Aspiro ESG point of view and services, September 2022
ESG is not about meeting obligations, but transforming for the future benefit of business

Context

Corporate sustainability has developed from “early PR topic” to integral part of doing business. The ESG change is driven by new legislation, investment opportunities and increased volatility of reputation due to public attention to corporate ESG commitments.

Needs

With ESG reporting and strategy competences already developed in the market, the implementation phases  need competencies and efficient execution of the change. Backed by 20 years of experience with business transformation and facilitating IFI standards compliance, Aspiro offers professional services to support companies in the application of the new global ESG framework and delivering change with impact.

Key developments

New EU CSRD directive (Corporate Sustainability Reporting Directive) makes sustainability reporting compulsory for large companies and financial institutions from FY2023/24.
EU / IFRS working groups headed toward their own considerations and standards, with global standards like GRI continuously active in the field.
SMEs are not included in the new regulations, but accounted for through cascading supplier requirements
Parallel portfolio strategies will need to exist to cater to different types of clients and different ESG-oriented investor profiles
Several high-profile “ESG washing” cases in 2022 are putting entire ESG industry under spotlight
Economic factors are driving sustainable innovations, while projects are often pressed for time and risk implementation quality trade-offs

Key challenges

CSRD compliance will be one of the key drivers of ESG adoption as more than 35,000 companies are facing newly established legal requirements for sustainability reporting in the EU. Companies already reporting under NFRD (Non-financial Reporting Directive) are also falling under these requirements. These changes are complementing already existing SFDR (Sustainable Finance Disclosure Regulation) requirements for financial institutions. As the reporting landscape widens, and the requirements for disclosure formats are being defined more precisely, creating need for new approaches and tools to assess compliance.
Advance negotiation needed with investors to understand the different modalities and sensitivity to ESG compliance + standards to be used
Supplier assessment and guidance on the part of larger companies, and ESG requirements compliance on the part of supplier's present tasks and mechanisms for sustainable value chain regulation
Stakeholder relations and ESG positioning issues challenge companies to go beyond compliance and incorporate sustainability and related tools (ratings agencies, certificates, etc) into their overall business strategies
Mitigation of ESG greenwashing and push-back developments already seen in other markets - legitimate and honest way of developing ESG portfolios yet to be found
Innovations and infrastructure development faced with need to balance economic, social and environmental factors can find both challenges and new insights in the ESG agenda

ESG life cycle at glance

Our core capabilities as integral part of the overall ESG process serving our clients directly or with reliable partners

  • materiality assessment
  • calculating co2 footprint
  • diversity and inclusion
  • health & safety assessment
  • reviewing contracts & policies
  • industry practices and competition
  • reporting methodologies /  KPIs

OUTCOME: Sustainability analysis report

  • business ESG priorities in operational and financial activities
  • action plans with specific KPI metrics
  • roadmap, goals & expectations
  • stakeholder engagement plan
  • feasibility studies

OUTCOME: Sustainability Strategy document

  • idea design sprints
  • process & product re-design
  • program and project management
  • business case modeling
  • policy development
  • supplier  / contracting management

OUTCOME: Sustainability Transformation

  • ESG data compilation
  • commitment disclosure
  • independent audits
  • second opinion studies
  • certification
  • report submission to the public according to EU directives

OUTCOME: ESG report aligned with international standards

  • employee engagement events
  • sustainability incentives in corporate culture
  • public relations events
  • presenting industry cases
  • stakeholder events & feedback gathering

OUTCOME: PR and marketing strategy / plan

Selected Aspiro ESG services offering

Business Model & Product Re-design to contribute to ESG impact and achieve company ESG goals
  • creating / expanding current product offering, distribution model or business model to incorporate and drive ESG impact internally and towards customers
Decarbonization Transformation of Public Transport Services
  • oversight and management of transformation projects in the area of hydrogen, LNG and  CNG transport infrastructure, including financial modeling, procurement support, strategic & project preparation support
Engaging Employees towards Wellbeing & Corporate responsibility
  • digitizing Employer / Employee Agenda and services to improve communication, safety, wellbeing and increase utilization of workplace
  • digital Engagement & Responsible Behavior design, and development of “currency of change” stimulating users’ responsible behavior towards themselves, community and environment
ESG Enablement through Procurement & Supply Chain
  • procurement & tendering support with the expertise of IFI standards, balancing price / quality / ESG criteria
  • supplier / contracting strategy, review and management towards ESG-required adjustments
  • carbon footprint calculation methodology and support
  • proactive procurement role in eliminating consumption before purchasing execution (from support to partner of the business)

ESG related references

References-custom-region-ESG
  • All countries
  • Asia - Pacific (1)
  • Eastern Europe and Central Asia (5)
  • EU – Other (4)
  • EU - Slovakia (3)
  • North Africa and Middle East (1)
  • Turkey (8)
  • Western Balkans (11)
Brcko Water Project – Procurement Support (Consultants)

EBRD finances by a loan of 6.5m € a water pipeline, pumping station and reservoir in Bosnia and Herzegovina, Brcko District. As procurement advisors, we support the procurement of construction supervision and FOPIP consultants.

