ESS1 Assessment and Management of Risks and Impacts PDF

Assessment and Management 1 of Environmental and Social Risks and Impacts Introduction 2.  The ESSs are designed to help Borrowers to man-...

Assessment and Management 1 of Environmental and Social Risks and Impacts Introduction 2.  The ESSs are designed to help Borrowers to man- age the risks and impacts of a project, and improve 1. ESS1 sets out the Borrower’s responsi- their environmental and social performance, through bilities for assessing, managing and moni- a risk and outcomes based approach. The desired toring environmental and social risks and outcomes for the project are described in the objec- tives of each ESS, followed by specific requirements impacts associated with each stage of a to help Borrowers achieve these objectives through project supported by the Bank through means that are appropriate to the nature and scale Investment Project Financing, in order to of the project and proportionate to the level of envi- achieve environmental and social out- ronmental and social risks and impacts. comes consistent with the Environmental 3. Borrowers1 will conduct environmental and social and Social Standards (ESSs). assessment of projects proposed for Bank financing to help ensure that projects are environmentally and socially sound and sustainable. The environmental and social assessment will be proportionate to the risks and impacts of the project. It will inform the design of the project, and be used to identify mitiga- tion measures and actions and to improve decision making. 4.  Borrowers will manage environmental and social risks and impacts of the project throughout the project life cycle in a systematic manner, propor- tionate to the nature and scale of the project and the potential risks and impacts. 5. In assessing, developing and implementing a project supported by Investment Project Financing, the Borrower may, where appropriate, agree with the Bank to use all or part of the Borrower’s national environmental and social framework to address the risks and impacts of the project, providing such use will enable the project to achieve objectives materi- ally consistent with the ESSs. ESS1 It is recognized that the Borrower may not be the entity directly 1 implementing the project. Nevertheless, the Borrower is respon- sible for ensuring that the project is prepared and implemented so that it meets all applicable requirements of the ESSs in a man- ner and timeframe agreed with the Bank. The Borrower will ensure that any entity involved in implementing the project supports all obligations and commitments of the Borrower in accordance with the requirements of the ESSs and the specific conditions of the legal agreement, including the ESCP. Contractors retained by or acting on behalf of the Borrower or an implementing agency are considered to be under the direct control of the Borrower. 15 1707130_Environmental_and_Social_Framework.indd 15 5/25/17 8:34 AM  6.  ESS1 includes the following annexes, which form Scope of application part of ESS1, and set out certain requirements in more detail: 7. ESS1 applies to all projects4, 5 supported by the Bank6 through Investment Project Financing.7 Annex 1: Environmental and Social Assessment; Annex 2: Environmental and Social Commitment 8. The term “project” refers to the activities for which the Bank financing referred to in paragraph 7 Plan; and is sought by a Borrower and as defined in the legal Annex 3: Management of Contractors. agreement between the Borrower and the Bank.8 9.  Where the Bank is jointly financing a project with Objectives other multilateral or bilateral funding agencies,9 To identify, evaluate and manage the environ- the Borrower will cooperate with the Bank and such agencies in order to agree on a common approach ment and social risks and impacts of the project in a manner consistent with the ESSs. for the assessment and management of environ- mental and social risks and impacts of the project. A To adopt a mitigation hierarchy approach to: common approach will be acceptable, provided that (a) Anticipate and avoid risks and impacts; such approach will enable the project to achieve (b) Where avoidance is not possible, minimize objectives materially consistent with the ESSs.10 or reduce risks and impacts to acceptable The Borrower will be required to apply the common levels; approach to the project. (c) Once risks and impacts have been mini- 10. ESS1 also applies to all Associated Facilities. mized or reduced, mitigate; and Associated Facilities will meet the requirements of (d) Where significant residual impacts remain, compensate for or offset them, where tech- nically2 and financially3 feasible. To adopt differentiated measures so that adverse impacts do not fall disproportionately on the disadvantaged or vulnerable, and they are not disadvantaged in sharing development These are projects to which OP/BP10.00 Investment Proj- 4 benefits and opportunities resulting from the ect Financing applies. The World Bank Environmental and project. Social Policy for Investment Project Financing and ESSs do not apply to operations supported by Development Pol- To utilize national environmental and social icy lending (for which the environmental and social provi- sions are set out in OP/BP8.60 Development Policy Lending), institutions, systems, laws, regulations and or those supported by Program-for-Results Financing (for procedures in the assessment, development which the environmental and social provisions are set out in and implementation of projects, whenever OP/BP9.00 Program-for-Results Financing). appropriate. These projects may include technical assistance supported by 5 the Bank through Investment Project Financing, whether provided To promote improved environmental and social through a stand-alone project or as part of a project. The require- performance, in ways which recognize and ments set out in paragraphs 14–18 of ESS1 will be applied to techni- cal assistance activities as relevant and appropriate to the nature of enhance Borrower capacity. the risks and impacts. The terms of reference, work plans or other documents defining the scope and outputs of technical assistance activities will be drafted so that the advice and other support pro- vided is consistent with ESSs1–10. Activities implemented by the Bor- rower following the completion of the project that are not financed by the Bank, or activities that are not directly related to the technical assistance, are not subject to the World Bank Environmental and Social Policy for Investment Project Financing. As set out in the World Bank Environmental and Social Policy for 6 Investment Project Financing, paragraph 7, the Bank will only sup- port projects that are consistent with, and within the boundaries of, the Bank’s Articles of Agreement. Where the project involves the provision of a guarantee under 7 OP 10.00, the scope of application of the ESSs will depend on the Technical feasibility is based on whether the proposed mea- 2 activities or commitments covered by the guarantee. sures and actions can be implemented with commercially avail- able skills, equipment, and materials, taking into consideration The scope of activities for which Investment Project Finance can 8 prevailing local factors such as climate, geography, demography, be provided, together with the approval process, is set out in OP infrastructure, security, governance, capacity, and operational 10.00. reliability. Such agencies will include IFC and MIGA. 9 Financial feasibility is based on relevant financial consider- 3 10 In determining whether the common approach or the require- ations, including relative magnitude of the incremental cost of ments referred to in paragraphs 9, 12 and 13 are acceptable, the adopting such measures and actions compared to the project’s Bank will take into account the policies, standards and imple- investment, operating, and maintenance costs, and on whether mentation procedures of the multilateral or bilateral funding this incremental cost could make the project nonviable for the agencies. The measures and actions that have been agreed under 16 Borrower. the common approach will be included in the ESCP. 1707130_Environmental_and_Social_Framework.indd 16 5/25/17 8:34 AM  the ESSs, to the extent that the Borrower has control 15.  