World Bank Environmental and Social Framework PDF

The WORLD BANK Environmental and Social Framework 1707130_Environmental_and_Social_Framework_CVR.indd 1 4/12...

The WORLD BANK Environmental and Social Framework 1707130_Environmental_and_Social_Framework_CVR.indd 1 4/12/17 4:48 PM  © 2017 International Bank for Reconstruction and Development/The World Bank 1818 H Street NW, Washington, DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Rights and Permissions This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) http://creativecommons.org/licenses/ by/3.0/igo. 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Photo: @ Barmen Simatupang Cover design: Beth Stover. 1707130_Environmental_and_Social_Framework_CVR.indd 4 4/12/17 4:49 PM  Environmental and Social Framework 1707130_Environmental_and_Social_Framework.indd 1 5/25/17 8:34 AM 1707130_Environmental_and_Social_Framework.indd 2 5/25/17 8:34 AM  Contents Abbreviations and Acronyms.................................................................. vii Overview of the World Bank Environmental and Social Framework................................ ix A Vision for Sustainable Development.......................................................... 1 World Bank Environmental and Social Policy for Investment Project Financing..................... 3 Purpose................................................................................... 3 Objectives and principles.................................................................... 3 Scope of application........................................................................ 5 Bank requirements.......................................................................... 6 A. Environmental and social risk classification............................................ 6 B. Use and strengthening of borrower’s environmental and social framework................. 6 C. Environmental and social due diligence................................................. 7 D. Special project types.................................................................. 8 E. Environmental and Social Commitment Plan (ESCP)..................................... 9 F. Information disclosure............................................................... 9 G. Consultation and participation........................................................ 10 H. Monitoring and implementation support................................................ 10 I. Grievance mechanism and accountability............................................... 11 Institutional and implementation arrangements............................................... 11 Borrower Requirements—Environmental and Social Standards 1–10............................... 13 Environmental and Social Standard 1. Assessment and Management of Environmental and Social Risks and Impacts................................................. 15 Introduction................................................................................ 15 Contents Objectives................................................................................. 16 Scope of application........................................................................ 16 Requirements.............................................................................. 17 A. Use of borrower’s environmental and social framework.................................. 17 B. Environmental and social assessment.................................................. 18 C. Environmental and social commitment plan............................................. 21 D. Project monitoring and reporting....................................................... 21 E. Stakeholder engagement and information disclosure.................................... 22 iii 1707130_Environmental_and_Social_Framework.indd 3 5/25/17 8:34 AM  ESS1—Annex 1. Environmental and social assessment........................................... 22 A. General.............................................................................. 22 B. Institutional capacity.................................................................. 24 C. Other requirements for certain projects................................................. 25 D. Indicative outline of ESIA.............................................................. 25 E. Indicative outline of ESMP............................................................. 26 F. Indicative outline of environmental and social audit..................................... 27 ESS1—Annex 2. Environmental and social commitment plan..................................... 28 A. Introduction......................................................................... 28 B. Content of an ESCP................................................................... 28 C. Implementation of ESCP............................................................... 29 D. Timing for conducting project activities................................................. 29 ESS1—Annex 3. Management of contractors.................................................... 29 Environmental and Social Standard 2. Labor and Working Conditions............................. 31 Introduction................................................................................ 31 Objectives................................................................................. 31 Scope of application........................................................................ 31 Requirements.............................................................................. 32 A. Working conditions and management of worker relationships............................. 32 B. Protecting the work force.............................................................. 33 C. Grievance mechanism................................................................. 34 D. Occupational Health and Safety (OHS).................................................. 34 E. Contracted workers................................................................... 35 F. Community workers................................................................... 35 G. Primary supply workers............................................................... 36 Environmental and Social Standard 3. Resource Efficiency and Pollution Prevention and Management............................................................................ 39 Introduction................................................................................ 39 Objectives.................................................................................. 39 Scope of application........................................................................ 39 Requirements.............................................................................. 39 Resource efficiency......................................................................... 