Program for promoting sustainable investment through integrated ESG Standards
Environmental, Social and Governance (ESG) practices and standards are essential for private sector investments, which play a critical role in the 2030 Global Agenda. They ensure that investments deliver sustainable and inclusive development results, driving long-term business success and forging confidence among stakeholders.
- International Finance Corporation
The Program for promoting sustainable investments through integrated ESG standards builds on successful modalities from earlier SECO supported Corporate Governance projects in the region and enlarges the concept to include the governance dimension of environmental and social issues. This Governance for Sustainability approach enables an integrated view of ESG risks and opportunities, thereby reflecting the new international requirements. A key rationale for the Program is the evidence that better ESG practices are positively correlated with firm performance, better access to capital and better development outcomes.
The Program (implemented by IFC) seeks to promote sustainable investment into seven priority countries in the ECA region (Bosnia and Herzegovina, Georgia, Kosovo, Kyrgyz Republic, Tajikistan, Serbia and Ukraine). The Program works with financial institutions, firms, governmental agencies and private consultancies, pursuing a holistic approach:
• to improve financial sector efficiency through building sustainable financial markets that integrate ESG factors into capital allocation- and
• to improve access to investment and markets for real sector companies through enhancing their ESG practices and aligning them with international standards.
Mobilize Investors - Help Investors Apply ESG Standards in their Investment Decisions: Number of entities that implemented recommended changes
Regulatory Level - Improve ESG Standards in the Regulatory Framework: Number of recommended laws or regulations enacted or government policies adopted
Market Level - Build Local Market Infrastructure for Good ESG Performance: Number of entities that implemented recommended changes and number of individuals trained by local institutions supported by the program
Macro Level - Provide Leadership in Setting ESG Standards in Emerging Markets: Number of entities that become key clients as a result of macro-level engagement
Firm Level - Improve ESG Standards of Individual Firms: Number of entities that implemented recommended changes
Mobilize Investors - Help Investors Apply ESG Standards in their Investment Decisions: Number of entities receiving in-depth advisory services
Regulatory Level - Improve ESG Standards in the Regulatory Framework: Number of new laws, regulations or policies drafted
Market Level - Build Local Market Infrastructure for Good ESG Performance: Number of institutions receiving in-depth advisory services- Number of trainers trained- number of participants in workshops
Macro Level - Provide Leadership in Setting ESG Standards in Emerging Markets: Number of entities receiving advisory services and number of participants in workshops
Firm Level - Improve ESG Standards of Individual Firms: Number of entities receiving in-depth advisory services
Results from previous phases:
Overall, SECO has achieved significant progress in advancing the concept of CG in the region. Selective key results from earlier projects include the following:
ECA CG Project (Feb 2012 – Dec 2017)
• 52 firms with improved performance-
• 11 local Partners implementing changes-
• $899 million finance facilitated-
• $848,712 of sales revenue received by Partners
Central Asia CG Project/ May 2013 -Dec 2017
• 19 firms with improved performance-
• 7 local Partners implementing changes-
• $79 million finance facilitated-
• $201,716 of sales revenue received by Partners.
|Directorate/federal office responsible||
|Budget||Current phase Swiss budget CHF 9’500’000 Swiss disbursement to date CHF 0 Budget inclusive project partner CHF 7’533’500|
|Project phases||Phase 2 01.06.2021 - 30.06.2028 (Current phase) Phase 1 01.07.2019 - 30.06.2024 (Current phase)|