The Borrower will: or influence over such Associated Facilities.11 (a) Conduct an environmental and social assess- 11.  For the purpose of this ESS, the term “Associated ment of the proposed project, including stake- Facilities” means facilities or activities that are not holder engagement; funded as part of the project and are: (a) directly and (b) Undertake stakeholder engagement and dis- significantly related to the project; (b) carried out, close appropriate information in accordance or planned to be carried out, contemporaneously with ESS10; with the project; and (c) necessary for the project (c) Develop an ESCP, and implement all measures to be viable and would not have been constructed, and actions set out in the legal agreement expanded or conducted if the project did not exist.12 including the ESCP; and 12. Where: (d) Conduct monitoring and reporting on the environmental and social performance of the (a) A common approach has been agreed for the project against the ESSs. project, the common approach will apply to the Associated Facilities; 16. Where the ESCP requires the Borrower to plan (b) Associated Facilities are being funded by other or take specific measures and actions over a speci- multilateral or bilateral funding agencies, the fied timeframe to avoid, minimize, reduce or miti- Borrower may agree with the Bank to apply the gate specific risks and impacts of the project, the requirements of such other agencies to the Borrower will not carry out any activities in rela- Associate Facilities, provided that such require- tion to the project that may cause material adverse ments will enable the project to achieve objec- environmental or social risks or impacts until the tives materially consistent with the ESSs. relevant plans, measures or actions have been com- pleted in accordance with the ESCP. 13.  Where the Bank is financing a project involving a Financial Intermediary (FI), and other multilateral or 17. If the project comprises or includes existing bilateral funding agencies13 have already provided facilities or existing activities that do not meet financing to the same FI, the Borrower may agree the requirements of the ESSs at the time of Board with the Bank to rely on the requirements of such approval, the Borrower will adopt and implement other agencies for the assessment and manage- measures satisfactory to the Bank so that specific ment of environmental and social risks and impacts aspects of such facilities and activities meet the of the project, including the institutional arrange- requirements of the ESSs in accordance with the ments already established by the FI, provided that, ESCP. such requirements will enable the project to achieve 18. The project will apply the relevant requirements objectives materially consistent with the ESSs. of the Environmental Health and Safety Guidelines (EHSGs). When host country requirements differ from Requirements the levels and measures presented in the EHSGs, the Borrower will be required to achieve or implement 14.  The Borrower will assess, manage and monitor whichever is more stringent. If less stringent levels or the environmental and social risks and impacts of measures than those provided in the EHSGs are appro- the project throughout the project life cycle so as to priate in view of the Borrower’s limited technical or meet the requirements of the ESSs in a manner and financial constraints or other specific project circum- within a timeframe acceptable to the Bank.14 stances, the Borrower will provide full and detailed justification for any proposed alternatives through the environmental and social assessment. This justifica- tion must demonstrate, to the satisfaction of the Bank, that the choice of any alternative performance level ESS1 The Borrower will be required to demonstrate the extent to 11 is consistent with the objectives of the ESSs and the which it cannot exercise control or influence over the Associ- applicable EHSGs, and is unlikely to result in any sig- ated Facilities by providing details of the relevant considerations, which may include legal, regulatory and institutional factors. nificant environmental or social harm. For facilities or activities to be Associated Facilities, they must 12 meet all three criteria. A. Use of borrower’s environmental Such agencies will include IFC and MIGA. 13 and social framework In establishing the manner and an acceptable timeframe, the 14 Bank will take into account the nature and significance of the 19. When a project is proposed for Bank support, potential environmental and social risks and impacts, the timing for development and implementation of the project, the capacity the Borrower and the Bank will consider whether to of the Borrower and other entities involved in developing and use all, or part, of the Borrower’s ES Framework in implementing the project, and the specific measures and actions the assessment, development and implementation to be put in place or taken by the Borrower to address such risks and impacts. of a project. Such use may be proposed provided 17 1707130_Environmental_and_Social_Framework.indd 17 5/25/17 8:34 AM  this is likely to address the risks and impacts of the B. Environmental and social assessment project, and enable the project to achieve objectives 23. The Borrower will carry out an environmental materially consistent with the ESSs. and social assessment18 of the project to assess 20.  If the Borrower and the Bank propose to use all, the environmental and social risks and impacts of or part, of the Borrower’s ES Framework, the Bank the project throughout the project life cycle.19 The will review the Borrower’s ES Framework15 in accor- assessment will be proportionate to the potential dance with the requirement of paragraph 19. The risks and impacts of the project, and will assess, in Borrower will provide information to the Bank in an integrated way, all relevant direct,20 indirect21 and connection with the assessment.16 cumulative22 environmental and social risks and impacts throughout the project life cycle, including 21.  If the assessment identifies gaps in the Borrow- those specifically identified in ESSs2–10. er’s ES Framework, the Borrower will work with the Bank to identify measures and actions to address 24.  