Development finance institutions

The Model Frameworks provide guidance on integrating holistic impact analysis into business processes and decision-making, spanning different business lines and asset types. They can be used by financial institutions, as well as by third parties such as auditors. This Model Framework covers financial products for corporates where the funds raised or guarantees issued are used at the corporate’s discretion, without any specified use.

Use this resource to:

• Deliver positive impact financial products. The PI Model Framework enables financial institutions or intermediaries tto develop appropriate frameworks or adapt their existing frameworks to serve a number of purposes: for decision-making (i.e. on financing /investments); for the development of PI financial products, or for on-going analysis/monitoring of portfolios; and
• Verify and/or provide opinions on the PI nature of financial products.

The Model Frameworks provide guidance on integrating holistic impact analysis into business processes and decision-making, spanning different business lines and asset types. They can be used by financial institutions, as well as by third parties such as auditors. This Model Framework covers Financial Products where the funds raised or guarantees issued are used for a specific purpose, in this case Project-related finance within the scope of the Equator Principles.

Use this resource to:

• Deliver positive impact financial products. The PI Model Frameworks enables financial institutions or intermediaries to develop appropriate frameworks or adapt their existing frameworks to serve a number of purposes: for decision-making (i.e. on financing /investments); for the development of PI financial products, or for on-going analysis/monitoring of portfolios; and
  
• Verify and/or provide opinions on the PI nature of financial products.

The environmental, health, and safety (EHS) guidelines are technical reference documents with general and industry-specific examples of good international industry practice (GIIP).

Use this resource to:

• Identify: Understand the performance levels and measures that are generally considered to be achievable in new facilities by existing technology at reasonable costs.

This paper provides a common framework for financial institutions – and particularly development finance institutions – on how to carry out due diligence to identify, respond to, and publicly communicate on environmental and social risks associated with projects and assets they finance.

Use this resource to:

• Implement: Obtain practical recommendations to financial institutions on key aspects of the RBC due diligence process, including on stakeholder engagement, managing client’s confidentiality, providing for or contributing to the remediation process, etc.

Practice standards to support donors in the deployment of public resources through DFIs and private asset managers, in a way that maximises the positive contribution towards the SDGs. The Standards are harmonised in approach with the UNDP SDG Impact Standards suite, the IS-FSD constitute a framework, ensuring that collectively (with the SDG Impact Standards for PE Funds, Bond Issuers and Enterprises) they help to connect actors across the system using a common language and approach for integrating SDG impacts in the investment strategy and throughout the investment process and governance structures.

This resource calls upon organisations to:

• Strategy: Set impact objectives framed in terms of the SDGs and country priorities
• Governance: Set up processes and embed practices that are aligned with the SDG Impact Standards.
• Measure, assess and value: Understand whether all relevant information is being actioned to understand impact. The Standards outline how baselines, social/ ecological thresholds and other contextual information should be included in assessment of whether an underlying asset is contributing to the SDGs.
• Set targets and plan: under construction
• Implement: under construction
• Communicate: Disclose how impacts are managed and measured

A set of harmonised metrics developed by subject matter experts and impact management practitioners, that have been agreed upon by Development Finance Institutions (DFIs) and other private sector partners.

In March 2021, HIPSO together with IRIS+ have published the Joint Impact Indicators, a harmonised set of basic indicators that are available for the impact investment community at large. Further harmonisation work continues: work is underway to map various investor metric sets and corporate disclosure standards, with a view to achieving global consistency. E.g. IRIS+-GRI, B Lab-GRI, HIPSO-IRIS+.

Use this resource to:

• Measure, assess and value: Select from a catalogue of metrics specifically designed for Development Finance Institutions.

Guidance summarises Multilateral Development Banks’ approach to the topic of investor contribution (which they term “additionality”).

Use this resource to:

• Understand the common approaches to additionality, which allows for multilateral development banks to substantiate additionality in projects.