40 A. Energy use........................................................................... 40 B. Water use............................................................................ 40 C. Raw material use..................................................................... 40 Pollution prevention and management........................................................ 40 A. Management of air pollution........................................................... 41 B. Management of hazardous and nonhazardous wastes.................................... 41 C. Management of chemicals and hazardous materials..................................... 42 D. Management of pesticides............................................................. 42 iv 1707130_Environmental_and_Social_Framework.indd 4 5/25/17 8:34 AM  Environmental and Social Standard 4. Community Health and Safety.............................. 45 Introduction................................................................................ 45 Objectives.................................................................................. 45 Scope of application........................................................................ 45 Requirements.............................................................................. 46 A. Community health and safety.......................................................... 46 B. Security personnel.................................................................... 48 ESS4—Annex 1. Safety of dams............................................................... 48 A. New dams........................................................................... 48 B. Existing dams and dams under construction (DUC)....................................... 49 C. Dam safety reports................................................................... 50 Environmental and Social Standard 5. Land Acquisition, Restrictions on Land Use and Involuntary Resettlement..................................................... 53 Introduction................................................................................ 53 Objectives.................................................................................. 53 Scope of application........................................................................ 54 Requirements.............................................................................. 55 A. General............................................................................. 55 B. Displacement........................................................................ 58 C. Collaboration with other responsible agencies or subnational jurisdictions................. 60 D. Technical and financial assistance...................................................... 60 ESS5—Annex 1. Involuntary resettlement instruments........................................... 60 A. Resettlement plan.................................................................... 60 B. Resettlement framework.............................................................. 63 C. Process framework.................................................................... 64 Environmental and Social Standard 6. Biodiversity Conservation and Sustainable Management of Living Natural Resources....................................... 67 Introduction................................................................................ 67 Objectives.................................................................................. 67 Scope of application........................................................................ 68 Requirements.............................................................................. 68 Contents A. General.............................................................................. 68 B. Primary suppliers..................................................................... 72 Environmental and Social Standard 7. Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities.................................. 75 Introduction............................................................................... 75 Objectives.................................................................................. 76 Scope of application........................................................................ 76 Requirements.............................................................................. 77 A. General............................................................................. 77 B. Circumstances requiring free, prior and informed consent (FPIC).......................... 79 v 1707130_Environmental_and_Social_Framework.indd 5 5/25/17 8:34 AM  C. Grievance mechanism................................................................ 82 D. Indigenous peoples/Sub-Saharan African historically underserved traditional local communities and broader development planning.................................. 82 Environmental and Social Standard 8. Cultural Heritage......................................... 85 Introduction................................................................................ 85 Objectives.................................................................................. 85 Scope of application........................................................................ 85 Requirements.............................................................................. 86 A. General.............................................................................. 86 B. Stakeholder consultation and identification of cultural heritage........................... 86 C. Legally protected cultural heritage areas................................................ 87 D. Provisions for specific types of cultural heritage......................................... 87 E. Commercial use of cultural heritage.................................................... 88 Environmental and Social Standard 9. Financial Intermediaries................................... 91 Introduction................................................................................ 91 Objectives.................................................................................. 91 Scope of application........................................................................ 91 Requirements.............................................................................. 92 A. Environmental and social management system.......................................... 92 B. Stakeholder engagement.............................................................. 94 Environmental and Social Standard 10. Stakeholder Engagement and Information Disclosure................................................................................... 97 Introduction................................................................................ 97 Objectives.................................................................................. 