SLP offers a comprehensive range of ESG technical services throughout South East Asia

SLP offers a comprehensive range of ESG technical services throughout South East Asia

SLP offers a broad range of environmental, social and governance (ESG) services across the ASEAN member states. ESG is a generic term, commonly used by investors to evaluate the non-financial corporate behaviour and performance of companies. ESG factors are a subset of non-financial performance indicators, which includes sustainable, ethical and corporate governance issues such as managing a company’s carbon footprint and ensuring there are systems in place to ensure accountability.

Developing and implementing an ESG system provides an opportunity for companies to evaluate and develop goals that will positively impact the environment, improve the social impact a company has on the community it operates in and the people it employs, and shows how the company is delivering on these goals. It is a company-initiated strategy that is focusing on the bigger picture of caring for people and the planet, instead of just the financial bottom line.

It is also recognised that there are tangible business benefits for companies that implement an ESG program, which includes:

  • Competitive Advantage;
  • Cost Reduction;
  • More Attractive to Lenders and Investors;
  • Supply Chain Prospects; and
  • Attraction and Retention of Talent.

In assessing the ESG performance of a company, it is critical to first establish the appropriate benchmarks to measure ESG metrics. SLP primarily utilises the International Finance Corporation (IFC) ESG Standards, which principally comprise of eight Performance Standards which define a company’s responsibilities for managing their Environmental and Social (E&S) risks.

These are supplemented with the IFC’s Corporate Governance Methodology, which sets out an approach to evaluate and improve the corporate Governance of companies with respect to the governance structures and processes by which companies are directed and controlled (e.g., board structure and diversity, ethical conduct, risk management, disclosure and transparency).

The IFC’s Performance Standards also underpin the Equator Principles which is a global risk management framework for identifying, assessing and managing environmental and social risks. At the time of writing, 134 financial institutions (referred to as Equator Principles Financial Institutions (EPFIs)) in 38 countries have officially adopted the Equator Principles E&S risk management framework.

SLP is equally capable of using other E&S standards and guidelines such as the ADB’s Safeguard Requirements, JICA Guidelines for Environmental and Social Considerations and the AIIB Environmental and Social Framework.

SLP provides Financiers ESG services on behalf of lenders or investors seeking to understand the potential environmental and social (E&S) risks and liabilities associated with a particular business transaction or investment. We also provide Project Sponsor/Borrowers ESG services to companies/project developers seeking to ensure that their E&S performance is aligned with lenders/investors environmental and social safeguards (ESS) requirements, and that the necessary E&S policies and management programs are in place to satisfy financiers project conditions related to ESG.

For further information on our range of ESG services, please visit our ESG and Environmental and Social Due Diligence Services page.