The anticipated development impacts of the Project are: (i) support of commodity trade finance for importers/exporters in emerging markets; (ii) increased access to trade finance for critical commodities, especially in the agro-commodity sector in emerging market; and (iii) Enhances competitiveness and market creation in agri-finance by linking funding sources to a regional commodity trader, improving access for farmers and agri-traders, and strengthening the value chain through better connectivity and imports of essential goods.

The proposed investment is an opportunity for IFC to help provide short-term liquidity to agri supply chain across Africa. IFC's support would continue encouraging greater activity in IDA countries and support smaller traders and processors.

Indicator	Metrics	Comments
Direct Employment (#) Operations And Maintenance	individuals

The project involves syndicated and bilateral trade finance facilities with SCB to support ETG ’s import and export operations of agri commodities and fertilizers. The key E&S risks and impacts derive from the Bank’s capacity to identify and manage the potential E&S risks associated with commodity supply chains. Typical risks and impacts include occupational health & safety and supply chain-related risks as described in Performance Standards 2 and 6. As such, the Project has been categorized as Category FI-2 in accordance with IFC's Sustainability Policy. SCB is an existing client. Public domain assessment of labor practices of the Bank in relation to Performance Standard 2 and life and fire safety requirements revealed that the Bank meets the respective IFC requirements. The Project will not support coal-related activities. Use of proceeds, agreed with SCB, will only target commodities which are of low E&S risk from an IFC PS2/PS6 supply chain standpoint. The applicable E&S performance requirements for this Project include the IFC Exclusion List, relevant host country E&S laws and regulations, and screening against IFC Performance Standards 2 and 6 as they pertain to soft commodity supply chains. SCB will also be required to meet labor and working conditions in line with IFC Performance Standard 2 and IFC's Life and Fire Safety Standards for financial intermediaries.

SCB’s Environmental and Social Risk Management (ESRM) Framework guides how the Bank identifies, assesses and manages E&S risks across clients and transactions. The framework defines the principles, processes and governance for integrating E&S considerations into lending and investment decisions. These are supported by sector-specific Position Statements on areas such as agribusiness, extractives, and power generation and cross-sector Position Statements on areas such as climate change that set out E&S specific criteria for overseeing risk appetite metrics and escalations associated with E&S risks, together with a list of activities the Bank will not finance.
Front-line business teams carry out E&S due diligence with support from the ESRM team on more complex client and transaction level E&S risk cases. Transactions are subject to deeper review depending on sector risk, including requirements for clients to comply with local regulations and to put in place action plans where gaps are found. Roles and responsibilities for E&S risk management are shared between the client-facing relationship managers (RMs), and the ESRM team, which acts as a subject-matter expert supporting, and advising, RMs on E&S issues, maintaining the overall framework, and leading regular reviews of the Bank’s sector-specific Position Statements. Additionally, the ESG & Reputational Risk (“ESGR Risk”) team within the risk function is responsible for setting the overall management approach for ESGR risks and providing oversight of the ESRM Framework and providing a second line review of Client ESG and Reputational Risk assessments. Credit officers ensure transactions have a valid and appropriately completed Client ESG & Reputational Risk Assessment or Transaction Environmental and Social Risk Assessment.
SCB is required to maintain and implement its ESRM and monitor ETG’s procurement practices and capacity to manage supply chains risk as it relates to screening suppliers against the IFC Exclusion List and applicable E&S National Laws, while screening for higher risk activities.
SCB is committed to maintaining a safe, supportive, diverse and inclusive workplace which is free from harassment, bullying, discrimination and retaliation. SCB embeds these commitments through their Code of Conduct and Ethics, Health, Safety and Security Policy and their internal Group Diversity and Inclusion Standards. Labor practices are generally aligned with Performance Standards 2: Labor and Working Conditions
ETG (the obligor) is an existing client of IFC with satisfactory E&S performance. It has an Environmental and Social Management System (ESMS) outlining the procedures, roles and responsibilities, tools, monitoring and evaluation practices for undertaking E&S issues associated with its business activities. As part of its supply chain risk assessment and management, the obligor has systems in place to prevent harmful child labor and forced labor from its supply chain. SCB will be required to monitor implementation of the requirements set for commodities and trade finance of various grains and fertilizers covered by this facility.

No ESAP is required.