Commission Delegated Regulation (EU) 2021/1702 of 12 July 2021 supplementing Regulation (EU) 2021/523 of the European Parliament and of the Council by setting out additional elements and detailed rules for the InvestEU Scoreboard
Corrected by
- Corrigendum to Commission Delegated Regulation (EU) 2021/1702 of 12 July 2021 supplementing Regulation (EU) 2021/523 of the European Parliament and of the Council by setting out additional elements and detailed rules for the InvestEU Scoreboard, 32021R1702R(01), February 24, 2022
(a) presentation of the financing or investment operation, which will include its name, the final recipient for direct operations or, for intermediated operations, the financial intermediary (-ies) (if known, the name of the financial intermediary; if not, at least the type), the country (-ies) of implementation and a short description of the financing or investment operation; (b) pillar 1 – contribution of the financing or investment operation to EU policy objectives; (c) pillar 2 – description of the additionality of the financing or investment operation; (d) pillar 3 – market failure or sub-optimal investment situation addressed by the financing or investment operation; (e) pillar 4 – financial and technical contribution by the implementing partner; (f) pillar 5 – impact of the financing or investment operation; (g) pillar 6 – financial profile of the financing or investment operation; (h) pillar 7 – complementary indicators.
| Points | Score |
|---|---|
| 1 | Fair |
| 2 | Good |
| 3 | Very good |
| 4 | Excellent |
The project, including any compensatory or mitigating measures put in place, has no significant harmful impacts on any of the three dimensions of sustainability (climate, environment and social) based on InvestEU screening, The project has positive climate, environmental and/or social impacts;
(i) climate aspects [15 %] : this sub-indicator shall reflect the positive or negative climate impacts and risks of the financing or investment operation.The implementing partner shall verify: whether there are negative permanent or temporary climate impacts related to the project both in terms of climate mitigation (greenhouse gas emissions) and adaptation (climate impacts, hazards and risks), and if and how they will be mitigated or compensated, how these climate-related concerns are managed (i.e. measures taken to reduce greenhouse gas emissions or to reduce the residual risk of climate change impacts and hazards to an acceptable level), whether there are positive climate impacts stemming from the projects Not performed on a voluntary basis as described in following point on the "Voluntary positive agenda".
(ii) voluntary positive agenda voluntary climate assessments are performed for projects below the threshold established in the sustainability proofing guidance, and measures are taken to address identified climate risks.(bonus )[7,5 %]: this sub-indicator is a bonus indicator and shall reflect that(iii) environmental aspects [15 %] : this sub-indicator shall reflect the positive or negative environmental impacts and risks of the financing or investment operation.The implementing partner shall verify: whether there are negative permanent or temporary environmental impacts and if and how they will be mitigated or compensated, how the environment-related impacts and risks are managed (residual risks after the implementation of mitigating and/or compensatory measures), whether there are positive environmental impacts stemming from the projects See footnote 10.
(iv) voluntary positive agenda ( : this sub-indicator is a bonus indicator and shall reflect a voluntary commitment to measures which could contribute to reinforce the project’s positive effects and/or further mitigate impacts, on the basis of the performed assessment.bonus ) [7,5 %](v) social aspects [15 %] : This sub-indicator shall reflect the positive or negative social impacts and risks of the financing or investment operation.The implementing partner shall verify: whether there are negative permanent or temporary social impacts and if and how they will be mitigated or compensated, how these impacts and risks related to social aspects are managed (residual risks after the introduction of mitigating and/or compensatory measures), whether there are positive social impacts stemming from the project See footnote 10.
(vi) voluntary positive agenda ( : this sub-indicator is a bonus indicator and shall reflect a voluntary commitment to measures, which could contribute to reinforce the project’s positive effects and/or further mitigate impacts, on the basis of the performed assessment.bonus ) [7,5 %]
1. Increasing access to finance and improving financing conditions for final recipients: this indicator shall reflect the following aspects:(i) scale of finance made available by the financial intermediary to final recipients, related to the InvestEU supported financing (i.e. leverage) (weight: 30 %); (ii) benefits for final recipients (weight 30 %): this indicator captures a series of benefits generated for the final recipient; (iii) expected impact on the financial ecosystem (weight: 20 %), improved competition/diversification of funding sources/new product/new intermediaries.
This indicator shall account for [80 %] of the total score of pillar 5. 2. Employment impact: this indicator shall be based on the employment expected to be supported at the final recipient level, for each EUR million of the financing provided by the financing or investment operation.This indicator shall account for [20 %] of the total score of pillar 5.
