The project's overall objective is to improve Environmental, Social and Governance (ESG) performance in the financial and real sectors through early identification of ESG risks, capacity building to manage these risks, and making full use of ESG-related investment opportunities, thereby promoting resource allocation to well-governed, and sustainable projects in high-risk sectors. Therefore, the project will contribute to de-risking key sectors, improving the sustainability of Bangladeshi companies, and unlocking and creating new market opportunities for foreign investors including IFC. The project aims to achieve the following objectives: 1. Strengthened ESG regulatory and reporting framework, by developing a regulatory framework for Sustainable Bonds, support revision/update of the CG/ESG code by working closely with key regulators. 2. Improved capacity of local market intermediaries to provide training and advisory programs on ESG issues, standards and best practices 3. Improve ESG due diligence standards and corporate governance practices among Financial Institutions including building Environmental, & Social, Management, Systems (ESMS) integrating ESG into their credit policies/procedures, and improving their on-lending and investment capacity to high-risk sectors to facilitate capital allocation to companies with strong governance & sustainability performance. 4. Improve ESG performance among real sector clients and key sectors such as financial, renewable energy, value-added manufacturing and agribusiness to address significant bottlenecks to investment and improve the ESG performance of portfolio companies.

Indicator	Cumulative
Number of entities that implemented recommended changes	0
Number of entities reporting improved performance (e.g., improvements in productivity, accountability, operations, loan terms, valuations)	0
Number of recommended laws/regulations/amendments/codes enacted or government policies adopted	0
Sales revenue (US$)	0
Value of IFC financing facilitated (US$)	0
Number of workshops, training events, seminars, conferences, etc. conducted with/by partners	0
Number of entities trained by partners	0
Number of entities receiving in-depth advisory services	0
Number of individuals trained by project-trained people and/or institutions	0
Number of participants in workshops, training events, seminars, conferences, etc.	0
Number of participants providing feedback on satisfaction	0
Value of financing facilitated (US$)	0
Number of women participants in workshops, training events, seminars, conferences, etc.	null
Number of new laws/regulations/amendments/codes/government policies drafted, or contributed to the drafting	null

Performance Standard	Description and Potential Impact	Mitigation
PS 1. Assessment and Management of Environmental and Social Risks and Impacts	As part of its Due Diligence, and as mandated by IFC Sustainability Policy, IFC team will screen this project to assess consistency with IFC's Performance standards throughout the preparation and delivery of the ESG Advisory. Some clients under this project may have E&S risks related to the Performance Standards in which the ESG AS will be providing advice and guidance to. Environmental and social risks will be further reviewed throughout the life-cycle of the project	IFC advice will be provided in a manner consistent with the principles of the relevant Performance Standards. The IFC team will assist the client in gaining a good understanding of IFC's Performance Standards, and provide recommendations for appropriate mitigation measures whenever warranted. The team will bring in E&S specialists as needed for technical delivery.