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E&E Solutions Inc.
Business Description

Support for Environmental/Social Consideration in Investment and Financing (Response to the Equator Principles, etc.)

Utilizing our extensive knowledge of local legislations around the world as well as international guidelines, we provide support in evaluating projects, including supply chain management, from environmental and social perspectives to financial institutions and the project proponent who are considering fundraising.
Home > Business Description > Assessment > Support for Environmental/Social Consideration in Investment and Financing (Response to the Equator Principles, etc.)

Markets and Trends

For financial institutions and investors who support corporate
activity from the financial side, the importance of evaluation of project related the environmental and social
aspects they will finance or invest continues to increase.
On the other hand, for project proponents who promote projects,
executing projects with appropriate consideration for environmental and social aspects is vital for raising
funds.
01
Environmental and social risk assessments
Considering various conditions such as the characteristics of the
project and the location of the project site, E&ES evaluates whether consideration of environmental and
social risks such as pollution control, natural environment, social environment and accident prevention is
appropriate in accordance with the country legislations where the project is to be implemented and
international guidelines. In this way, E&ES support financial institutions in their assessment and the
project proponent in their smooth financing process.
Service Examples
Assessment of specific projects’ environmental and social risk
Studies of the environmental and social systems of projects’ host countries
Studies of environmental and social impacts by sector (examples: renewable energy, oil and gas development, thermal power generation, and mining)
Studies of guidelines for financial institutions
Studies of industry-specific guidelines (good practices)
Supply chain audits
Equator Principles
The Equator Principles is a framework that financial institutions use when
financing a project involving large-scale development or construction to identify, assess, and manage
that project related environmental and social risks.
The latest Equator Principles (EP4) had come into full effect on October 1, 2020. Projects must meets
requirements of the Equator Principles financed from financial institutions that have adopted the EP4.
IFC Performance Standards
IFC Performance Standards are the standard established by the International
Finance Corporation (IFC) which asks its customers to comply with as a lending condition.
Countries and projects that are financed by the IFC are required to meet these requirements. These
performance standards have now been adopted as international bench mark and are required of projects by
many financial institutions, not only IFC.
02
Evaluation of environmental and social review systems and initiatives of financial institutions, etc.
Recently more and more financial institutions, etc. conduct environmental and social reviews based on international guidelines including the Equator Principles or other self-formulated regulations. Therefore, it is important to review related engagement activities regularly and reconsider them for improvements.
We provide support environmental and social assessments of financial institutions in assessing review systems and specific projects’ status, and extract gaps by comparing with the Equator Principles’ requirements or regulations within the organization.
Service Examples
Evaluation of review systems/status based on guidelines (the Equator Principles, etc.) and regulations implemented by financial institutions
03
Human rights risk assessments
Recently, the manner in which projects deal with their stakeholders
(local residents, workers, etc.) has been increasingly turning into a human rights issue. As a result,
project proponents are being required to take actions to consider human rights.
We provide support in assessing consideration for human rights, identifying good practices and the like, and
introducing initiatives tailored to specific projects. This support extends to supply chains and is based on
industry-specific standards (such as those of the Responsible Business Alliance (RBA) and Pharmaceutical
Supply Chain Initiative (PSCI)).
Service Examples
Identification of projects related human rights risks
Studies of international trends concerning human rights issues
Studies of guidelines for financial institutions
Studies of industry-specific guidelines (good practices)
Codes of conduct for supply chains
Various industrial bodies have formulated supply chain codes of conduct
covering multiple fields, including the environment, labor, and health and safety. For example, the
Responsible Business Alliance (RBA) in the electronics industry and the Pharmaceutical Supply Chain
Initiative (PSCI) in the pharmaceuticals industry are well known.
04
Climate change, biodiversity risks, and opportunities evaluation
Interest in climate change has been steadily rising since the Paris Agreement came into effect in 2016. This is evidenced by efforts aimed at disclosing information on climate change risk by the Task Force on Climate-Related Financial Disclosures (TCFD), the Taskforce on Nature-related Financial Disclosures (TNFD) and others. It is anticipated that, in some cases, consideration of climate change or biodiversity risk and opportunities will be required not only at the company level but also at the project level.
We evaluate projects to determine these risks and opportunities.
Service Examples
Studies and assessments to identify and formulate countermeasures to climate change risks (physical risks and transition risks) and opportunities on the whole businesses or projects
Biodiversity risks and opportunities evaluation on businesses or projects
05
Evaluation of environmental effect (green effect) and ESG factors
Environmental effect (green effect) assessments
We evaluate the environmental effect (green effect) of targeted companies and projects based on international guidelines―specifically the Green Bond Principles and Green Loan Principles.
Evaluation of ESG factors
We support evaluation of ESG activities by companies targeted for investment by institutional investors.
Service Examples
Environmental improvement effect (CO2 emission reduction, etc.) evaluations
Independent verification of performance figures for the SPTs of the Sustainability-Linked Loan (SLL)

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+81 (0)3 6328 0080Inquiries are accepted between 10:00 am and 5:30 pm, Monday to Friday