E&S Audit

• Review ShafDB’s environmental and social policies requirements, and where applicable, those of ShafDB financiers.
• Review the applicable national legislations, regulations, norms, standards and procedures, including national legal Authorization, Permits and Certificates required prior to, and during implementation of activities.
• Review available reports on the sample of the active investment projects to be audited as agreed with ShafDB including the project appraisal reports, the Loan agreements, the project progress reports, the project ESG reports, E&S policy and procedure manual and any relevant documentation and records available and necessary for the assessment of the project’s E&S performance.
• Organize an opening meeting with ShafDB management, and where applicable, the client (real estate developer) as well as contractor, etc. for the selected active project to be audited.
• Determine and agree on the scope, methodology and specific set of criteria for the compliance audit with ShafDB.
• Evaluate the actual capacity for managing and monitoring implementation of agreed mitigation measures and related E&S documents applicable to the project.
• Hold consultations with the relevant regulatory agencies and stakeholders (including but not limited to ShafDB, local beneficiaries, project affected persons, civil society, government ministries, and contractors), on the status of the project with respect to identified E&S risks and impacts as well as planned and implemented mitigation measures and legal permits.
• Carry out project site inspections to assess project implementation activities including management of contractors and related environmental and social risks and impacts.
• Prepare a comprehensive report that presents a cogent analysis on findings and causes as related to the predetermined compliance audit scope and criteria. It should present a logical (qualitative and quantitative) examination of the effectiveness of mitigation measures, residual risks, environment-health and safety (EHS) issues, etc. The report will also include a Corrective Action Plan (CAP) summarizing the concrete recommendations for follow-up actions on findings and remedial measures including clearly estimated costs, specific roles and responsibilities.
• Organize a closing meeting with ShafDB’s management and those responsible for the functions audited. The purpose of this meeting is to present audit findings to ensure that they are clearly understood and acknowledged by ShafDB. Any outstanding diverging opinion between the audit team and the ShafDB should be discussed and recorded.
• The key criteria, but not the exhaustive list, to consider in conducting the audit, are:
• The E&S requirements of the loan/grant agreements.
• The applicable national E&S legislations, regulations, norms, standards, and procedures.
• ShafDB’s policies’ requirements.
• The approved and disclosed Project’s Environmental and Social documents.
• The International Industrial Best Practices (IIBP) of the Project’s sector, if any.

Environmental Social and Governance (ESG) Materiality assessment

• Identify key areas of Environmental Social and Governance risks and opportunities inherent to Shaf DB and its stakeholders.

Stakeholder Engagement

• Perform a stakeholder mapping to determine how Shaf DB will engage stakeholders in Environmental, Social, and Governance (ESG) initiative.
• Engage with the identified stakeholders to understand the ESG-related priorities of selected stakeholders to gather input from stakeholders on the Environmental Social and Governance initiatives of Shaf DB including their climate adaption and mitigation needs.

Sustainability Vision, strategy, metrics and Targets

• Develop the Shaf DB Environmental, Social, and Governance (ESG) vision, strategy as well as the related metrics and targets.
• Determine Shaf DB scope 1, 2 and 3 greenhouse gas emissions and propose optimal alignment with business operations.
• Develop an ESG maturity model for Shaf DB.
• Define the implementation strategy in the short, medium and long term
• Benchmark the ESG policies of DFIs operating in Africa and the best practices in the world.
• Propose optimal governance structures that align with the proposed Environmental Social Governance (ESG) strategy.
• Propose and ESG evaluation process for ShafDB investment cycle.

Environmental Social and Governance (ESG) Reporting

• Develop Environmental Social and Governance (ESG) reporting guidelines and templates for Global Reporting Initiative (GRI), Task Force on Climate-related Financial Disclosures (TCFD), IFRS S1 and S2.
• Review the existing Environmental Social and Governance (ESG) framework to align with the proposed strategy.
• Develop a sustainability communication guidelines and procedure manual.
• Establish guidelines to conduct an Environmental Social and Governance (ESG) audit for the internal audit team.
• Recommend legal ESG covenants that will support the Environmental Social and Governance (ESG) implementation with regards to loan agreements.

Staff training

• Training of staff to raise awareness of the organization’s adopted Environmental Social and Governance (ESG) practices as well as reporting requirements.

REPORTING & TIMEFRAME

The contract with the selected Consultant will commence at the completion of the selection, upon its signing and last for a period not exceeding (12) months, by which time all deliverables shall have been submitted and approved. The duty station will be agreed upon between the Consultant and ShafDB. The consultant will identify a sample of the active investment projects to be audited and obtain agreement with SHAF.

The Consultant will report to the Director of Credit & Operations.