AFD - 2018 Registration document

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STATEMENT OF NON-FINANCIAL PERFORMANCE Impact of the group’s activity on sustainable development

❙ Breakdown of AFD’s approvals by sector of activity

Year

2017

2018

Approval (in euros)

CICID sector Agriculture and food safety

935,380,261

831,348,916

Water and drainage

914,276,869 1,084,185,073

Education

267,648,219 702,694,942 1,058,119,084

173,933,242 237,293,804 907,514,133

Environment and natural resources

Excl. CICID

Infrastructure and urban development

2,981,991,758 3,535,866,063

Health/AIDS

444,531,629 1,538,262,809

134,043,499 762,654,288

Business, Industry and Trade

GRAND TOTAL

8,842,905,570 7,666,839,019

To support this strategy focused on the institution’s impact and added value, Proparco has also created a dedicated department (Support for Sustainable Development) enjoying greater resources and positioned at the same hierarchical level as the operating departments. It brings together, in three units, Proparco’s experts in the areas of (i) environment, social and governance, (ii) impact monitoring and analysis and (iii) company support and the mobilisation of mix resources. The five strategic impact goals prioritised by Proparco are the base for providing a significant contribution to several Sustainable Development Goals, in particular SDG 3 (Good health and well-being), SDG 4 (Quality education), SDG 5 (Gender equality), SDG 7 (Affordable clean energy), SDG 8 (Decent work and economic growth), SDG 10 (Reduced inequalities), SDG 9 (Industry, innovation and infrastructure), SDG 12 (Responsible consumption and production), and SDG 13 (action combating climate change). The impact measurement approach established by Proparco includes the performance of an impact analysis for each project with respect to economic and social development, as well as the climate and environment. To this end, Proparco has selected a list of indicators to measure the projects’ potential impact and assess their contribution to the SDGs. This analysis is conducted during the pre-survey and entered into the project’s documentation submitted to decision-making bodies.

Furthermore, since 2014, AFD has been relying on a “Sustainable development analysis and opinion” system that aims to simplify cross-business consideration for sustainable development issues in funded projects. This system consists of (i) an analysis conducted by the project team during the pre-survey, providing the wherewithal to assess the expected effects (positive or negative) for each aspect of sustainable development, and (ii) of an independent opinion given in the memoranda submitted to decision-making bodies. Covering six aspects (1) , the analysis and opinion help to assess the consistency of the projects with respect to sustainable development goals. 2.5.2 Impact of Proparco’s activity Operating within the private sector, Proparco aims to promote transitions to sustainable and balanced, inclusive and carbon- free growth models in developing and emerging countries. Its 2017-2020 strategy reflects the determination of the French government and international community to increase public aid for development in support of these transitions, through the private sector. This strategy aims to (i) triple its direct impact on the development and transitions of countries, (ii) support the improved CSR of players and implement and support the transitions, and (iii) redirect investments by increasing Proparco’s “engagement effect” with respect to financing flows, in particular of a private nature, and its capacity to unlock investments in target countries.

(1) The six aspects of the sustainable development analysis are: (i) sustainable growth and resilient economy; (ii) social well-being and reduction of social inequalities; (iii) gender equality; (iv) biodiversity preservation, management of natural environments and resources; (v) climate: transition to a low-carbon trajectory (v-a) and resilience to climate change (v-b); (vi) long-lasting effects of the governance project and framework.

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REGISTRATION DOCUMENT 2018