Project Spotlight: ATI's ESG and CSR Updates - African Trade Insurance Agency

Project Spotlight: ATI’s ESG and CSR Updates

ATI puts into consideration that undergoing projects may have adverse environmental and social effects to the wider society. We therefore established an Environmental, Social, and Governance (ESG) framework to aid in achieving positive and sustainable development outcomes for our member states. The comprehensive review of ATI’s ESG framework completed in 2022 led to the definition of new building blocks relevant to its mandate. This includes an ESG policy and guidelines, a grievance mechanism and a climate change strategic framework. These new building blocks are under development.

ATI’s ESG framework is benchmarked against the 2012 International Finance Corporation (IFC) Performance Standards, and other multilateral and major financial institutions standards. Thus, all covered transactions are required to comply with applicable national legislations and international standards to which ATI subscribes, and provide relevant mitigation measures to reduce negative Environmental and Social (E&S) risks within an appropriate time frame. The transactions are subject to a four-step process:

  1. Screening
  2. Classification (high, medium or low E&S risks)
  3. Due diligence
  4. Decision and monitoring

In line with the broader commitment to ESG, ATI will set up a separate climate change policy that will seek to address the devastating consequences of climate change in Africa. The policy commitments will be informed by ATI’s mandate as well as Africa’s development needs. In accordance with ESG commitments, ATI established a Corporate Social Responsibility (CSR) framework which aims to identify, execute and monitor CSR projects.

As a key step in the proper implementation of the CSR framework, ATI staff were trained on CSR issues in July 2022 with support from Euromoney Learning.

The CSR initiatives carried out in 2022 include:

  • Support in improvement of school infrastructure in South Sudan. ATI contributed to the project dubbed “Standing Up for Safe and Protective Education” with the construction of two learning spaces for emergency- affected out of school children in two schools. The two schools, Nairiwo Primary School and Diatoro Primary School, were selected in collaboration with the Ministry of General Education (MoGE). Funding of USD50,000 from ATI will help bring back to school more than 600 children (boys and girls). The project is being implemented by African Educational Trust (AET), an NGO that provides education to children and adults affected by conflict and poverty in Eastern Africa.
  • Donation of a motorbike to Cerebral Palsy Society of Kenya (CPSK), a charity organization that offers special education, music therapy and vocational training to children and persons living with cerebral palsy.

ATI’s CEO, Manuel Moses, noted “Every child deserves to get education in a free and fair environment far from any environmental, political or natural setback. A community with children who cannot access education is a disadvantaged community as there will be no positive development. We trust that our partnership will help change the lives of many children and hence the community at large, by giving support to the education sector in South Sudan.”

ATI’s ESG journey is well underway. The implementation of the newly defined ESG building blocks will strengthen the consideration of ESG risks in ATI’s operations and contribute to the achievement of the Sustainable Development Goals (SDGs).

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