EBRD finances by a loan of 6.5m € a water pipeline, pumping station and reservoir in Bosnia and Herzegovina, Brcko District. As procurement advisors, we support the procurement of construction supervision and FOPIP consultants.

Mersin Buses Project Procurement Support

Aspiro assisted Mersin Metropolitan Municipality in procuring 100 new buses (70 Solo, 30 Articulated) and related services. The estimated value of the project is 22 million EUR, of which 15 million EUR is financed by EBRD via a loan; and 7 million EUR via a donor grant. Thanks to efficiency in EBRD Procurement Policies and Rules (PP&R), the City was able to procure 18 additional buses with same project budget. 

Aspiro assisted Mersin Metropolitan Municipality in procuring 100 new buses (70 Solo, 30 Articulated) and related services. The estimated value of the project is 22 million EUR, of which 15 million EUR is financed by...

Georgia Energy Security and Battery Storage Feasibility Study

Government of Georgia seeks to enable integration of substantial new capacity of wind and solar power plants by deploying utility-scale battery storage solutions. We analyzed how incorporating wind and solar capacities affects the overall energy generation mix, alongside planned additions of hydro, CCGT, and nuclear power sources. The study evaluated the resilience and security of the transmission system, especially concerning required ancillary services.  We defined parameters of such deployment, drafted required regulatory changes, proposed a private investment transaction structure and financial model, and identified potential investors and suppliers for the government to engage with.

Government of Georgia seeks to enable integration of substantial new capacity of wind and solar power plants by deploying utility-scale battery storage solutions. We analyzed how incorporating wind and solar capacities affects the overall energy...

UNDP – Smart City Data Crowdsourcing Platform for Bosnia and Herzegovina

Since 2004, the Czech government and UNDP have cooperated to bring best practices and comparative knowledge of successful transfer from a centrally planned economy to the open market in a democratic environment to Balkan countries. Aspiro proposed implementation of its municipal governance/data management platform, DataCity, and covered activities from design of application customization, initial workshops with city managers to organizing PR events and preparation of the Final statistical report.

Since 2004, the Czech government and UNDP have cooperated to bring best practices and comparative knowledge of successful transfer from a centrally planned economy to the open market in a democratic environment to Balkan countries....

CEB – Assistance with Roma social housing microfinancing project design

Aspiro has been engaged to support Council of Europe Bank (CEB) in its proposal towards European Commission (EC), related to pilot project design about empowering marginalized communities with home ownership via micoloans, supervision and assistance in self-construction of simple (and legal) dwellings (called HERO). In cooperation with local consultants in Romania and Bulgaria, we have obtained valuable data, validated key hypothesis, finalized overall narrative of the proposal and drafted budget alternatives, special risk mitigation instrument and predictive tool for KPI calculation.

Aspiro has been engaged to support Council of Europe Bank (CEB) in its proposal towards European Commission (EC), related to pilot project design about empowering marginalized communities with home ownership via micoloans, supervision and assistance...

Assessment of Green Hydrogen Production

Jadrová energetická spoločnosť Slovenska decided to assess its own potential in zero-emission fuels production. Aspiro created scenarios for various land use alternatives with main focus on wind farms and photovoltaic parks creating a matrix of various options alongside the considered addition in nuclear power capacities. The assessment matrix also encompassed the examination of large-capacity batteries for storing surplus electricity generated from renewable sources for the production of green hydrogen. Additionally, various options for providing ancillary services in conjunction with electrolyzer operation were explored.

Jadrová energetická spoločnosť Slovenska decided to assess its own potential in zero-emission fuels production. Aspiro created scenarios for various land use alternatives with main focus on wind farms and photovoltaic parks creating a matrix of...

Gaziantep CNG Buses Project II – Procurement and Implementation Support

Aspiro provided timely and effective on-site support, coordinated the communication between the EBRD, GMM and the tenderers; helped to GMM to mitigate the risks that arose during the tender processes and played a key role in successful procurement of new 56 CNG buses under the EBRD PP&R without any complaint.

