All sites of VEB Group:

Vnesheconombank VEB-Engineering VEB-Capital VEB-Leasing VEB-Innovation
The Russian Agency for Export Credit
and Investment Insurance (EXIAR)
The North Caucasus
Development Corporation
OJSC «Far East and Baikal Region
Development Fund»
The Russian Direct Investment Fund GLOBEX Bank Sviaz-Bank OJSC SME Bank OJSC BelVEBPSC VEB Asia

Environmental and Social Due Diligence

Eximbank of Russia follows best practice and international experience to manage environmental and social risks relating to supported export credits and to prevent and minimize negative environmental and social impacts.

The Bank understands social and environmental risk as probability of occurring project related impacts on environment and its components, such as generation of significant air emissions, greenhouse gas emissions, wastewater discharge, hazardous waste, noise and vibrations and also impacts on local population directly affected by the project, personnel involved in project construction and operation as well as general project-related effects and consequences for the community health, safety, security and human rights.

To manage environmental and social risks of potentially supported projects the Bank undertakes Environmental and Social Due Diligence based on «Recommendation of The Council on Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence of 07.04.2016 (The “Common Approaches”) and internal procedures.

Social and environmental aspects of export-related projects are taken into account at every stage of decision-making process on applications for officially supported export credits. The Bank informs its counterparties about its environmental and social values, standards and requirements.

Social and environmental due diligence process in the Bank consists of the following steps:

  • Screening preliminary assessment of initial data with the aim of identifying which applications should be classified and, where appropriate, subsequently reviewed
  • Classification The following categories are identified depending on amount of support and environmental and social risks of the project:
    • Category A - a project has the potential to have significant adverse environmental and/or social impacts, which are diverse, irreversible and/or unprecedented.
    • Category B - a project with medium potential environmental and/or social impacts are less adverse than those of Category A projects.
    • Category C - project has minimal or no potentially adverse environmental and/or social impacts.
  • Environmental and Social Review вIn case of high or medium environmental and social risks (projects of category A or B) the Bank undertakes detailed environmental and social compliance analysis with national requirements and international standards.

The Applicable International standards include:

Where Major Multilateral Financial Institutions also participate in supporting the project, environmental and social review may include a benchmarking against the relevant aspects of the standards of these Institutions as well.
  • Evaluation and Decision-making based on the set of parameters including financial, economic, reputational, environmental and social. In order to assure effective optimisation of transactions intended for official support, the Bank together with its clients and partners agrees on measures on prevention, minimization or mitigation of potential environmental and social impacts of the project and (or) improvement of its positive environmental and social effects, considering the particular project parties, size of their business, specific features of their activities, type and scale of potential negative impacts, existing international standards applicable to the project and the Bank leverage in the project.
  • Monitoring to obtain up-to-date information on actual project impacts and project participants actions on the revealed risks mitigation.

When supporting large scale socially important projects, the Bank actively participates in the process of environmental and social impacts assessment, liaises with independent recognized experts in this field, encourages maximum transparency including arrangement of public consultations with those groups potentially affected by the project.

Therefore, the Bank contributes to implementation of projects involving Russian export in line with national and international social and environmental standards and best international practice.

In accordance with the OECD “Common Approaches” and internal procedures the Bank publishes information on Category A projects under consideration (ex – ante disclosure) as well as information on Category A and B projects covered each year (ex – post disclosure). The publication includes brief project description, international standards applied and type of documentation analyzed. For further information read Data on Projects