AFD - 2019 Universal registration document

STATEMENT OF NON-FINANCIAL PERFORMANCE 2 The Group’s contribution to sustainable development

2.4.2 Impact of Proparco’s activity Operating within the private sector, Proparco aims to promote transitions to sustainable and balanced, inclusive and carbon- free growth models in developing and emerging countries. Its 2017-2020 Ǿ strategy reflects the determination of the French government and international community to increase public aid for development in support of these transitions, through the private sector. This strategy aims to: (i) triple its direct impact on the development and transitions of countries, (ii) support the improved CSR of players and implement and support the transitions, and (iii) redirect investments by increasing Proparco’s “engagement effect” with respect to financing flows, in particular of a private nature, and its capacity to unlock investments in target countries. To support this strategy focused on the institution’s impact and added value, in 2018 Proparco created a dedicated department (Support for Sustainable Development) enjoying greater resources and positioned at the same hierarchical level as the operating departments. It brings together, in three units, Proparco’s experts in the areas of (i) Ǿ environment, social and governance, (ii) Ǿ impact monitoring and analysis and (iii) Ǿ company support and the mobilisation of mix resources. In addition, in 2019 Proparco published its first Sustainable Development Report (1) .

The effects that projects are expected to have on development are identified based on quantity and quality indicators the data for which is provided by project managers with the support of the Impact Measurement Unit, by means of business plans, project studies, and discussions with the customer. The strategic impact objectives prioritised by Proparco are linked to the number of jobs supported, the number of tonnes of CO 2 avoided, access to essential services or goods (education, healthcare, electricity, water and sanitation, financial inclusion) and to ESG support and innovation. They make a significant contribution to achieving several Sustainable Development Goals (2) . The analysis of expected impacts is conducted during the appraisal and entered into the project’s documentation submitted to decision-making bodies. Additionally, linked to the “Climate and Development” (2017-2022) strategy adopted by the AFD Group, Proparco undertakes to ensure all its financing contributes to or integrates eventually into low carbon resilient development. There, whenever necessary the appraised projects are analysed to ensure they are consistent with the objectives of the Paris Agreement. Of the 85 Ǿ projects signed this year, 72 have undergone an ex-ante estimation of the expected impacts which have been recorded (3) . In 2019, the methodology for calculating indicators relating to jobs and access to essential goods and services was changed in order to improve the estimates. The figures below take account of these changes and present the results of the expected ex- ante impacts of the 72 Ǿ projects.

(1) https://www.Proparco.fr/en/ressources/sustainable-development-report-2018. (2) Notably SDG 3 (Good health and well-being), SDG 4 (Quality education), SDG 5 (Gender equality), SDG 7 (Clean and affordable energy), SDG Ǿ 8 (Decent work and economic growth), SDG 10 (Reduced inequalities), SDG 9 (Industry, innovation and infrastructure), SDG 12 (Responsible Ǿ consumption and production) and SDG 13 (Measures to combat climate change). (3) Of the 13 projects where the expected impacts have not been recorded:

- 6 projects are top-ups where the ex-ante impacts were recorded when the fi nancing was fi rst granted; - 3 projects have been appraised as fast-track, their ex-ante impacts have not been estimated; - 3 Trade fi nance guarantee projects and 1 Capital requirements project were outside the “impact” scope in the appraisal.

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UNIVERSAL REGISTRATION DOCUMENT 2019

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