We developed a methodology for ESG management of Financial Intermediaries with the Inter-American Development Bank
The Inter-American Development Bank (IDB) is a development finance institution that provides financing in Latin America and the Caribbean. The IDB experienced a dramatic increase in the size and diversity of their lending products to the financial sector. This left them in need of improving the effectiveness and efficiency of their environmental and social risk management for Financial Intermediaries (FIs).
The IDB asked Steward Redqueen to develop a new methodology for the environmental and social risk management of the IDBs operations with FIs.
This new methodology consolidated the Bank’s approach and practices. Further, it rated FI-operations not only on their environmental and social risk level but combined this with an evaluation of the FI’s risk management capacity.
This new approach enables the bank to focus on the key risks and prioritize its efforts and resources. This helps the IDB identify the key drives for environmental and social risk and risk management, which allows them to focus on those clients that need their help the most.