China: NIO Capital Eve ONE Fund II

OBJECTIVE

Facilitate the use of technology and support digitalization and decarbonization of transport, energy, logistics and associated sectors.

DESCRIPTION

NIO Capital Eve ONE Fund II (“The Fund”) is a venture capital fund focused on investment in decarbonization and digitalization technologies in transport, energy, logistics, and associated industries. The Fund is managed by NIO Capital (the “Fund Manager”).

ENVIRONMENTAL AND SOCIAL INFORMATION

AIIB’s Environmental and Social Policy (ESP) is applicable to this project. The project has been placed in Category FI, because the financing structure involves the provision of funds through a financial intermediary (the Fund), whereby AIIB delegates to the Fund Manager the decision-making on the use of AIIB’s proceeds.

An Environmental, Social and Governance Framework (ESGF) is to be used as the Project’s Environmental and Social Management System (ESMS).The ESGF includes scoping, screening, categorization, E&S due diligence, monitoring and grievance redress in accordance with the ESP, the Environmental and Social Exclusion List, regulatory requirements in the jurisdictions of operation and, where applicable, the AIIB Environmental and Social Standards (ESS). Coal mining, coal transportation and coal-fired power plants, as well as infrastructure exclusively dedicated to support any of these activities will be excluded from eligibility for financing under the Project. AIIB retains the right to review all investees. For all investments supported by AIIB, the Fund requires the establishment of a portfolio company-level ESG system in alignment with AIIB’s ESP.

The Fund Manager will periodically disclose the names, locations and sectors of portfolio companies that are being supported by AIIB’s financing, subject to regulatory constraints and market sensitivities. Furthermore, the Fund Manager is required to create an external communication mechanism (ECM) which will be used as Fund-level GRM to address views of project 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, which will be timely disclosed in an appropriate manner.

AIIB will conduct prior review of investments presenting significant E&S risks which may 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, d) significant retrenchment representing more than 20% of direct employees and recurrent contractors or e) significant occupational health and safety risks. AIIB will conduct regular monitoring of the Fund’s activities, including visits to selected investments.