Development finance institutions

The Positive Impact (PI) 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 and other third parties, such as auditors. The 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 for the following Actions of Impact Management:

• Implement: Deliver positive impact financial products. The PI Model Frameworks enables financial institutions and intermediaries to develop appropriate framework (or adapt existing frameworks) to inform decision-making (i.e. on financing /investments), support PI financial product development, to continually analyse and monitor 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 for the following Actions of Impact Management:

• Implement: Obtain practical recommendations to financial institutions on key aspects of the Responsible Business Conduct due diligence process, including stakeholder engagement, client confidentiality management and remediation processes.

The Impact Standards for Financing Sustainable Development (IS-FSD) is a framework for donors, development finance institutions (DFIs) and their private partners to make financial decisions that maximise their positive contribution to the SDGs. The Standards are harmonised with the UNDP SDG Impact Standards.

This is a cross-cutting resource, meaning that it supports the internal impact management process as a whole, rather than one or a few of the Actions of Impact Management.

The Harmonized Indicators for Private Sector Operations (HIPSO) are a set of standardised indicators for development finance institutions (DFIs). They provide a common framework for measuring and reporting on the development impact of private sector investments and projects, covering areas such as job creation, environmental sustainability, social inclusion and economic growth.

Use this resource for the following Actions of Impact Management:

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

The Multilateral Development Banks’ (MDB) Harmonized Framework For Additionality In Private Sector Operations standardises the assessment of “additionality” in private sector investments. Understanding additionality can increase access to finance for underserved markets, or enhance environmental and social standards by refering to the extent to which MDB finance contributes to outcomes.

Use this resource for the following Actions of Impact Management:

• Monitor, learn and adapt: Identify the types of evidence to demonstrate additionality.