AFC has an approved Environmental and Social Risk Management Policy to ensure that it carries out its lending, investment and advisory services to its clients and counter parties in a manner that is not negatively impactful on the environmentaland which ensures sustainable development.
In the event that an impact on the environment is unavoidable, or the successful conclusion of projects will affect local communities through displacement or other significant impact, AFC will ensure that such impact is reduced, mitigated or that appropriate compensation is provided. In particular, AFC is committed to ensuring that the cost of economic development does not fall disproportionately on those least able to bear those costs, that the environment is not degraded in the process and that natural resources are managed efficiently in a sustainable manner. AFC believes that regular engagement with local communities about matters that directly affect them plays an important role in avoiding or reducing harm to people and the environment.
Thus AFC is committed to ensuring, through its environmental and social assessment and monitoring process, that its projects and investments are:
- Socially and environmentally sustainable
- Respectful of the right of affected communities
- Structured and operating in compliance with the relevant regulatory requirements and with the best international practice