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The Environmental and Social Risk Management System of the Development Bank of Kazakhstan (ESMS) is aimed at identifying, assessing and managing environmental and social risks associated with climate projects and programs and allows identifying, analyzing, monitoring and minimizing negative environmental and social consequences of activities, including transboundary risks and impacts.
The system ensures compliance with the legislation of the Republic of Kazakhstan, as well as the principles of the Environmental and Social Policy of the Bank, which reflects the Bank's commitment to the principles of sustainable development and the effective management of relevant risks.
The ESMS takes into account the Environmental and Social Standards of the World Bank, the Performance Standards of the International Finance Corporation (IFC), the Environmental and Social Policy of the Green Climate Fund, the Equator Principles, the Environmental and Social Policy of the European Bank for Reconstruction and Development, the Environmental Code of Kazakhstan, other national regulations, the Bank's program documents, as well as the recommendations of the national financial regulator on environmental and social risk management in financial institutions.
The Development Bank will not finance activities prohibited by international agreements, protocols, IFC performance standards and the legislation of the Republic of Kazakhstan, and therefore has compiled a “List of Exclusions” of activities that are not subject to financing.
During the Environmental and Social Risk Assessment, additional information will be requested from the borrower depending on the project category assigned (if necessary). Examples of documents requested:
The Bank will not knowingly finance, directly or indirectly through financial institutions, projects within the framework of which bank proceeds are used for activities related to the following:
A. Production of or trade in any product or activity that is considered illegal under host country (i.e. national) laws or regulations / international conventions and agreements / that are subject to international phase-out / bans, or any activity prohibited by national laws and international conventions related to the protection and conservation of biodiversity, resources and cultural heritage, such as:
i. production of or trade in products containing polychlorinated biphenyls (PCBs);
ii. production of or trade in pharmaceuticals, pesticides/herbicides and other hazardous substances;
iii. production, use of or trade in chlorofluorocarbons (CFCs), halons and other ozone-depleting substances (ODS);
iv. production, use of or trade in persistent organic pollutants;
v. trade in wildlife or production of or trade in wildlife products regulated by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES);
vi. transboundary movement of waste prohibited by international public law.
B. World Heritage Sites listed by UNESCO (whc.unesco.org);C. UNESCO Biosphere Reserve (portal.unesco.org/science);
D. Ramsar Sites (www.ramsar.org): wetlands of international importance, especially as waterfowl habitat;
E. Illegal logging and harvesting, or conversion of land to cropland or pasture; production of or trade in timber or other forest products, except under sustainable forest management;
F. Child and forced labour;
G. Forced evictions;
H. Any business related to prostitution;
I. Production or trade in radioactive materials in the absence of the relevant permits and licenses required by the legislation of the Republic of Kazakhstan (does not apply to the acquisition of medical equipment, quality control (measurement) equipment and any equipment in which the radioactive source is insignificant or adequately protected);
J. Production, placing on the market and use of asbestos fibers, as well as products and mixtures containing these fibers, added intentionally;
K. Production and distribution of racist and/or neo-Nazi media;
L. Trade in goods without the necessary export or import licenses or other evidence of transit permission from the relevant countries of export, import and, if applicable, transit in the absence of the relevant permits and licenses required in accordance with the legislation of the Republic of Kazakhstan.
The Bank’s Environmental and Social Policy is aimed at ensuring the Bank's contribution to sustainable development, increasing the potential positive environmental and social impact and reducing the negative environmental and social impacts of activities financed by the Bank by assessing and reducing environmental and social risks and taking them into account when making financial decisions.
The policy applies to all types of DBK activities related to project financing using funds from international organizations and development funds, such as the Green Climate Fund. The policy will be the main document for the Bank's activities in relation to the principles of risk management in the field of environmental and social protection and the corresponding supervision system.
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