NIB Nordic Investment Bank

Environmental analysis

Environmental analysis

NIB conducts an internal environmental review of all loan applications. The review includes:

  • the environmental risks and opportunities of the project concerned;
  • the commitment and capacity of the customer concerned to manage these potential impacts; and
  • the costs resulting from the ecological and social aspects of the project.

The scope of the review and information required depends on the nature and scale of the project and the level of the environmental impacts. The scope of the review generally applies to the entire project, site or company in question, but may be expanded to the related business activities of the project.

The review is based on environmental impact assessments (EIAs), environmental audits/environmental due diligence questionnaires and other available and relevant documentation.

Links
Sustainability policy and guidelines (443 KB)

Three things to know about NIB's environmental review (1441KB)
List of A, B and C projects


Categorisation: scope of impact

NIB categorises every project according to its environmental impact, taking both risks and opportunities into account. This screening determines what environmental information is requested. The categories are:

A

The project has the potential for making an extensive environmental impact or the legislation of the project's host country requires an environmental impact assessment (EIA). The project must undergo a full EIA. Projects with potentially extensive environmental impacts (category A projects) are made publicly available by NIB for comment on the environmental aspects before the Bank makes a decision on financing the project.
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B

The project has the potential for making a moderate environmental impact. The project must undergo an environmental analysis. The scope and format of the environmental analysis will vary depending on the project, but will be more focused than an EIA.
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C

Projects with minimal or no adverse environmental impacts. The project is not required to undergo any formal EIA.
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FI

Loan programmes realised through intermediaries.

Information on the categories of projects NIB has financed can be found in the Annual Report.

Request for information

Based on the categorisation, NIB indicates to the customer what type of environmental information NIB needs. The information requested may include:

  • potential environmental impacts;
  • environmental standards, practices and processes that the parties involved in the project intend to apply;
  • an environmental management plan (also within some contexts referred to as an environmental action plan), if required; 
  • the results of any community engagement on the project with relevant stakeholders;
  • environmental impact assessment, if required;
  • environmental due diligence, if required.


Rating: type of impact

NIB rates all projects as having either a positive, neutral or negative environmental impact. A whole project or part of it can be rated as having a positive environmental impact and the project is thus determined to be an environmental project.

Information on the rating of projects NIB has financed can be found in the Annual Report.


Classification: need for environmental audit

NIB classifies projects as either 0 or 1 projects, depending on the need for an environmental audit/environmental due diligence. Such a report may be needed, for example, as concerns mergers and acquisitions. The need for an environmental audit is different from the need for an environmental impact assessment (EIA), and these two do not substitute for one another.


Project requirements

Based on its review, NIB indicates certain requirements concerning the project, as described in the Bank's Sustainability policy and guidelines.


Publication

Summaries of projects with potentially extensive environmental impacts (category A projects) are made publicly available for comment on the environmental aspects before the Bank makes a decision on financing. Summaries are available on NIB's website at least 30 days prior to the decision.


Monitoring

NIB monitors projects having the potential for making an extensive environmental impact and being categorised as A projects, as well as other projects that are determined on a case-by-case basis.

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  • AR2017

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