Definition
A tool commonly applied in environmental and social impact assessment (ESIA) that provides a step-by-step approach to addressing risks and impacts as follows: anticipate and avoid risks and impacts; where avoidance is not possible, minimize or reduce risks and impacts to acceptable levels; once risks and impacts have been minimized or reduced, mitigate risks and impacts; and where residual risks or impacts remain, compensate for or offset them, where technically and financially feasible.
Source(s)
Adapted from Asian Infrastructure Investment Bank (AIIB), "Environmental and Social Framework," 2021, View the PDF.