97 Scope of application........................................................................ 98 Requirements.............................................................................. 98 A. Engagement during project preparation................................................ 98 B. Engagement during project implementation and external reporting........................ 100 C Grievance mechanism................................................................. 100 D Organizational capacity and commitment............................................... 100 ESS10—Annex 1. Grievance mechanism........................................................ 100 Glossary..................................................................................... 103 vi 1707130_Environmental_and_Social_Framework.indd 6 5/25/17 8:34 AM  Abbreviations and Acronyms BP Bank Procedures FPIC Free, Prior and Informed Consent CDD Community-Driven Development GHG Greenhouse Gas CO2 Carbon Dioxide GIIP Good International Industry Practice DUC Dam Under Construction GRS Grievance Redress Service EHSGs World Bank Group Environmental, IBRD International Bank for Reconstruction Health and Safety Guidelines and Development EIA Environmental Impact Assessment IDA International Development Association ERP Emergency Response Plan IPM Integrated Pest Management ES Environmental and Social IVM Integrated Vector Management ESA Environmental and Social Assessment NGO Nongovernmental Organization ESCP Environmental and Social Commitment O&M Operation and Maintenance Plan OHS Occupational Health and Safety ESMF Environmental and Social Management OP Operational Policy Framework PMP Pest Management Plan ESMP Environmental and Social Management RHA Risk Hazard Assessment Plan SEP Stakeholder Engagement Plan ESMS Environmental and Social Management System SESA Strategic Environmental and Social Assessment ESS Environmental and Social Standard FI Financial Intermediary Abbreviations and Acronyms vii 1707130_Environmental_and_Social_Framework.indd 7 5/25/17 8:34 AM 1707130_Environmental_and_Social_Framework.indd 8 5/25/17 8:34 AM  Overview of the World Bank Environmental and Social 1 Framework 1. The World Bank Environmental and 2.  This Framework comprises: Social Framework sets out the World Bank’s commitment to sustainable development, A Vision for Sustainable Development, which sets out the Bank’s aspirations regarding envi- through a Bank Policy and a set of Envi- ronmental and social sustainability; ronmental and Social Standards that are The World Bank Environmental and Social Policy designed to support Borrowers’ projects, for Investment Project Financing, which sets out Overview of the World Bank Environmental and Social Framework with the aim of ending extreme poverty and the mandatory requirements that apply to the promoting shared prosperity.1 Bank; and The Environmental and Social Standards, together with their Annexes, which set out the mandatory requirements that apply to the Bor- rower and projects. 3. The World Bank Environmental and Social Pol- icy for Investment Project Financing sets out the requirements that the Bank must follow regarding projects it supports through Investment Project Financing. 4. The Environmental and Social Standards set out the requirements for Borrowers relating to the iden- tification and assessment of environmental and social risks and impacts associated with projects supported by the Bank through Investment Project Financing. The Bank believes that the application of these standards, by focusing on the identifica- tion and management of environmental and social risks, will support Borrowers in their goal to reduce poverty and increase prosperity in a sustainable manner for the benefit of the environment and their citizens. The standards will: (a) support Bor- rowers in achieving good international practice relating to environmental and social sustainabil- ity; (b) assist Borrowers in fulfilling their national and international environmental and social obli- gations; (c) enhance nondiscrimination, transpar- ency, participation, accountability and governance; and (d) enhance the sustainable development out- comes of projects through ongoing stakeholder This Overview is for information only, and does not form part of 1 the Environmental and Social Framework. engagement. ix 1707130_Environmental_and_Social_Framework.indd 9 5/25/17 8:34 AM  5. The ten Environmental and Social Standards 7.  The Bank will issue a Bank Directive Addressing establish the standards that the Borrower and the Risks and Impacts on Disadvantaged or Vulnerable project will meet through the project life cycle, as Individuals or Groups, which will set out mandatory follows: requirements on Bank staff relating to the identi- fication of disadvantaged or vulnerable individuals Environmental and Social Standard 1: Assess- or groups, and the process whereby differentiated ment and Management of Environmental and measures will be developed to address the particu- Social Risks and Impacts; lar circumstances of such individuals or groups. Environmental and Social Standard 2: Labor and 8. The Bank will also issue an Environmental and Working Conditions; Social Procedure, which will set out Management- Environmental and Social Standard 3: Resource approved mandatory environmental and social Efficiency and Pollution Prevention and procedures which apply to projects supported by Management; Investment Project Financing. The Environmental Environmental and Social Standard 4: Commu- and Social Procedure will describe how the Bank nity Health and Safety; conducts its due diligence of a project being pro- Environmental and Social Standard 5: Land posed for Bank support. Acquisition, Restrictions on Land Use and Invol- untary Resettlement; 9.  The Framework will also be accompanied by non- mandatory guidance and information tools to Environmental and Social Standard 6: Biodiver- assist Borrowers in implementing the Standards, sity Conservation and Sustainable Management Bank staff in conducting due diligence and imple- of Living Natural Resources; mentation support, and stakeholders in enhancing Environmental and Social Standard 7: Indig- transparency and sharing good practice. enous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities; 10. The World Bank Access to Information Policy, Environmental and Social Standard 8: Cultural which reflects the Bank’s commitment to transpar- ency, accountability and good governance, applies Heritage; to the entire Framework and includes the disclosure Environmental and Social Standard 9: Financial obligations that relate to the Bank’s Investment Intermediaries; and Project Financing. Environmental and Social Standard 10: Stake- holder Engagement and Information Disclosure. 11. Borrowers and projects are also required to apply the relevant requirements of the World Bank 6.  