Esg Toolkit

Partial file snippet.

Sheet 1: Instruction

	
	
	
		

		ESG Toolkit
	
	
		

		

	
	
		

		

	
	
		

		Objective of the toolkit:  This toolkit is intended to enable the Banks / Financial Institutions (FIs) to identify and assess potential Environment, Social and Governance (ESG) risks and opportunities in their investments
	
	
		

		

	
	
		

		

	
	
		

		

	
	
		

		How should the toolkit be used?
	
	
		=>
		Users should follow these steps to use the toolkit:

	
	
		1
		The user must enter the Company name, name of the project and the investment amount in the "Input sheet" worksheet.
	
	
		2
		
The user should check that the investment does not fall under any of the activities listed under the Exclusion list. The complete Exclusion list can be accessed in the worksheet "Exclusion list".

	
	
		3
		The sector to which the Company belongs, must be entered using the drop down menu in the "Input Sheet" in the column "Sector".

	
	
		4
		The environment and social category would be automatically updated after the user provides all the information in the "Input Sheet". However, for the governance category, the user will have to provide further information in order to come up with risk category i.e. (a) CIBIL score (b) Ensuring transparency and disclosure and (c) experience of the promoter in the worksheet "Input sheet". A final environment, social and governance categorization will be automatically generated.

	
	
		5
		The "Link" next to the environment, social and governance categorization would direct the user to the corresponding category due diligence checklist. This checklist will help investigate the potential investment’s financial, environmental, social and governance performance, which will be the basis for the investment decision.
Example: If a sector "Glue and Gelatine" is entered in the sector column, the Link will direct the user to the Category A checklist for Environment,  Category B for social and Category for governance will depend on the additional information user provides (as mentioned in pt. 4). 

	
	
		6
		All the checklists have a scoring table. The user should fill in scores ranging from 0 to 3 based on the due diligence as per the checklist. This will help in assessing, rating a company and aiding the user to continuously monitor the performance through out the investment period. The risks identified at each of the stages may also be mentioned so as to have a thorough analysis of the investee company.

	
	
		7
		These scores will be automatically calculated in the worksheet "Tool" along with the risks identified in the due diligence checklist worksheet. This will help the user assess the performance of the Company based on the scores obtained.
For example: A rating of 0 indicates incomplete or no compliance with the applicable local laws and regulations, and hence indicates an ESG risk and potential adverse impact of very high magnitude. A rating 1 would ideally be obtained by a company which is taking up ESG initiatives, but only to meet regulatory requirements. Ratings 2 is obtained by the company meeting ESG requirement beyond compliance and Rating 3 represent a company which has taken ESG measures beyond compliance and meets international  / global best practices. 

	
	
		8
		The ESG monitoring and reporting format is given in the worksheet "Tool". While the due diligence checklist and ESG rating system will help in laying down the ESG considerations required at the investment decision stage and the due diligence phase, the monitoring and reporting format will help in depicting the process of monitoring, recording and managing the ESG performance of the investee company through requisite formats. 

	
	
		9
		The user will have to populate details in this table. The major elements of the table are as follows: 
• Key gaps identified; 
• Rating provided (as per the rating obtained in step 3)
• Mitigation actions or recommendations;
• Responsibility (of Investee or Associate Party or Contractor);
• Deadline for completion and implementation of the corrective actions;
• Budget or cost for corrective actions

	
	
		10
		An ESG opportunity report is also incorporated in the worksheet "Tool", which would enlist the scope of opportunities for improvement in terms of the investee company’s ESG performance. These could include factors like energy efficiency, reduction in resource (water/ raw material) use, technical up-gradation, etc.

	



Sheet 2: Input Sheet

	
	
	
	
	
	
	
	
	
	
	
		Company Name
		

		

		

		

		

		

		

		

		

		

	
	
		Name of the project
		

		

		

		

		

		

		

		

		

		

	
	
		Investment Amount
		

		

		

		

		

		

		

		

		

		

	
	
		Initial screening to decide "Go or No- Go"
		Exclusion List
		Go
		

		

		

		

		

		

		

		

	
	
		Sector
		Atta-chakkies
		

		

		

		

		

		

		

		

		

	
	
		

		

		

		

		

		

		

		

		

		

		

	
	
		

		

		

		

		

		

		

		

		

		

		

	
	
		Calculation of governance score of the company
		

		

		

		

		

		

		

		

		

		

	
	
		

		

		

		

		

		

		

		

		

		

		

	
	
		Parameters
		High
		Medium
		Low
		Category obtained
		

		

		

		

		

		

	
	
		CIBIL score Or 
Average CIBIL score in case of multiple promoters*
		The CIBIL score of the promoter lies in the range of 450- 539. *
		The CIBIL score of the promoter lies within the range of 540-674. *
		CIBIL score is 675 and above *
		Med
		

