The Environmental and Social Management System of KCGF
KGFK Environmental and Social Management System
What is SMMS?
The Environmental and Social Management System is the continuous cycle of planning, implementation, review and action activities that an institution undertakes to meet its environmental obligations. In line with our institutional efforts to contribute to economic development with full responsibility for the environment and society, KGFK has developed and is currently implementing the Environmental and Social Management System (ESMS) .
When it comes to environmental benefits, the KGFK is striving to ensure that guaranteed loans are subject to environmental screening and due diligence. To achieve this goal, the KGFK together with the World Bank Group have developed an SMMS for banks that did not have an SMMS before. The SMMS will help banks identify and assess environmental and social impacts before the project inception phase. By implementing these steps, banks will monitor and mitigate adverse environmental impacts of financed projects.
What are the main components of SMMS?
Environmental and social policy
The Environmental and Social Policy presents the vision and mission of the KGC in relation to the environment, society and contributions to sustainable development. The KGC recognizes the importance of environmental and social risk management. In this regard, the KGC is committed to identifying and addressing all environmental and social risks related to its guarantee activities. The Policy describes the principles and guiding rules that should be part of the best practice of environmental and social risk management of the guarantee where the KGC bears the majority of the risk.
Environmental categorization
The KGFK analyzes the investment plan of MSMEs for environmental and social categorization of the guarantee. Based on the investment plan, the environmental and social impact is assessed. The KGFK monitors the guarantees classified with medium and high impacts, and instructs that protective measures be taken to reduce the environmental and social impact. Within the framework of the Environmental and Social Policy, we rely on the list of restricted and prohibited sectors, which are defined by donors and partners.
Training of IRFs
So far, 1,500 officials of Registered Financial Institutions have been trained.
What has been done regarding SMMS?
- Full implementation of the Environmental and Social Policy
- Preparation of the environmental and social categorization guide
- Training for IRFs