AFD // 2021 Universal Registration Document

STATEMENT OF NON-FINANCIAL PERFORMANCE 2 Contribution of the Group’s activity to sustainable development

2.4 Contribution of the Group’s activity to sustainable development

Adopted in 2018, the AFD Group’s 4 th Strategic Orientation Plan places its action within the framework of the Sustainable Development Goals (SDGs) and the Paris Climate Agreement, while promoting social ties, in order to help build “a world in common”. Accordingly, the AFD Group is responsible for helping

to achieve the 17 goals of the 2030 Agenda by supporting six transitions: demographic and social, energy, regional and ecological, digital and technological, economic and financial, and policy and citizen-focused. (1) .

100% Paris Agreement

100% committed to social ties

Energy transition

Digital and technological transition

Economic and financial transition

Policy and citizen-focused transition

Demographic and social transition

Regional and ecological transition

❙ Link between the SDGs and the transitions in the AFD Group 2018-2022 Strategic Orientation Plan In order to improve how sustainable development issues are taken into account in the financed projects, AFD set up a “Sustainable Development Analysis and Opinion” system. This system makes it possible to qualitatively estimate the impacts (positive, neutral or negative) of a project on themain dimensions of sustainable development (2) . It embodies the notion of integrating the different facets of sustainable development (social, environmental and economic) put forward in the 2030 Agenda and is, therefore, a tool for aligning operations with sustainable development objectives. The system is based on an analysis grid that makes it possible to analyse the impacts of each intervention, in their context. It promotes dialogue around the improvement of the expected effects of the project, both with the project management and internally at AFD. It is part of AFD’s project cycle and takes form, firstly, at the identification and appraisal stage, through an analysis carried out by the team in charge of the project, and then at the award stage, through an independent sustainable development opinion issued by the Sustainable Development Analysis and Opinion unit, which is part of the Strategy

Department. Said opinion can be favourable, favourable with recommendations, reserved or negative. It appears in the notes communicated to the decision-making bodies (notably the Board of Directors) and thus informs the decision of these bodies. In 2020, a review of the system made it possible to introduce an early warning mechanism to identify upstream projects presenting significant risks in terms of sustainable development and to abandon or redirect them. The added value of the system also lies in the learning process that it fosters to promote the gradual integration of sustainability concerns in operations and to aim for more transformational impacts. 2.4.1 Impacts of AFD’s activity AFD funds and supports development projects and programmes that contribute to direct and indirect job creation and to regional development in its countries of operation. AFD calculates result indicators to measure and provide a summarised report on the impact of its activity on the ground, in order to serve the development of the areas where it operates and the populations benefiting from the projects funded, and, more generally, the impact of its work on the SDGs.

(1) https://www.afd.fr/en/ressources/afd-group-2018-2022-strategy (2) The six dimensions of the sustainable development analysis are: (i) sustainable growth and resilient economies; (ii) social well-being and reduction of social imbalances; (iii) gender equality; (iv) preservation of biodiversity, management of natural environments and resources; (v) climate: transition to a low-carbon trajectory (v-a) and resilience to climate change (v-b); (vi) sustainability of project effects and governance framework.

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2021 UNIVERSAL REGISTRATION DOCUMENT