In compliance with NIB's mission, all projects financed by the Bank should improve competitiveness and/or the environment, the two pillars of NIB's mission. Furthermore, outside the membership area, projects financed by NIB should be of mutual interest to the country of the borrower and the member countries.
NIB finances projects that raise the efficiency of products and services offered by the Bank's customers. Hence, the first question when evaluating any potential project is to what extent the project contributes to improving efficiency or productivity.
NIB distinguishes between internal factors - those businesses can directly influence - and the external factors, those which exist in the company's business environment. The effects of a company's investments are often higher for the society or the economy than for the company.
To assess the potential impact on competitiveness of projects, the Bank looks at the relative improvement in the company's performance compared to a no-project situation. The relative impact on the company or on the business sector is compared to similar projects in similar sectors. To properly gauge the expected benefits of the project, NIB also assesses the implementation risk, the risk that the project's full potential will not be realised.
The environment is another pillar of the Bank's mission. It means that NIB provides loans and guarantees for projects that prevent and treat pollution. When the Bank evaluates the environmental impact of a project, it considers the following questions:
To achieve a positive environmental impact rating the project must be in compliance with NIB's Sustainability Policy and Guidelines as well as relevant national legislation. A direct positive environmental net impact requires a quantitative assessment.
Defining and limiting the scope or boundaries for the analysis constitutes the first step in assessing the fulfilment of the Bank's mission. Every project is assessed against:
The environmental impact is measured on a six-degree scale, including a negative rating. Similarly to the assessment of competitiveness impact, the environmental assessment covers both the potential impact as well as the implementation risk of the project.
To assess mission fulfilment the Bank needs to understand the client's rationale for, and basic assumptions behind, the investment decision and the context of the investment.
For instance, in a larger energy generation project such as a wind farm, most of the information related to environmental issues is available in the environmental impact assessment and feasibility studies. For public transport projects that increase capacity in trains, the information should relate to quantitative environmental benefits of transferring passengers from road to rail. To assess both the environmental impacts and the impact on competitiveness, the basic information would consist of traffic volume forecasts combined with performance data on trains.
A loan to Lidl Suomi Ky will finance the construction of a new warehouse in Järvenpää and investments in new Lidl stores in Finland.
16 Jun 2017
On 18 July, the EU High-Level Expert Group on Sustainable Finance will arrange a public hearing on the its interim report. Stakeholders are encouraged to provide feedback to the European Commission and the Group on ways to establish a more sustainable financial system.
14 Jun 2017
The project is part of a NIB-co-financed investment programme of improving wastewater treatment in the country.
8 Jun 2017