SUSTAINABLE FINANCE

ESG criteria (environmental, social, governance) are included in investment and financial decisions by an increasing number of banks, investment funds and insurance companies. Responding to the needs of the financial markets, the EU regulator has launched a number of legislative solutions that will shape the framework for environmentally sustainable investments. In the next few quarters, companies that are well prepared to meet the requirements of sustainable finance will have access to cheaper financing than those which do not meet the standards.

What we do in the field of sustainable financing:

ANALYSIS AND ADJUSTMENT TO THE SUSTAINABLE FINANCE TAXONOMY

EU Sustainable Finance Taxonomy creates a framework of criteria carefully defining what type of economic activity shall be considered as environmentally sustainable and which shall not be considered as such. We analyse the operating activities of the company and collect relevant data from the company and its value chain to specify what percentage of the company’s revenues, CAPEX and OPEX are aligned with the Taxonomy. We prepare the obtained data in a layout required by the regulations. We also prepare a set of recommendations for the management board, which, when implemented, may increase the alignment level of the company’s operating activities with the Taxonomy.

DUE DILIGENCE REGARDING HUMAN RIGHTS

The Regulation on the establishment of frameworks facilitating sustainable investments requires the economic activity to be conducted in a way that ensures compliance with a specific catalogue of human rights defined in the core International Labour Organization (ILO) conventions. We conduct an audit of compliance with human rights in the company and the capital group. We help to properly adjust internal regulations and build or improve the system of reporting and handling irregularities in order to strengthen the company’s human rights due diligence.

FULFILLING THE REQUIREMENTS OF INVESTORS AND LENDING INSTITUTIONS (CDP, EBRD, EIB)

More and more institutions providing financing for companies take into consideration ESG factors when making investment or credit decisions. In certain cases, it comes down to the data analysis from non-financial reports, in others, these institutions require additional information to be provided in a specific layout and formats. We support companies in responding to questionnaires and surveys regarding non-financial issues. We also help to properly profile non-financial reports so that the information disclosed therein is transparent and easily interpreted by financial institutions.