Aspiro provided timely and effective on-site support, coordinated the communication between the EBRD, GMM and the tenderers; helped to GMM to mitigate the risks that arose during the tender processes and played a key role...

Karabalta Water and Wastewater Rehabilitation Project – Corporate Development Programme

The City of Kara-Balta had approached to the EBRD with request to finance priority investments in water supply and selected wastewater improvements. The current systems of the City are deteriorated and the renewal of the critical infrastructure required large investment. As consultant, Aspiro provided services for the Corporate Development and Stakeholder Participation Programme.

The City of Kara-Balta had approached to the EBRD with request to finance priority investments in water supply and selected wastewater improvements. The current systems of the City are deteriorated and the renewal of the...

Closing of Collective Centres in Bosnia and Herzegovina – Technical Assistance

Our experts joined 3rd stage of a large social housing program to enhance the supervisory and project implementation support capacity on behalf of Council of Europe Development Bank, helping to improve reporting, identify and mitigate risks, and liaise with local stakeholders to resolve arising issues.

Our experts joined 3rd stage of a large social housing program to enhance the supervisory and project implementation support capacity on behalf of Council of Europe Development Bank, helping to improve reporting, identify and mitigate...

Post-earthquake Reconstruction of Social Housing in Kraljevo – Implementation Support

We entered a project that was several years in delay to help accelerate its implementation and provide the Council of Europe Development Bank with supervision and intervention capacity, at the same time assisting the Serbian Ministry of Infrastructure in operational project matters.

We entered a project that was several years in delay to help accelerate its implementation and provide the Council of Europe Development Bank with supervision and intervention capacity, at the same time assisting the Serbian...

Climate Resilience in the Montenegrin Road Network – Project Implementation

Aspiro supervised the implementation of EBRD road rehabilitation project and advised on climate resilience elements in project planning. Our experts conducted initial institutional mapping, assessed and reviewed the 3 road designs, including gap analyses, cost-benefit analyses, return of investments and developed climate change strategy and adaptation plan. We led the pilot assessment of 52 road sections.

Aspiro supervised the implementation of EBRD road rehabilitation project and advised on climate resilience elements in project planning. Our experts conducted initial institutional mapping, assessed and reviewed the 3 road designs, including gap analyses, cost-benefit...

Turkey: Izmir Metro Project – Corporate Development Programme

Izmir Metropolitan Municipality received financing from the EBRD to purchase 85 light rail train (LRT) carriages to be operated by the municipal public transport company, Izmir Metro A.Ş. The Project intended to promote the commercialisation of Izmir Metro operations by introducing key performance indicators (KPIs), outsourcing of certain activities of Izmir Metro, and taking advantages of certain retail opportunities around major (and new additional) stations of the network.

Izmir Metropolitan Municipality received financing from the EBRD to purchase 85 light rail train (LRT) carriages to be operated by the municipal public transport company, Izmir Metro A.Ş. The Project intended to promote the commercialisation...

Hanoi Smart Lighting PPP Project Support

Aspiro provided technical assistance for preparation of street lighting system upgrade under public-private partnership. We supported with review and improvement of project pre-feasibility study, financial model and creating risk allocation model. We prepared a due diligence report assessing legal, institutional and regulatory issues and compared with FIDIC options. Company also helped to secure remaining funding.

Aspiro provided technical assistance for preparation of street lighting system upgrade under public-private partnership. We supported with review and improvement of project pre-feasibility study, financial model and creating risk allocation model. We prepared a due...

Talas Water and Wastewater Project – Project Implementation Support

Aspiro assisted the client in overall project implementation and management. Specifically, we set up the PIU and management procedures, and outlined the PIU members’ roles and responsibilities; restructured the procurement plan of the investment package to streamline and simplify the EBRD procurement process and speed up project implementation.

Aspiro assisted the client in overall project implementation and management. Specifically, we set up the PIU and management procedures, and outlined the PIU members’ roles and responsibilities; restructured the procurement plan of the investment package...

Prishtina Urban Transport – Financial and Operational Performance Improvement Program

Our experts provided assistance to the Company in developing and implementing a comprehensive Financial and Operational Performance Improvement Programme and developed a medium to long term (5 year) Corporate Development Plan, and supported to the City in development of a monitoring tool, based on DataCity platform design.

Our experts provided assistance to the Company in developing and implementing a comprehensive Financial and Operational Performance Improvement Programme and developed a medium to long term (5 year) Corporate Development Plan, and supported to the...

