AFD - Universal Registration Document 2020

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

2.4.2 Impacts 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. Proparco has put in place a new strategic roadmap for the 2020- 2022 period, which was approved by its Board of Directors on 7 Ǿ February 2020, after an initial presentation to the AFD Board of Directors in January Ǿ 2020. This new roadmap, which is in line with the main priorities of the AFD Group strategic plan, reaffirms Proparco’s priority to significantly increase its impact on development and the achievement of the SDGs (1) . The objective is to double the impacts over the 2020-2022 period compared to the 2016-2018 period. To do this, Proparco seeks to strengthen the mobilisation of private players in order to direct private financing flows towards the sustainable development goals. Proparco is also targeting the emergence of tomorrow’s players and markets, particularly in the most vulnerable areas. These main objectives are accompanied by operational priorities that contribute to the AFD Group’s strategic priorities: climate financing, financial inclusion, financing of VSEs and SMEs, the African continent and a proactive approach in vulnerable areas. To support this strategy focused on the impact and added value of the institution, since 2018 Proparco has had a dedicated

department - Support for Sustainable Development - positioned at the same hierarchical level as the operational 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. 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 CO2 avoided, and access to essential services or goods (education, healthcare, electricity, water and sanitation, financial inclusion). 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. Of the 73 Ǿ projects signed in 2020 (excluding ARIZ/EURIZ (3) , Fisea, exceptional Covid-19 financing and subsidies), 57 Ǿ projects were the subject of an ex-ante analysis of the expected impacts which were recorded (4) .

(1) In 2020, Proparco published its second sustainable development report covering FY 2019, which presents, among other things, this new roadmap (https://www.proparco.fr/fr/ressources/rapport-de-developpement-durable-2019). (2) Notably SDG 3 (Good health and well-being), SDG 4 (Quality education), SDG 5 (Gender equality), SDG 7 (Clean and affordable energy), SDG 8 (Decent work and economic growth), SDG 10 (Reduced inequalities), SDG 9 (Industry, innovation and infrastructure), SDG 12 (Responsible consumption and production) and SDG 13 (Measures to combat climate change). (3) The ARIZ schemes (Support for the Risk of Financing Private Investment in AFD’s Areas of Operation), developed since 2008, and EURIZ, launched in 2019 with the financial support of the European Union, are credit risk guarantees for SMEs and microfinance institutions. (4) Of the 15 Ǿ projects where the expected impacts have not been recorded: - 6 Ǿ projects are additional fi nancing for existing customers for which the ex-ante impacts had been recorded at the time of the initial signature; - 3 trade fi nance guarantee projects, 3 European Financing Partners (EFP) projects, 1 EDFI project and 1 Interact Climate Change Facility (ICCF) project were outside the “impact” scope at appraisal and were therefore not subject to an ex-ante, recognised, external impact analysis. - 1 Ǿ project was subject to an estimate of expected impacts but it was not recognised due to a risk of double counting of the expected impacts at the level of the project itself (TCX A shares: leverage effect with theCurrency Exchange Fund, “TCX”, a fund specialised in currency risk hedging). - 1 Ǿ project was not subject to an ex-ante impact analysis due to the non-availability of the fund’s business flow.

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2020 UNIVERSAL REGISTRATION DOCUMENT