Independent Environmental and Social Consultant (IESC) services are required when financial institutions provide loans for the implementation of a project. The IESC, acting on behalf of lenders, performs the following key tasks:
- Pre-financial close activities (Environmental and Social Due Diligence – ESDD), including:
- Evaluation of the project’s environmental and social impacts and review of supporting documentation;
- Review of the EPC (Engineering, Procurement, and Construction) contract;
- Review of legal compliance and alignment with applicable environmental and social standards;
- Site visit(s);
- Preparation of an ESDD report, including a project overview, summary of the Environmental and Social Impact Assessment (ESIA) with gap analysis, EPC contract review, and identification of key environmental and social risks.
- Ongoing monitoring during project implementation to ensure compliance with applicable standards and the loan agreement, including:
- Preparation of information requests and interview questionnaires;
- Site visit(s), including document review, interviews, and physical inspection of the project site and associated infrastructure (with photographic evidence);
- Assessment of the implementation status of the Environmental and Social Action Plan (ESAP), which forms part of the loan agreement;
- Preparation of monitoring reports identifying non-compliance issues, recommendations for corrective actions, and comments on ESAP implementation progress;
- Preparation of a Non-Technical Summary (NTS) of the monitoring report.
When engaged by the borrower or project operator, the IESC supports the implementation of the ESAP and assists the company in aligning its management systems and operations with lender requirements in the areas of environmental protection, occupational health and safety, fire and industrial safety, disclosure of information, and stakeholder engagement.
Additional responsibilities may include:
- Assisting the company with the preparation of regular environmental and social performance reports for submission to the lenders.
