Terms of Reference (ToR)
ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) CONSULTANT
FOR THE CLIMATE RESILIENT FUND (CRF)
1. Background
UNEP serves as the environmental authority within the United Nations. Its role is to lead and foster collaborations aimed at environmental care, inspiring and equipping nations and individuals to enhance their quality of life without jeopardizing future generations.
UNEP pioneered the Climate Resilient Fund (CRF) initiative, a blended finance model designed to unite governments, the private sector, and communities to facilitate substantial environmental improvements. Following successful initial developments, the Government of Indonesia (GoI) has sought continued UNEP support into 2024 to refine and implement the CRF, aiming to create a sustainable financing mechanism for Indonesia’s restoration and conservation efforts.
This initiative represents an innovative approach to financing landscape conservation, potentially drawing significant investments to support Indonesia’s national commitments to land use.
The concept was introduced at COP 27 in November 2022 by the GoI, capturing the interest of various stakeholders and donors. It promises capitalization with strong accountability to reassure investors and donors. The CRF targets high conservation value (HCV) and high carbon stock (HCS) areas through its restoration and conservation initiatives, contributing to REDD strategies.
Yayasan Pusat Informasi Lingkungan Indonesia, generally referred to as PILI-Green Network, is an NGO. The activities and capabilities of PILI-Green Network are centered on information collection and exchange, as well as project facilitation to increase stakeholder capacity for biodiversity and natural resource protection in Indonesia. Regarding the project/program known as \”2023-2024 UN-REDD Program Technical Assistance\” in Indonesia, UNEP is co-operating with PILI-Green Network. The ESG Consultant is expected to ensure that the CRF meets Environmental, Social, and Governance (ESG) requirements. This includes establishing criteria that align with ESG standards, potentially enhancing the fund\’s attractiveness to global investors who are increasingly focusing on sustainable and responsible investment practices. The Consultant will report to the National Programme officer of UNEP in Indonesia and UNEP Asia Pacific UN-REDD Coordinator, and will provide administrative reports to the PILI-Green Network Project Manager.
2. Job Description
The Consultant will ensure that CRF projects meet stringent Environmental, Social, and Governance (ESG) requirements. This involves establishing criteria that align with international and national (if applicable) ESG standards, thereby enhancing the fund\’s appeal to global investors focused on sustainable and responsible investment practices.
3. Key Activities
In order to ensure that the CRF meets Environmental, Social, and Governance (ESG) rating requirements, through the UN-REDD Programme, 1 (one) expert (consultant services) is required with the following key activities:
- A structured view of the deliverables, highlighting the objectives and methods of each, crucial for effective ESG assessment, implementation and evaluation within the CRF related projects.
- Presentation and small meetings – The task might involve holding small meetings and giving presentations as needed to facilitate the consultation process with UNEP or other relevant stakeholders.
- Site Visit – The assignment may require field travels to potential project’s locations to support the assessment (done by the CRF team) and conduct field consultation with local stakeholders, as necessary.
- If needed, the consultant will also coordinate and work with the Indonesian Environment Fund (BPDLH), the Asset Management, Guarantor, and potential investor.
- The Consultant will receive guidance and support from UNEP Climate Finance Unit (CFU), a UNEP reference unit for private sector finance in sustainable land use. CFU flagship tool, the Land Use Finance Impact Hub, may be used as a reference for E&S land use finance best practices.
4. Ultimate Result of Service
The ultimate result of service of the recruitment of the ESG Consultant are as follows:
- ESG Criteria or Parameter delivered under A) Environment and Social Policy aligned with IFC performance standards and best practice, and B) a well-defined Governance Structure. A comprehensive document that specifies the ESG criteria for CRF projects, detailing required environmental protections, social benefits, and governance standards that projects must adhere to.
- ESG Impact Assessment in place: Develop a protocol for routine ESG impact assessments and audits to continuously monitor and confirm the ESG performance, ensuring alignment with the Sustainable Development Goals (SDGs).
5. Reporting
The Consultant will report to the National Programme officer of UNEP in Indonesia and UNEP Asia Pacific UN-REDD Coordinator, and will provide administrative reports to the PILI-Green Network Project Manager.
6. Qualification Requirements/Evaluation Criteria
A. Education:
- At least a master’s degree in urban planning, Sustainability Studies, Climate Studies, Environmental Management, Natural Resource Management, Energy Policy, International Development, Finance and Economics, or a related discipline is highly desirable. Alternatively, a combination of a relevant undergraduate degree and substantial professional experience is acceptable.
B. Experience:
- At least 10 (ten) years of experience in Environmental Social and Governance (ESG), Environmental Due Diligence of projects, climate finance, green investments, land use sector, and project management.
- Has a track record in presenting ESG criteria and alignment within scalable, bankable projects for investor financing.
