Environmental and Social Management System (ESMS)

As part of the implementation of its ESMS, the FEC has upgraded its Environmental and Social (E&S) risk management practices in order to ensure a better assessment of these risks, in accordance with national regulations, as well as a progressive adjustment to align itself, using a continuous improvement approach, with international standards in this area.

This system, which aims to integrate E&S risk assessment into its overall credit risk management system, has enabled the FEC to put in place :

• An E&S policy ;
• A global corpus of E&S risk management including operational procedures and E&S tools for environmental and social due diligence, monitoring of identified E&S risk mitigation measures, management of E&S claims and non-compliance ;
• An E&S procedures manual defining the objectives and operational methods, as well as the roles and responsibilities of the various actors involved in the implementation of the FEC's ESMS, as well as its update, if necessary.

The ESMS applies to all TCs’ programs and projects eligible for FEC’s financial assistance, regardless of their category or the chosen financial instrument (conventional loan, credit line, etc.) and the offered financing conditions. Thus, and as part of the evaluation of projects submitted for its financing, the FEC systematically carries out an E&S risk assessment.

The global corpus of E&S risk management consists of seven procedures and an E&S toolbox: