The AVgroup conducted an Environmental and Social Audit of Agricultural Enterprises

The audit was carried out between October and December 2024 as part of the Emergency Support Project for Inclusive Recovery of Ukraine’s Agriculture (ARISE), funded by the World Bank and implemented jointly with the Ministry of Agrarian Policy of Ukraine and the Business Development Fund. AVgroup was competitively selected through a tender process to conduct the audit.

AVgroup experts conducted the audit in three key phases:

1️⃣ In-depth audit of loan recipient enterprises, including an evaluation of their Environmental and Social Management Systems (ESMS), a review of relevant documentation, and an analysis of factors such as environmental permits, water and soil quality, waste management, occupational health and safety, as well as the operation of grievance redress mechanisms.

2️⃣ Assessment of the environmental and social management systems of participating financial institutions (PFIs) through interviews with key managers, a review of loan documentation, and evaluation of compliance with international standards.

3️⃣ Analysis of project implementation and credit program performance, including loan distribution statistics, alignment with stated objectives, repayment history, and the socio-economic impact of projects on local communities.

The audit findings enabled the identification of key environmental and social risks and provided actionable recommendations to improve engagement between agricultural producers and local communities, as well as to strengthen risk management systems within PFIs.

🌱 In addition, the AVgroup team offered expert guidance on enhancing management practices, integrating financial solutions and environmental and social risk management systems, mitigating risks, and designing institutional incentives aligned with ESG standards.