Upon completion of this course, participants will be able to:

• Apply the **IFC Performance Standards, Equator Principles, and World Bank EHS Guidelines** to structure and execute ESG due diligence.
• Design a systematic **environmental and social risk screening** and categorization process for new project finance transactions.
• Conduct in-depth analysis of **material social risks** (e.g., involuntary resettlement, labor rights, indigenous peoples) and develop robust mitigation plans.
• Assess the **governance risks** specific to project finance (e.g., corruption, transparency, stakeholder engagement) and implement anti-bribery controls.
• Develop and monitor **Environmental and Social Management Systems (ESMS)** and Corrective Action Plans (CAPs) for project implementation.
• Understand the role of climate risk and the integration of **TCFD (Task Force on Climate-related Financial Disclosures)** into project risk assessment.
• Establish clear contractual requirements and covenants for ongoing ESG compliance and reporting by the project company.
• Formulate policy recommendations for internal ESG risk thresholds and exclusion criteria for project finance.

• Project Finance Specialists and Investment Officers at Financial Institutions and DFIs.
• ESG, Environmental, and Social Risk Managers.
• Credit Risk Analysts focused on Non-Financial Risk.
• Legal Counsel and Compliance Officers for Project Finance.
• Internal Auditors focused on ESG Governance and Project Monitoring.
• Engineers and Technical Specialists involved in Project Appraisal.

• ESG Risk Screening and Materiality Assessment Workshops
• Case Studies on High-Profile ESG Failures (e.g., Resettlement, Pollution) and Their Financial Impact
• Group Activities on Designing a Grievance Redress Mechanism (GRM) for a Large Infrastructure Project
• Expert Lectures on the IFC Performance Standards and Equator Principles Application
• Workshops on Integrating TCFD and Climate Risk into Project Due Diligence
• Individual Exercises on Developing a Project-Specific ESG Corrective Action Plan (CAP)

Unit 1: Foundations and Global Standards

• Defining ESG and its materiality in long-term project finance and reputational risk.
• Review of key global standards: **IFC Performance Standards (PSs)** and the **Equator Principles (EPs)**.
• Mapping project sectors and geographies to inherent ESG risk profiles (e.g., infrastructure, extractives, renewables).
• Establishing the **Environmental and Social Management System (ESMS)** as the core governance tool.
• The legal and financial consequences of ESG failures (e.g., litigation, loan default, loss of social license to operate).

Unit 2: Environmental Risk Assessment and Mitigation

• Protocols for conducting **Environmental Impact Assessments (EIAs)** and identifying material risks (e.g., pollution, biodiversity loss).
• Integrating **climate risk** (physical and transition) into project financial modeling and feasibility.
• Developing mitigation and monitoring plans for environmental compliance and resource management.
• Compliance with national environmental laws and international treaties (e.g., CBD, UNFCCC).
• The role of the **Task Force on Climate-related Financial Disclosures (TCFD)** in project reporting.

Unit 3: Social Risk and Community Engagement

• Conducting comprehensive **Social Impact Assessments (SIAs)** and stakeholder mapping.
• Analyzing material social risks: **involuntary resettlement**, labor rights, occupational health and safety (OHS).
• Protocols for engaging with and securing the **Free, Prior, and Informed Consent (FPIC)** of Indigenous Peoples.
• Designing and auditing effective **Grievance Redress Mechanisms (GRMs)** for project-affected communities.
• Ensuring compliance with ILO core labor standards and human rights principles in the supply chain.

Unit 4: Governance and Anti-Corruption Due Diligence

• Assessing the **project company's governance structure** (e.g., Board independence, management competence).
• Conducting rigorous **anti-corruption and anti-bribery due diligence** on project sponsors and key vendors.
• Implementing robust internal controls over procurement and financial disbursements to prevent fraud.
• Establishing contractual covenants requiring compliance with anti-money laundering (AML) and sanctions regulations.
• Protocols for addressing conflicts of interest and ensuring transparency in project approvals.

Unit 5: Monitoring, Reporting, and Assurance

• Designing the **ESG monitoring plan** for the project implementation and operational phases.
• Protocols for responding to and remediating ESG incidents and stakeholder complaints.
• Establishing clear, auditable reporting requirements from the project company on ESG performance and compliance.
• The role of the **lender's Independent Environmental and Social Consultant (IESC)** in monitoring.
• Integrating ESG performance data into the financial institution's internal credit risk rating and portfolio management.