ESG and climate risk management – Investor Relations

What non-financial risks are

 

When we assess a financing request, we look at more than the financial indicators. Some risks do not appear in the financial statements but can still affect a company’s operations and its ability to repay. These are non-financial risks.

The current assessment includes environmental, social and governance risks, such as the environmental impact of the company’s activities, the availability of permits and compliance with legal requirements, working conditions, employee health and safety, relations with local communities, and the company’s governance practices.

Maib is currently developing its climate risk management framework, which will be progressively integrated into the bank’s overall financing and risk management processes.

Why we assess these risks

 

• Because they affect the business. A significant environmental incident, a workplace accident, the withdrawal of a permit or a severe weather event can affect output, costs and repayment capacity.
• Because it is a condition of the international funding we channel to clients. Maib’s agreements with international financial institutions (EBRD, IFC, GGF, EFSE, EIB etc) require the bank to maintain an environmental and social management system and to apply it to financing granted from these resources.
• Because the regulatory direction is clear. Moldova’s alignment with EU legislation will progressively bring these requirements into national banking regulation.

 

How we assess ESG risks

 

Maib operates an Environmental and Social Management System (ESMS) that is integrated into the lending process. The framework reflects Moldovan legislation, the profile of the bank’s portfolio, and international reference standards, including those of IFC and EBRD.

The system applies to business clients in the SME and Corporate segments. Individuals do not complete ESG questionnaires.

The guiding principle is proportionality: the depth of the review and the amount of information requested are matched to the level of risk. Activities and projects presenting lower levels of ESG risk are assessed through a simplified process ; those with more significant risks are reviewed in greater detail.

In 2025, all SME and Corporate borrowers went through this assessment, and 893 clients underwent an extended review.

 

The ESG questionnaire

 

The ESG questionnaire is a structured set of questions about the environmental and social aspects of your business. It is not a test and there is no pass mark. Its purpose is to gather information the bank cannot obtain from financial documents.

Maib uses sector-specific questionnaires, so that the questions are relevant to your field of activity.

Who receives it and when

Business clients applying for financing, at the assessment stage, together with the other documents in the credit file.

What the questionnaire covers

• type of activity and location
• permits and authorisations held, and legal compliance
• use of resources: energy, water, raw materials
• management of waste, emissions and discharges
• working conditions and employee health and safety
• exposure to climate events and adaptation measures
• investments made or planned to reduce environmental impact

What it helps to prepare in advance

• environmental permits and relevant authorisations, with their validity dates
• documentation on waste and discharge management, where applicable
• occupational health and safety documentation
• utility consumption data
• a description of investments made or planned in energy efficiency or impact reduction

Missing documents identified late in the process are the most common cause of delay. If a permit is being obtained or renewed, it helps to say so from the outset.

Examples of questions covered (not exhaustive)

• Does the company hold all valid permits, licences and authorisations required for its operations, including the applicable environmental permit(s)?
• Does the company implement measures to prevent, reduce and control pollutants released into the air, water and soil as a result of its operations?
• Has the company implemented energy-efficiency measures or established a plan to reduce its consumption of resources, including water, energy, fuel and raw materials?
• Have there been any environmental or occupational incidents or accidents in the past three years?
• Does the company provide appropriate personal protective equipment and ensure safe working conditions?

What happens after you submit it

• screening of the activity against the Exclusion List
• verification of legal compliance and the validity of permits
• classification of the project: low, medium or high risk
• for medium and high risk, a detailed review, which may include a site visit
• an environmental and social risk opinion, included in the overall risk opinion
• where applicable, measures and clauses that become part of the loan agreement
• monitoring over the life of the financing, for medium and high risk projects

 

Frequently asked questions

 

Does an ESG assessment mean financing will be refused?

No. Identifying a risk does not automatically lead to refusal. In most cases, the bank discusses reasonable prevention, mitigation or remediation measures with the client.

Do all clients complete the same questionnaire?

No. Questionnaires are differentiated by sector, and the level of detail depends on the sector, the size of the financing and the characteristics of the project.

How long does it take, and does it delay credit approval?

The assessment runs in parallel with the credit review. For low-risk activities it does not normally involve additional steps for the client. For medium or high risk projects, additional documents or a site visit may be required.

What if I do not hold all the required permits?

Tell your relationship manager. Depending on the situation, a clear timetable for obtaining or renewing the documents can be agreed. It is better to raise this at the start of the process.

Who is responsible for legal compliance?

The client remains responsible for its own activity, for obtaining authorisations and for complying with legislation. Maib’s assessment does not replace inspections by the authorities and does not constitute certification of the client’s compliance.

Is the information I provide confidential?

Yes. Information in the questionnaire is treated with the same confidentiality as the rest of the credit file. Aggregated and anonymised data may be reported to international funders, in line with the bank’s contractual obligations.

Does this apply to individuals?

No. The ESG questionnaire is addressed to business clients.

 

Climate risks

 

Climate risks are divided into the following categories: physical risks, associated with drought, extreme temperatures, floods and water scarcity, and transition risks, associated with legislative, technological and market change.

The bank is currently developing its climate risk management framework. It will be integrated into the overall risk management framework as national legislative requirements are adopted, in the context of Moldova’s alignment with European regulation.

At present these analyses are carried out at portfolio level and are informational in nature. They do not constitute an individual client assessment, a lending decision, or a forecast that a climate event will occur.

 

Contact

 

For questions, suggestions or feedback on the assessment of non-financial risks: sustenabilitatea@maib.md