E&S Advisory and Risk Management Services

Capability Statement


E&S Advisory & Risk Management gained significant relevance, particularly in conjunction with impact investing. This development has been catalized by industry trends such as the EDFI Harmonisation Initiative, where investment flows are aligned with the Sustainable Development Goals and, more recently, with the Paris Climate Agreement. Since then, LFS has built up substantial track record in the field of E&S Advisory, Risk Management and the Development of E&S Management Systems for Social Enterprises, Financial Institutions and Investors. The knowledge gained and tools developed through our extensive project work enable us to provide a comprehensive array of services to clients for systematically improving their E&S performance in order to ensure compliance with their double-or triple-line business model. LFS is familiar with the most recent E&S requirements and approaches of leading international development finance institutions and development agencies.

On the following pages we provide an overview of our range of services, team capacities and relevant project references.


 

Range of Services

The table below shows a selection of services which are provided by LFS in the business line of E&S Advisory, depending on the respective client and project requirements.

E&S Risk Management

Review, Development & Implementation of ESMS

Development of E&S Risk Management Tools

Assessment of Compliance with IFC PS

Management of E&S compliant Supply Chains

E&S Commitment Plans and Reference Frameworks

Implementation of E&S credit Risk Assessment for FIs

ESG Investment Services

E&S Gap Analysis at FI, Fund or Enterprise Level

E&S Portfolio Audits

E&S Die Diligence of Transactions

E&S Impact Measurements

E&S Stewardship and Investor Support

Advisory on E&S compliant Impact Investing

Development of Sustainable Finance Credit Lines

E&S Trainings & Capacity Building

E&S Training needs assessment

Design of curricula, learning materials and case studies for classroom and virtual/e-delivery

On-the-ground and remote trainings

E&S Reporting & Monitoring

Development of E&S Reports

Concepts for reporting against Sustainable Finance Disclosure Regulations (SFDR)

Remote and on-site monitoring of E&S risks

 

 

Project References

The table below contains a summary overview of relevant projects carried out by LFS over the last years with regards to E&S risk mitigation as well as the development and/or implementation of ESMS. More detailed information on selected projects can be provided on request.

 
Country
Client
Year
Project & Description
 
Worldwide

DEG

2020 - ongoing

Framework Agreement for ESMS and other E&S Advisory Projects with Financial Institutions and Investment Funds in conformity with new/harmonized EDFI approach, leading a consortium with three partner firms (see below).


Mexico

DEG

2021

Development and implementation of an Environmental & Social Management System for Intercam as well as accompanying staff training.


Paraguay

DEG

2021

Review of the existing Environmental & Social Management System of Banco Regional and accompanying staff training as well as development of a sustainability report.


Malawi

Malawian Agriculture and Industrial Investment Corporation

2021

Development of an Environmental and Social Risk Categorization/Screening Methodology and Upgrade of E&S Risk Management Policy.


Egypt

Sandah for Microfinance

2020 - 2021

Development of an Environmental and Social Risk Categorization/Screening Methodology and Upgrade of E&S Risk Management Policy.


Germany, Mexico, Brazil

ICLEI (funded by KfW Development Bank)

2020 - 2021

E&S DD of a prospective project executing agency for a new urban infrastructure insurance facility in Latin America (in response to climate change risks). E&S risk identification and development of an E&S commitment plan for the project.


Nigeria

Babban Gona (project funded by KfW Development Bank)

2020 - 2021

Developing and Implementing an Social and Environmental Management System of a Social Enterprise providing Financial and Non-Financial Services.


Germany + remote work with various countries

Investing for Employment (IFE) (KfW subsidiary)

2019 - 2020

Review of project applications from public and private sector partners in Ethiopia, Tunisia and Côte d’Ivoire, including screening of E&S risks and review of E&S action plans.


Rwanda

One Acre Fund (project funded by KfW Development Bank)

2019 - 2020

Reviewing and Expanding an Social and Environmental Management System of an Agricultural Organization providing Financial and Non-Financial Services.


Senegal

MyAgro (project funded by KfW Development Bank)

2019 - 2020

Developing and Implementing an Social and Environmental Management System of an Agricultural Organization providing Financial and Non-Financial Services.


Jordan

GIZ Central Bank of Jordan

2018 - 2019

Training on financial consumer protection, social performance management and risk management (including E&S risks).


 

The E&S Advisory Team

Dan Balke
Managing Director & Partner

Dan Balke is a Managing Director and Partner of LFS, with a multifaceted record of senior management positions in development finance projects and banks. As manager and expert he covers an array of areas, in the fields of inclusive, MSME and digital finance as well as IT projects and core banking systems implementation and, since recently ESG/ ESM investments and advisory mandates. Dan managed a variety of projects through different stages of their cycle for all major international and a variety of national development finance institutions.

For several years he has been responsible for pushing forward the digital and technological agenda with AccessHolding. Dan has managed projects to success in major emerging markets worldwide and has assisted to develop strategies in Digital Finance and Green Finance.

 
Konstantin Schroeter
Advisor | MSME Finance & ESG

Konstantin has contributed to the implementation of various financial sector projects in developing countries. He supported the review and development of ESMS for several enterprises and Financial Institutions across various geographies and administrates the Framework contract for the development of ESMS for financial institutions with DEG from the side of the consortium lead by LFS. He has developed a tool for assessing the current status of E&S risk mitigation according to the IFC PS of enterprises and Financial Institutions.

Konstantin graduated with a Master´s degree in Economics from Freie Universität Berlin. Besides his native German, he is fluent in English and Spanish, possesses intermediate proficiency in Russian and basic proficiency in French.