The above categories differ from the headings under which CDC monitors in the post-investment phase but constitute a similar approach. In line with IFC Performance Standard 1, CDC monitors its investments based on the following parameters: Environmental and Social Assessment and Management system, E&S Policy, identification of risks and impacts, management programmes, organisational capacity and competency, emergency preparedness and response, monitoring and review, stakeholder engagement, external communications and grievance mechanisms, and ongoing reporting to affected communities.
With its private equity deals, CDC ensures responsibility for ESG performance is assigned to a member of staff at a level of seniority commensurate with the inherent E&S risks associated with the company's operations. The institutional capacity to manage ESG risks is assessed in CDC's due diligence and CDC provides training to companies in need of support in this area. Performance targets for applicable ESG issues in operations are defined via the action plan agreed between the company and CDC, with clear timescales, and responsibilities for completion. As appropriate (and as possible) CDC supports the establishing of ESG sub-committees to the Board (or similar vehicles) which increase the visibility of ESG practices and enhance impact through commitment and participation at the top.