Case Studies

How Unmanaged E&S Impacts Can Generate Business Risk


 The case study considers three projects highlighting where community health and safety issues present a significant business risk - for both clients and banks providing loans. 

The case study considers a fertilizer plant, a manufacturing plant dealing with highly inflammable substances, and a production unit for activated carbon from coconut shells. Each of the three banks approached for financing had an Environmental and Social Risk Management System (ESMS) in place, as well as a policy requiring clients with high E&S risk profiles to adhere to the IFC Performance Standards. 

All three cases clearly show that there is a strong business case for banks to assess and manage E&S risks, particularly community health and safety risks.