Danilovgrad Municipal Infrastructure Project Implementation Support

The Government of Montenegro, the Municipality of Danilovgrad and Public Utility Company Danilovgrad had applied to the EBRD for a loan to finance wastewater infrastructure for the urban part of the Municipality. We joined the assignment after a 6-year delay, with aim to recover the project. Our team helped clear the back-log of activities in the implementation schedule and completed 2 tenders for wastewater network equipment, until withdrawing from the project in 2018.

The Government of Montenegro, the Municipality of Danilovgrad and Public Utility Company Danilovgrad had applied to the EBRD for a loan to finance wastewater infrastructure for the urban part of the Municipality. We joined the...

Salaspils Energy Efficiency – Feasibility Study

The Salaspils District Heating Company has approached the EBRD for a EUR 4.0 million loan to finance energy efficiency retrofits and renovations in apartment buildings, mostly demand side energy efficiency investments in six residential apartment buildings. Aspiro prepared a feasibility study to assess the EBRD investment to the Salaspils DH company.

The Salaspils District Heating Company has approached the EBRD for a EUR 4.0 million loan to finance energy efficiency retrofits and renovations in apartment buildings, mostly demand side energy efficiency investments in six residential apartment...

DataCity Dashboard for Hlohovec Municipality

Our experts provided assistance in designing and developing City Dashboard – central reporting and information platform for more effective city management and communication with the citizens. We provided AS-IS analysis, data requirements and solution architecture, priorities and needs and we supported preparation design and development of “City Dashboard“- web portal and mobile application

Our experts provided assistance in designing and developing City Dashboard – central reporting and information platform for more effective city management and communication with the citizens. We provided AS-IS analysis, data requirements and solution architecture,...

EIB Due Diligence on Legal and Environmental Compliance of D4R7 Highway PPP Project

Based on complaints and media reports on technical issues and procedural failings, we took an independent look on behalf of the lender on the merit of the claims with regard to EIB’s environmental and social guidelines, to assess whether the PPP highway project remains materially compliant and bankable.

Based on complaints and media reports on technical issues and procedural failings, we took an independent look on behalf of the lender on the merit of the claims with regard to EIB’s environmental and social...

VIPA Energy Efficiency Structured Loan – Feasibility Study

The Lithuanian Public Investment Development Agency (VIPA), an agency of the Ministry of Finance of Lithuania, has approached the EBRD for a EUR 50.0 million loan. Our team of experts prepared a feasibility study to assess EBRD investment to VIPA to finance energy efficiency investments in multi-apartment buildings.

The Lithuanian Public Investment Development Agency (VIPA), an agency of the Ministry of Finance of Lithuania, has approached the EBRD for a EUR 50.0 million loan. Our team of experts prepared a feasibility study to...

Izmir Ferries Project – Lenders Supervision

The EBRD extended a loan of EUR 33 million to Izmir Metropolitan Municipality. The proceeds are being used for the acquisition of three vehicle ferries, construction of new ferry wharves, and the construction of a repair facility. Our team supervised the project and ensured its smooth implementation, in particular in the initial critical stage of building relationship between the EBRD and the Client and procurement under EBRD PP&R.

The EBRD extended a loan of EUR 33 million to Izmir Metropolitan Municipality. The proceeds are being used for the acquisition of three vehicle ferries, construction of new ferry wharves, and the construction of a...

Mersin Wastewater Corporate Development Programme

Experts assessed the City Water and Sewerage Administration performance and service quality, prepared a model of customer strategy, regulatory affairs, product and customer management. We provided financial and operational performance analyses and methodology for KPI-based performance system, revenue increase programme and business and investment plan with aims to improve service quality and environmental and social performance.

Experts assessed the City Water and Sewerage Administration performance and service quality, prepared a model of customer strategy, regulatory affairs, product and customer management. We provided financial and operational performance analyses and methodology for KPI-based...

Montenegro Local Roads Procurement Support for Civil Works Contracts

The EBRD has provided a loan of 25 million EUR toward reconstruction of local road Lubnice – Jelovica – Jezerine, connecting towns of Berane and Kolasin in Northern Montenegro. Aspiro helped to the client in preparation of procurement strategy and tender documents. We consolidated and integrated the requirements and project designs; supported management of the project and tendering process.

The EBRD has provided a loan of 25 million EUR toward reconstruction of local road Lubnice – Jelovica – Jezerine, connecting towns of Berane and Kolasin in Northern Montenegro. Aspiro helped to the client in...

South Kazakhstan Water Supply Project – Feasibility Study

We analyzed current water and sewerage infrastructure in the country, defined target service levels, identified the additional needed infrastructure to reach them, estimated the cost and how available financing options can cover it, and integrated all of it into a single automated financial model to help Kazakhstani government project different scenarios and plan their sectoral policies and programs.

