Definition
As part of their initial review of environmental and social risks and impacts of proposed projects, financiers use this process to reflect the magnitude of risks and impacts. Based on preliminary assessments, the resulting category often determines financiers’ internal requirements for the environmental and social impact assessment (ESIA) and information disclosure. See Project Categorization for more information about this process.
Source(s)
Adapted from International Finance Corporation (IFC), “Environmental and Social Categorization,” accessed in 2022, View the Website.