Social due diligence
The purpose of environmental and social due diligence is to identify environmental and social risks associated with the investment and determine their potential to represent a significant liability to financial lending institutions. Risks may include non-compliance with lender policies and standards, community unrest, labour stoppages, unacceptable impacts to land and livelihoods, or where the project may disproportionally impact vulnerable people.
The outcome of the due diligence process is used to compile Environmental and Social Action Plans which are inserted into investor agreements to ensure compliance with financial lending institutions standards.