The environmental and social assessment will be such gaps. Such measures and actions may be based on current information, including an accurate implemented during project preparation or proj- description and delineation of the project and any ect implementation and will include, where neces- associated aspects, and environmental and social sary, measures and actions to address any capacity baseline data at an appropriate level of detail suf- development issues pertaining to the Borrower, any ficient to inform characterization and identification relevant national, subnational or sectoral imple- of risks and impacts and mitigation measures. The menting institution, and any implementing agency. assessment will evaluate the project’s potential envi- The agreed measures and actions, together with the ronmental and social risks and impacts; examine timeframes for their completion, will form part of project alternatives; identify ways of improving proj- the ESCP. ect selection, siting, planning, design and implemen- tation in order to apply the mitigation hierarchy for 22.  The Borrower will take all actions necessary to adverse environmental and social impacts and seek maintain the Borrower’s ES Framework, as well as opportunities to enhance the positive impacts of the acceptable implementation practices, track record, project. The environmental and social assessment and capacity, in accordance with the measures and will include stakeholder engagement as an integral actions identified in the ESCP, throughout the proj- part of the assessment, in accordance with ESS10. ect life cycle. The Borrower will notify and discuss with the Bank any significant changes in the Borrow- er’s ES Framework that may affect the project.17 If the The Borrower, in consultation with the Bank, will identify and 18 Borrower’s ES Framework is changed in a manner use appropriate methods and tools, including scoping, environ- mental and social analyses, investigations, audits, surveys and inconsistent with the requirement of paragraph 19 studies, to identify and assess the potential environmental and and the ESCP, the Borrower will carry out, as appro- social risks and impacts of the proposed project. These meth- priate, additional assessment and stakeholder ods and tools will reflect the nature and scale of the project, and will include, as appropriate, a combination (or elements engagement in accordance with the ESSs, and pro- of ) the following: environmental and social impact assessment pose changes, for approval by the Bank, to the ESCP. (ESIA); environmental audit; hazard or risk assessment; social and conflict analysis; environmental and social management plan (ESMP); environmental and social management framework (ESMF); regional or sectoral EIA; strategic environmental and social assessment (SESA). Specific features of a project may require the Borrower to utilize specialized methods and tools for The Borrower’s ES Framework will include those aspects of 15 assessment, for example a Cultural Heritage Management Plan. the country’s policy, legal and institutional framework, consist- Where the project is likely to have sectoral or regional impacts, a ing of its national, subnational, or sectoral implementing insti- sectoral or regional EIA will be required. tutions and applicable laws, regulations, rules and procedures and implementation capacity relevant to the environmental and This may include preconstruction, construction, operation, 19 social risks and impacts of the project. Where there are incon- decommissioning, closure and reinstatement/restoration. sistencies or lack of clarity within the Borrower’s ES Framework A direct impact is an impact which is caused by the project, and 20 as to relevant authorities or jurisdiction, these will be identified occurs contemporaneously in the location of the project. and discussed with the Borrower. The aspects of the Borrower’s An indirect impact is an impact which is caused by the project 21 existing ES Framework that are relevant will vary from project to and is later in time or farther removed in distance than a direct project, depending on such factors as the type, scale, location impact, but is still reasonably foreseeable, and will not include and potential environmental and social risks and impacts of the induced impacts. project and the role and authority of different institutions. The cumulative impact of the project is the incremental impact 22 The information provided by the Borrower will assist in deter- 16 of the project when added to impacts from other relevant past, mining whether and to what extent the Borrower’s ES Frame- present and reasonably foreseeable developments as well as work can be used to enable the project to address the risks and unplanned but predictable activities enabled by the project that impacts of the project, and achieve objectives materially consis- may occur later or at a different location. Cumulative impacts tent with the ESSs. The Borrower will provide to the Bank recent can result from individually minor but collectively significant studies and assessments conducted by the Borrower or repu- activities taking place over a period of time. The environmental table third parties, including on other projects developed in the and social assessment will consider cumulative impacts that are country, to the extent these are relevant to the proposed project. recognized as important on the basis of scientific concerns and/ If, in the opinion of the Bank, such changes serve to improve the 17 or reflect the concerns of project-affected parties. The potential Borrower’s ES Framework, the Borrower will apply such changes cumulative impacts will be determined as early as possible, ide- 18 to the project. ally as part of project scoping. 1707130_Environmental_and_Social_Framework.indd 18 5/25/17 8:34 AM  25. The environmental and social assessment will 28. The environmental and social assessment, be an adequate, accurate, and objective evaluation informed by the scoping of the issues, will take into and presentation of the risks and impacts, prepared account all relevant environmental and social risks by qualified and experienced persons. For High and and impacts of the project, including: Substantial Risk projects, as well as situations in which the Borrower has limited capacity, the Bor- (a) Environmental risks and impacts, includ- rower will retain independent specialists to carry ing: (i) those defined by the EHSGs; (ii) those out the environmental and social assessment. related to community safety (including dam safety and safe use of pesticides); (iii) those 26.  