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Environmental and social standards establish criteria for the financial institution in terms of activities that it will not finance and also establish requirements for clients/investees to comply with, such as national environmental and social regulations and international standards.

In general, environmental and social standards can include:

Providing financing to a client/investee whose activities fall on the exclusion list or whose activities do not comply with applicable national environmental and social laws and international standards presents a potential risk to the financial institution. The financial institution should verify as part of its environmental and social due diligence process that the activities of a client/investee are not on the exclusion list and comply with applicable national environmental and social laws and international standards.


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