(a) support provided through subordinated positions in relation to other public or private lenders or within the funding structure; (b) support provided through equity and quasi-equity or through debt with long tenors, pricing, collateral requirements or other conditions not sufficiently available on the market or from other public sources; (c) support to operations that carry a higher risk profile than the risk generally accepted by the implementing partner’s own standard activities or support to implementing partners in exceeding own capacity to support such operations; (d) participation in risk-sharing mechanisms targeting policy areas that exposes the implementing partner to higher risk levels compared to the levels generally accepted by the implementing partner or that private financial actors are able or willing to accept; (e) support that catalyses/crowds in additional private or public financing and is complementary to other private and commercial sources, in particular from traditionally risk-averse investor classes or institutional investors, as a result of the signalling effect of the support provided under the InvestEU Fund; (f) support provided through financial products not available or not offered to a sufficient level in the targeted countries or regions due to missing, underdeveloped or incomplete markets.
(a) have the nature of a public good for which the operator or company cannot capture sufficient financial benefits (such as education and skills, healthcare and accessibility, security and defence, and infrastructure available at no or negligible cost); (b) externalities which the operator or company generally fails to internalise, such as R & D investment, energy efficiency, climate or environmental protection; (c) information asymmetries, in particular in case of SMEs and small mid-cap companies, including higher risk levels related to early stage firms, firms with mainly intangible assets or insufficient collateral, or firms focusing on higher risk activities; (d) cross-border infrastructure projects and related services or funds that invest on a cross-border basis to address the fragmentation of the internal market and to enhance coordination within the internal market; (e) exposure to higher levels of risks in certain sectors, countries or regions beyond levels that private financial actors are able or willing to accept, including where the investment would not have been undertaken or would not have been undertaken to the same extent because of its novelty or because of risks associated with innovation or unproven technology; (f) new or complex market failures or sub-optimal investment situations in accordance with point (a)(iii) of Article 9(1) of the InvestEU Regulation. Table 1 Pillar 3 – All financing and investment operations except for intermediated financing for SMEs and small mid-caps Indicator Fair (= 1) Good (= 2) Very good (= 3) Excellent (= 4) Market failure or sub-optimal investment situation addressed by the financing or investment operation Standard financing or investment operation addressing a market failure or sub-optimal investment situation inherent to the principal market/sector. OR Financing or investment operation addressing a principal market failure that is at the lower end of the spectrum of its prevalence (significance) in the respective market. Financing or investment operation addressing: (i) a market failure or sub-optimal investment situation inherent to the principal market/sector; as well as (ii) another relevant market failure. OR Financing or investment operation addressing a principal market failure that is at the medium range of the spectrum of its prevalence (significance) in the respective market. Financing or investment operation addressing: (i) a market failure or sub-optimal investment situation inherent to the principal market/sector; as well as (ii) at least two other relevant market failures or sub-optimal investment situations. OR Financing or investment operation addressing a principal market failure that is at the high end of the spectrum of its prevalence (significance) in the respective market. Financing or investment operation that are exemplary or transformative in addressing several market failures or sub-optimal investment situations by way of disruptive innovation/technology or spill-over effects. Table 2 Pillar 3 – Intermediated financing for SMEs and small mid-caps Intermediated financing targeting SMEs and small mid-caps shall receive one point. If the financing is located in countries where the majority of allocations (> 50 % of the financing or investment operation) are expected in Cohesion or Just Transition areas , or, for financing and investment operations targeting specifically research and innovation policy priorities in moderate and emerging innovator EU Member States , the financing or investment operation shall be upgraded one point. Additional points shall be granted if the financing or investment operation focuses on vulnerable/constrained segments of the SME ecosystem (micro, social enterprises, impact-driven enterprises, start-ups or young companies, female-owned/-run companies, companies run by vulnerable/disadvantaged groups, young farmers, etc.) or targets additional policy priorities (sustainability, research and innovation, skills, education and training, digitalisation, investment in rural areas, cultural and creative sectors). The final score corresponds to the sum of points received under A, B, C, and D as described below. In the case of Framework Operations the criterion should be verified at aggregate level. For reference on Moderate and Emerging Innovator EU Member States please see the European Innovation Scoreboard at https://ec.europa.eu/growth/industry/policy/innovation/scoreboards_en A. Access to finance (Fair = 1)
B. If the financing or investment operation is in a Cohesion/Just Transition area (more than 50 % of the financing or investment operation) or if it targets specifically research and innovation policy priorities in moderate and emerging innovator EU Member States, one point will be added
