For investors, carbon output, ethical supply chains, and renewable energy and energy efficiency are emerging sustainability issues that can have serious financial implications. Institutions with mandates for promoting private sector investment, such as the Development Bank of Jamaica (DBJ), have been doing more to ensure that their operations address environmental, social and wider sustainability considerations that can otherwise deter investment or impact job creation, growth and poverty reduction.
The Caribbean Development Bank (CDB) has approved a grant to support DBJ in those efforts. Today the Bank announced that it will provide USD55,400 in funding to support the design of an Environmental and Social Management System (ESMS) to better manage environmental and social risks in its portfolio.
“As a financial intermediary for CDB’s resources, DBJ is required to have in place policies and procedures to ensure the effective management of environmental and social risks in its portfolio. This grant provides technical assistance for the design of an ESMS, which will complement the Bank’s ongoing efforts to manage its lending operations in accordance with applicable national, environmental and social legislation and regulations,” said Daniel Best, Director of Projects, CDB.
The funding from CDB will support:
- a review of DBJ’s investment operations to determine the level of environment and social risks in its portfolio;
- updating and finalising of DBJ’s Environmental and Social Policy;
- design of an ESMS appropriate to DBJ’s operations;
- development of operational procedures for the ESMS; and
- design and execution of a training workshop for DBJ’s staff and that of its Approved Financial Institutions and Micro Finance Institutions.
The Project will be executed through the Office of the Managing Director of DBJ.
DBJ was established in 2002 to provide Jamaican businesses with access to development financing. In February 2015, DBJ signed a USD15 mm Loan Agreement with CDB for the Sixth Industrial Line of Credit to support its lending programme in the productive sectors.