E&S Policy

Dolma Impact Fund (DIF) provides capital and expertise to growth companies in Nepal. As an impact fund, we build positive environmental and social (E&S) impact into the core of investee company strategies. Dolma believes that high standards in environmental and social management are fundamental to good business and that by working with investee companies to enhance their E&S processes and performance, we are creating value and positioning the companies for a place in an international market.

 

Dolma is committed to working with companies to enhance E&S performance consistent with DIF’s Environmental and Social Management System (ESMS). This requires Dolma to work with potential investee companies to identify the gaps between their environmental and social performance and good international industry practices. Once agreement is reached for DIF to invest, we will work with our investee partners to develop capacity for improved E&S management, invest in efficient technologies and achieve enhanced outcomes, meeting the applicable requirements within a reasonable period of time.

 

The investors in DIF include international development banks, which require that all investments meet the requirements of the IFC Performance Standards and the International Labour Organisation (ILO) and United Nations (UN) Universal Declaration of Human Rights standards. In this respect, Dolma’s ESMS is aligned with the requirements of these international standards. Dolma provides important support to its investee companies to aid in the understanding of these requirements and the capacity to manage their activities accordingly. Accountability towards investors is maintained through regular monitoring and reporting mechanisms.

 

Dolma will maintain, throughout the lifetime of all its investments, an External Communication Mechanism (ECM) to receive any public concerns related to the Fund’s investments. Through the ECM, DIF will work with relevant parties to address the cause of any valid complaints and inform the complainant of any such actions taken.

 

DIF’s ESMS Manager is ultimately responsible for administration and oversight of the ESMS. We commit to ensuring that all DIF staff will have adequate training to perform their roles in the implementation of the procedures.  This policy will be communicated to the entire DIF team who will be expected to adhere to the policy.

 

The ESMS will be reviewed and revised accordingly on an annual basis.