C. If the financing or investment operation targets vulnerable/constrained segments (from 10 % to 50 % of the financing or investment operation), one point will be added OR If the financing or investment operation targets vulnerable/constrained segments (more than 50 % of the financing or investment operation), two points will be added
D. If the financing or investment operation targets additional policy priorities (from 10 % to 50 % of the financing or investment operation), one point will be added OR If the financing or investment operation targets additional policy priorities (more than 50 % of the financing or investment operation), two points will be added
| Indicators | Fair (= 1) | Good (= 2) | Very good (= 3) | Excellent (= 4) |
|---|---|---|---|---|
| FVA | 5 bps < FVA<= 30 bps | 30 bps < FVA <= 100 bps | FVA > 100 bps |
| Any other financing or investment operation not listed in the following sections. | Senior tranches. | Subordinated loans, mezzanine tranches, hybrid bonds, contingent loans and guarantee products. | Equity and quasi-equity operations. | |
| The final recipient regularly raises funds at similar maturities or the extension of the tenor is less than 30 %. | The final recipient could readily raise funds at similar maturities or extension of the tenor is between 30 % and 49 %. | The final recipient could, with some difficulty, raise funds at similar maturities or extension of the tenor is between 50 % and 99 %. | The final recipient is unable to raise funds at similar maturities or extension of the tenor is 100 % or more. |
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| None of the above elements are applicable. | One or two of the above elements are applicable. | Three to four of the above elements are applicable. | At least five of the above elements are applicable. | |
| The involvement of the implementing partner in the financing or investment operation is expected to have some impact on mobilising other co-financiers/guarantors/investors and signalling that the operation/investments are expected to be sound and worth supporting, thereby facilitating the full financing and implementation. | The involvement of the implementing partner in the financing or investment operation is expected to have a significant impact on other financiers’/guarantors’/investors’ decision to commit to or to co-invest alongside the operation, thus having a strong catalytic effect. This includes situations whereby the implementing partner has been instrumental in combining its funding with third party grants or other forms of external support for specific projects/programmes. | The involvement of the implementing partner in the financing or investment operation is expected to be key for the materialisation of the operation and/or achieving targeted financing level (without the IP, the project is not likely to go ahead or not with the same speed or size). This includes e.g. i) implementing partner taking the role of corner stone investor, ii) the combination of the loans by the implementing partner with third party public and/or private resources. | |
| The financial structuring expertise of the implementing partner is not required, and the involvement of the implementing partner is expected to be marginal. Origination of the investment does not benefit from the expertise of the implementing partner. | The financial structuring expertise of the implementing partner is expected to have a positive impact on the financing structure of the investment and is expected to be of value to the counterparty, and/or origination of the investment is expected to benefit from the expertise of the implementing partner. | The financial structuring expertise of the implementing partner is expected to have a significant impact on the financing structure of the investment and is expected to be of significant value to the counterparty (e.g. through accelerating financial close or applying standardised structures, etc.) and/or origination of the investment is expected to benefit from the expertise of the implementing partner. | The contribution of the implementing partner with its financial structuring expertise is expected to be innovative and to have a high value to the counterparty (e.g. through accelerating financial close significantly or applying standardised structures to complex cases, technical assistance or advisory support for the financial structuring of the operation, financial sector experts, etc.). |
| The technical expertise and/or advisory services of the implementing partner were not needed by the final recipient. | |||
| Indicators | Fair (= 1) | Good (= 2) | Very good (= 3) | Excellent (= 4) |
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| Any other financing or investment operation not listed in the following sections. | Senior tranches. | Subordinated loans, mezzanine tranches, hybrid bonds, contingent loans and guarantee products. | Equity and quasi-equity operations. |
| The involvement of the implementing partner in the financing or investment operation is expected to have some impact on mobilising other co-financiers/guarantors/investors and signalling that the investments are expected to be sound and worth supporting, thereby facilitating the full financing and implementation. | The involvement of the implementing partner in the financing or investment operation is expected to have a significant impact on other financiers’/guarantors’/investors’ decision to commit to or to co-invest alongside the operation, thus having a strong catalytic effect. This includes situations whereby the implementing partner has been instrumental in combining its funding with third party grants or other forms of external support for specific projects/programmes. | The involvement of the implementing partner in the financing or investment operation is expected to be key for the materialisation of the operation and/or achieving targeted financing level. This includes e.g. (i) implementing partner taking the role of corner stone investor; (ii) the combination of the loans by the implementing partner with third party public and/or private resources. | |