The Borrower will ensure that the environmen- related to climate change and other trans- tal and social assessment takes into account in an boundary or global risks and impacts; (iv) any appropriate manner all issues relevant to the proj- material threat to the protection, conservation, ect, including: (a) the country’s applicable policy maintenance and restoration of natural habi- framework, national laws and regulations, and insti- tats and biodiversity; and (v) those related to tutional capabilities (including implementation) ecosystem services27 and the use of living natu- relating to environment and social issues; variations ral resources, such as fisheries and forests; in country conditions and project context; country (b) Social risks and impacts, including: (i) threats environmental or social studies; national environ- to human security through the escalation of mental or social action plans; and obligations of personal, communal or inter-state conflict, the country directly applicable to the project under crime or violence; (ii) risks that project impacts relevant international treaties and agreements; fall disproportionately on individuals and (b) applicable requirements under the ESSs; and groups who, because of their particular circum- (c) the EHSGs, and other relevant Good International stances, may be disadvantaged or vulnerable;28 Industry Practice (GIIP).23 The assessment of the (iii) any prejudice or discrimination toward project, and all proposals contained in the assess- individuals or groups in providing access to ment, will be consistent with the requirements of development resources and project benefits, this paragraph. particularly in the case of those who may be disadvantaged or vulnerable; (iv) negative eco- 27. The environmental and social assessment will nomic and social impacts relating to the invol- apply a mitigation hierarchy,24 which will: untary taking of land or restrictions on land (a) Anticipate and avoid risks and impacts; use; (v) risks or impacts associated with land (b) Where avoidance is not possible, minimize or reduce risks and impacts to acceptable levels; (c) Once risks and impacts have been minimized or reduced, mitigate;25 and (d) Where significant residual impacts remain, compensate for or offset them, where techni- cally and financially feasible.26 Ecosystem services are the benefits that people derive from 27 ecosystems. Ecosystem services are organized into four types: Good International Industry Practice (GIIP) is defined as the 23 (i) provisioning services, which are the products people obtain exercise of professional skill, diligence, prudence, and foresight from ecosystems and which may include food, freshwater, tim- that would reasonably be expected from skilled and experienced bers, fibers, and medicinal plants; (ii) regulating services, which professionals engaged in the same type of undertaking under the are the benefits people obtain from the regulation of ecosys- same or similar circumstances globally or regionally. The outcome tem processes and which may include surface water purification, of such exercise should be that the project employs the most carbon storage and sequestration, climate regulation, protection appropriate technologies in the project-specific circumstances. from natural hazards; (iii) cultural services, which are the non- ESS1 The mitigation hierarchy is further discussed and specified in 24 material benefits people obtain from ecosystems and which may the context of ESSs2–10, where relevant. include natural areas that are sacred sites and areas of impor- The requirement to mitigate impacts may include measures to 25 tance for recreations and aesthetic enjoyment; and (iv) support- assist affected parties to improve or at least restore their liveli- ing services, which are the natural processes that maintain the hoods as relevant in a particular project setting. other services and which may include soil formation, nutrient The Borrower will make reasonable efforts to incorporate 26 cycling and primary production. the costs of compensating and/or offsetting for the significant Disadvantaged or vulnerable refers to those who may be more 28 residual impacts as part of project costs. The environmental and likely to be adversely affected by the project impacts and/or more social assessment will consider the significance of such resid- limited than others in their ability to take advantage of a proj- ual impacts, the long-term effect of these on the environment ect’s benefits. Such an individual/group is also more likely to be and project-affected people, and the extent to which they are excluded from/unable to participate fully in the mainstream con- considered reasonable in the context of the project. Where it sultation process and as such may require specific measures and/ is determined that it is not technically or financially feasible to or assistance to do so. This will take into account considerations compensate or offset for such residual impacts, the rationale for relating to age, including the elderly and minors, and including in this determination (including the options that were considered) circumstances where they may be separated from their family, the will be set out in the environmental and social assessment. community or other individuals upon which they depend. 19 1707130_Environmental_and_Social_Framework.indd 19 5/25/17 8:34 AM  and natural resource tenure and use,29 includ- relevant requirements of the ESSs32 and the ESCP ing (as relevant) potential project impacts on will be updated as appropriate. local land use patterns and tenurial arrange- ments, land access and availability, food 32. The environmental and social assessment will security and land values, and any correspond- also identify and assess, to the extent appropriate, ing risks related to conflict or contestation over the potential environmental and social risks and land and natural resources; (vi) impacts on the impacts of Associated Facilities. The Borrower will health, safety and well-being of workers and address the risks and impacts of Associated Facili- project-affected communities; and (vii) risks to ties in a manner proportionate to its control or influ- cultural heritage. ence over the Associated Facilities. To the extent that the Borrower cannot control or influence the Associ- 29. Where the environmental and social assess- ated Activities to meet the requirements of the ESSs, ment of the project identifies specific individuals the environmental and social assessment will also or groups as disadvantaged or vulnerable, the Bor- identify the risks and impacts the Associated Facili- rower will propose and implement differentiated ties may present to the project. measures so that adverse impacts do not fall dis- proportionately on the disadvantaged or vulner- 33. For projects that are High Risk or contentious, able, and they are not disadvantaged in sharing any or that involve serious multidimensional environ- development benefits and opportunities resulting mental or social risks or impacts, the Borrower may from the project. be required to engage one or more internationally recognized independent experts. Such experts may, 30. For projects involving multiple small sub­ depending on the project, form part of an advisory projects,30 that are identified, prepared and imple- panel or be otherwise employed by the Borrower, and mented during the course of the project, the will provide independent advice and oversight to the Borrower will carry out appropriate environmental project.33 and social assessment of subprojects, and prepare and implement such subprojects, as follows: 34. The environmental and social assessment will also consider risks and impacts associated with the (a) High Risk subprojects, in accordance with the primary suppliers34 as required by ESS2 and ESS6. ESSs; The Borrower will address such risks and impacts in (b) Substantial Risk, Moderate Risk and Low Risk a manner proportionate to the Borrower’s control subprojects, in accordance with national law or influence over its primary suppliers as set out in and any requirements of the ESSs that the ESS2 and ESS6. Bank deems relevant to such subprojects.31 35. The environmental and social assessment will 31. If the risk rating of a subproject increases to consider potentially significant project-related a higher risk rating, the Borrower will apply the transboundary and global risks and impacts, such as impacts from effluents and emissions, increased use or contamination of international