What is Environmental and Social Review?
K-SURE provides financial support for medium and long-term export projects of Korean companies. The medium and long-term projects K-SURE provides financial support for bring economic benefits to the importing countries. However, these can also exert environmental and social impacts.
To this end, K-SURE, according to the OECD Recommendation of the Council on Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence, assesses the environmental and social impact and ensures preparation of measures to reduce such impacts when providing financial support for medium and long-term projects, and therefore ultimately contributes to sustainable development.
Environmental and social review is a series of processes to assess the environmental and social impact and appropriateness of measures to reduce the impact based on the environmental and social impact assessment report and environmental and social management plan, etc.
Environmental and Social Review Target & Application Criteria
- Project of which the period of deferred payment is two years or longer and the amount of financial support is SDR 10 million or more
- Project of which the period of deferred payment is two years or longer that is promoted in an environmentally sensitive area (national park, wetland, etc.)
The stricter ones between local standards of the area where the project is implemented and international standards are applied
※ International Standards: IFC Performance Standards, EHS Guidelines, etc.
Environmental and Social Risk Categorization
Category AA project is classified as Category A if it has the potential to have significant adverse environmental and/or social impacts, which are diverse, irreversible and/or unprecedented. These impacts may affect an area broader than the sites or facilities subject to physical works. Category A, in principle, includes projects in sensitive sectors or located in or near sensitive areas.
Category BA project is classified as Category B if its potential environmental and/or social impacts are less adverse than those of Category A projects. Typically, these impacts are few in number, site-specific, few if any are irreversible, and mitigation measures are more readily available.
Category CA project is classified as Category C if it has minimal or no potentially adverse environmental and/or social impacts.
- Point of Contact : Project Finance Coordination Department