AFD_REGISTRATION_DOCUMENT_2017

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CORPORATE SOCIAL RESPONSIBILITY

Information on commitments to promote sustainable development

by the Permanent Control and Compliance Department (CPC) in order to benefit from an exhaustive overview of instances encountered and ensure that there is a consistent response or action plan. AFD Group’s employees also have the right to consult the Director of this department and her deputy in charge of the Compliance Function directly, if they believe that they have identified a situation where there is a non-compliance risk. Alongside these pre-existing alert channels, AFD Group currently has a whistle-blowing system in accordance with the requirements of the so-called “Sapin II” Act of 9bDecember 2016. This system will take effect in the first half of 2018. Its use by employees will not be mandatory. It will be an ancillary, voluntary and optional warning system when an employee believes that current alert channels have not operated correctly. Training of Group employees In accordance with applicable French regulations, AFD Group ensures that all of its employees, including those of its office network, receive regular training and notifications on the risks and procedures to implement in terms of the fight against money laundering, terrorist financing, fraud and corruption. In 2017, training on the AML/CFT/Corruption system was again updated to reflect procedural changes made. These training courses are provided both in e-learning mode and in classroom mode. Two AML/CFT/Corruption training modules in e-learning mode are available to employees of AFD Group. These modules were updated in 2016band were available to all AFD Group employees in 2017. It is planned that the modules will be updated again in 2018. They are available to employees based on the risks identified in their activities. For example, module 1 (LCB/FT/ Corruption, l’affaire de tous b ! –bAML/CFT/Corruption affects us all!) is for all employees whereas module 2 ( Vérifier la conformité de votre projet –bChecking the compliance of your project) is aimed specifically at employees who are impacted by AML/CFT/Corruption issues. In 2017, 226bnew employees, as new hires, were registered for this training. As of 31bDecember 2017, 73% of the 226bnew employees registered for module no. 1band 68% of the 162bregistered for module no. 2bhad completed their training. In addition to this self-administered training, the Permanent Control and Compliance Department carries out classroom- based AML/CFT/Corruption training. The support materials which are specific to the activities of each employee were also updated

in 2017bto provide targeted training sessions (“new hires”, “skills development”, “change of position”, “case studies”, etc.). The CPC Compliance Function led AML/CFT training for 202bemployees. In the area of preventing and combating fraud and corruption, the CPC Compliance Function continued to implement its initiatives aimed at improving the awareness and training of the Group’s employees on these subjects in 2107. The CPC Compliance Function dispensed specific training to new hires on the “prevention, detection and control of corruption and fraud risks both as part of and outside the project cycle”. Seven training courses were provided to 160bemployees. Four “feedback-style” training sessions on the “prevention, detection and control of project-related corruption and fraud allegations” were also organised by the CPC Compliance Function in order to take account of the types of cases encountered. Seventy- two employees participated in these training sessions. Similar modules will be organised in 2018. Finally, in December 2017, the CPC Compliance Function carried out AML/CFT/Corruption training specifically geared to network employees. Nine Asia/Central Asia offices participated in this session with 15bof their employees being trained as a result. Two further training sessions delivered at the offices are planned. 2.3.4.2 Measures taken to promote the health and safety of consumers AFD has a wide range of financial instruments tailored to the needs of those who receive its aid. Its financing terms are determined based on the type of project (its social, environmental and economic impacts), the borrower’s creditworthiness (its sector of economic activity, its credit rating and its guarantees) and the climate in which the project will unfold (political, economic, social and environmental context). AFD closely monitors the sustainability of its borrowers’ debt. AFD takes pains to ensure that when it appraises projects, it analyses not only the financial, technical and economic aspects and the credit risk to which these projects are exposed, but also the social and environmental impacts of the projects and the commitment and ability of the stakeholders who will be in charge of bringing them to successful completion to factor in these issues in a serious and effective manner. Ensuring that projects cause no harm from an occupational and consumer health standpoint, whether with respect to inputs or products sold, also falls within the scope of these analyses.

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REGISTRATION DOCUMENT 2017

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