fsda-espm-manual-6ad2976b0f2f090c.pdf

The Environmental and Social Performance Management Systems (ESPM) Manual, published by FSD Africa in May 2023, establishes the procedures for implementing the organization's Environmental, Social & Governance (ESG) and Impact Policy. It provides a risk-based framework for integrating environmental, social, and impact (ES&I) considerations across the entire lifecycle of grant funding and risk capital investments in sub-Saharan Africa. The manual details specific screening, due diligence, monitoring, and reporting requirements for grantees and investees, with a specialized Gender Lens Investing (GLI) framework for the FSD Africa Investments (FSDAi) pillar.

• FSD Africa utilizes a risk-based approach to categorize prospective direct investments into three levels of environmental and social (ES) risk: High (Category A) for activities with "potential significant adverse environmental or social risks and/or impacts that are diverse, irreversible, or unprecedented"; Medium (Category B) for "potential limited adverse environmental or social risks and/or impacts"; and Low (Category C) for activities with "minimal or no adverse environmental or social risks and/or impacts".
• For financial intermediaries (FIs), FSDAi employs a specific categorization system: Category FI-1 for those with "substantial financial exposure" to high-risk activities; Category FI-2 for those with portfolios primarily consisting of limited adverse risks; and Category FI-3 for those with exposure predominantly to activities with "minimal or no adverse environmental or social impacts".
• The FSDAi pillar implements a Gender Lens Investing (GLI) Framework to address gender disparities and promote women's economic empowerment. This framework targets three specific goals: financing "women-owned investments", financing "women-led investments" by supporting diversity at senior management and Board levels, and supporting businesses that provide "decent work to women" or expand opportunities for women entrepreneurs.
• FSD Africa's grant funding process includes a tiered impact screening based on the value and duration of the intervention. Interventions exceeding £250,000 that run for more than 18 months (and are not research or due diligence initiatives) are subject to a "Full Impact Screening". Interventions between £150,000 and £250,000 may also undergo this process, while those under £150,000 are treated as "small" initiatives using a "lighter-touch approach".
• Fiduciary and governance due diligence for grants is conducted based on the funding amount: small grants (up to £100,000) are handled internally by the Risk Management team; medium grants (£100,001- £199,999) are handled internally but may be outsourced; and large grants (£200,000 and above) must be conducted externally.
• Grantees and investees are required to report major unplanned ES or risk-related events—such as "fatalities, serious injuries, fires, incidents of bribery or money laundering, labour strikes, financial irregularities etc."—using the Major Incident Reporting Template as soon as possible, and no later than two days after the occurrence.
• FSDAi manages ES risks through an Environmental and Social Action Plan (ESAP), which is a "live document" containing corrective actions, costs, and timings. The ESAP is tracked via the Investment Portfolio ESAP Tracker to flag "overdue action items" and challenges.
• The ESPM establishes a governance structure where the FSD Africa Board provides overall oversight, while Pillar Heads are accountable for the strategic implementation within their respective divisions. Dedicated ES resources are appointed in each Pillar to champion the ESPM and support project leads.
• FSD Africa commits to a periodic review of the ESPM every two years to ensure it remains aligned with "emerging ES&I trends, best practice and any organizational changes".

APA

FSD Africa (2023). fsda-espm-manual-6ad2976b0f2f090c.pdf. https://fsdafrica.org/wp-content/uploads/2026/05/FSDA-ESPM-Manual.pdf

Chicago

FSD Africa. fsda-espm-manual-6ad2976b0f2f090c.pdf. 2023. https://fsdafrica.org/wp-content/uploads/2026/05/FSDA-ESPM-Manual.pdf.

Wikipedia

{{cite report |author=FSD Africa |title=fsda-espm-manual-6ad2976b0f2f090c.pdf |date=May 2023 |url=https://fsdafrica.org/wp-content/uploads/2026/05/FSDA-ESPM-Manual.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fsdafrica2023fsdaespmmanual6ad2976b0f2f090cpdf, author = {{FSD Africa}}, title = {{fsda-espm-manual-6ad2976b0f2f090c.pdf}}, institution = {FSD Africa}, year = {2023}, month = may, url = {https://fsdafrica.org/wp-content/uploads/2026/05/FSDA-ESPM-Manual.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }