Individual Consultant: Environmental, Social and Governance (ESG) Specialist

Project background

Context

Sustainable finance in Central America remains underdeveloped, limiting the region’s ability to mobilized climate-aligned capital and deliver on NDC and SDG commitments. Key barriers include:

• Insufficient institutional capacity;

• Fragmented regulatory and strategic frameworks;

• Limited experience among market participants in designing and structuring sustainable finance instruments, including thematic bonds.

The existing gaps in institutional capacity, regulatory frameworks, and strategic planning hinder progress toward achieving Nationally Determined Contributions (NDCs) and Sustainable Development Goals (SDGs). Therefore, targeted support to strengthen enabling conditions—such as policy alignment, investment categorization, and climate finance mobilization—is essential. Technical assistance throughout the pre-issuance, issuance, and post-issuance stages of thematic bonds is key to ensuring their effectiveness and long-term impact in driving sustainable development and climate action in the region.

Under this context, the GTF project Advancing Sustainable Finance in Central America has been approved to accelerate the greening of capital markets in the region. Initial activities include:

Enhancing ESG governance, disclosure frameworks, and reporting mechanisms a National Development Bank of Costa Rica.

Supporting the development of an internal green taxonomy for a National Development Bank of El Salvador.

Providing technical assistance across the full lifecycle is critical to ensuring their effectiveness and long-term impact in advancing sustainable development and climate action in the region.

Objectives of the assignment and scope of the work

The ESG Consultant will play a key role in enhancing ESG integration across the capacities, processes, and systems of two national development banks—one in El Salvador and the other in Costa Rica. Working under the technical guidance of GGGI staff, the Consultant will lead stakeholder engagement efforts and oversee the delivery of core project outputs.

The Consultant's role is to enhance the ESG capabilities of the development banks of El Salvador and Costa Rica in line with the following scope of work:

1. Develop the Internal Taxonomy of a National Development Bank of El Salvador

To achieve this deliverable, the following activities will be conducted: a) Diagnostic and Context Analysis; b) Technical Validation and Stakeholder Consultation; c) Strategic Climate Finance Planning and d) the development of an internal taxonomy with an implementation roadmap.

2. Enhance the Internal ESG Policies, MRV Systems, Reporting Capabilities, and Alignment of disclosure and reporting practices with IFRS S1 and S2 of a National Development Bank of Costa Rica

To achieve this deliverable, the following activities will be conducted: a) Institutional Capacity Building through targeted ESG training programs; b) Governance and Disclosure Alignment to ensure regulatory compliance and c) Strengthening of Monitoring, Reporting, and Verification (MRV) Systems. d) Aligning governance, disclosure and reporting practices for compliance with IFRS S1 and S2.

Deliverables and Payment Schedule

Deliverable 1 – Consultancy Work Plan & Methodology

A comprehensive work plan that outlines the consultancy’s overall methodology, including analytical frameworks, key tasks, sequencing, and milestones. The plan will specify roles and responsibilities, a detailed schedule, and the approach for engaging stakeholders in both countries. It will also outline the requirements for data collection, instruments to be developed, and the channels for coordination and reporting. This work plan will serve as the guiding document for the consultancy and provide a clear roadmap for the client and counterparts.

Deliverables related with a National Development Bank of El Salvador – Internal Taxonomy

Deliverable 2 – Diagnostic & Contextual Analysis Report

A comprehensive diagnostic for a National Development Bank of El Salvador portfolio, sectoral context, and policy environment. The report will map existing financial products and assess their alignment with sustainability and climate goals. It will benchmark a National Development Bank of El Salvador against regional and international best practices and identify key gaps, risks, and opportunities for scaling green and climate finance. The analysis will also cover enabling regulatory frameworks, institutional capacity, and stakeholder dynamics to ensure that the taxonomy development is rooted in evidence and context.

Deliverable 3 – Stakeholder Consultation & Validation Summary

A consolidated record of stakeholder engagement activities, including peer reviews, technical workshops, and bilateral consultations with a National Development Bank of El Salvador staff, regulators, and external partners. The summary will document key inputs, validate findings from the diagnostic, and capture consensus on the direction and structure of the taxonomy. It will also highlight divergent views and how they were addressed to ensure inclusiveness, ownership, and institutional buy-in.

Deliverable 4 – Draft Strategic Climate Finance Planning Report

A preliminary framework for integrating climate and sustainability objectives into a national development bank of El Salvador strategic investment planning. The draft will propose criteria for identifying and prioritizing green investments, measurable indicators for tracking impact, and methodologies for pipeline development. It will also explore how this national development bank of El Salvador can align its capital allocation with climate commitments and national development priorities.

Deliverable 5 – Final Strategic Climate Finance Planning Report

A refined and endorsed version of the strategic framework that incorporates feedback from the national development bank and stakeholders. The final report will provide actionable guidance on structuring investment decisions, monitoring performance, and strengthening institutional processes to ensure that climate considerations are systematically integrated into the national development bank future portfolio.

Deliverable 6 – Draft Internal Taxonomy Framework & Implementation Roadmap

A draft taxonomy tailored for a national development bank of El Salvador operations, classifying financial products and investments based on their environmental and climate impact. The framework will include eligibility criteria, classification methodologies, and alignment with international taxonomies (e.g., EU Taxonomy, MDBs). The roadmap will outline how the taxonomy can be integrated into risk management, investment policies, and reporting systems, with clear phases, milestones, and resource requirements.

Deliverable 7 – Final Internal Taxonomy Framework & Implementation Roadmap

The final validated taxonomy and roadmap, incorporating technical and stakeholder feedback. This version will be designed for operational adoption by a national development bank of El Salvador, with practical guidance on internal processes, regulatory compliance, and institutional capacity-building needs. It will include an implementation schedule, responsibilities, and tools to track progress, ensuring long-term sustainability of the taxonomy.

Deliverables related with a National Development Bank– ESG Policies, MRV & IFRS Alignment

Deliverable 8 – Draft Governance & Disclosure Alignment Report (IFRS S1 & S2)

A draft assessment of a National Development Bank of Costa Rica governance structures, ESG policies, and sustainability-related disclosure practices. The report will identify gaps in current processes relative to IFRS S1 (general sustainability disclosures) and IFRS S2 (climate-related disclosures). It will analyze board and management roles, internal control systems, data flows, and reporting procedures, providing preliminary recommendations for closing compliance gaps.

Deliverable 9 – Final Governance & Disclosure Alignment Report (IFRS S1 & S2)

The final alignment strategy, incorporating stakeholder and regulator feedback, with concrete recommendations for embedding IFRS S1 and S2 requirements into The National Development Bank of Costa Rica governance, oversight, and reporting processes. It will include a phased plan to integrate these standards, highlight institutional implications, and propose mechanisms for continuous compliance and transparency.

Deliverable 10 – MRV Framework

A fully developed Monitoring, Reporting, and Verification (MRV) framework for a National Development Bank of Costa Rica, including standardized indicators, protocols for data collection, and digital tools for tracking environmental and social impacts of financed activities. The framework will detail how ESG and climate-related performance is measured, reported internally, and disclosed externally, ensuring consistency, reliability, and alignment with international best practices.

Deliverable 11 – Training Materials & Capacity Building Modules

A set of tailored training materials and modules to strengthen the National Development Bank of Costa Rica institutional capacity in ESG integration, MRV processes, and climate-related disclosures. The package will include manuals, presentations, case studies, and practical exercises. It will be designed for different staff levels (board, management, technical teams) and will ensure knowledge transfer for sustained capacity after the consultancy ends.

Deliverable 12 – Final Action Plan for Implementation of ESG and Disclosure Enhancements the National Development Bank of Costa Rica

Action plan that consolidates the key outputs of Deliverables 9, 10, and 11 into a phased roadmap for institutional implementation. The action plan will outline specific steps, timelines, and responsible units within the National Development Bank of Costa Rica to operationalize the governance/disclosure alignment, MRV framework, and capacity building measures. It will provide a practical blueprint for embedding ESG and IFRS compliance into daily operations.

Please note that payments will be disbursed based on the successful completion (reviewed and approved by the project manager GGGI, an approval is granted once the corrections suggested in the review process are implemented) of the deliverables described above, according to the following table: