Assessing the environmental, social and human rights impact of exports in the country of final destination of the export
The internal procedures of Eximbanka for assessing the environmental, social, and human rights impacts (referred to as “E&S impacts”) in the country of final destination are based on the OECD Recommendation of the Council on Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence (referred to as “OECD Recommendations”) (more information: Common Approaches). As part of this evaluation, Eximbanka screens every transaction that is subject to approval by its decision-making bodies. According to the OECD Recommendations, transactions with a repayment period exceeding 2 years and an export value of at least 10 million SDR (Special Drawing Rights) or its equivalent in another currency are classified. Additionally, all projects related to sensitive areas or those forming part of a larger installation in such areas are also subject to classification. The list of sensitive areas includes:
| 1. Crude oil refineries |
| 2. Thermal power stations and other combustion installations |
| 3. Installations designed for the production, or enrichment of nuclear fuels |
| 4. Integrated works for the initial smelting of cast-iron and steel |
| 5. Installations for the extraction of asbestos |
| 6. Installations for the manufacture and/or recovery of chemicals |
| 7. Construction of airports |
| 8. Construction of motorways and express roads |
| 9. Construction of a new road, or realignment and/or widening of an existing road |
| 10. Construction of railway lines |
| 11. Sea ports and also inland waterways and ports for inland-waterway traffic |
| 12. Waste-processing and disposal installations for the incineration, chemical treatment or landfill of hazardous, toxic or dangerous wastes |
| 13. Large dams and other impoundments |
| 14. Groundwater abstraction activities or artificial groundwater recharge scheme |
| 15. Industrial plants for the production of pulp, paper and board from timber |
| 16. Operations involving large-scale underground or surface mining |
| 17. Greenfield cement plants |
| 18. Large scale oil, gas, or liquefied natural gas development |
| 19. Installations for storage of petroleum, petrochemical, or chemical products |
| 20. Large-scale logging |
| 21. Municipal waste water treatment plants |
| 22. Municipal solid waste-processing and disposal facilities |
| 23. Large-scale tourism and retail development |
| 24. Construction of overhead electrical power transmission lines |
| 25. Large-scale land reclamation |
| 26. Large-scale primary agriculture/sylviculture |
| 27. Plants for the tanning of hides and skins |
| 28. Installations for the intensive rearing of poultry or pigs |
| 29. Projects which are planned to be carried out in sensitive area |
| 30. Projects which may result in significant adverse social impacts to local communities or other project affected parties |
| 31. Projects involving land acquisition and involuntary resettlement of a significant number of affected people |
Process of assessing the E&S impacts
The evaluation process begins with the submission of a questionnaire, which is an integral part of the application for insurance, a loan, or a bank guarantee. The exporter must complete this questionnaire even if the insurance is requested by a commercial bank. Based on the assessment of the export’s impact on the environment, Eximbanka categorizes the export into one of three categories (A, B, or C) and decides whether an additional evaluation of the E&S impacts by an external consultant is required.
- Category A: Exports that are likely to have significant negative E&S impacts, with impacts that extend beyond the territory where the export will take place. For Category A, Eximbanka requires the submission of an ESIA/EIA study or its equivalent. Additionally, an external consultant must assess the project’s E&S impacts to ensure compliance with environmental rules set by the World Bank or other relevant international financial institutions (e.g., Equator Principles, IFC Performance Standards), EU regulations, and, if available, the rules in the country of final destination. If classified as Category A, Eximbanka is obligated to make this assessment publicly available (e.g. on its website) without delay, but no later than 30 days before the date of conclusion of the insurance contract and/or the credit agreement. Eximbanka can only support Category A transactions if the assessment confirms that the export’s environmental impact meets the necessary ecological limits and criteria for the given industry/sector.
- Category B: Exports with less significant negative E&S impacts, which are localized and not irreversible. The environmental impact report for Category B will include information on potential impacts to a lesser extent. For subcontracts to an international project, the assessment prepared for the main contractor may be used.
- Category C: Exports with minimal or no negative E&S impacts. For Category C, Eximbanka will not require further environmental impact assessments.
In the event of a negative deviation at any stage of the implementation of the export or non-compliance with the conditions defined by the assessment, Eximbanka has the right to demand corrective measures and, in extreme cases, apply penalties or sanctions. During the implementation of exports classified under Category A or B, the exporter is also required to submit regular monitoring reports to Eximbanka, in line with the assessment’s findings.