Our environmental and social standards and processes form the foundation for all DEG investments. They define clear requirements for our clients as well as exclusion criteria and set out how we support their implementation throughout the financing process.

They particularly include:

The Harmonized EDFI-DEG-Exclusion List lists activities and areas in which DEG does not invest as a matter of principle.

DEG-Exclusion-List(PDF, 10 KB, non-accessible)

We consider the promotion of a sustainable, future-proof development our societal responsibility. It is the keystone of our business mandate. In our Sustainability Commitments, our goals related to impact, climate protection, and the protection of people and the environment are firmly anchored. They define the principles for the environmental and social sustainability of all DEG investments.

DEG Sustainability Commitments(PDF, 206 KB, non-accessible)

The Environmental and Social Management System (ESMS) describes our standards and approaches for integrating environmental and social aspects across all financing processes. It shows how we manage risks throughout the financing process and systematically promote sustainable impacts.

Summary of the Environmental and Social Management System(PDF, 438 KB, non-accessible)

In all its financing activities, DEG applies the IFC Performance Standards, including the relevant guidelines on "Environmental, Health and Safety" as well as the ILO standards. The IFC Performance Standards developed by the International Finance Corporation (IFC) are the most widely used assessment standard in international development financing. The standards were revised in 2012 and since then they have also included extensive human rights aspects which are embedded in all eight Performance Standards.

IFC Performance Standards

In all its investments, DEG checks that workers’ rights are being observed – for instance, whether working hours and safety standards meet the requirements of the International Labour Organization (ILO).

ILO Core Labour Standards

In addition to our binding environmental and social standards, we align ourselves with other international principles and initiatives. They further strengthen our ESG approach and complement our requirements for sustainable investments.

These include:

We work together closely with our clients to promote good corporate governance. Key issues are the rights and equitable treatment of shareholders and other stakeholders, internal control environment and processes, disclosure and transparency, and the Board of Director.

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As a member institution of EDFI (Association of European Development Finance Institutions) we are committed to phasing out fossil fuels and mobilising private-sector climate finance, aligned with the Paris Agreement and high disclosure standards (TCFD).

Joint statement

KfW Bankengruppe - represented by DEG - has been supporter of the Extractive Industries Transparency Initiative (EITI) since April 2010. EITI is a voluntary coalition of governments, companies, industry associations and representatives of civil society, aimed at ensuring the accountable payment of revenue from raw materials extraction into the national budgets of the respective resource-rich developing countries and its use for sustainable development.

Extractive Industries Transparency Initiative

The "Policy Statement of KfW and its Subsidiaries on Human Rights and its Human Rights Strategy" has replaced KfW Group’s Human Rights Declaration that has been in place since 2008. The document reflects the increased demands of KfW's internal and external stakeholders as well as the requirements of the German Supply Chain Due Diligence Act.

Declaration of human rights