		High
		

		

		

		

	
	
		Ensuring transparency and disclosure
		There is evidence of company’s involvement in controversial or illegal activities (e.g. insider trading, bribery or money laundering and there is evidence that the board is violating its code of ethics) and it has received a litigation notice regarding the same. 
		The company has been involved in certain controversial or illegal activities and has taken steps for mitigating any breach in the code of ethics / conduct. 
		There has been no breach of the code of ethics and no illegal incidents related to bribery or corruption have taken place in the recent past
		High
		

		Med
		

		

		

		

	
	
		Experience of the promoter
		The experience of the promoter is less than 5 years. 
		The experience of the promoter ranges between 5-10 years. 
		The experience of the promoter is 10 years and above.
		High
		

		Low
		

		

		

		

	
	
		* If there is more than one key promoter in the company, an average score of the majority promoters will be considered. 
It is on the discretion of the bank to decide on the promoters with majority shareholding
		

		

		

		

		

		

		

		

	
	
		*Calculation of average CIBIL score
		

		

		

		

		

		

		

		

		

		

	
	
		Number of promoters in the company
		

		

		

		

		

		

		

		

		

		

	
	
		CIBIL score of promoters considered
		Enter Promoter Score 1
		Enter Promoter Score 2
		Enter Promoter Score 3
		Enter Promoter Score 4
		Enter Promoter Score 5
		Enter Promoter Score 6
		Enter Promoter Score 7
		Enter Promoter Score 8
		Enter Promoter Score 9
		Enter Promoter Score 10
	
	
		Average CIBIL score of the promoters
		#DIV/0!
		

		

		

		

		

		

		

		

		

	
	
		

		

		

		

		

		

		

		

		

		

		

	
	
		Categorization of the company as per Environment, social and governance parameters:
		

		

		

		

		

		

		

		

		

		

	
	
		Environment Category
		Low
		Link
		

		

		

		

		

		

		

		

	
	
		Social Category
		Low
		Link
		

		

		

		

		

		

		

		

	
	
		Governance Category
		High
		Link
		

		

		

		

		

		

		

		

	
	
		Apart from the general checklists for Category A, Category B and Category C projects, sector checklists are devised for the 8 identified critical sectors:
		

		

		

		

		

		

		

		

		

		

	
	
		Checklist for Agriculture / Food processing
		

		

		

		

		

		

		

		

		

		

	
	
		Checklist for Education
		

		

		

		

		

		

		

		

		

		

	
	
		Checklist for healthcare
		

		

		

		

		

		

		

		

		

		

	
	
		Checklist for infrastructure
		

		

		

		

		

		

		

		

		

		

	
	
		Checklist for Information Technology
		

		

		

		

		

		

		

		

		

		

	
	
		Checklist for Motor vehicles and transport
		

		

		

		

		

		

		

		

		

		

	
	
		Checklist for Utilities
		

		

		

		

		

		

		

		

		

		

	
	
		Checklist for telecommunications
		

		

		

		

		

		

		

		

		

		

	
	
		

		

		

		

		

		

		

		

		

		

		

	
	
		Number of review: 
		

		

		

		

		

		

		

		

		

		

	
	
		Date of most recent review: 
		

		

		

		

		

		

		

		

		

		

	
	
		Any comments from review conducted:
		

		

		

		

		

		

		

	
	
		Opportunities:

The words contained in this file might help you see if this file matches what you are looking for:

...Sheet instruction esg toolkit objective of the this is intended to enable banks financial institutions fis identify and assess potential environment social governance risks opportunities in their investments how should be used gt users follow these steps use user must enter company name project investment amount quot input worksheet check that does not fall under any activities listed exclusion list complete can accessed sector which belongs entered using drop down menu column category would automatically updated after provides all information however for will have provide further order come up with risk ie a cibil score b ensuring transparency disclosure c experience promoter final categorization generated link next direct corresponding due diligence checklist help investigate rsquo s environmental performance basis decisionexample if glue gelatine depend on additional as mentioned pt checklists scoring table fill scores ranging from based per assessing rating aiding continuously moni...