| The financial structuring expertise of the implementing partner is not required, and the involvement of the implementing partner is expected to be marginal. Origination of the investment does not benefit from the expertise of the implementing partner. | The financial structuring expertise of the implementing partner is expected to have a positive impact on the financing structure of the investment and is expected to be of value to the counterparty, and/or origination of the investment is expected to benefit from the expertise of the implementing partner. | The financial structuring expertise of the implementing partner is expected to have a significant impact on the financing structure of the investment and is expected to be of significant value to the counterparty (e.g. through accelerating financial close or applying standardised structures, etc.) and/or origination of the investment is expected to benefit from the expertise of the implementing partner. | The contribution of the implementing partner with its financial structuring expertise is expected to be innovative and to have a high value to the counterparty (e.g. through accelerating financial close significantly or applying standardised structures to complex cases, technical assistance or advisory support for the financial structuring of the operation, financial sector experts, etc.). |
| The implementing partner is not expected to provide any technical advice or capacity building to the intermediary. | The implementing partner is expected to set particular conditions related to the implementation of the underlying transactions and provides advice to the intermediary to select them or expects that advice in the implementation of the criteria related to the financing or investment operation will be needed by the intermediary. | The implementing partner expects to participate in the technical assistance or training provided to the intermediary in order to improve its performance or capacity to meet requirements (e.g. on reporting, eligibility, sustainability aspects and procurement standards). The assistance is expected to go beyond the standard due diligence of the IP at appraisal stage. | Extensive technical assistance or advice is expected to be provided to support the intermediary to develop business segments of particular impact as reflected in InvestEU policy areas. The assistance is expected to go beyond the standard due diligence of the IP at appraisal stage. |
| Impact of the financing or investment operation | |||||
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| Fair (= 1) | Good (= 2) | Very good (= 3) | Excellent (= 4) | ||
| > 0 % – 5 % | 5 %-7 % | 7 %-10 % | > 10 % | |
| The scoring will be done based on duly justified qualitative assessment of the project’s socioeconomic costs and benefits, and its expected contribution to economic activity and growth. | |||||
| Construction/implementation phase (FTE/EUR million) < 3 | Construction/implementation phase (FTE/EUR million) 3-6 | Construction phase/implementation (FTE/EUR million) 6-8 | Construction phase/implementation (FTE/EUR million) > 8 | |
| Operation phase (FTE/EUR million) < 0,4 | Operation phase (FTE/EUR million) 0,4-0,7 | Operation phase (FTE/EUR million) 0,7-1,1 | Operation phase (FTE/EUR million) > 1,1 | ||
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| Negative impacts not fully mitigated, no significant positive impact. | Negative impacts partly mitigated, some positive impact. | Negative impacts fully mitigated, significant positive impact. | Negative impacts fully mitigated,very substantial positive impact. |
| Negative impacts not fully mitigated, no significant positive impact. | Negative impacts partly mitigated, some positive impact. | Negative impacts fully mitigated,significant positive impact. | ||
| Negative impacts not fully mitigated, no significant positive impact. | Negative impacts partly mitigated, some positive impact. | |||
| n/a | n/a | n/a | If yes, see Table 3 for more details | ||
| Fair | Good | Very good | Excellent | ||
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| No significant positive impacts were identified. | Some positive impacts on climate change mitigation or adaptation could be identified. | Significant positive impacts (the objective of contribution to climate change mitigation or adaptation is explicitly stated, but it is not the fundamental reason for which the project is undertaken). | Substantial positive impacts (the project is entirely dedicated to climate change mitigation or adaptation, it is the fundamental reason for which the project is undertaken). | ||
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| there are some significant negative impacts or risks that were not fully mitigated | significant negative impacts or risks were reduced or limited through measures envisaged to avoid, prevent, reduce or, if possible, offset any identified significant adverse effects)) | some negative impacts or risks remain after the mitigation, but they are not significant and no further measures are necessary | no or only negligible negative impacts or risks after mitigation (or not requiring mitigation) | ||
| no significant positive impacts | significant positive impacts (the objective of contribution to environment objective is explicitly stated, but it is not the fundamental reason for which the project is undertaken) | substantial positive impacts (the project is entirely dedicated to environment objective, it is the fundamental reason for which the project is undertaken) | |||
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| There are some significant negative impacts that cannot be fully mitigated or compensated | Some significant negative impacts were reduced or limited through measures envisaged to avoid, prevent, reduce or, if possible, offset any identified significant adverse effects | Some negative impacts still remain after the mitigation, but they are not significant and no compensation measures are necessary | No or only negligible negative temporary impacts after mitigation (or not requiring mitigation) | ||