Environmental and Social Standard ESS1 applies Group Environmental, Health and Safety Guidelines to all projects for which Bank Investment Project (EHSGs).2 These are technical reference documents, Financing is sought. ESS1 establishes the impor- with general and industry specific examples of Good tance of: (a) the Borrower’s existing environmental International Industry Practice (GIIP). and social framework in addressing the risks and impacts of the project; (b) an integrated environ- 12. The Framework includes provisions on griev- mental and social assessment to identify the risks ance redress and accountability. A Bank-supported and impacts of a project; (c) effective community project will include a number of mechanisms for engagement through disclosure of project-related addressing concerns and grievances arising in con- information, consultation and effective feedback; nection with a project. Project-affected parties will and (d) management of environmental and social have access, as appropriate, to project grievance risks and impacts by the Borrower throughout the mechanisms, local grievance mechanisms, the Bank’s project life cycle. The Bank requires that all envi- corporate Grievance Redress Service (http://www ronmental and social risks and impacts of the proj-.worldbank.org/GRS; e-mail: grievances@worldbank ect be addressed as part of the environmental and.org) and the World Bank Inspection Panel. After social assessment conducted in accordance with bringing their concerns directly to the World Bank’s ESS1. ESS2–10 set out the obligations of the Bor- attention and giving Bank Management a reason- rower in identifying and addressing environmental able opportunity to respond, project-affected par- and social risks and impacts that may require par- ties may submit their complaint to the World Bank’s ticular attention. These Standards establish objec- tives and requirements to avoid, minimize, reduce and mitigate risks and impacts, and where signifi- http://www.ifc.org/wps/wcm/connect/topics_ext_content/ 2 cant residual impacts remain, to compensate for or ifc_external_corporate_site/ifc+sustainability/our+approach/ offset such impacts. risk+management/ehsguidelines x 1707130_Environmental_and_Social_Framework.indd 10 5/25/17 8:34 AM  independent Inspection Panel to request an inspec- in Bank-Supported Projects; OP/BP4.01, Environ- tion to determine whether harm has occurred as a mental Assessment; OP/BP4.04, Natural Habitats; direct result of World Bank non-compliance with its OP4.09, Pest Management; OP/BP4.10, Indigenous policies and procedures. The World Bank Inspec- Peoples; OP/BP4.11, Physical Cultural Resources; OP/ tion Panel may be contacted by e-mail at ipanel BP4.12, Involuntary Resettlement; OP/BP4.36, For- @worldbank.org or via its website at http://www ests; and OP/BP4.37, Safety of Dams. This Framework.inspectionpanel.org/. does not replace OP/BP4.03, Performance Standards for Private Sector Activities; OP/BP7.50, Projects on 13. This Framework replaces the following Opera- International Waterways; and OP/BP7.60, Projects in tional Policy (OP) and Bank Procedures (BP): OP/ Disputed Territories. BP4.00, Piloting the Use of Borrower Systems to Address Environmental and Social Safeguard Issues Overview of the World Bank Environmental and Social Framework xi 1707130_Environmental_and_Social_Framework.indd 11 5/25/17 8:34 AM 1707130_Environmental_and_Social_Framework.indd 12 5/25/17 8:34 AM  A Vision for Sustainable Development 1.  The World Bank Group Strategy 1 sets out 2.  Inspired by this vision, the World Bank Group is the corporate goals of ending extreme pov- globally committed to environmental sustainabil- ity, including stronger collective action to support erty and promoting shared prosperity in climate change mitigation and adaptation, recog- all its partner countries. Securing the long- nizing this as essential in a world of finite natu- term future of the planet, its people and ral resources. This is reflected in the various Bank its resources, ensuring social inclusion, and Group’s thematic strategies2 for the coming decade. limiting the economic burdens on future These strategies recognize that all economies, par- generations will underpin these efforts. The ticularly developing ones, still need to grow, but they need to do so sustainably, so that income- two goals emphasize the importance of eco- producing opportunities are not pursued in ways nomic growth, inclusion and sustainability— that limit or close off opportunities for future gen- including strong concerns for equity. erations. It recognizes that climate change is affect- ing the nature and location of projects, and that World Bank-financed projects should reduce their impact on the climate by choosing alternatives with lower carbon emissions. The World Bank works on climate change because it is a fundamental threat to development in our lifetime. The World Bank is committed to supporting its client countries to manage their economies, to decarbonize and invest in resilience, while ending poverty and boosting shared prosperity. 3. Equally, social development and inclusion are critical for all of the World Bank’s development interventions and for achieving sustainable devel- opment. For the Bank, inclusion means empower- ing all people to participate in, and benefit from, the development process. Inclusion encompasses policies to promote equality and nondiscrimination by improving the access of all people, including the poor and disadvantaged, to services and benefits such as education, health, social protection, infra- structure, affordable energy, employment, financial services and productive assets. It also embraces Vision action to remove barriers against those who are often excluded from the development process, such as women, children, persons with disabilities, youth and minorities, and to ensure that the voice of all can be heard. In this regard, the World Bank’s activities support the realization of human rights expressed in the Universal Declaration of Human See the World Bank Group Strategy 2013 at http://imagebank 1.worldbank.org/servlet/WDSContentServer/IW3P/IB/2013/10/09/ For example, Toward a Green, Clean and Resilient World for All: 2 000456286_20131009170003/Rendered/PDF/816970WP0REPLA00 A World Bank Group Environment Strategy 2012–2022, which envi- Box379842B00PUBLIC0.pdf sions a green, clean and resilient world for all. 1 1707130_Environmental_and_Social_Framework.indd 1 5/25/17 8:34 AM  Rights. Through the projects it finances, and in a Maximize stakeholder engagement through manner consistent with its Articles of Agreement,3 enhanced consultation, participation and the World Bank seeks to avoid adverse impacts and accountability. will continue to support its member countries as they strive to progressively achieve their human 6. The Bank’s vision goes beyond ‘do no harm’ to rights commitments. maximizing development gains. Where the Bor- rower’s environmental and social assessment has 4.  