water- ways, emissions of short- and long-lived climate pollutants,35 climate change mitigation, adaptation and resilience issues, and impacts on threatened or Due to the complexity of tenure issues in many contexts, and 29 depleted migratory species and their habitats. the importance of secure tenure for livelihoods, careful assess- ment and design is needed to help ensure that projects do not inadvertently compromise existing legitimate rights (including collective rights, subsidiary rights and the rights of women) or have other unintended consequences, particularly where the project supports land titling and related issues. In such circum- stances, the Borrower will at a minimum demonstrate to the Bank’s satisfaction that applicable laws and procedures, along with project design features (a) provide clear and adequate rules The ‘requirements of the ESSs’ will relate to the reasons for 32 for the recognition of relevant land tenure rights; (b) establish which the risk rating has increased. fair criteria and functioning, transparent and participatory pro- This requirement relates to independent advice and oversight 33 cesses for resolving competing tenure claims; and (c) include of such projects, and is not related to circumstances in which the genuine efforts to inform affected people about their rights and Borrower will be required to retain independent specialists to provide access to impartial advice. carry out environmental and social assessment, set out in para- Paragraphs 30 to 31 apply to a Bank-supported project with mul- 30 graph 25. tiple small subprojects, as in the case of community-driven devel- Primary suppliers are those suppliers who, on an ongoing basis, 34 opment projects, projects involving matching grant schemes, or provide directly to the project goods or materials essential for similar projects designated by the Bank. These provisions do not the core functions of the project. Core functions of a project apply to FI subprojects which are addressed in ESS9. constitute those production and/or service processes essential Where subprojects are likely to have minimal or no adverse 31 for a specific project activity without which the project cannot environmental or social risks and impacts, such subprojects do continue. not require further environmental and social assessment follow- This includes all greenhouse gases (GHGs) and black carbon 35 20 ing the initial scoping. (BC). 1707130_Environmental_and_Social_Framework.indd 20 5/31/17 1:02 PM  C. Environmental and Social 41. The ESCP will describe the different manage- Commitment Plan (ESCP) ment tools40 that the Borrower will use to develop and implement the agreed measures and actions. 36. The Borrower will develop and implement These management tools will include, as appropri- an ESCP, which will set out measures and actions ate, environmental and social management plans, required for the project to achieve compliance with environmental and social management frameworks, the ESSs over a specified timeframe.36 The ESCP will operational policies, operational manuals, manage- be agreed with the Bank and will form part of the ment systems, procedures, practices and capital legal agreement. The draft ESCP will be disclosed as investments. All management tools will apply the early as possible, and before project appraisal. mitigation hierarchy, and incorporate measures 37. The ESCP will take into account the findings so that the project will meet the requirements of of the environmental and social assessment, the applicable laws and regulations and the ESSs41 in Bank’s environmental and social due diligence, and accordance with the ESCP throughout the project the results of engagement with stakeholders. It will life cycle. be an accurate summary of the material measures 42. The management tools will define desired out- and actions required to avoid, minimize, reduce or comes in measurable terms (for example, against otherwise mitigate the potential environmental and baseline conditions) to the extent possible, with ele- social risks and impacts of the project.37 A comple- ments such as targets and performance indicators tion date for each action will be specified in the that can be tracked over defined time periods. ESCP. 43. Recognizing the dynamic nature of the proj- 38.  Where a common approach38 has been agreed, ect development and implementation process, the ESCP will include all measures and actions that the management tools will take a long-term and have been agreed by the Borrower to enable the phased approach, and be designed to be respon- project to meet the common approach. sive to changes in project circumstances, unfore- 39.  The ESCP will set out a process that allows for seen events, regulatory changes and the results of adaptive management of proposed project changes monitoring and review. or unforeseen circumstances. The process will set 44. The Borrower will notify the Bank promptly of out how such changes or circumstances will be any proposed changes to the scope, design, imple- managed and reported and any necessary changes mentation or operation of the project that are likely will be made to the ESCP and relevant management to cause an adverse change in the environmental or tools. social risks or impacts of the project. The Borrower 40.  The Borrower will implement diligently the mea- will carry out, as appropriate, additional assessment sures and actions identified in the ESCP in accor- and stakeholder engagement in accordance with dance with the timeframes specified, and will review the ESSs, and propose changes, for approval by the the status of implementation of the ESCP as part of Bank, to the ESCP and relevant management tools, its monitoring and reporting.39 as appropriate, in accordance with the findings of such assessments and consultation. The updated ESCP will be disclosed. D. Project monitoring and reporting 45. The Borrower will monitor the environmental and social performance of the project in accor- dance with the legal agreement (including the ESCP). The extent and mode of monitoring will be agreed upon with the Bank, and will be propor- ESS1 The Bank will assist the Borrower in identifying appropriate 36 tionate to the nature of the project, the project’s methods and tools to assess and manage the potential environ- environmental and social risks and impacts, and mental and social risks and impacts of the project, and develop- ing the ESCP. compliance requirements. The Borrower will ensure This will include any mitigation and performance improve- 37 ment measures and actions already developed; actions that may be completed prior to approval by the Bank Board of Directors; The level of detail and complexity of the management tools will 40 actions required by national law and regulation that satisfy the be proportionate to the project’s risks and impacts, and the mea- requirements of the ESSs; actions to address gaps in the Bor- sures and actions identified to address such risks and impacts. rower’s ES Framework; and any other actions that are considered They will take into account the experience and capacity of the necessary for the project to achieve compliance with the ESSs. The parties involved with the project, including the implementing gaps will be assessed by reference to what would be required in agencies, project-affected communities and other interested the relevant ESS. parties, and aim to support improved environmental and social See paragraph 9. 