Question to the Department for International Trade:

To ask the Secretary of State for International Trade, pursuant to the Answer of 18 November 2020 to Question 91998 on Fossil Fuels: Export Credit Guarantees, what steps UKEF is taking to conduct that extensive due diligence, including environmental, social, and human rights due diligence and consideration of climate change; and whether that due diligence includes an assessment of potential scope 1, 2, and 3 emissions from those projects.

The projects referred to in the response to Question 91998 are still under consideration, and we cannot comment on potential transactions for reasons of commercial confidentiality.

UK Export Finance (UKEF) has a specialist environmental, social, and human rights (ESHR) team that reviews relevant projects for such risks and impacts (including consideration of climate change) prior to UKEF taking a decision on support. ESHR reviews are undertaken in strict alignment with international frameworks for managing such ESHR risks and impacts, namely the OECD Council Recommendation on Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence (OECD Common Approaches) and Equator Principles, which was updated in July 2020 to strengthen requirements related to climate change and human rights. The ESHR team undertakes these reviews to be satisfied that relevant projects should comply with applicable local and relevant international laws, and align with international ESHR standards, before support is provided. Where UKEF provides support to such projects it undertakes on-going ESHR monitoring over the period of that support.

Where a relevant project is identified as having a high potential impact on the environment and/or social matters/human rights, UKEF publishes Category A notices to inform stakeholders of its consideration of such a project.

Furthermore, from 1 April 2020, UKEF has committed to consider how it will take account of climate change within its decision-making processes across all its products. This consideration will be proportionate to the risks and impacts associated with the projects and its support.