ES risk management in Finnvera’s export financing operations

The environmental and social risk management system guides the processing of export credit guarantee applications and provides input to the finance decision at Finnvera.

This is how we assess ES risks in export transactions

We assess all export guarantee applications to determine the level of environmental and social risks associated with the project. The scope of the risk assessment depends on the value of the transaction, the size of the project, project risks and on the type of the financing. As a rule, the risks associated with the entire project are assessed, even if Finnvera’s export financing is granted only to a small component of the project, or to a delivery of individual equipment.

The main steps of the process are:

  • Screening
  • ES risk classification
  • Assessment
  • Financing decision and monitoring.

Category A projects under consideration

In compliance with OECD agreements, Finnvera releases details about Category A projects, such as project name, location, project description, and information on where to access additional materials (e.g., ESIA report or summary), no later than 30 calendar days before a final commitment to grant official support. 

Finnvera also conducts Environmental and Social due diligence of the project and welcomes any additional information and comments.

Name of project: Project Sage
Description of project: Conversion of a printing paper factory into a cardboard and tissue paper production plant.
Location and country of project: North Wales, Great Britain
Environmental and social classification: A
Information published: 8 May 2023
Source of environmental and/or social impact information: Environmental Impact Assessment Report and the Environmental Impact Assessment (EIA) (PDF)

Name of project: Hekimhan Madencilik Ithalat Ihracat San. ve Tic. A.Ş., Turkey
Description of project: Iron Ore Enrichment Calcination Plant
Location and country of project: Hekimhan, Malatya, Turkey
Environmental and social classification: A
Information published: 5 April 2023
Source of environmental and/or social impact information: Environmental impact assessment report (PDF), EIA Report Summary in English (pdf)

Name of project: CCI Parque Industrial Power Plant
Description of project: Installation of 22 dual fuel internal combustion engines with a capacity of 220,6 MW for the CCI Parque Industrial plant. 
Location and country of project: San Luis Rio Colorado, Sonora, Mexico
Environmental and social classification: A
Information published: 16 January 2023
Source of environmental and/or social impact information: Manifestación de Impacto Ambiental (MIA), (Environmental Impact Assessment (EIA) Report), approved 1.3.2022 (PDF)
The Application for a Buyer Credit Guarantee was filed with Finnvera by the Exporter already in 2021 and therefore the Finnvera Oil & Gas guidelines effective from 1 January, 2023 do not apply for this transaction.

Name of project: Pulp Mill Project Paraguay
Description of project: An integrated greenfield sustainable pulp mill (the “Pulp Mill”) located in the region of Concepción, Paraguay with an annual production capacity of at least 1.8 million metric tons (“MT”) of bleached eucalyptus kraft (BEK) pulp (the “Product”), a long-term renewable eucalyptus plantation of over 185,000 hectares of owned forestland (the “Plantation”) and infrastructure providing necessary support to the Pulp Mill and Plantation, including worker camps, a recovery boiler generating 220 MW of electric power, an on-site water treatment plant, a [35] km electric power transmission line, a chemical handling, preparation and storage area to meet the requirements of chemical supply to the Pulp Mill, an offloading port in Paraguay and a sea port in Uruguay (the “Ancillary Infrastructure” and, together with the Pulp Mill and the Plantation the “Project”).

Location and country of project: Concepción, Paraguay
Environmental and social classification: A
Information published: 2 December 2022
Source of environmental and/or social impact information:

Published projects

In addition, in line with the OECD agreement, Finnvera publishes information on the A and B category projects to which it has committed during the year on the Guaranteed transactions page. The information to be published for Class A projects can be the same as in the pre-publication case, supplemented by more detailed information on export financing. 

In addition, Finnvera also strives to publish information on other projects, regardless of the ES risk category. A brief summary of the key environmental and social aspects of the projects may be provided. The publication also covers information on the background material of the assessment and the international standards used. Publications are made with the consent of the parties.

Take a look at Guaranteed transactions

When a financing decision on a project has been made and published, the project is listed on our Guaranteed transactions page.

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