38 performance. See Section D. 39 Including relevant GIIP. 41 21 1707130_Environmental_and_Social_Framework.indd 21 5/25/17 8:34 AM  that adequate institutional arrangements, systems, E. Stakeholder engagement resources and personnel are in place to carry out and information disclosure monitoring. Where appropriate and as set out in the ESCP, the Borrower will engage stakeholders and 51.  As set out in ESS10, the Borrower will continue to third parties, such as independent experts, local engage with, and provide sufficient information to communities or NGOs, to complement or verify its stakeholders throughout the life cycle of the project, own monitoring activities. Where other agencies in a manner appropriate to the nature of their inter- or third parties are responsible for managing spe- ests and the potential environmental and social cific risks and impacts and implementing mitigation risks and impacts of the project. measures, the Borrower will collaborate with such 52. For High Risk and Substantial Risk projects, the agencies and third parties to establish and monitor Borrower will provide to the Bank and disclose doc- such mitigation measures. umentation, as agreed with the Bank, relating to the 46. Monitoring will normally include recording environmental and social risks and impacts of the information to track performance, and establish- project prior to project appraisal.42 The documenta- ing relevant operational controls to verify and com- tion will address, in an adequate manner, the key pare compliance and progress. Monitoring will be risks and impacts of the project, and will provide adjusted according to performance experience, as sufficient detail to inform stakeholder engagement well as actions requested by relevant regulatory and Bank decision making. The Borrower will pro- authorities and feedback from stakeholders such as vide to the Bank and disclose final or updated docu- community members. The Borrower will document mentation as specified in the ESCP. monitoring results. 53. If there are significant changes to the project 47.  The Borrower will provide regular reports as set that result in additional risks and impacts, particu- out in the ESCP (in any event, no less than annu- larly where these will impact project-affected par- ally) to the Bank of the results of the monitoring. ties, the Borrower will provide information on such Such reports will provide an accurate and objec- risks and impacts and consult with project-affected tive record of project implementation, including parties as to how these risks and impacts will be compliance with the ESCP and the requirements of mitigated. The Borrower will disclose an updated the ESSs. Such reports will include information on ESCP, setting out the mitigation measures. stakeholder engagement conducted during project implementation in accordance with ESS10. The Bor- ESS1—Annex 1. Environmental rower, and the agencies implementing the project, and social assessment will designate senior officials to be responsible for reviewing the reports. A. General 48.  Based on the results of the monitoring, the Bor- 1. The Borrower will undertake an environmental rower will identify any necessary corrective and and social assessment to assess the environmental preventive actions, and will incorporate these in an and social risks and impacts of a project throughout amended ESCP or the relevant management tool, the project life cycle. The term ‘environmental and in a manner acceptable to the Bank. The Borrower social assessment’ is a generic term that describes will implement the agreed corrective and preventive the process of analysis and planning used by the actions in accordance with the amended ESCP or Borrower to ensure the environmental and social relevant management tool, and monitor and report impacts and risks of a project are identified, avoided, on these actions. minimized, reduced or mitigated. 49. The Borrower will facilitate site visits by Bank 2.  The environmental and social assessment is the staff or consultants acting on the Bank’s behalf. primary means of ensuring projects are environ- mentally and socially sound and sustainable, and 50. The Borrower will notify the Bank promptly of will be used to inform decision making. The environ- any incident or accident relating to the project which mental and social assessment is a flexible process, has, or is likely to have, a significant adverse effect that can use different tools and methods depending on the environment, the affected communities, the public or workers. The notification will provide suf- ficient detail regarding such incident or accident, including any fatalities or serious injuries. The Bor- rower will take immediate measures to address the In agreeing with the Borrower the documentation to be pro- 42 incident or accident and to prevent any recurrence, vided and disclosed prior to project appraisal and following Board approval, the Bank will take into account paragraphs 51 in accordance with national law and the ESSs. and 52 of the Policy. 22 1707130_Environmental_and_Social_Framework.indd 22 5/25/17 8:34 AM  on the details of the project and the circumstances (b) Environmental and Social Audit of the Borrower (see paragraph 5 below). Environmental and social audit is an instru- ment to determine the nature and extent of all 3.  The environmental and social assessment will be environmental and social areas of concern at conducted in accordance with ESS1, and will con- an existing project or activities. The audit iden- sider, in an integrated way, all relevant direct, indi- tifies and justifies appropriate measures and rect and cumulative environmental and social risks actions to mitigate the areas of concern, esti- and impacts of the project, including those specifi- mates the cost of the measures and actions, cally identified in ESS1–10. The breadth, depth, and and recommends a schedule for implementing type of analysis undertaken as part of the environ- them. For certain projects, the environmental mental and social assessment will depend on the and social assessment may consist of an envi- nature and scale of the project, and the potential ronmental or social audit alone; in other cases, environmental and social risks and impacts that the audit forms part of the environmental and could result. The Borrower will undertake the envi- social assessment. ronmental and social assessment at the scale and level of detail appropriate to the potential risks and (c) Hazard or Risk Assessment impacts.43 Hazard or risk assessment is an instrument for identifying, analyzing, and controlling hazards 4. The manner in which the environmental and associated with the presence of dangerous social assessment will be conducted and the issues materials and conditions at a project site. The to be addressed will vary for each project. The Bor- Bank requires a hazard or risk assessment for rower will consult with the Bank to determine the projects involving certain inflammable, explo- process to be used, taking into account a number sive, reactive, and toxic materials when they are of activities, including scoping, stakeholder engage- present in quantities above a specified thresh- ment, potential environmental and social issues old level. For certain projects, the environmen- and any specific issues raised between the Bank and tal and social assessment may consist of the Borrower. The environmental and social assessment hazard or risk assessment alone; in other cases, will include and take into account coordination the hazard or risk assessment forms part of the and consultation with affected people and other environmental and social assessment. interested parties, particularly at an early stage, to (d) Cumulative Impact Assessment ensure that all potentially significant environmen- tal and social risks and impacts are identified and Cumulative Impact Assessment is an instru- addressed. ment to consider cumulative impacts of the project in combination with impacts from other 5.  