The World Bank uses its convening ability, finan- identified potential development opportunities cial instruments, and intellectual resources to associated with the project, the Bank will discuss embed this commitment to environmental and with the Borrower the feasibility of including these social sustainability across all its activities, which opportunities in the project. Where appropriate, range from the Bank’s global engagement in issues such opportunities may be utilized to promote fur- such as climate change, disaster risk management, ther development. and gender equality, to ensuring that environmen- tal and social considerations are reflected in all 7.  The Bank will also work with Borrowers to identify sector strategies, operational policies, and country strategic initiatives and goals to address national dialogues. development priorities, where appropriate, as part of country engagement. In supporting such devel- 5. At the project level, these global aspirations opment priorities, the Bank will seek cooperative translate into enhancing development opportuni- relationships with Borrowers, donors and other ties for all, particularly the poor and vulnerable, and international organizations. The Bank will maintain promoting the sustainable management of natural dialogue on environmental and social issues with and living resources. Therefore, within the param- donor governments, international organizations, eters of a project, the Bank seeks to: countries of operation and civil society. Avoid or mitigate adverse impacts to people and 8. The Bank recognizes that the achievement of the environment; sustainable development is dependent on effective Conserve or rehabilitate biodiversity and natural collaboration with everyone who has a stake in the development outcome of a project, including public habitats, and promote the efficient and equi- table use of natural resources and ecosystem and private sector development partners. The Bank services; is committed to the use and development of bor- rower’s frameworks to avoid unnecessary duplica- Promote worker and community health and tion of effort, build national capacity and achieve safety; development outcomes that are materially con- Ensure that there is no prejudice or discrimina- sistent with the objectives of the Environmental tion toward project-affected individuals or com- and Social Framework. The Bank is committed to munities and give particular consideration to open dialogue, public consultation, timely and full Indigenous Peoples, minority groups, and those access to information, and responsive grievance disadvantaged or vulnerable, especially where mechanisms. adverse impacts may arise or development ben- efits are to be shared; 9. This Environmental and Social Framework con- Address project-level impacts on climate change verts these aspirations and principles into practical, project-level applications within the context of the and consider the impacts of climate change on the selection, siting, planning, design and imple- Bank’s mandate as set out in its Articles of Agree- mentation and decommissioning of projects; ment. While this Framework will not by itself guaran- and tee sustainable development outcomes, its proper implementation will ensure the application of stan- dards that provide a necessary foundation for that objective, and provide a leading example for activi- Especially Article III, Section 5 (b) and IV, Section 10. 3 ties outside the scope of Bank-supported projects. 2 1707130_Environmental_and_Social_Framework.indd 2 5/25/17 8:34 AM  World Bank Environmental and Social Policy for Investment Project Financing Purpose Objectives and principles 1.  This Environmental and Social Policy for 2.  The Bank is committed to supporting Borrowers4 Investment Project Financing1 sets out the in the development and implementation of proj- ects that are environmentally and socially sustain- mandatory requirements of the Bank2 in able, and to enhancing the capacity of Borrowers’ relation to the projects it supports through environmental and social frameworks to assess Investment Project Financing.3 and manage the environmental and social risks5 and impacts6 of projects. To this end, the Bank has defined specific Environmental and Social Stan- dards (ESSs), which are designed to avoid, minimize, reduce or mitigate the adverse environmental and social risks and impacts of projects. The Bank will assist Borrowers in their application of the ESSs to projects supported through Investment Project Financing in accordance with this Environmental and Social Policy for Investment Project Financing world bank environmental and social policy (Policy). 3.  To carry out this Policy, the Bank will: (a) Undertake its own due diligence of proposed projects, proportionate to the nature and potential significance of the environmental and social risks and impacts related to the project; (b) As and where required, support the Borrower to carry out early and continuing engage- ment and meaningful consultation with stakeholders,7 in particular affected communi- ties, and in providing project-based grievance mechanisms; This Policy replaces the following Operational Policy (OP) and 1 Bank Procedures (BP): OP/BP4.00, Piloting the Use of Borrower Systems to Address Environmental and Social Safeguard Issues in Bank-Supported Projects, OP/BP4.01, Environmental Assess- ment, OP/BP4.04, Natural Habitats, OP4.09, Pest Management, OP/BP4.10, Indigenous Peoples, OP/BP4.11, Physical Cultural In this Policy, unless the context requires otherwise, the term 4 Resources, OP/BP4.12, Involuntary Resettlement, OP/BP4.36, For- “Borrower” means a borrower or recipient of Bank financing for ests, and OP/BP4.37, Safety of Dams. This Policy does not replace an investment project, and any other entity responsible for the OP/BP4.03, Performance Standards for Private Sector Activities, implementation of the project. OP/BP7.50, Projects on International Waterways, and OP/BP7.60, Environmental and social risk is a combination of the probability 5 Projects in Disputed Territories. of certain hazard occurrences and the severity of impacts result- In this Policy, unless the context requires otherwise, the term 2 ing from such an occurrence. “Bank” means IBRD and/or IDA (whether acting on its own Environmental and social impacts refer to any change, potential 6 account or in its capacity as administrator of trust funds funded or actual, to: (i) the physical, natural, or cultural environment, by donors). and (ii) impacts on surrounding community and workers, result- See OP 10.00, Investment Project Financing. Investment Project 3 ing from the project activity to be supported. Financing is comprised of Bank Loans and Bank Guarantees, as Further requirements for Borrowers on stakeholder engage- 7 defined in OP 10.00. ment are set out in ESS10. 