Company Name
Name of the project
Investment Amount
Initial screening to decide "Go or No- Go"	Exclusion List	Go
Sector	Atta-chakkies


Calculation of governance score of the company

Parameters	High	Medium	Low	Category obtained
CIBIL score Or Average CIBIL score in case of multiple promoters*	The CIBIL score of the promoter lies in the range of 450- 539. *	The CIBIL score of the promoter lies within the range of 540-674. *	CIBIL score is 675 and above *	Med		High
Ensuring transparency and disclosure	There is evidence of company’s involvement in controversial or illegal activities (e.g. insider trading, bribery or money laundering and there is evidence that the board is violating its code of ethics) and it has received a litigation notice regarding the same.	The company has been involved in certain controversial or illegal activities and has taken steps for mitigating any breach in the code of ethics / conduct.	There has been no breach of the code of ethics and no illegal incidents related to bribery or corruption have taken place in the recent past	High		Med
Experience of the promoter	The experience of the promoter is less than 5 years.	The experience of the promoter ranges between 5-10 years.	The experience of the promoter is 10 years and above.	High		Low
* If there is more than one key promoter in the company, an average score of the majority promoters will be considered. It is on the discretion of the bank to decide on the promoters with majority shareholding
*Calculation of average CIBIL score
Number of promoters in the company
CIBIL score of promoters considered	Enter Promoter Score 1	Enter Promoter Score 2	Enter Promoter Score 3	Enter Promoter Score 4	Enter Promoter Score 5	Enter Promoter Score 6	Enter Promoter Score 7	Enter Promoter Score 8	Enter Promoter Score 9	Enter Promoter Score 10
Average CIBIL score of the promoters	#DIV/0!

Categorization of the company as per Environment, social and governance parameters:
Environment Category	Low	Link
Social Category	Low	Link
Governance Category	High	Link
Apart from the general checklists for Category A, Category B and Category C projects, sector checklists are devised for the 8 identified critical sectors:
Checklist for Agriculture / Food processing
Checklist for Education
Checklist for healthcare
Checklist for infrastructure
Checklist for Information Technology
Checklist for Motor vehicles and transport
Checklist for Utilities
Checklist for telecommunications

Number of review:
Date of most recent review:
Any comments from review conducted:
Opportunities:

Related files

Share

Help

	ESG Toolkit


	Objective of the toolkit: This toolkit is intended to enable the Banks / Financial Institutions (FIs) to identify and assess potential Environment, Social and Governance (ESG) risks and opportunities in their investments



	How should the toolkit be used?
=>	Users should follow these steps to use the toolkit:
1	The user must enter the Company name, name of the project and the investment amount in the "Input sheet" worksheet.
2	The user should check that the investment does not fall under any of the activities listed under the Exclusion list. The complete Exclusion list can be accessed in the worksheet "Exclusion list".
3	The sector to which the Company belongs, must be entered using the drop down menu in the "Input Sheet" in the column "Sector".
4	The environment and social category would be automatically updated after the user provides all the information in the "Input Sheet". However, for the governance category, the user will have to provide further information in order to come up with risk category i.e. (a) CIBIL score (b) Ensuring transparency and disclosure and (c) experience of the promoter in the worksheet "Input sheet". A final environment, social and governance categorization will be automatically generated.
5	The "Link" next to the environment, social and governance categorization would direct the user to the corresponding category due diligence checklist. This checklist will help investigate the potential investment’s financial, environmental, social and governance performance, which will be the basis for the investment decision. Example: If a sector "Glue and Gelatine" is entered in the sector column, the Link will direct the user to the Category A checklist for Environment, Category B for social and Category for governance will depend on the additional information user provides (as mentioned in pt. 4).
6	All the checklists have a scoring table. The user should fill in scores ranging from 0 to 3 based on the due diligence as per the checklist. This will help in assessing, rating a company and aiding the user to continuously monitor the performance through out the investment period. The risks identified at each of the stages may also be mentioned so as to have a thorough analysis of the investee company.
7	These scores will be automatically calculated in the worksheet "Tool" along with the risks identified in the due diligence checklist worksheet. This will help the user assess the performance of the Company based on the scores obtained. For example: A rating of 0 indicates incomplete or no compliance with the applicable local laws and regulations, and hence indicates an ESG risk and potential adverse impact of very high magnitude. A rating 1 would ideally be obtained by a company which is taking up ESG initiatives, but only to meet regulatory requirements. Ratings 2 is obtained by the company meeting ESG requirement beyond compliance and Rating 3 represent a company which has taken ESG measures beyond compliance and meets international / global best practices.
8	The ESG monitoring and reporting format is given in the worksheet "Tool". While the due diligence checklist and ESG rating system will help in laying down the ESG considerations required at the investment decision stage and the due diligence phase, the monitoring and reporting format will help in depicting the process of monitoring, recording and managing the ESG performance of the investee company through requisite formats.
9	The user will have to populate details in this table. The major elements of the table are as follows: • Key gaps identified; • Rating provided (as per the rating obtained in step 3) • Mitigation actions or recommendations; • Responsibility (of Investee or Associate Party or Contractor); • Deadline for completion and implementation of the corrective actions; • Budget or cost for corrective actions
10	An ESG opportunity report is also incorporated in the worksheet "Tool", which would enlist the scope of opportunities for improvement in terms of the investee company’s ESG performance. These could include factors like energy efficiency, reduction in resource (water/ raw material) use, technical up-gradation, etc.

Related files

Share

Share to social media

Help

Login Area