E&S risk
E&S risk
The risk that a financed activity harms people or the environment, and the financial loss that can follow.
Usage: The FRA says «المجتمعية»; use it only when quoting the FRA.
المخاطر البيئية والاجتماعية
خطر أن يضر النشاط المموَّل بالناس أو بالبيئة، وما قد يتبع ذلك من خسارة مالية.
المصدر: البنك المركزي المصري
Source of the Arabic term: Central Bank of Egypt
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.