The different methods and tools used by the Bor- relevant past, present and reasonably foresee- rower to carry out the environmental and social able developments as well as unplanned but assessment and to document the results of such predictable activities enabled by the project assessment, including the mitigation measures to that may occur later or at a different location. be implemented, will reflect the nature and scale (e) Social and Conflict Analysis of the project.44 As specified in ESS1,45 these will Social and conflict analysis is an instrument include, as appropriate, a combination or elements that assesses the degree to which the proj- of the following: ect may (a) exacerbate existing tensions and (a) Environmental and Social Impact inequality within society (both within the com- Assessment (ESIA) munities affected by the project and between these communities and others); (b) have a Environmental and social impact assessment negative effect on stability and human security; (ESIA) is an instrument to identify and assess (c) be negatively affected by existing tensions, the potential environmental and social impacts conflict and instability, particularly in circum- of a proposed project, evaluate alternatives, ESS1 stances of war, insurrection and civil unrest. and design appropriate mitigation, manage- ment, and monitoring measures. (f) Environmental and Social Management Plan (ESMP) Environmental and social management plan (ESMP) is an instrument that details (a) the measures to be taken during the implementa- See ESS1 Section B. 43 tion and operation of a project to eliminate These will also reflect national regulatory requirements, which 44 or offset adverse environmental and social may be relied on by the Borrower to the extent they meet the impacts, or to reduce them to acceptable lev- requirements of the ESSs. els; and (b) the actions needed to implement See ESS1, paragraph 23. 45 these measures. 23 1707130_Environmental_and_Social_Framework.indd 23 5/25/17 8:34 AM  (g) Environmental and Social Management (j) Strategic Environmental and Social Assess- Framework (ESMF) ment (SESA) Environmental and social management frame- Strategic environmental and social assessment work (ESMF) is an instrument that examines the (SESA) is a systematic examination of envi- risks and impacts when a project consists of a ronmental and social risks and impacts, and program and/or series of subprojects, and the issues, associated with a policy, plan or pro- risks and impacts cannot be determined until gram, typically at the national level but also in the program or subproject details have been smaller areas. The examination of environmen- identified. The ESMF sets out the principles, tal and social risks and impacts will include rules, guidelines and procedures to assess the consideration of the full range of environmen- environmental and social risks and impacts. It tal and social risks and impacts incorporated contains measures and plans to reduce, miti- in ESS1 through 10. SESAs are typically not gate and/or offset adverse risks and impacts, location-specific. They are therefore prepared provisions for estimating and budgeting the in conjunction with project and site-specific costs of such measures, and information on the studies that assess the risks and impacts of the agency or agencies responsible for address- project. ing project risks and impacts, including on its capacity to manage environmental and social 6.  Specific features of a project may require the Bor- risks and impacts. It includes adequate infor- rower to utilize specialized methods and tools for mation on the area in which subprojects are assessment, such as a Resettlement Plan, Livelihood expected to be sited, including any potential Restoration Plan, Indigenous Peoples Plan, Biodiver- environmental and social vulnerabilities of the sity Action Plan, Cultural Heritage Management Plan, area; and on the potential impacts that may and other plans as agreed with the Bank. occur and mitigation measures that might be 7.  Borrowers should initiate the environmental and expected to be used. social assessment as early as possible in project (h) Regional ESIA processing. Borrowers will consult with the Bank as Regional ESIA examines environmental and early as possible so the environmental and social social risks and impacts, and issues, associ- assessment is designed from the outset to meet the ated with a particular strategy, policy, plan, or requirements of the ESSs. program, or with a series of projects, for a par- ticular region (e.g., an urban area, a watershed, 8. The environmental and social assessment will or a coastal zone); evaluates and compares the be closely integrated with the project’s economic, impacts against those of alternative options; financial, institutional, social, and technical analy- assesses legal and institutional aspects rel- ses so that environmental and social considerations evant to the risks, impacts and issues; and are taken into consideration in project selection, recommends broad measures to strengthen siting, and design decisions. The Borrower will take environmental and social management in the measures to ensure that when individuals or entities region. Regional ESIA pays particular atten- are engaged to carry out environmental and social tion to potential cumulative risks and impacts assessment, any conflict of interest is avoided. The of multiple activities in a region but may not environmental and social assessment will not be include the site-specific analyses of a spe- carried out by the consultants who prepare the cific project, in which case the Borrower must engineering design, unless the Borrower can dem- develop supplemental information. onstrate that no conflict of interest exists and such consultants include qualified environmental and (i) Sectoral ESIA social specialists. Sectoral ESIA examines environmental and social risks and impacts, and issues, associated 9. When the Borrower has completed or partially with a particular sector in a region or across a completed environmental and social assessment nation; evaluates and compares the impacts prior to the Bank’s involvement in a project, the envi- against those of alternative options; assesses ronmental and social assessment is subject to the legal and institutional aspects relevant to the Bank’s review to ensure that it meets the require- risks and impacts; and recommends broad ments of the ESSs. If appropriate, the Borrower is measures to strengthen environmental and required to conduct additional work, including pub- social management in the region. Sectoral lic consultation and disclosure. ESIA also pays particular attention to poten- tial cumulative risks and impacts of multiple B. Institutional capacity activities. A Sectoral ESIA may need to be 10. Environmental and social assessment can pro- supplemented with project- and site-specific vide opportunities for coordinating environmental information. 