Environmental and Social Considerations

When receiving an insurance application for a project, NEXI makes sure if a proponent of the project is taking into account its environmental and social impacts. NEXI determines whether the environmental and social considerations in the project are appropriate and sufficient based on the Guidelines on Environmental and Social Considerations in Trade Insurance the Guidelines(PDF File/129KB).

Outline of the Guidelines

(1) Screening

An insurance applicant for a project with a repayment period of two years or more is required to submit a Screening Form(PDF File/50KB / WORD File/77KB)that can be filled out by simply making selections.

(2) Category Classification

The Screening Form filled and submitted by the applicant is used to categorize the project either as A, B or C, based on its impact on the environment. The Category A and B projects are subject to environmental review.

(3) Environmental Review

Category A includes the projects that are implemented in sensitive areas or vicinity (such as national parks and primary forests) or that cause large-scale involuntary resettlement. An insurance applicant for the Category A project is required to submit an Environmental Impact Assessment report (EIA report). NEXI reviews the EIA report in accordance with the Environmental Checklist made for the project sector.

(4) Ensuring the Environmental and Social Considerations

If the results of the environmental review show that the project might have a significant adverse impact on the environment, NEXI will encourage the project proponent (indirectly through the insurance applicant or exporter) to take into account the environmental and social considerations. If the considerations are insufficient, NEXI may refuse to conclude the insurance contract.

Even after concluding the contract, the insured (or exporter) is required to inform NEXI about the results of monitoring for a certain period of time(PDF File/16.4KB).

(5) Disclosure of Information about Environmental and Social Considerations

Within the limits of commercial confidentiality, NEXI will disclose the following information in Japanese and English on NEXI’s website.

(6) Ensuring Compliance with the Guidelines

In order to ensure NEXI’s compliance with the Guidelines, NEXI accepts objections regarding its non-compliance and takes the necessary actions.

Frequently Asked Questions (FAQ) concerning the Guidelines