Since its beginning, LAAD’s mission has been the promotion of economic and social development in Latin America, through financing agricultural exports to private enterprises. LAAD’s current environmental and social policy seeks the establishment of an operational framework that integrates social, environmental and financial sustainability principles in its institutional strategy, promoting sustainable development in Latin America, with an emphasis in rural Small and Medium Enterprises.
To this end, LAAD has established processes and tools that identify current best practices in social and environmental management for the identification and analysis of risks and impacts in its credit operations and thus facilitate the decision-making process in awarding loans. Likewise, LAAD promotes sustainable initiatives that involve environmental protection and conservation through different types of environmental and social certifications currently on the market and that are required by the main international markets and consumers. Staff training and capacity building in environmental and social management is also an integral part of our policy.
To achieve the sustainability goals, LAAD has implemented a Social and Environmental Management System (SEMS). The SEMS offers an appropriate and efficient evaluation and monitoring procedure of social and environmental risks associated with activities financed by LAAD, over the duration of the loan period.
In summary, SEMS enables staff in our Latin American offices to:
• Evaluate the social and environmental performance of potential clients under analysis for credit approval.
• Identify and avoid negative impacts, or reduce them should they be inevitable, opting for proactive and appropriate mitigation or compensation through action plans agreed upon with the client prior to approval of financial support. High-risk projects that involve extremely negative or irreversible impacts will not be financed unless they meet with all requirements established by LAAD.
• Establish control and follow-up mechanisms, according to LAAD’s environmental and social policies and procedures, upon approval of a credit operation, should these be necessary.
GREIVANCE MECHANISM & COMMUNICATION
LAAD is aware of the importance of providing proper communication tools that will make us aware of any complaints or concerns in regards of the care of Social and Environmental issues in our projects. Please click on the link below and fill the provided template information. We assure you that it will be evaluated and responded promptly.
