AFD’s Sustainable Development Analysis and Opinion Mechanism was created as part of the Group’s 2018–2022 Strategy, whose aim is to make sustainable development a shared point of reference for AFD’s operational activities. The mechanism, which underwent a pilot phase in 2013 and has been fully operational since 2014, is a response to AFD Group’s CSR commitments.
The purpose of the mechanism is to facilitate horizontal consideration within AFD of sustainable-development issues in the operations we finance. It includes the following:
- An analysis of project impact on the various dimensions of sustainable development, carried out by the teams in charge of identifying and examining those projects. This ex-ante analysis, which uses a qualitative approach, incorporates the Sustainable Development Goals (SDGs) and the Paris Agreement on the climate.
- A “sustainable-development opinion” made by an entity independent from the Operations Department, with the purpose of clarifying the decision made by the AFD bodies. A sustainable-development opinion is given for all AFD operations, with the exception of global budget support, operations of small amounts (less than €1.5 million in grants or €5 million in loans) guarantees, and fund delegation without AFD cofinancing.
The Sustainable Development Analysis and Opinion Mechanism is also a tool for dialogue in the process of working out projects. By involving the project counterparts, it seeks to stimulate questioning and help ensure that the impacts that projects may have on sustainable development are taken into account as far upstream as possible.