The ESG due diligence analysis is performed internally and covers at least the following items:
(i) Analysis of the adequacy of the borrower to the exclusions and restrictions defined in this policy;
(ii) High level analysis of the geographies and sectors in which the company operates, allowing the identification of the main ESG risks and opportunities determined by the location and general characteristics of the activity it carries out; and
(iii) Specific analysis of the company to assess its ESG risks and opportunities.
The ESG Due Diligence process ensures that the following aspects are covered when analysing new financing opportunities:
Respect of workers’ human rights
Maintain safe and healthy work conditions for employees and contractors
Prudent and responsible environmental management of operations, ensuring an efficient use of natural resources as well as mitigation of environmental risks and issues
Maintain high standards of business integrity, avoid corruption in any of its forms and complying with laws and regulation applicable against bribery, fraud and money laundering
Apply a good business management establishing clear responsibilities, procedures and controls and applying best corporate governance practices
Follow as a standard an inclusion and diversity policy
The results of the analysis are included in a report of conclusions and recommendations that contains details of the most relevant issues from an ESG perspective for making a financing decision. These conclusions inform the credit report that is analysed in the Credit Committee prior to take any financing decision.