Social and Environmental Standards
The European Energy Efficiency Fund (“eeef”) aims to support the climate goals of the European Union to promote a sustainable energy environment and foster climate protection by enabling projects in European cities, regions and communities to build resilient infrastructure. The eeef has sustainable investment as its objective. Sustainable investment means an investment in an economic activity that contributes to an environmental or social objective.
The eeef targets to conduct its operations in line with the highest expectations regarding social and environmental responsibility. The eeef has developed a Social and Environment Management System (“eeef SEMS”) and an Impact Management Framework (as outlined in its “SEMS policy”) to define, assess, measure and monitor the Social and Environmental aspects and the specific impact of investments along the eeef’s lifetime.
Every eeef investment agreement outlines a number of social and environmental (S&E) clauses and impact-reporting obligations. As an integral part of the general eligibility criteria of the Fund, the investment has to comply with its social and environmental management system (SEMS). S&E standards compliance is monitored through the investment’s lifetime. eeef is publishing all Environmental Impact Assessments for the projects that are potentially deemed to have a negative environmental and/ or social impact. In accordance with Article 10(1) (a) to (c) of the Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 it provides sustainability‐related disclosures in the financial services sector (the “SFDR”).
For both types of investments – direct and financial institution investments – the eeef SEMS has specific performance requirements and procedures which are applied. Compliance with these is assessed during the due diligence process and monitored during the lifetime of the project.