GCPF focuses on sustainable investments in clean energy projects in emerging and developing markets with a positive impact on the climate. The fund carefully manages social and environmental risks in this context. In addition to meeting general financing criteria, all projects funded by GCPF must comply with a set of social and environmental management criteria defined in GCPF’s Environmental and Social Management System (ESMS). GCPF monitors compliance with these criteria before and during the investment phase and takes corrective actions where necessary.
This disclosure is an EU requirement (according to the Regulation (EU) 2019/2088 on sustainability-related disclosure in the financial services sector (SFDR)) that states the fund’s sustainable investment objective, how it complies with ESG management standards and also supports the Sustainable Development Goals (SDGs).
Investees must comply with
- A social and environmental exclusion list, aligned with IFC’s exclusion list
- Locally applicable social and environmental laws
- IFC Performance Standards
The ESMS screening process focuses on four main areas
- Human rights
- Labour conditions
- Environmental impacts and impact on communities
- Stakeholder engagement
External audits of the ESMS are carried out periodically to identify any gaps in its scope or content.