We comply with international rules
Denmark and the other OECD member states have signed an agreement that large-scale export projects worth in excess of SDR 10 million must be subjected to a sustainability assessment in order to be considered for an export credit facility.
The agreement, an OECD Recommendation, lays down common rules for assessment of environmental issues and social responsibility.
The common rules ensure that companies and export credit agencies worldwide compete on equal terms.
Consequently, EKF has to ensure that every single export transaction complies with both local legislation and international rules.
What we examine
EKF’s assessment of project sustainability is based on the International Finance Corporation’s (IFC) standards. IFC’s standards are comprehensive, internationally recognised and are applied globally by the financial sector.
Because financial institutions in other countries also adhere to IFC standards, this allows us to cooperate on combating unfair competition on environmental issues and social responsibility. In certain areas, such as those for animal welfare, EKF checks that conditions comply with Danish rules.
In our assessment of social conditions, we look at employee rights, health and safety for employees, possible relocation of inhabitants for the purpose of the export project, and issues concerning indigenous peoples and cultural heritage.
In our assessment of environmental issues, we look at consumption of natural resources and raw materials, the project's impact on biodiversity and the risk of the project polluting air, soil, water and nature.
Details of IFC standards on IFC's website.
EKF procedure for sustainability assessments
What you have to do:
Contact EKF as soon as possible when considering an export proposition. EKF will be able to help you to clarify matters such as environmental issues and social responsibility, which in most cases will be required for EKF assistance in arranging competitive financing for your exports.
You can do your bit to speed up the processing of your application by providing a preliminary description of how your exports will affect people and the environment.
What EKF does:
Initial screening
Based on your information about the project, we assess any issues concerning your export transaction that require more detailed investigation. We can usually complete this process within a few days. If the screening indicates that the impacts on people and the environment are negligible, we do not need to conduct a full assessment of the project's sustainability.
Assessment
The next phase is the assessment process, which typically takes 5-10 days. The assessment may, however, take longer if there is any information lacking on the export transaction, if the project is relatively complex or if the project will have significant human and/or environmental impacts.
During this phase, EKF makes sure that any critical issues concerning the sustainability of the exports are addressed. If needed, we will ask your company and external experts to complete questionnaires, we may hold telephone conferences with the parties involved and visit the export project and the companies involved.
Agreements concerning actions
Based on our assessment, EKF may make certain stipulations regarding the project's sustainability on your company or the project owner. These might, for example, consist of certain actions to prevent or limit pollution, or to ensure that the buyer complies with occupational health and safety rules.
Throughout the process, EKF helps you to resolve any challenges we have identified. You will be able to make use of our long-standing experience in this area, and of EKF's wide network of experts.
We monitor project sustainability
EKF monitors some of the major and more complex export projects we provide cover for. For example: the construction of roads, port terminals and factories, where new challenges for the environment and people may arise during the project. Some projects may even be subject to such critical impacts that EKF has to monitor the project very closely to ensure that it lives up to our international responsibility.
EKF has endorsed the Equator Principles of international frameworks for project financing. If your company is involved in export transactions facilitated by project financing, you will be required to submit an annual report on the project's sustainability to EKF so that we can verify that the project complies with the guidelines issued by the International Finance Corporation (IFC), on which the Equator Principles are based.