Business Development
Guided by our strategic objectives, our investment officers (IO) and business development officers (DO) identify the appropriate projects. This initial conversation is critical to help us understand their needs and determine if there is a role for investors and how it will be.
Initial review
The IO or the DO will provide a description of the project, with the expected contribution to the development and benefits to us and any possible break-ups of agreements. Lessons from previous projects are considered here and, in some cases, a
pre-evaluation visit is held to identify any issues in advance. The senior management of the investment platform then decides whether to authorize the evaluation of the project.
Evaluation
The platform's investment team evaluates the full business potential, risks and opportunities associated with the investment through customer discussions and site visits. The following questions are asked: Is the investment financially and economically good? Can it meet our Social and environmental Performance Standards? Have the lessons of previous investments been considered? Have the necessary disclosure and consultation requirements been met? How can we help the customer further to improve the sustainability of the project or company?
Investment valuation
The investment platform design team makes its recommendations to our management, and these adjustments and presentation will be what the platform will decide whether to approve the project. This is a key step in the investment cycle. The team and departmental management must be confident that the client is capable and wants to meet the standards of the investment platform and work with us to improve the sustainability of their company.
Negotiations
The project team begins to negotiate the terms and conditions of the participation of the investment platform in the project. This includes disbursement conditions and agreements, performance and monitoring requirements, action plan agreements, and resolution of any outstanding issues.
Public or Internal Notification
A Proposed Investment Summary (SPI) for the project and environmental and social review, where applicable, are published on our website and the investor platform before being sent to the Board for review. The duration of the disclosure period is determined by the project category.
Analysis and approval of the board of directors
The project is submitted to our Board of Directors or the investment platform for consideration and approval through regular or simplified procedures. "Simplified" means that council members review the documents, but do not meet to discuss the project. This option is available for low-risk projects of small enough size. Certain small projects may be approved by our management or investment platform under delegated authority. The due diligence process and public disclosure remain the same in all cases. The Board requires each investment to have economic, financial and development value and reflect our commitment to sustainability.
Commitment
We and the company sign the legal agreement for the investment. This includes customer agreement to comply with applicable Performance Standards, immediately report any serious accident or fatality, and provide regular monitoring reports. The legal agreement also compromises the client's Action Plan.