AFD // 2021 Universal Registration Document

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

❙ 2021 Proparco ex-ante result indicators

SDG

Indicator

2021 value 1,423,800

Number of jobs supported Number of jobs created

SDG ɸ 8

33,300

20%

SDG ɸ 5 & 10

Gender equity: % of amounts signed qualifying for the 2X Challenge (1) Volume of private finance mobilised by projects authorised in 2021 (€M)

SDG ɸ 17

1,742

2

Climate: Tonnes of CO Džɸ eq avoided per year

1,952,000

SDG ɸ 7 & ɸ 13

Energy: renewable energy capacity established (MW)

550

Number of theoretical beneficiaries of new or improved access to an essential good or service of which Energy: improved access to electricity through renewable energy projects

8,902,000 3,233,300

New or improved access to an essential good or service (SDG ɸ 3, SDG ɸ 7, SDG ɸ 8, SDG ɸ 9, SDG ɸ 11)

of which Health: improved access to a health service of which Microfinance: access to a micro-credit

566,200 697,900

of which Waste Collection: access to a waste collection service of which Transport: improved access to public transport of which Telecommunications: access to a telecommunications service

1,422,600

150,600

2,827,800

of which Affordable Housing: access to affordable housing 3,600 (1) Launched in 2018 by Proparco and five other development finance institutions, the initial objective of the 2X Challenge initiative was to mobilise US$3bn by 2020 for projects promoting gender equality, based on criteria related to female entrepreneurship, female leadership, quality female employment and the provision of goods and services for women. The first phase of implementation of the 2X Challenge initiative, from June ࣢ 2018 to December ࣢ 2020, was a great success both in terms of commitments mobilised for 2X Challenge projects (US$4.1bn for an initial target of US$3bn), as well as in terms of development bank participation (20 DFIs and multilateral banks) and the establishment of standards aligned with best practices. For the 2021-2022 period, the 2X Challenge aims to mobilise US$15bn for projects to reduce gender inequalities.

A NEWSTAGE IN THE IMPLEMENTATION OF THE “100% PARIS AGREEMENT” COMMITMENT IN 2021 Since 2018, in addition to estimating the expected results of projects on the basis of impact indicators, an analysis of the potential inconsistency of Proparco financing and direct investment with regard to the Paris Agreement is systematically carried out, in order to ensure that climate and sustainability issues of projects supported are better taken into account. To do so, Proparco analyses the risk of misalignment of its operations with the Paris Agreement. This risk may be related to high emission levels by a project; to potential structural effects on the country and/or on the sector under consideration, which block access to low-carbon trajectories; to an inconsistency with national or sectoral climate commitments; or to eviction effects of lower-emission alternatives. 2021 was marked by a new stage in Proparco’s implementation of the “100% Paris Agreement” commitment, with the extension of the analysis of the risk of misalignment of its financing with the Paris Agreement to intermediated transactions, notably in taking into account climate issues. In this context, Proparco developed a technical assistance facility, Pro Climat , to support the development of climate finance for its partner banks, as well as the integration of climate issues into their strategies and operations.

In 2021, Proparco intensified its commitment to monitoring and evaluating the impact of projects. The Impact Measurement Unit (IMP) analysed the impact made in 2020 by the projects signed between 2015 and 2019, i.e. a total of 273 ɸ projects (compared to 214 ɸ projects in 2020), to compare the ex-ante forecasts (upstream) with the impact achieved and identify the most

effective ways to support the impact targets. A CONSTANTLY IMPROVING IMPACT MANAGEMENT SYSTEM

In 2021, to improve forward-looking knowledge of impacts by sector and type of operation, the Impact Measurement Unit continued to develop sectoral analysis frameworks, in close collaboration with the operating divisions. Intended for the head office and the network’s offices, these specialists aim to support project managers during the prospecting and appraisal stages of projects, to better understand the potential impacts of projects, and to identify additional impacts that may be sought in the event of access to mixed resources and/or technical assistance. After the cement, construction materials, off-grid electricity (excluding networks) and textiles sectors in 2020, eleven sectoral frameworks are being finalised and ten are under development.

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2021 UNIVERSAL REGISTRATION DOCUMENT