3 1707130_Environmental_and_Social_Framework.indd 3 5/25/17 8:34 AM  (c) Assist the Borrower in identifying appropriate resources and project benefits, particularly in methods and tools to assess and manage the the case of those who may be disadvantaged potential environmental and social risks and or vulnerable; (iv) negative economic and impacts of the project; social impacts relating to the involuntary tak- (d) Agree with the Borrower on the conditions ing of land or restrictions on land use; (v) risks under which the Bank is prepared to provide or impacts associated with land and natural support to a project, as set out in the Environ- resource tenure and use, including (as rel- mental and Social Commitment Plan (ESCP);8 evant) potential project impacts on local land and use patterns and tenurial arrangements, land access and availability, food security and land (e) Monitor the environmental and social perfor- values, and any corresponding risks related to mance of a project in accordance with the ESCP conflict or contestation over land and natural and the ESSs.9 resources; (vi) impacts on the health, safety 4.  The environmental and social risks and impacts and well-being of workers and project-affected which the Bank will take into account in its due dili- communities; and (vii) risks to cultural heritage. gence are project-related and include the following: 5. Projects supported by the Bank through Invest- (a) Environmental risks and impacts, including: ment Project Financing are required to meet the fol- (i) those identified in the World Bank Group lowing Environmental and Social Standards: Environmental, Health, and Safety Guidelines (EHSGs);10 (ii) those related to community safety Environmental and Social Standard 1: Assess- ment and Management of Environmental and (including dam safety and safe use of pes- Social Risks and Impacts; ticides); (iii) those related to climate change and other transboundary or global risks and Environmental and Social Standard 2: Labor and impacts; (iv) any material threat to the protec- Working Conditions; tion, conservation, maintenance and restora- Environmental and Social Standard 3: Resource tion of natural habitats and biodiversity; and Efficiency and Pollution Prevention and (v) those related to ecosystem services and the Management; use of living natural resources, such as fisher- ies and forests; and Environmental and Social Standard 4: Commu- nity Health and Safety; (b) Social risks and impacts, including: (i) threats to human security through the escalation of Environmental and Social Standard 5: Land Acquisition, Restrictions on Land Use and Invol- personal, communal or interstate conflict, untary Resettlement; crime or violence; (ii) risks that project impacts fall disproportionately on individuals or groups Environmental and Social Standard 6: Biodiver- sity Conservation and Sustainable Management who, because of their particular circumstances, of Living Natural Resources; may be disadvantaged or vulnerable;11 (iii) any prejudice or discrimination toward individuals Environmental and Social Standard 7: Indig- or groups in providing access to development enous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities; Environmental and Social Standard 8: Cultural The ESCP is addressed in Section E. 8 Heritage; See OP 10.00 for details on monitoring requirements. 9 Environmental and Social Standard 9: Financial The Environmental, Health, and Safety Guidelines (EHSGs) are 10 Intermediaries; and technical reference documents with general and industry-specific statements of Good International Industry Practice. The EHSGs con- Environmental and Social Standard 10: Stake- tain the performance levels and measures that are generally con- holder Engagement and Information Disclosure. sidered to be achievable in new facilities by existing technology at reasonable cost. For complete reference, consult the World Bank 6. The Environmental and Social Standards are Group Environmental, Health, and Safety Guidelines, http://www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_ designed to help Borrowers to manage the risks and co r p o ra te _ s i te / i fc + s u s t a i n a b i l i t y/o u r + a p p ro a c h /r i s k + impacts of a project, and improve their environmen- management/ehsguidelines tal and social performance, through a risk and out- Disadvantaged or vulnerable refers to those who may be more 11 likely to be adversely affected by the project impacts and/or more comes based approach. The desired outcomes for limited than others in their ability to take advantage of a proj- the project are described in the objectives of each ect’s benefits. Such an individual/group is also more likely to be ESS, followed by specific requirements to help Bor- excluded from/unable to participate fully in the mainstream con- sultation process and as such may require specific measures and/ rowers achieve these objectives through means that or assistance to do so. This will take into account considerations are appropriate to the nature and scale of the proj- relating to age, including the elderly and minors, and including in ect and proportionate to the level of environmental circumstances where they may be separated from their family, the community or other individuals upon whom they depend. and social risks and impacts. 4 1707130_Environmental_and_Social_Framework.indd 4 5/25/17 8:34 AM  Scope of application one set of project-related materials for stakeholder engagement. 7. This Policy and the ESSs apply to all projects supported by the Bank through Investment Project 10. This Policy also requires the application of the Financing.12, 13 The Bank will only support projects ESSs to Associated Facilities. Associated Facilities that are consistent with, and within the boundar- will meet the requirements of the ESSs, to the extent ies of, the Bank’s Articles of Agreement and are that the Borrower has control or influence over such expected to meet the requirements of the ESSs in Associated Facilities.17 a manner and within a timeframe acceptable to the Bank. 11. For the purpose of this Policy, the term “Asso- ciated Facilities” means facilities or activities that 8. For the purpose of this Policy, the term “project” are not funded as part of the project and, in the refers to the activities for which the Bank support judgment of the Bank, are: (a) directly and signifi- referred to in paragraph 7 above is sought by the cantly related to the project; and (b) carried out, Borrower, as defined in the project’s legal agree- or planned to be carried out, contemporaneously ment between the Borrower and the Bank.14 Projects with the project; and (c) necessary for the project may include new facilities or activities and/or exist- to be viable and would not have been constructed, ing facilities or activities, or a combination of the expanded or conducted if the project did not exist.18 same. Projects may include subprojects. 