Managing environmental and social risks in project finance
Labor unrest, poor working conditions, and environmentally harmful operations can substantially reduce your investment’s chance of success—in these volatile economic times, reliable and validated information is crucial.
Through comprehensive analyses assessments of target companies' products and operations, the program development team at UL-STR Responsible Sourcing helps international development finance institutions, Equator Principle financial institutions, private equity firms, commercial lenders, institutional investors and insurance companies identify and understand environmental and social issues to manage project finance risk anywhere in the world.
Due Diligence Assessments identify technical strengths and weaknesses of potential investments to help you make sound decisions. These are conducted in accordance with the IFC Performance Standards or other applicable standards. Assessments include extensive desk research as well as on-the-ground verification of the company’s or contractor’s labor policies and practices.
Labor Due Diligence Assessments help assess the risk of funding projects that may impact the labor standards of the workforce involved in constructing, upgrading, or operating your project. Custom ESG risk assessments of your investment decisions are also available. UL-STR’s Labor and Employment Library (LESLi) provides continuously updated information on labor, wage, and health and safety laws across over 140 countries.
Training and Remediation assists the company or contractor receiving project financing in the implementation or improvement of their human resource, social and environmental management systems in accordance with the lender’s requirements.
UL-STR Responsible Sourcing’s Risk Index ranks countries in areas of government, economics, politics and labor culture by synthesizing internationally respected indices with UL-STR Responsible Sourcing’s own indices drawn from generic global assessment data. The Risk Index can also form the basis of a custom risk assessment derived from project locations, products, or types of violations.
UL-STR Responsible Sourcing’s social, environmental and labor due diligence programs provide actionable information that investors and businesses can trust. Helping you develop a sourcing social and environmental due diligence program that will help your business thrive in today’s marketplace is our specialty.