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In an effort to proactively add value, enhance sustainability and lower risks
in all its projects, IL&FS developed Environmental and Social Report (ESR),
in 1995. The objectives of the ESR were to:
- mainstream Environmental and Social (E&S) considerations in the overall
project cycle,
- set examples of environmentally sound and socially acceptable practices,
and
- inspire and encourage all stakeholders, including partners and co-investors
towards continual improvement in the spheres of project development, implementation,
monitoring and closure
This ESR made IL&FS the first non-banking financial company in India to make
E&S considerations inclusive in project development and implementation
As a step to align with the International Financing Institutions (IFIs), IL&FS
signed the United Nations Environmental Programme Finance Initiative (UNEP FI)
on December 5, 2006. This aspirational commitment underscored IL&FS’s
interest to pursue establish Environmental and Social Governance (ESG) in its
business operations
In 2007, IL&FS decided to update the ESR in the form of Environmental and
Social Policy Framework (ESPF). Updation became relevant in the light of the
changing environmental and social governance in India. Besides, IL&FS’s
business canvas expanded with a wide range of services covering project development
& implementation, financial transactions and advisory services across Business
Verticals (BVs) and Special Purpose Vehicles (SPVs)
In 2009, IL&FS adopted the ESPF for phased implementation
The ESPF is guided by the Policy Statement as below.
The Environmental and Social Policy of IL&FS
Infrastructure Leasing & Financial Services (IL&FS) Limited is
driven by its mission to develop, implement, operate, finance and participate
in infrastructure projects through Public Private Partnerships, as well
as to provide value-added financial services
The IL&FS Environmental and Social Policy and Framework (ESPF) is
founded on the concept of Sustainable Development and thereby recognizes
Environmental and Social (E&S) considerations in its business operations
to add value, minimize impacts and risks to increase effectiveness of
infrastructure projects. IL&FS strives to conserve natural resources,
protect the environment and restore standards of living for those affected
by its operations
The ESPF applies to the business canvas of IL&FS including its subsidiaries
and associate companies
IL&FS is committed to comply with its E&S policy, applicable laws
of the land and be responsive to existing and emerging global E&S
concerns on a proactive basis
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Chairman |
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Managing Director |
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This Policy Statement is implemented through the Guiding, Operational and Engagement
Principles:
- Through its Guiding Principles (GP), IL&FS commits to
- adding value to all projects and transactions it undertakes,
- integrating E&S concerns into the decision-making process, and
- minimizing exposure to E&S and financial impacts and risks.
- The Operational Principles (OP) provide procedural guidance to IL&FS,
its subsidiaries and associate companies as well as third parties involved
in execution of Projects/Transactions/Advisory Mandates
- the OPs of the ESPF are equivalent to the environmental and social frameworks
of Multilateral Development Banks such as the World Bank and Asian Development
Bank as well as compatible with Equator Principles (EP),
- the OPs are adaptable so as to be commensurate with the nature of the
business activities of the relevant company, its products and services,
and the locations and conditions in and under which it operates
- The Engagement Principles (EPs) apply to Projects/Transactions/Advisory
Mandates where IL&FS does not / cannot exercise complete control over
the organization or business activity. These principles emphasize on communication
of good environmental and social management practices to the clients and partners.
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