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AFD receives award for its sustainable development assessment system
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On 21 May, AFD received an award from Latin American Association of Development Financing Institutions – an organization that brings together nearly 70 public development banks in Latin America and the Caribbean – for its Sustainable Development Analysis and Opinion mechanism ("Analyse et avis développement durable" – AADD). The award recognizes 10 years of methodological and operational work, as well as expertise that is becoming a benchmark across the region.
Created in 2014, the AADD mechanism has become a key tool for aligning projects supported by AFD with the United Nations Sustainable Development Goals. It serves as a guiding framework throughout project appraisal, helping identify potential risks early on and support more rigorous dialogue with partners on the projects’ expected impacts.
This distinction builds on the partnership established in 2017 between AFD and the Latin American Association of Development Financing Institutions (Asociación Latinoamericana de Instituciones Financieras para el Desarrollo), an international organization that currently brings together more than 70 development banks and institutions across Latin America and the Caribbean, including several members of the International Development Finance Club.
“The AADD tool was recognized by ALIDE as an institutional innovation by AFD, integrating the Sustainable Development Goals into the assessment of its financing and bond issuances. Its value lies not only in directing resources toward projects with positive impact, but also in acting as a technical screening mechanism to exclude operations that do not meet environmental, social, and governance criteria. The AADD tool helps ensure that financing genuinely contributes to sustainable development,” explained Edgardo Alvarez, Secretary General of ALIDE.
AFD has started supporting partners seeking to develop their own AADD approach. In Brazil and Egypt, four banks are currently benefiting from this support.
The recognition granted by ALIDE sends a signal to all banks in its network that integrating sustainable development into financing decisions is both a way to improve the quality of operations, a tool for dialogue with clients, and a means of strengthening credibility when mobilizing financial resources.
