In today’s rapidly evolving landscape, ESG rating agencies play an increasingly important role in guiding investors and strengthening confidence in sustainable investments. In this context, Ksapa was mandated to help ensure strong ESG ratings of the Asian Infrastructure Investment Bank (AIIB), a multilateral development bank for infrastructure —an approach that ultimately supported the bank in reviewing its ESG governance and strategy implementation, thus strengthening its position in sustainable infrastructure financing.
Context
The Asian Infrastructure Investment Bank (AIIB), established in 2016, has rapidly expanded to 109 State members by 2023, approving over $50 billion across 252 sustainable infrastructure projects. As a signatory to the Paris Agreement with a mission of “Financing Infrastructure for Tomorrow,” AIIB wanted to strengthen its ESG ratings performance to better align actual programs with their external disclosure, reduce capital costs, improve efficiency in handling rating requests, and enhance cooperation with other multilateral institutions.
CLIent challenges
Despite AIIB’s commitment to sustainable development and climate initiatives, including a $1 billion guarantee facility partnership with IBRD, the bank faced operational inefficiencies in managing ESG rating requests. These inefficiencies consumed valuable resources without delivering proportionate benefits. Additionally, suboptimal ESG ratings were potentially impacting its ability to maximize financial support for member countries’ infrastructure projects.
Our APPROACH
Through a comprehensive methodological five-phase intervention, we transformed AIIB’s ESG framework and rating performance. The strategic plan delivered:
- Enhanced alignment between AIIB’s sustainability reporting and international standards (ESRS, GRI, IFRS)
- Strategize reduction in resources allocated to ESG rating submissions while enhancing quality and reliability of ESG data disclosed to external requests
- Opportunities to strengthen internal coordination in consistency with AA1000 requirements
- Opportunities to strengthen internal senior governance using TCFD frameworks
RESULTS & IMPACT
The project enabled to:
- Establish clear ownership of ESG initiatives within AIIB,
- Create a self-sustaining system for ongoing ratings excellence while strengthening AIIB’s position as a leader in sustainable multilateral development.
TAKE action: ready to transform your esg performance?
Discover how our tailored approach can enhance your organization’s sustainability framework, improve ratings performance, and unlock strategic advantages. Contact us today to discuss your ESG journey.
Contact our experts today: contact@ksapa.org
Our Expert Services Include:
Strategic Assessment and Planning
- ESG maturity evaluation: Comprehensive assessment of your current sustainability reporting capabilities
- Double materiality analysis expertise: Rigorous methodology ensuring comprehensive stakeholder impact assessment
Implementation and Optimization Support
- Reporting system optimization: Streamlining sustainability reporting processes for maximum efficiency and accuracy
- Technology integration guidance: Implementing digital solutions that support long-term CSRD compliance excellence
- Change management leadership: Ensuring successful organizational transformation throughout the CSRD implementation journey
