achieve sound E&S performance 1 Signed by Company Representative who is responsible for putting it into effect - shared with all employees and stakeholders 2 Write procedures: tasks to convert Policy into action Create document management system accessible to all 3 Prepare job profiles to define required Policy actions Incorporate responsibilities into employee contracts 4 Ongoing employee orientation and training Performance reviews and improvement plans based assigned responsibilities 5 Ultimate Objective/Outcome: Trained employees carrying out required actions, tasks, duties and responsibilities to achieve objectives and principles

Staffing Needs and Consultants

Need: Knowledgeable Staff or Access to Expertise Not knowing what you don’t know = disaster

National Requirements Energy project complexity and scope dictate E&S assessment and risk (impact) mitigation measures National E&S Assessment Requirements Environmental assessment (EA): judgment of +/- environmental/social consequences for a proposed energy project Limited impacts – audit to juxtapose project with regulations, obtain permits Medium (solar, wind, river run hydro, photovoltaic, biogas ) EIA study, permits High (e.g. hydro with dams, reservoirs; diverse, unprecedented, irreversible impacts); ESIA, local and national approvals, permits Management Plans –tasks to eliminate/reduce impacts; incorporate in loan contract covenants Meeting National Requirements Internal screening Engage consultant (GCPF assistance) Carry out Audit to define regulatory requirements: Management Plan Prepare EA meeting National/GCPF requirements : Management Plan In corporate Management Plan compliance into investment Contract

weakness Strengths threats opportunities Predominance of business and finance staff Lack of familiarity with Environmental Assessment and technical acumen needed Strengths Internal policies and procedures guiding feasible internal efforts Using in-house staff SWOT threats Limited analysis of specific project impacts, regulatory difficulty or resistance, stakeholder positions, DUI impacts opportunities Previous identification, qualification and negotiated contract to provide external expertise http://pixabay.com/en/glasses-office-business-work-desk-472027/

Expertise Needed for Environmental Assessments In-house (expensive) or Contract (manageable) External Expertise Other, esoteric skills may be required

Example Contract Vehicles Arranging on call expertise

Nuts and bolts to commission on-call expertise Issue Request for Qualifications (RFQ) Short List of Qualified Parties. Interview and select several providers Sign contracts; commence use 1 2 3 4 Contracting External Expertise for EA Assistance