12. Where: 9. Where the Bank is jointly financing a project with other multilateral or bilateral funding agencies,15 (a) A common approach has been agreed for the the Bank will cooperate with such agencies and the project, the common approach will apply to the Borrower in order to agree on a common approach Associated Facilities; for the assessment and management of environ- (b) Associated Facilities are being funded by other mental and social risks and impacts of the project. multilateral or bilateral funding agencies, the A common approach will be acceptable to the Bank, Bank may agree to apply the requirements of provided that such an approach will enable the such other agencies for the assessment and project to achieve objectives materially consistent management of environmental and social risks with the ESSs.16 The Bank will require the Borrower and impacts of the Associated Facilities, pro- to apply the common approach to the project. The vided that such requirements will enable the world bank environmental and social policy Bank will also coordinate with such agencies so that project to achieve objectives materially consis- the Bank and the Borrower may be able to disclose tent with the ESSs. 13. Where the Bank is providing support to a proj- ect involving a Financial Intermediary (FI), and other These are projects to which OP/BP10.00, Investment Project 12 multilateral or bilateral funding agencies will or Financing, applies. The World Bank Environmental and Social Pol- have already provided financing to the same FI, the icy for Investment Project Financing does not apply to operations supported by Development Policy lending (for which the environ- Bank may agree to rely on the requirements of such mental and social provisions are set out in OP/BP8.60, Develop- other agencies for the assessment and manage- ment Policy Lending), or those supported by Program-for-Results ment of environmental and social risks and impacts Financing (for which the environmental and social provisions are set out in OP/BP9.00, Program-for-Results Financing). of the project, including the institutional arrange- These projects may include technical assistance supported by 13 ments already established by the FI, provided that the Bank through Investment Project Financing, whether pro- such requirements will enable the project to achieve vided through a stand-alone project or as part of a project. The requirements set out in paragraphs 14–18 of ESS1 will be applied objectives materially consistent with the ESSs. to technical assistance activities as relevant and appropriate to the nature of the risks and impacts. The terms of reference, work 14. Where a Borrower is deemed by the Bank to: plans or other documents defining the scope and outputs of (a) be in urgent need of assistance because of a nat- technical assistance activities will be drafted so that the advice and other support provided is consistent with ESSs 1–10. Activi- ural or man-made disaster or conflict; or (b) expe- ties implemented by the Borrower following the completion of rience capacity constraints because of fragility or the project that are not financed by the Bank, or activities that specific vulnerabilities (including for small states), are not directly related to the technical assistance, are not sub- ject to the World Bank Environmental and Social Policy for Invest- the applicable provisions of OP 10.00 will apply.19 ment Project Financing. The scope of activities for which Investment Project Finance 14 can be provided, together with the approval process, is set out in OP 10.00. Such agencies will include IFC and MIGA. 15 The Bank will require the Borrower to demonstrate the extent 17 to which it cannot exercise control or influence over the Associ- In determining whether the common approach, or the require- 16 ated Facilities by providing details of the relevant considerations, ments referred to in paragraphs 9, 12 and 13 are acceptable, the which may include legal, regulatory and institutional factors. Bank will take into account the policies, standards and imple- mentation procedures of the multilateral or bilateral funding For facilities or activities to be Associated Facilities, they must 18 agencies. The measures and actions that have been agreed under meet all three criteria. the common approach will be included in the ESCP. Further details are set out in OP 10.00. 19 5 1707130_Environmental_and_Social_Framework.indd 5 5/25/17 1:20 PM  Bank requirements proposed alternatives through the environmen- tal and social assessment. This justification must 15. The Bank will require Borrowers to conduct envi- demonstrate, to the satisfaction of the Bank, that ronmental and social assessment of projects pro- the choice of any alternative performance level is posed for Bank support in accordance with ESS1.20 consistent with the objectives of the ESSs and the 16. The Bank will require the Borrower to prepare applicable EHSGs, and is unlikely to result in any and implement projects so that they meet the significant environmental or social harm. requirements of the ESSs in a manner and a time- frame acceptable to the Bank. In establishing the A. Environmental and social manner and an acceptable timeframe, the Bank risk classification will take into account the nature and significance 20. The Bank will classify all projects (including of the potential environmental and social risks and projects involving Financial Intermediaries (FIs)) impacts, the timing for development and implemen- into one of four classifications: High Risk, Substan- tation of the project, the capacity of the Borrower tial Risk, Moderate Risk or Low Risk. In determining and other entities involved in developing and imple- the appropriate risk classification, the Bank will take menting the project, and the specific measures and into account relevant issues, such as the type, loca- actions to be put in place or taken by the Borrower tion, sensitivity, and scale of the project; the nature to address such risks and impacts. and magnitude of the potential environmental and 17. Where the Bank has agreed that the Borrower social risks and impacts; and the capacity and com- may plan or take specific measures or actions to mitment of the Borrower (including any other entity avoid, minimize, reduce or mitigate specific risks and responsible for the implementation of the project) impacts of the project over a specified timeframe, to manage the environmental