24 and social-related responsibilities and actions in 1707130_Environmental_and_Social_Framework.indd 24 5/25/17 8:34 AM  the host country in a way that goes beyond project Identifies and assesses the environ- boundaries/responsibilities and, as a result, where mental and social requirements of any feasible should be linked to other environmental and co-financiers. social strategies and action plans, and free-standing (c) Project Description projects. The environmental and social assessment for a specific project can thereby help strengthen Concisely describes the proposed project and its geographic, environmental, social, environmental and social management capability and temporal context, including any offsite in the country and both Borrowers and the Bank are investments that may be required (e.g., dedi- encouraged to take advantage of opportunities to cated pipelines, access roads, power supply, use it for that purpose. water supply, housing, and raw material and 11. The Borrower may include components in the product storage facilities), as well as the project to strengthen its legal or technical capacity project’s primary suppliers. to carry out key environmental and social assess- Through consideration of the details of the ment functions. If the Bank concludes that the Bor- project, indicates the need for any plan to rower has inadequate legal or technical capacity meet the requirements of ESS1 through 10. to carry out such functions, the Bank may require strengthening programs to be included as part of Includes a map of sufficient detail, showing the project site and the area that may be the project. If the project includes one or more ele- affected by the project’s direct, indirect, and ments of capacity strengthening, these elements cumulative impacts. will be subject to periodic monitoring and evalua- (d) Baseline Data tion as required by ESS1. Sets out in detail the baseline data that is C. Other requirements for certain projects relevant to decisions about project location, design, operation, or mitigation measures. 12. Where relevant, the environmental and social This should include a discussion of the assessment will take into account the requirements accuracy, reliability, and sources of the data of OP 7.50 for projects on international waterways as well as information about dates sur- and OP 7.60 for projects in disputed areas. rounding project identification, planning and implementation. D. Indicative outline of ESIA Identifies and estimates the extent and 13. Where an environmental and social impact quality of available data, key data gaps, and assessment is prepared as part of the environ- uncertainties associated with predictions. mental and social assessment, it will include the Based on current information, assesses the following: scope of the area to be studied and describes relevant physical, biological, and socioeco- (a) Executive Summary nomic conditions, including any changes Concisely discusses significant findings and anticipated before the project commences. recommended actions. Takes into account current and proposed (b) Legal and Institutional Framework development activities within the proj- Analyzes the legal and institutional frame- ect area but not directly connected to the work for the project, within which the envi- project. ronmental and social assessment is carried (e) Environmental and Social Risks and Impacts out, including the issues set out in ESS1, paragraph 26.46 Takes into account all relevant environ- mental and social risks and impacts of the Compares the Borrower’s existing environ- project. This will include the environmental mental and social framework and the ESSs and social risks and impacts specifically ESS1 and identifies the gaps between them. identified in ESS2–8, and any other environ- mental and social risks and impacts arising as a consequence of the specific nature and context of the project, including the risks ESS1, paragraph 26, states that the environmental and social 46 assessment takes into account in an appropriate manner all and impacts identified in ESS1, paragraph 28. issues relevant to the project, including: (a) the country’s appli- (f ) Mitigation Measures cable policy framework, national laws and regulations, and institutional capabilities (including implementation) relating to Identifies mitigation measures and signifi- environment and social issues; variations in country conditions cant residual negative impacts that cannot and project context; country environmental or social studies; national environmental or social action plans; and obligations be mitigated and, to the extent possible, of the country directly applicable to the project under relevant assesses the acceptability of those residual international treaties and agreements; (b) applicable require- negative impacts. ments under the ESSs; and (c) the EHSGs, and other relevant GIIP. 25 1707130_Environmental_and_Social_Framework.indd 25 5/25/17 8:34 AM  Identifies differentiated measures so that The record specifies the means of such adverse impacts do not fall disproportion- stakeholder engagement that were used ately on the disadvantaged or vulnerable. to obtain the views of affected people and Assesses the feasibility of mitigating the other interested parties. environmental and social impacts; the Tables presenting the relevant data referred capital and recurrent costs of proposed to or summarized in the main text. mitigation measures, and their suitability under local conditions; and the institutional, List of associated reports or plans. training, and monitoring requirements for E. Indicative outline of ESMP the proposed mitigation measures. 14. An ESMP consists of the set of mitigation, Specifies issues that do not require fur- monitoring, and institutional measures to be ther attention, providing the basis for this taken during implementation and operation of a determination. project to eliminate adverse environmental and (g) Analysis of Alternatives social risks and impacts, offset them, or reduce them to acceptable levels. The ESMP also includes Systematically compares feasible alterna- the measures and actions needed to implement tives to the proposed project site, technol- these measures. The Borrower will (a) identify the ogy, design, and operation—including the set of responses to potentially adverse impacts; “without project” situation—in terms of their (b) determine requirements for ensuring that potential environmental and social impacts. those responses are made effectively and in a Assesses the alternatives’ feasibility of miti- timely manner; and (c) describe the means for gating the environmental and social impacts; meeting those requirements. the capital and recurrent costs of alternative mitigation measures, and their suitability 15. Depending on the project, an ESMP may be pre- under local conditions; and the institutional, pared as a stand-alone document47 or the content training, and monitoring requirements for may be incorporated directly into the ESCP. The con- the alternative mitigation measures. tent of the ESMP will include the following: For each of the alternatives, quantifies the (a) Mitigation environmental and social impacts to the extent possible, and attaches economic val- The ESMP identifies measures and actions ues where feasible.