Omar Hamdy

Glossary. Environmental and social risk

E&S due diligence

E&S due diligence

The review of a client's or project's environmental and social risks before a financing decision.

Usage: Not «الفحص النافي للجهالة», which is M&A usage.

العناية الواجبة البيئية والاجتماعية

مراجعة المخاطر البيئية والاجتماعية للعميل أو المشروع قبل قرار التمويل.

المصدر: إرشادات مؤسسة التمويل الدولية بالعربية

Source of the Arabic term: IFC Arabic guidance notes

Why a lender reads this

A development finance credit line comes with environmental and social requirements, usually the IFC Performance Standards or the EBRD requirements. The lender must screen, categorise and monitor each loan against them, and the DFI checks that it did.

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