and social risks and the Bank will require that the Borrower commit to impacts in a manner consistent with the ESSs. Other not carrying out any activities or taking any actions areas of risk may also be relevant to the delivery of in relation to the project that may cause material environmental and social mitigation measures and adverse environmental or social risks or impacts outcomes, depending on the specific project and until the relevant plans, measures or actions have the context in which it is being developed. These been completed in accordance with the ESCP. could include legal and institutional considerations; the nature of the mitigation and technology being 18. If the project comprises or includes existing proposed; governance structures and legislation; facilities or existing activities that do not meet the and considerations relating to stability, conflict or requirements of the ESSs at the time of approval by security. The Bank will disclose the project’s clas- the Bank, the Bank will require the Borrower, as part sification and the basis for that classification on the of the ESCP, to adopt and implement measures sat- Bank’s website and in project documents. isfactory to the Bank so that the material aspects of such facilities or activities meet the requirements of 21. The Bank will review the risk classification the ESSs within a timeframe acceptable to the Bank. assigned to the project on a regular basis, including In determining satisfactory measures and an accept- during implementation, and will change the classifi- able timeframe, the Bank will take into account the cation where necessary, to ensure that it continues nature and scope of the project and the technical to be appropriate. Any change to the classification and financial feasibility of the proposed measures. will be disclosed on the Bank’s website. 19. The Bank will require the Borrower to apply the 22. Where the Bank is providing support to one or relevant requirements of the EHSGs.21 The EHSGs more FIs, the risk classification of the project will contain the performance levels and measures that be determined by the Bank taking into account the are normally acceptable and applicable to projects. type of financial instrument or product involved to When host country requirements differ from the lev- be provided, the nature of the FI’s existing portfolio, els and measures presented in the EHSGs, the Bank and the level of risk associated with the proposed will require the Borrower to achieve or implement subprojects. whichever is more stringent. If less stringent levels or measures than those provided in the EHSGs are B. Use and strengthening of borrower’s appropriate in view of the Borrower’s limited techni- environmental and social framework cal or financial constraints or other specific project 23. The Bank supports the use of the Borrower’s circumstances, the Bank will require the Borrower ES Framework in the assessment, development to provide full and detailed justification for any and implementation of projects supported through Investment Project Financing, provided this is likely to address the risks and impacts of the project, and See ESS1, paragraph 23. 20 enable the project to achieve objectives materially 6 See footnote 10. 21 consistent with the ESSs. The use of all, or part, of 1707130_Environmental_and_Social_Framework.indd 6 12/11/17 1:47 PM  the Borrower’s ES Framework will be agreed between require revisions to the ESCP as necessary to meet the Bank and the Borrower, following completion of the requirements of the ESSs and take such other the assessment referred to below.22 measures as the Bank deems appropriate, including applying the Bank’s remedies.25 24.  The Borrower’s ES Framework will include those aspects of the country’s policy, legal and institu- 29.  To support increasing use and strengthening of tional framework, including its national, subna- the Borrower‘s ES Framework, the Bank may, at the tional, or sectoral implementing institutions and request of the Borrower and where the Bank deems applicable laws, regulations, rules and procedures, this to be feasible, conduct an overview assessment and implementation capacity, which are relevant to of the Borrower’s existing policy, legal and institu- the environmental and social risks and impacts of tional framework for addressing environmental and the project. The aspects that are relevant will vary social risks and impacts, and related implementa- from project to project, depending on such factors tion capacity. The overview assessment will iden- as the type, scale, location and potential environ- tify aspects of the existing framework that can be mental and social risks and impacts of the project strengthen, and the capacity-building needed to and the role and authority of different institutions.23 support this. The overview assessment will not be a prerequisite for the use of all, or part of, the Bor- 25.  If the Bank and the Borrower propose to use all, rower’s ES Framework for a specific project. How- or part, of the Borrower’s ES Framework, the Bank ever, where the overview assessment has been will review the Borrower’s ES Framework to assess completed, it will inform the Bank’s assessment whether such use will meet the requirement of of the Borrower’s ES Framework, as referred to in paragraph 23. paragraph 26. 26.  The Bank will disclose the intention to conduct the assessment as early as possible, specifying the C. Environmental and social due diligence aspects of the Borrower’s ES Framework that will be 30.  The Bank will conduct environmental and social assessed. The Bank will engage with relevant stake- due diligence of all projects proposed for support holders, so that their views can inform the assess- through Investment Project Financing. The purpose ment. In conducting the assessment, the Bank may of the environmental and social due diligence is to consider recent studies, reviews and other assess- assist the Bank in deciding whether to provide sup- ments conducted by the Bank, other funding agen- port for the proposed project and, if so, the way in world bank environmental and social policy cies, or the Borrower or relevant stakeholders, to the which environmental and social risks and impacts extent these are relevant to the proposed project. will be addressed in the assessment, development When an assessment of the Borrower’s ES Frame- and implementation of the project. work has been completed, the Bank will disclose a summary of the assessment on its website. 31. The Bank’s environmental and social due dili- gence will be appropriate to the nature and scale of 27. The Bank will work with the Borrower to iden- the project, and proportionate to the level of environ- tify and agree on measures and actions to address mental and social risks and impacts