AFD - 2018 Registration document

2

STATEMENT OF NON-FINANCIAL PERFORMANCE Identification of the main non-financial challenges and risks

The review made it possible to target the main non-financial risks that will be presented in the non-financial statement (DPEF) and to refine their correspondence with non-financial challenges, leading to the list of 15 challenges associated with these risks guiding the DPEF (see below).

Challenges included in the materiality matrix

Risks associated with each challenge

Correspondence with DDR

Transparency of funds granted

P Risk of misappropriation of financial aid, of corruption and fraud P Risk of discrepancies between the expectations and requirements of the stakeholders and AFD’s services (projects funded) P Reputational risk related to the projects’ negative impact on the population or environment P Risk of non-compliance with procedures for managing recipient complaints P Risk of lack of coordination with the other players (international and European lessors, civil society organisations) for the financed projects P Risk of non-compliance with delegated fund management procedures P Reputational risk related to discrepancies between the projects funded and the strategic areas defined by the Sustainable Development Goals and the Paris Agreement (unaligned interests) P Risk of non-compliance with AFD’s obligations in terms of impact analysis and compliance with environmental standards P Risk of non-compliance with procedures and contractual clauses by project managers P Risk of non-compliance with fraud and AML/CTF procedures P Risk of no information feedback due to the non- existence of a whistleblowing mechanism P Risk of non-compliance with the Professional Ethics Charter P Risk of impropriety by an employee P Risk of no in-house dialogue on social issues P Risk of employment practices and psychosocial risks P Reputational risk related to discrepancies between the projects funded and the strategic areas defined by the Sustainable Development Goals and the Paris Agreement P Risk of discrepancies between the funding offered and the operational context P Risk of non-compliance with AFD’s obligations in terms of impact analysis P Risk of non-compliance with procedures for managing recipient complaints P Risk of serious bodily harm to an employee following a malicious act P Risk of non-compliance with safety rules by employees when performing their duties P Risk of non-compliance with regulations P Risk of no or insufficient staff training

§ 2.3.1

§ 2.3.2 § 2.4.1, 2.4.2

Dialogue with stakeholders

Management of impacts

§ 2.4 (2.4.1, 2.4.2) § 2.5

§ 2.6 (2.6.1, 2.6.2)

Coordination with development players

The activity’s impact on Sustainable Development Goals

§ 2.5.1, 2.5.2, 2.5.3

Analysis of environmental risks

§ 2.4 (2.4.1, 2.4.2)

Stronger project management

§ 2.6.3

§ 2.7

Fraud

Professional ethics

§ 2.8.1

§ 2.8.2

Skills development

§ 2.8.3, 2.8.4

Transparency of social information (1) (Employee dialogue)

Impact on climate change

§ 2.5.3

Impact on local communities

§ 2.5.1, 2.5.2

Health/safety of staff*

§ 2.8.4

§ 2.7

Compliance*

(1) The challenge formulated as such in the materiality matrix covers employee dialogue and relations. * Issue not included in the current materiality matrix.

36

www.afd.fr

REGISTRATION DOCUMENT 2018