Valid: from 1st July 2013
Renewed in May 2013
Environmental and Social Policy
In the field of the officially supported export credit financing, respecting environmental and social considerations (and in broader sense the sustainability aspects) means in the practice that any environmental and social impacts and risks of a project (export) must be reviewed and assessed in the course of the application and the decision on the project (for the purposes hereof social impacts encompass human right impacts of a project).
The Hungarian ECAs have to contribute to the environmental protection by ensuring the principle that “public money” should not support projects with unacceptable adverse environmental impact.
By law the Hungarian Export-Import Bank Pte. Ltd. (EXIMBANK) is obliged to take into account environmental and social considerations as well among the criteria of eligibility for insurance in line with the relevant regulation applied by the OECD. The new OECD Recommendation finalized in 2001 contains common approaches and implementation guidance concerning the integration of the environmental aspects in the officially supported export credit insurance activities. On 2nd July 2012 the OECD ECG issued the new document in particular: “Recommendation of the Council on Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence”, 28th June 2012.(TAD/ECG(2012)5), on the basis of which the procedures and implementing rules applied by EXIMBANK have been altered.
Its environmental and social considerations to the officially supported investment insurance activity and applied a procedure parallel to the export credit insurance.
THE GUIDING PRINCIPLES OF THE HUNGARIAN ENVIRONMENTAL AND SOCIAL POLICY APPLIED BY EXIMBANK ARE AS FOLLOWS
- It should comply with the relevant Hungarian legislation including international commitments and environmental agreements undertaken by Hungary.
- It should be in observance of the legal regulations pertaining to commercial confidentiality and business interests, in line with relevant rules of public disclosure.
- Its procedures and rules should be flexible enough and suitable for continued enhancement.
- In the assessment of the environmental and social impacts the bank works in cooperation with stakeholders and respects the buyer country’s rights.