Categorisation for cases issued, 2015 to 2016
Published 12 July 2016
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Environmental, social and human rights (ESHR) risk and impact categorisation of civil (non-aerospace) cases for which support was issued during 2015 to 2016 that fell within the scope of the OECD Common Approaches.
1. Brazil
1.1 Export: Pipe-laying vessels
Category[footnote 1]
N/A
Product
Buyer Credit Guarantee
ESHR risks profile
N/A
International standards applied
N/A
Estimated greenhouse gases (GHGs)
N/A
Additional information
Mobile asset with no identifiable fixed location or project associated with export.
1.2 Project: Petrobras operations in three offshore Brazilian basins, Phase II
Category[footnote 1]
A
Product
Buyer Credit Guarantee
ESHR risks profile
High potential ESHR risks, including:
- environmental pollution
- labour and working conditions, health and safety/contractor management
- community safety/stakeholder engagement
- emergency response
- decomissioning
International standards applied
IFC Performance Standards 1, 2, 3, 4 and 6 (2012)
World Bank Group EHS Sector Guidelines:
- General Guidelines (2007)
- Offshore Oil and Gas Development (2015)
Estimated greenhouse gases (GHGs)
Petrobras’ corporate Brazilian offshore exploration and development activities are expected to produce an estimated 22 to 24 million tonnes of CO2 equiv / annum (estimated based on Petrobras’ annual GHG reporting in its annual Sustainability Report). Petrobras will report annually the GHG emissions associated specifically to the line of credit.
Additional information
UKEF visited Petrobras in 2015/16 as part of its ESHR due diligence for this project and on-going monitoring of the previous line of credit provided to Petrobras by UKEF.
While this project has the potential to cause significant adverse ESHR impacts, the project, through Petrobras’ ESHR management systems, will be in alignment with the relevant international ESHR standards.
1.3 Project: Construction of a floating production, storage and offloading (FPSO) vessel
Category[footnote 1]
A
Product
Buyer Credit Guarantee / Reinsurance
ESHR risks profile
High potential ESHR risks, including:
- environmental pollution
- labour and working conditions, health and safety/contractor management
- social issues/ stakeholder engagement
- emergency response
International standards applied
IFC Performance Standards 1 to 8 (2012)
World Bank Group Environment, Health, and Safety (EHS) Sector Guidelines:
- General Guidelines (2007)
- Offshore Oil and Gas development (2007)
- Shipping (2007)
- Ports, Harbours and Terminals (2007)
Estimated greenhouse gases (GHGs)
The project is expected to produce GHGs in excess of 25,000 tonnes CO2 equiv/annum. Annual reporting of operating GHG emissions from the project are required.
The project specific GHGs during operation are not currently available, however the project developer SBM aggregate company GHG emissions for all operating FPSOs is estimated to up to 331,000 tonnes CO2 equiv/annum.
Additional information
UKEF provided reinsurance to the export credit agency of the Netherlands. Atradius led an environmental and social due diligence review in which UKEF collaborated.
An Independent Environmental and Social Consultant (IESC) was engaged on behalf of the lender group to undertaken an ESHR due diligence review. UKEF reviewed the work of the IESC in undertaking its ESHR due diligence of the project.
The IESC additionally undertook and reported on a construction phase monitoring visit in 2015/16.
While this project has the potential to cause significant adverse ESHR impacts, the project will be in alignment with the relevant international ESHR standards.
2. Canada
2.1 Project: Supply of hot and cold steel rolling mills for up-grade of an existing steel rolling mill
Category[footnote 1]
N/A
Product
Direct Lending
ESHR risks profile
N/A
International standards applied
N/A
Estimated greenhouse gases (GHGs)
N/A
Additional information
Existing operation with no material change in output or function. The mill is located in a heavily industrialised area with no nearby sensitive receptors in an OECD country with stringent environmental and social regulations.
3. Dubai
3.1 Project: Construction of Dubai World Trade Centre, Phase II
Category[footnote 1]
B
Product
Buyer Credit Guarantee / Direct Lending
ESHR risks profile
Medium potential ESHR risks, including:
- labour and working conditions, health and safety/contractor management
International standards applied
IFC Performance Standards 1, 2, 3, 4 and 6 (2012)
World Bank Group EHS Sector Guidelines:
- General Guidelines (2007)
- Tourism and Hospitality Development (2007)
Estimated greenhouse gases (GHGs)
The project is not expected to produce GHGs in excess of 25,000 tonnes CO2 equiv/annum.
Additional information
UKEF undertook an ESHR due diligence review of the project.
While this project has the potential to cause some adverse ESHR impacts, the project will be in alignment with the relevant international ESHR standards.
3.2 Project: Construction services/mixed use development on Bluewaters Island
Category[footnote 1]
B
Product
Buyer Credit Guarantee / Direct Lending
ESHR risks profile
Medium potential ESHR risks, including:
- labour and working conditions, health and safety/contractor management
International standards applied
IFC Performance Standards 1, 2, 3, 4 and 6 (2012)
World Bank Group EHS Sector Guidelines:
- General Guidelines (2007)
- Tourism and Hospitality Development (2007)
Estimated greenhouse gases (GHGs)
The project is not expected to produce GHGs in excess of 25,000 tonnes CO2 equiv/annum.
