Skip to main content
Laws, Policies, & Guidelines

Social Responsibility and Environmental Protection Guidelines for Investments in the ASEAN Region

Scope of Application

Guidelines for companies and investment projects under the China-ASEAN Investment Cooperation Fund (CAF), as well as Chinese developers and contractors operating and investing in the Association of Southeast Asian Nations (ASEAN) region. 


Offers specific guidance to promote corporate social responsibility (CSR) and environmental protection.

General Key Points

Developers and Contractors should: 

  • Abide by host countries’ laws and regulations and relevant Chinese regulations, as well as international business protocols.
Key Points on Stakeholder Engagement

Developers and Contractors should: 

  • Engage affected communities on issues that could affect them through the project life cycle.
  • Emphasize communication with stakeholders.
    • Address their expectations and concerns in a transparent manner. 
  • Publicly disclose their own decisions and activities that would have social, economic, and environmental impacts on host countries and local communities.
  • Respond to and manage grievances from affected communities and communications from other stakeholders.
  • Avoid or when avoidance is not possible minimize displacement and forced eviction.
    • Explore project alternatives
  • Avoid or when avoidance is not possible minimize adverse social and economic impacts from land acquisition or restrictions on land use.
    • Provide compensation for loss of assets at replacement cost and ensure that resettlement activities are implemented with appropriate disclosure of information, consultation, and informed participation of affected people
  • Improve or restore the livelihoods and living standards of displaced people
  • Anticipate and avoid or when avoidance is not possible minimize and/or compensate for projects’ adverse impacts on Indigenous communities.
    • Establish and maintain an ongoing relationship based on Informed Consultation and Participation (ICP) with affected Indigenous peoples.
    • Obtain the Free, Prior and Informed Consent (FPIC) of these communities. 
  • Protect cultural heritage from the adverse impacts of project activities and support its preservation. 
  • Promote economic growth and social development of host countries.
    • Seek mutual sustainable development with local communities.
Key Points on Environmental and Social Impact Assessment

Developers and Contractors should: 

  • Identify and assess projects’ environmental and social risks and impacts.
    • Adopt a mitigation hierarchy to anticipate and avoid or when avoidance is not possible minimize and where residual impacts remain compensate/offset for risks to and impacts on workers, affected communities, and the environment. 
  • Conduct environmental and social due diligence.
  • Engage qualified environmental and social consultants to evaluate projects.
  • Use results to formulate action plans and address gaps.
  • Promote environmental protection in host countries.
Applies to
July 2014
China-ASEAN Investment Cooperation Fund (CAF)
Link to Full Version(s)