We analyzed current water and sewerage infrastructure in the country, defined target service levels, identified the additional needed infrastructure to reach them, estimated the cost and how available financing options can cover it, and integrated...

Gaziantep CNG Buses – Project Implementation Support

Aspiro set up the PIU including all relevant municipal departments’ representatives and coordinated their work and needed activities; we defined the procurement strategy of the 50 CNG buses tender following market research and best practice in tenders under EBRD PP&R; we executed the tender on behalf of the PIU.

Aspiro set up the PIU including all relevant municipal departments’ representatives and coordinated their work and needed activities; we defined the procurement strategy of the 50 CNG buses tender following market research and best practice...

Belarus: Puhovichy Solid Waste Management Project – Supplementary Technical Study

Aspiro researched institutional arrangements in Belarus, understood and interpreted the relationships among stakeholders, and proposed several scenarios how the solid waste operations could be merged by setting up a new company and transferring assets from existing entities. We prepared a list of risks associated with each scenario and proposed how to mitigate them, then prepared a high-level merger roadmap.

Aspiro researched institutional arrangements in Belarus, understood and interpreted the relationships among stakeholders, and proposed several scenarios how the solid waste operations could be merged by setting up a new company and transferring assets from...

Turkey: Assessment of Sustainable Energy Investment Potential in Municipal Infrastructure – Market Demand Study

The goal was to assess the sustainable energy investment potential in the Turkish municipal service sector and provide sufficient information to guide the EBRD. Aspiro ensured initial project setup, prepared implementation plan, risk mitigation, brief market analysis identifying possible tenderers and possible technical specifications, qualification, and evaluation of tenders, including report preparation and contract award..

The goal was to assess the sustainable energy investment potential in the Turkish municipal service sector and provide sufficient information to guide the EBRD. Aspiro ensured initial project setup, prepared implementation plan, risk mitigation, brief...

Tajikistan – Public Transport Technical, Environmental and Social Due Diligence

We have assisted Khujand Trolleybus Company with bus fleet renewal via procurement, integration of public transport ticketing system and Corporate Development Programme to build operational and financial sustainability. We defined a critical route network for optimal passenger flow, assessed the current fare revenue collection system (and proposed one that combines affordability, attractiveness, simplicity, and promotes loyalty) and also completed a corporate environmental and social review of the Company as well as road safety and health analysis.

We have assisted Khujand Trolleybus Company with bus fleet renewal via procurement, integration of public transport ticketing system and Corporate Development Programme to build operational and financial sustainability. We defined a critical route network for...

Sibenik Water and Wastewater – Financial and Operational Performance Improvement Programme

We identified areas for improvement of financial and operational performance of water utility company and developed a Financial and Operational Performance Improvement Programme for customer management improvements, streamlining of billing and collection procedures, reduction of administrative losses and identification of PPP areas. We assisted in implementing Environmental and Social Action Plan according to EBRD’s E&S Policy

We identified areas for improvement of financial and operational performance of water utility company and developed a Financial and Operational Performance Improvement Programme for customer management improvements, streamlining of billing and collection procedures, reduction of...

Čapljina Water Supply System – Project Implementation Support

Aspiro supported the growth of the municipal utility company through the connection of new consumers and to upgrade the quality and reliability of the water supply system, thus improving the living standard of the population in Capljina. We assisted the City in overall project implementation, notably procurement of the works, goods, and construction supervision services.

Aspiro supported the growth of the municipal utility company through the connection of new consumers and to upgrade the quality and reliability of the water supply system, thus improving the living standard of the population...

Prijedor District Heating – Feasibility Study Review and Procurement Support

Our team of experts reviewed the project feasibility study and supported the selection process among the offered project options and converted them into a design-build type of tender document.  Following, assisted the Company in procurement process under EBRD PP&R, including procurement of construction supervision consultants.

Our team of experts reviewed the project feasibility study and supported the selection process among the offered project options and converted them into a design-build type of tender document.  Following, assisted the Company in procurement...

EBRD – Bodrum Water Corporate Development Programme

Aspiro prepared a Corporate Development Programme for water utility department, planned and implemented FOPIP actions and steps. We introduced IT infrastructure and improved customer management processes and prepared feasibility study, focusing on service outsourcing. We advised in implementing the Environmental and Social action plan to satisfy EBRD’s E&S Policy and allow for smooth loan disbursements.

Aspiro prepared a Corporate Development Programme for water utility department, planned and implemented FOPIP actions and steps. We introduced IT infrastructure and improved customer management processes and prepared feasibility study, focusing on service outsourcing. We...

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