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EXPERIENCES IN ENVIRONMENTAL AND SOCIAL RISK ANALYSIS AT SOCIÉTÉ GÉNÉRALE Bartholomew Judd 16/05/2013 C1

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Page 1: EXPERIENCES IN ENVIRONMENTAL AND SOCIAL RISK ANALYSIS … · 2013-05-23 · experiences in environmental and social risk analysis at sociÉt ... run of the river hydroelectric plant

EXPERIENCES IN ENVIRONMENTAL AND SOCIAL RISK ANALYSIS AT SOCIÉTÉ

GÉNÉRALEBartholomew Judd

16/05/2013C1

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16/05/2013 2

AGENDA

1. ESTABLISHING AN ENVIRONMENTAL AND SOCIAL GOVERNANCE

SYSTEM

2. IMPLEMENTATION: PROCEDURES AND PEOPLE

3. ENVIRONMENTAL AND SOCIAL RISK ANALYSIS METHODOLOGY

4. CASE STUDIES

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ESTABLISHING AN ENVIRONMENTAL AND SOCIAL GOVERNANCE SYSTEM

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�Refer to:● Internationally recognized standards

● Best available techniques

�Discussed with our clients

�If possible and when pertinent, use of certification schemes / third party reviews

�For developing our E&S Policies:● Benchmark

● Mapping

● Impact

OBJECTIVES / PRINCIPLES

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SECTORIAL AND TRANSVERSAL POLICIES OF SOCIETE GENERALE

Mining and Metals Sector Policy

Oil & Gas Sector Policy

Defence Sector Policy

Shipping Sector Policy

Coal-Fired Power Sector Policy

Nuclear Power Policy

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IMPLEMENTATION: PROCEDURES AND PEOPLE

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�Use existing processes in particular:● RISK

● KYC

● Reputation Risk

�But also:● Legal, to integrate Environmental and Social clauses

● Middle Office, to monitor Environmental and Social issues

�Challenges:● Integrate E&S review in “standard” financing timeframe review

● Need for clear requirements/reports/documentation

OBJECTIVES / PRINCIPLES

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ENVIRONMENTAL AND SOCIAL RISK ANALYSIS METHODOLOGY

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ENVIRONMENTAL AND SOCIAL RISK ANALYSIS METHODOLOGY

General Approach

Documentation

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CASE STUDIES

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EXAMPLE: RUN OF THE RIVER HYDROELECTRIC PLANT IN PERU - PROJECT FINANCE P.11

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EXAMPLE: RUN OF THE RIVER HYDROELECTRIC PLANT IN PERU - PROJECT FINANCE

Equator Principles compliant

P.12

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EXAMPLE « POSITIVE IMPACT TRANSACTION »: KPDC CAMEROON

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EXAMPLE « POSITIVE IMPACT TRANSACTION »: KPDC CAMEROON

Financed with African Development Bank,

IFC and Proparco

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EXAMPLE: GOLD-SILVER MINE IN ASIA - PROJECT FINANCE P.15

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EXAMPLE: GOLD-SILVER MINE IN ASIA - PROJECT FINANCE

SG did not participate

P.16

Costs overrun > 30% initial project costs

CREDIT RISK MANAGEMENT

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EXAMPLE: SOLAR POWER PLANT IN FRANCE P.17

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EXAMPLE: SOLAR POWER PLANT IN FRANCE

SG participates

P.18

Risk of non obtention of local authorizations addressed

CREDIT RISK MANAGEMENT

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CLIENT INVOLVED IN CLUSTER BOMBS TRADING P.19

LEGAL RISK MANAGEMENT

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CLIENT INVOLVED IN CLUSTER BOMBS TRADING

Client withdrew from cluster

bombs activity

P.20

LEGAL RISK MANAGEMENT

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EXAMPLE: MULTINATIONAL OIL & GAS GROUP

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EXAMPLE: MULTINATIONAL OIL & GAS GROUP

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NUCLEAR POWER PLANT, EXPORT FINANCE P.23

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OECD Common Approaches

compliant

NUCLEAR POWER PLANT, EXPORT FINANCE P.24

REPUTATION RISK MANAGEMENT

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THANK YOUBartholomew Judd

Environment and Sustainable Development Specialist

Société Générale

[email protected]