An institution commited to promoting a responsible private sector

The private sector plays a central role in the creation of jobs and wealth, the supply of essential goods and services to populations and in the development of developing countries. It is a key player in the dissemination of good environmental (pollution reduction, use of renewable energies, etc.), social (working conditions, fight against discrimination, etc.) and governance practices in these countries.

To ensure the commitment of its clients and to support them, Proparco has for several years had a framework for analyzing and controlling the risks associated with the operations it supports - not only in financial terms (risks of fraud, corruption, money laundering, etc.), but also in environmental, social (E&S) and corporate governance terms.

This framework is based on principles and standards specific to the AFD Group (its financial security policy, its commitment to climate and gender issues, etc.), the European donor community (principles of responsible financing, etc.) and multilateral institutions (IFC Performance Standards), as well as major international institutions (ILO and OECD standards, FAO guidelines on land tenure, United Nations guidelines on human rights, etc.).

Proparco's role is to support its clients in adopting best E&S and governance practices that create added value for the companies financed.

To this end, Proparco provides its clients with expertise and advice to improve their employees' working conditions, reduce their carbon footprint, foster relations with local communities, help obtain E&S certifications, prevent the erosion of biodiversity or improve corporate governance. It can also finance technical assistance to implement the measures defined together.

In addition, Proparco measures the impact of financed projects on local development, and can support certain clients to increase their impact (e.g., income in the company's value chain).