Loan and investment proposals are examined by the Executive Committee, which acts as the strategic decision-making body for MC. Social and environmental risks are also examined as part of this process, with some proposals receiving further review from the Board of Directors when necessary. Loan and investment decisions by the Executive Committee are based on advisory input from the Portfolio Management Committee, which in turn bases its advice on comments submitted by specialized internal departments. The screening and review process is a comprehensive one, taking into account not only economic but also global environmental and social impact factors.
The process is specifically guided by the following mechanisms:
- Inclusion of environmental and social impacts in loan and investment proposals
- Screening of environmental and social impacts by the CSR & Environmental Affairs Office
The CSR & Environmental Affairs Office uses the following documents to guide its screening process: Guidelines for Confirmation of Environmental and Social Considerations published by the Japan Bank for International Cooperation (JBIC) and International Finance Corporation (IFC) guidelines. The office has also formulated a CSR checklist for consideration before advancing loan and investment proposals. In addition to screening for environmental criteria, social criteria such as human rights and working conditions are also examined with careful consideration for each country or region's unique circumstances.