Model Framework for specified use of proceeds

Published November 2018

This Positive Impact Initiative Model Framework covers Financial Products where the funds raised or guarantees issued are used for a specific purpose, in this case Project-related finance within the scope of the Equator Principles.

For example: project finance transactions, Project-related corporate loans, bridge loans to project finance, project-related transactions supported by Export Credit Agencies (Products with other specified use of funds will be the object of separate Model Frameworks)

As per the Principles for Positive Impact Finance, appropriate frameworks are required to implement the holistic impact analysis and management needed for financial institutions to deliver their financial products and services in alignment with the definition of Positive Impact Finance.

 

The Model Frameworks are the tools through which the PI Principles are interpreted and implemented. They are developed by the PI Initiative to guide:

  • Financial institutions or intermediaries seeking to deliver Positive Impact financial products. The PI Model Frameworks will enable them to develop appropriate frameworks or adapt their existing frameworks to serve a number of purposes: for decision-making (i.e. on financing /investments); for the development of PI financial products, or for on-going analysis/monitoring of portfolios.
  • Auditors, analysts and other third parties or stakeholders called on to verify and/or provide opinions on the PI nature of financial products.

The Models are not set in stone. They are designed as live tools to be trialled and tested for ongoing refinement and update over time.

Financial institutions are invited to create their own Framework, using this Model as guidance, and to provide feedback to the Secretariat of the PI Initiative on any practical issues encountered.

Download the Model Framework

Please send comments to: positiveimpact@unepfi.org

This document was prepared by the Positive Impact Initiative thanks to the generous support of the European Commission.