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New ESG Risk Management approach for the Inter-American Development Bank

The assignment

During the course of 2011, Steward Redqueen has assisted the Inter-American Development Bank (IDB) with the development of a new methodology for the environmental and social risk management of its operations with Financial Intermediaries (FIs). The purpose of this new methodology is to improve the effectiveness and efficiency of environmental and social risk management through the consolidation of the Bank’s approach and practices with respect to its FI-portfolio. This was needed as the IDB’s lending products to the financial sector have increased dramatically over the past years, both in terms of size and diversity.

The solution

The methodology rates FI-operations not only on their environmental and social risk level, but combines this with an evaluation of the FI’s risk management capacity. This approach enables the Bank to focus on the key risks and prioritize its efforts and resources.

What the client says

“Steward Redqueen’s role in this project has been pivotal for the Bank. They helped us identify the key drivers for environmental and social risk and risk management. By focusing on the key issues, Steward Redqueen came up with a scoring model which combines simplicity with completeness, enabling us to focus on those clients that need our help the most.”

Ernesto Monter, ESG FI-cluster leader at the IDB

Steward Redqueen’s role in this project has been pivotal for the Bank.
Ernesto Monter
ESG FI-cluster leader at the IDB