- A deep and broad understanding, with no less than 10 (ten) years of experience in Indonesia, encompassing spatial analysis, biodiversity conservation, pollution control, community engagement standards, equitable labor practices, social equality, local cultural respect and preservation, climate-related risks or disaster management, renewable energy projects, and comprehensive project management.
- Demonstrable experience in conducting research, drafting safeguard policies, and performing Social and Environmental Due Diligence (SEDD) for infrastructure projects or initiatives aimed at Reducing Emissions from Deforestation and Forest Degradation (REDD+).
- A proven history of successful multi-sectoral and cross-institutional collaboration, engaging effectively with government bodies, financial entities, academia, and non-governmental organizations.
C. Evaluation Criteria:
- Profound knowledge of theories, concepts, and practical approaches related to ESG, Infrastructure Development, Climate Change, REDD+, carbon markets, and the valuation of carbon in the Indonesian context, supplemented by hands-on experience in environmental management or climate change adaptation.
- A thorough understanding of the political and economic contexts influencing infrastructure development and land-use or forestry issues in Indonesia.
- Proven capability in developing safeguard or ESG criteria for funded infrastructure projects.
D. Skills:
- Advanced analytical and problem-solving abilities.
- Proficiency in the use of computers and relevant software applications.
- Exceptional analytical and writing prowess.
- A results-driven, detail-oriented approach to analysis.
- Strong interpersonal, cross-cultural, and teamwork skills, coupled with the ability to operate independently.
- Outstanding communication abilities and persuasive skills.
E. Language:
- Fluency in both spoken and written English and Bahasa Indonesia is essential.
7. Timeline
The overall output-based contract duration for the consultant is 6 (six) months with the estimated amount of actual time to work of 120 days in 2024 to this project. The following are the allocated days to achieve the expected outputs and deliverables:
| OUTPUT | DELIVERABLES | DELIVERY DATE | Allocated Days |
| Setting Scope of Work, Plan, Timeline and the Outline of ESG Measures | · Agreed scope of works, schedule, and timeline by UNEP and other relevant stakeholders.
· Draft outline of ESG measure and framework report |
June 15, 2024 | 10 |
| Developing Environmental Criteria | · Report of (online) discussions Minutes of Meeting (MoM) with UNEP or other relevant stakeholders on drafting ESG rating criteria on environmental measures.
· Report of Desktop Research on ESG rating criteria for CRF / DINFRA that provides a clear and detailed set of Requirements for environmental impact assessments, Environmental Management System, resource efficiency, biodiversity conservation, occupational health, and pollution control. |
July 15, 2024
|
20 |
| Developing social criteria | · Report of (online) discussions or Minutes of Meeting (MoM) with UNEP or other relevant stakeholders on drafting ESG rating criteria on social measures
· Report of Desktop Research on ESG rating criteria for community engagement, land acquisition, fair labor practices, social equity, respect for indigenous people, cultural heritages and gender equality. · A draft Environment and Social Policy encompassing: Environment and Social Management System (ESMS) aligned with IFC performance standards , Environmental and Social Risk Management (ESRM) and best practice for UNEP review. |
August 15, 2024
|
20 |
| Developing Governance Criteria | · Report of (online) discussions or Minutes of Meeting (MoM) with UNEP or other relevant stakeholders on drafting ESG rating criteria on governance measures.
· Report of Desktop Research on ESG rating criteria for integration of sustainability issues into corporate strategy and decision-making processes · A draft well-defined Governance Structure, roles and fiduciary duties of parties for UNEP review |
September 15, 2024
|
20 |
| ESG Integration Framework | · Report of (online) discussions or Minutes of Meeting (MoM) with UNEP or other relevant stakeholders on the ESG integration framework
· A structured framework to embed ESG criteria into the evaluation and selection processes of CRF / DINFRA projects to ensure all projects adhere strictly to the specified ESG criteria from inception through completionincluding ESMS, ESRM, exclusion list, and priority investment activities. |
October 15, 2024 | 30 |
| Establishing risk and impact management framework. | · Report of (online) discussions or Minutes of Meeting (MoM) with UNEP or other relevant stakeholders on drafting ESG Impact Assessment and Audit Protocol
· The method or a checklist used to verify compliance with ESG standards and establish protocols for routine and systematic ESG assessments to monitor the ongoing performance of projectsincluding template of project sustainability report · An mechanism to measures project activities feeding to the Sustainable Development Goals (SDGs) criteria. · A mechanism to collect and analyze feedback from all stakeholders regarding the ESG aspects of projects. · Final ESG Criteria delivered under A) Environment and Social criteria aligned with IFC performance standards and best practice, and B) a well-defined Governance Structure. |
November 15, 2024 | 20 |
8. Financing
The total budget required for the procurement of 1 (one) Expert (consultant) is 15,000 USD. The type of contract is a lump sum contract with output-based assignment.
To apply, directly send your CV to ajeng@pili.or.id and ajeng.m.putri@gmail.com for a confidential discussion. Please be informed that only shortlisted applicants will be notified.