| No significant positive impacts | Some positive impacts on the social aspects could be identified. | Significant positive impacts (the objective of contribution to social aspects is explicitly stated, but it is not the fundamental reason for which the project is undertaken) | Substantial positive impacts (the project is entirely dedicated to social objectives, it is the fundamental reason for which the project is undertaken) | ||
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| Impact of the financing or investment operation | ||||||
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| Fair (= 1) | Good (= 2) | Very good (= 3) | Excellent (= 4) | |||
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| Limited expected scale of finance (< 2 times). | Moderate expected scale of finance (between 2 and 3 times). | High expected scale of finance, (between 3 to 5 times). | Considerably high-expected scale of finance, (beyond 5 times). | ||
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| None of the above elements are applicable. | One or two of the above elements are applicable. | Two to three of the above elements are applicable. | More than three of the above elements are applicable. | |||
| Financing/investment activities expected to support well-established intermediaries, maintaining existing financing channels mostly at local level with limited cross fertilisation or interactions with wider ecosystem. | Financing/investment activities expected to largely support well-established intermediaries, scaling up or expanding financing channels beyond their local ecosystem to address InvestEU policy objectives as defined in Articles 3 and 8 of the InvestEU Regulation. | Significant part of the financing/investment activities are expected to be delivered by supporting new intermediaries, including new category of intermediaries, or by developing alternative financing mechanisms or investment channels to address InvestEU policy objectives as defined in Articles 3 and 8 of the InvestEU Regulation. | Financing/investments activities aim at supporting novel interventions in a sector in line with the policy priorities as defined in the guarantee agreements, or vertical, and/or by fostering partnerships, development of platforms or otherwise systematic collaborations within wider ecosystem to address InvestEU policy objectives as defined in Articles 3 and 8 of the InvestEU Regulation. | ||
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| Expected loss | Transfer rates | ||
| X % ≤ EL ≤ Y % | n.a. | ||
| Applicable transfer rate for the relevant portfolio/financial product based on the expected loss of the financing or investment operation | |||
| X ≤ IRR or other relevant metric(s) ≤ Y | |||
(a) leverage and multiplier effect (b) amount of investment mobilised (c) estimated [number] of targeted final recipients (d) investment supporting climate objectives Indication if the financing or investment operation contributes to the specific area (Yes, No or Not known) and if applicable, the amount expected to contribute to such area. (e) investment supporting environmental objectives 2 (f) investment supporting digitalisation 2 (g) investment supporting industrial transition 2 (h) investment supporting just transition 2 (i) investment for the provision of critical infrastructure 2 (j) investment in cybersecurity, space and defence 2 (k) in case of combination with other Union sources, indication of the non-repayable component or financial instrument component from other Union programmes 2 (l) other operation-specific indicators required by the financial product of the financing or investment operation, if applicable
(a) additional renewable and other safe and sustainable zero and low-emission energy generation capacity installed (in megawatts (MW) (b) number of households, number of public buildings and commercial premises with improved energy consumption classification (c) estimated energy savings generated by the project(s) (in kilowatt-hours (kWh)) (d) annual green-house gas emissions reduced/avoided in tonnes of CO 2 equivalent(e) volume of investment in the development, smartening and modernisation of sustainable energy infrastructure
(a) the financing or investment operation is cross-border and/or contributes to missing links projects (including projects relating to urban nodes, regional cross-border rail connections, multimodal platforms, maritime ports, inland ports, connections to airports and rail-road terminals of the TEN-T core and comprehensive network) (b) the financing or investment operation contributes to the digitalisation of transport, in particular through the deployment of European Rail Traffic Management System (ERTMS), River Information System (RIS), Intelligent Transportation System (ITS), vessel traffic monitoring and information system (VTMIS)/e-maritime services and Single European Sky ATM Research (SESAR) (c) number of alternative fuel supply points built or upgraded (d) the financing or investment operation contributes to the safety of transport
(a) number of enterprises carrying out research and innovation projects (b) contribution to the objective of 3 % of the Union’s gross domestic product (GDP) invested in research, development and innovation
(a) number of enterprises supported (b) allocation volume dedicated to SME/Mid-Caps [%], if it can be reasonably estimated at the moment of submission
(a) social infrastructure: Capacity and access to supported social infrastructure by sector: housing, education, health, other (b) microfinance and social enterprise finance: Number of microfinance recipients and social enterprises supported (c) skills: Number of individuals acquiring new skills or having their skills validated and certified: formal, education and training qualification
(a) Start and end of works (b) Project investment cost (c) Gender ratio of the: (i) management team of the Final Recipient; (ii) work force; (iii) ownership (entrepreneurship).
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