To promote greener digital infrastructure and cross-border connectivity, and help to bridge the digital divide.
AIIB will invest in the development of data centers that mostly serve emerging Asia through the Keppel Data Centre Fund II, LP (KDCF II), a closed-end private equity vehicle managed by Alpha Investment Partners Ltd. AIIB will invest in this fund as a Limited Partner.
AIIB's Environmental and Social Policy (ESP), including the Environmental and Social Exclusion List (ESEL) and relevant Environmental and Social Standards (ESSs) apply to the Project. The Project has been assigned Category FI, and the FI’s Environmental, Social and Governance (ESG) Framework (ESGF), which has been prepared in accordance with AIIB’s ESP, including the ESEL and ESSs, will be used as the Project’s environmental and social (ES) instrument. The Bank has reviewed the ESGF to confirm that the ESP’s requirements of scoping, screening, categorization, monitoring and grievance redress mechanisms have been met.
As per this ESGF, the Fund Manager (i) qualifies and quantifies the ESG risks and impacts of potential investees against the applicable ESG regulatory requirements in their jurisdiction of operation and good international industry practices, (ii) defines measures to align their performance with the same, (iii) identifies and enhances ESG-value addition opportunities, (iv) drives and monitors ESG performance during the investment holding period and (v) reports regularly to the Limited Partners and external stakeholders.
The Fund will require that investee companies using AIIB proceeds disclose at an appropriate time the required ES documentation at the investee level, as well as information on the Grievance Redress Mechanism (GRM) and the Project-affected People's Mechanism (PPM). The Fund will require portfolio investee companies to establish subproject-level GRMs to address concerns and grievances from both investee company staff and Project-affected people. The Fund Manager will monitor these aspects as part of its portfolio monitoring process.
The Fund Manager will be required to periodically disclose the names, locations and sectors of its investments that are being supported by AIIB’s financing, subject to regulatory constraints and market sensitivities. Furthermore, the Fund Manager will be required to create an external communication mechanism to address views of affected people, enquiries or concerns regarding its own E&S processes and outcomes as well as E&S impacts and performance of the portfolio companies invested by the Fund Subsequently, AIIB will conduct prior review of investments presenting significant E&S risk, including all Category A investments and Category B investments determined to potentially induce a) involuntary resettlement, b) risk of adverse impacts on Indigenous Peoples, c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural resources or d) significant Occupational Health and Safety risks, and will receive an annual E&S monitoring report on the E&S performance of all AIIB-supported investments. AIIB will conduct regular monitoring of the Fund’s activities, including visits to selected investments.
Asian Infrastructure Investment Bank
Wesley Byeongwan Kim
Senior Investment Officer
Home What We Do Project List Multicountry: Data Center Development in Emerging Asia
