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Promoting sustainable development in each of our operations
SELECTING PROJECTS FOR THEIR IMPACTS As a development financial institution and for the purpose of accountability, Proparco evaluates and accounts for the impact of its actions by measuring and reporting the results and impacts of its financings. This approach is integrated into the project cycle, and, first of all, aims to inform the financing decision by characterising expected impacts of financings, notably, with regard to Proparco’s three main strategic goals: to amplify the direct impacts it has in supporting jobs and improving access to essential goods and services, to strengthen the mobilization of private financings towards SDIs, and to accelerate Proparco’s contribution to the emergence of tomorrow’s actors and sectors.
1 Measuring impacts within the project cycle from identification to ex-post evaluation
Identification Pre-identification of impacts
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Appraisal
Decision
Monitoring
Evaluation
Annual reporting on the main results indicators
Ex post study on the results and impacts of projects
Analysis of the contribution to the impact objectives and sustainable development
A new step in implementing the ‘100% Paris Agreement’ commitment in 2021 Since 2018 and in addition to estimating expected results for projects in relation to impact indicators, an analysis of potential inconsistencies in Proparco’s financings and direct investments vis-à-vis the Paris Agreement is systematically carried out to ensure a better integration of climate issues and sustainability within supported projects. To achieve this, Proparco analyses the risk of its operations being misaligned with the Paris Agreement; this risk can lie in a project’s high level of emissions, in potential structural effects on a country and/or the industry in question which do not tie up with low-carbon trajectories, or in inconsistencies with national or sectorial climate commitments, or in crowding-out effects for less emissive alternative options. 2021 has been marked by the new step taken by Proparco in implementing its ‘100% Paris Agreement’ commitment, with risk
Proparco’s Sustainable Development Report 2021
Presentation of the results of the analysis to the Project Committee and Investment Advisory Committee
analysis on misalignments of its financings with the Paris Agreement being extended to intermediated operations, notably those in favour of banks. Proparco has analysed this risk since end 2021 and helps partner banks and funds that are particularly exposed to the main emissive sectors to improve their awareness of climate challenges. To do so, Proparco has developed its Pro Climate technical assistance facility to support developing climate financings by partner banks as well as integrating climate challenges into their strategies and their operations.
