ABCDEFGHIJKLMNOPQRSTUVWXYZ
1
The Objective was to agree on a common sector categorization that:
2
• Satisfies the need of proxy data providers for PAI 1-3
3
• Prepares us to report on other PAIs (4, 6,7,8,9)
4
• Can be used for ESG risk management by investors and Fis
5
• Strikes the right balance between usefulness of information and feasibility of reporting
6
7
Key elements:
8
The selection is based on the NACE sector classification that is widely used and recognized as a standard
9
FSPs need to report NACE level 1 sector breakdown and, for sectors that represent more than 5% of their GLP report the level 2 sub sector breakdown
10
Exception to the above is for fossil fuel related sectors where FSPs need to give the level 2 breakdown even if GLP is less than 5% in such sectors.
11
12
NACE Level 1 sector categorization has been adjusted to reduce the number of sectors that are less relevant in financial inclusion sector and for ESG risk measurement. 6 Level 1 sectors have been merged into sector S - OTHER SERVICES. As a result we have 15 instead 21 level 1 sectors (24 sectors if we count the mandatory subsectors related to fossil fuels)
13
NACE Level 2 sector categorization has been adjusted to reduce the number of subsectors to the ones that are the most relevant in terms of ESG risks, based on the list of high / medium risk of the ESAT Environmental and Social Assessment Tool (IFC factsheet). As a result we have 44 instead of 99 level 2 sectors.
14
15
Colour code for next tab:
16
Level 1 indicators
17
Level 1 sub-indicators related to fossil fuel
18
Level 2 indicators (to be used when level 1 represents more than 5% of GLP)
19
Still to be agreed
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100