AFD - Universal Registration Document 2020

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

❙ 2020 Proparco ex-ante result indicators

SDG

Indicator

2020 value

SDG 8

Number of jobs supported Number of jobs created

803,321 21,431

SDGs 5 and 10

Gender equity:% of amounts signed qualifying for the 2X Challenge (1) Volume of private finance mobilised by projects authorised in 2020 (€M)

13%

SDG 17

1,777

2

SDG 7 & 13

Climate: Tonnes of CO 2 eq avoided

718,935

Energy: renewable energy capacity established (MW)

600

New or improved access to an essential good or service (SDG 3, SDG 4, SDG 7, SDG 8, SDG 9, SDG 10)

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

2,589,553

133,608

of which Health: improved access to a health service of which Microfinance: access to a micro-credit of which Education: improved access to an education service of which Transport: improved access to public transport

1,729,086

398,584

4,275

324,000 (1) Launched in 2018 by Proparco and fi ve other development fi nance institutions, the initial objective of the 2X Challenge initiative was to mobilise $3 Ǿ billion 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. In June Ǿ 2020, this target was exceeded, with $4.1 Ǿ billion mobilised.

In 2020, Proparco continued to intensify its commitment to monitoring and evaluating the impact of projects. The Impact Measurement Unit analysed the actual impact obtained in 2019 by the projects signed between 2015 and 2018 to compare the ex-ante forecasts (upstream) with the impact achieved and identify the most effective ways to support the impact targets. In 2020, the number of projects monitored doubled (214 Ǿ projects, compared to 94 Ǿ projects in 2019). 2.4.3 Impact of the Group’s activity on Ǿ climate change 2.4.3.1 The 2017-2022 Climate Development strategy AFD Group’s commitment to the climate has become a key feature of its action. The Group has been committed to this global challenge for more than 15 Ǿ years. It further strengthened its climate ambition by joining the momentum created by the Paris Agreement and Sustainable Development Goals. The “Climate and Development” strategy (1) (2017-2022) adopted by the Board of Directors in 2017, is based on four objectives: i. ensuring its activity is “100% Paris Agreement”: making all the Group’s financing consistent with resilient and low-carbon development, in particular by adopting a new framework of questioning for the “sustainable development” analysis of projects; ii. increasing climate finance volumes: 50% of the Group’s annual financing in foreign countries targets projects with

co-benefits for the climate, reaching €5bn per year for climate protection by 2020, of which €1.5bn is devoted to adaptation measures; iii. redirecting financial and investment flows: maximising the knock-on effect of its financing to redirect private and local investments; developing new high-volume, high-impact instruments; and integrating financial climate risks (physical and transition-related) in its risk analysis and credit decision processes; iv. co-developing solutions and shaping standards, in particular through its partnership strategy and by participating in major international events and in discussions on climate finance and support for knowledge production. In 2020, in accordance with the commitment made when it was adopted in 2017, AFD conducted amid-term review of the climate strategy (2) . Carried out in the first half of 2020, this exercise was based on a large internal consultation (30 interviews within the AFD Group, a questionnaire for all AFD employees, with a total of 300 responses -10% of employees) and external consultation (NGOs, think tanks, multilateral and regional banks, ministries). This mid-term review confirmed that AFD is on track to meet or has already met many of the targets set in 2017. Significant results should be highlighted in terms of the volume of climate finance, influence in the debates related to the alignment with the Paris Agreement, the Group’s positioning as a key player on the climate, recognition of the role of development banks and their IDFC platform (3) . Several projects launched as part of this mid-term review are aimed at a more comprehensive and ambitious application of the climate strategy and prepare the foundations for the future post-2022 Ǿ strategy.

(1) https://www.afd.fr/fr/ressources/strategie-climat-developpement-2017-2022 (2) https://www.afd.fr/fr/ressources/strategie-climat-developpement-2017-2022-revue-mi-parcours (3) International Development Finance Club

51

2020 UNIVERSAL REGISTRATION DOCUMENT