Additional information
UKEF has worked with the project developer to make sure that the project’s potential adverse ESHR impacts, particularly those relating to migrant labour, will be adequately managed.
While this project has the potential to cause some adverse ESHR impacts, the project will be in alignment with the relevant international ESHR standards.
4. Oman
4.1 Project: Supply of goods and services for construction of a natural gas liquids (NGL) extraction plant, 300km NGL pipeline and a petrochemical complex
Category[footnote 1]
A
Product
Buyer Credit Guarantee
ESHR risks profile
High potential ESHR risks, including:
- environmental pollution
- labour and working conditions, health and safety/contractor management
- community safety
- emergency response
International standards applied
IFC Performance Standards 1, 2, 3, 4 and 8 (2012)
World Bank Group EHS Sector Guidelines:
- General Guidelines (2007)
- Onshore Oil and Gas Development (2007)
- Large Volume Petroleum-based Organic Chemical Manufacturing (2007)
- Petroleum-based Polymers Manufacturing (2007)
Estimated greenhouse gases (GHGs)
The operational project is expected to produce 1.9m tonnes of CO2 equiv/annum.
Additional information
An IESC was engaged on behalf of the lender group to undertaken an ESHR due diligence review.
UKEF co-ordinated environmental and social representatives from the lender group to review the project impacts and risks and agree an action plan to align the project with the international standards. This included a joint export credit agency and IESC site visit towards the end of 2015.
While this project has the potential to cause significant ESHR impacts, the project will be in alignment with the relevant international ESHR standards.
5. Russian Federation
5.1 Project: Supply of goods, services and training for the construction and operation of a hot briquetting iron plant
Category[footnote 1]
B
Product
Buyer Credit Guarantee
ESHR risks profile
Medium potential ESHR risks, including:
- labour and working conditions, health and safety/contractor management
- environmental pollution
International standards applied
IFC Performance Standards 1, 2, 3, 4 and 6 (2012)
World Bank Group EHS Sector Guidelines:
- General Guidelines (2007)
- Mining (2007)
- Integrated Steel Mills (2007)
Estimated greenhouse gases (GHGs)
The project is expected to produce 690,000 tonnes CO2 equiv/annum during operations.
Additional information
An IESC was engaged on behalf of the lender group to undertaken an ESHR due diligence review. UKEF reviewed the work of the IESC in undertaking its ESHR due diligence of the project.
The IESC undertook and reported on a construction phase monitoring visit in early 2016.
While this project has the potential to cause some adverse ESHR impacts, the project will be in alignment with the relevant international ESHR standards.
6. Turkey
6.1 Project: Turbines, condensers, generators for the construction of a combined cycled gas fired power plant
Category[footnote 1]
B
Product
Direct Lending
ESHR risks profile
Medium potential ESHR risks, including:
- environmental pollution
- labour and working conditions, health and safety
- emergency preparedness
- chance find archaeology
International standards applied
IFC Performance Standards 1, 2, 3, 4, 6 and 8 (2012)
World Bank Group EHS Sector Guidelines:
- General Guidelines (2007)
- Thermal Power Plants (2007)
Estimated greenhouse gases (GHGs)
The project is expected to produce 227,000 tonnes CO2 equiv/annum during its operation.
Additional information
A national level environmental and social consultant undertook a gap analysis. UKEF reviewed the work of the consultant in undertaking its ESHR due diligence of the project.
While this project has the potential to cause some adverse ESHR impacts, the project will be in alignment with the relevant international ESHR standards.
6.2 Project: Glass bottling plant
Category[footnote 1]
B
Product
Buyer Credit Guarantee / Reinsurance
ESHR risks profile
Medium potential ESHR risks, including:
- labour and working conditions, health and safety
- waste management
International standards applied
IFC Performance Standards 1, 2, 3 and 4 (2012)
World Bank Group EHS Sector Guidelines:
- General Guidelines (2007)
Estimated greenhouse gases (GHGs)
The project is not expected to produce GHGs in excess of 25,000 tonnes CO2 equiv/annum.
Additional information
UKEF provided reinsurance of the Italian export credit agency, SACE. SACE undertook an environmental and social due diligence. The documentation of which UKEF reviewed.
While this project has the potential to cause some adverse ESHR impacts, the project will be in alignment with the relevant international ESHR standards.
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Category A cases are those cases screened and classified as having high potential ESHR risk and impact; Category B cases are those cases screened and classified as having medium potential ESHR risk and impact; Category C cases are those cases screened and classified as having minimal/no potential ESHR risk and impact. Cases classified as N/A are those case which drop out during the screening process and do not require classification, reasoning is provided in “Additional Information”. For more information on screening and classification refer to the relevant sections of the OECD Common Approaches. ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10