Asia Society Policy Institute

Requirements for developers and contractors to identify and assess environmental and social risks and impacts associated with World Bank–financed projects.

Offers specific requirements to encourage positive outcomes, including sustainable development, shared prosperity, and an end to extreme poverty.

Developers and Contractors (originally, the “Borrower”) must:

• Abide by the host country laws and regulations that are relevant to the environmental and social risks and impacts of each project.

Developers (and Contractors, where applicable) must:

• Provide sufficient information about possible risks and impacts for affected people.
  • This information must not only be accessible and understandable but also disclosed in a timely manner to allow for meaningful stakeholder input.
• Proactively and continuously engage and consult with stakeholders, including communities, groups, or individuals affected by proposed projects.
• Establish a grievance mechanism, process, or procedure to help resolve concerns/grievances of affected people, specifically about their environmental and social performance.
• Demonstrate that involuntary land acquisitions or restrictions on land use are limited to direct project requirements.
  • Feasible alternative project designs must be considered to minimize land acquisition or restrictions on land use.
• Offer affected people compensation for replacement costs and other assistance to improve, or at least restore, their standards of living if land acquisition or restrictions on land use cannot be avoided.
• Include community workers in projects focused on fostering community-driven development, providing a social safety net or offering targeted assistance in fragile and conflict-affected situations.
• Hire local community workers to contribute to projects.
  • Clearly identify the terms and conditions on which community labor would be engaged, including the amount and method of payment, the time of work, and the ways that these workers can address grievances.

The World Bank must:

• Classify all projects into one of four categories: High Risk, Substantial Risk, Moderate Risk, or Low Risk.
• Account for the type, location, sensitivity, and scale of the project; the nature and scope of potential environmental and social risks and impacts; and the capacity of developers and contractors to manage the environmental and social risks and impacts in accordance with the Environmental and Social Safeguards (ESSs).

Developers (and Contractors, where applicable) must:

• Conduct an environmental impact assessment (EIA) that accounts for all environmental risks and impacts, including:
  • Impacts defined by the World Bank Group’s “Environmental, Health, and Safety Guidelines (EHSGs)”.
  • Impacts related to community safety and climate change.
  • Impacts threatening natural habitats, biodiversity, and ecosystem services.
• Conduct a social impact assessment (SIA) that accounts for all social risks and impacts, including:
  • Risks to vulnerable or disadvantaged groups.
  • Prejudice or discrimination through development resource provision.
  • Risks associated with land or natural resource tenure.
  • Restrictions on land use.
  • Health, safety, and well-being impacts.
  • Threats to human security.
  • Cultural heritage risks.
• Consider potentially significant project-related risks and impacts that would be transboundary or global in their environmental and social impact assessment (ESIA) report.
• Include the following components in the ESIA report:
  • An executive summary.
  • A legal and institutional framework.
  • A project description.
  • Baseline data.
  • Environmental and social risks and impacts.
  • Mitigation measures.
  • An analysis of alternatives.
  • Design measures.
  • Key measures and actions to address environmental and social issues.
  • Appendices.
• Develop an environmental and social management plan (ESMP) with mitigation, monitoring, and institutional measures that would be taken during the project implementation and operations phases to eliminate, offset, or reduce adverse environmental and social risks and impacts.
• For High Risk and Substantial Risk projects, submit to the World Bank and disclose documentation related to the environmental and social risks and impacts of the project.
• Determine appropriate responses to adverse impacts, set requirements to ensure that effective responses are made in a timely manner, and describe the means for meeting those requirements.
• Monitor the key environmental and social aspects and the effectiveness of mitigation measures for each project during the project implementation and operations phases.
  • For High Risk or other contentious projects, developers and contractors may be required to engage internationally recognized experts to provide independent advice and oversight.

The World Bank and Developers (and Contractors) must:

• Evaluate mitigation measures and take corrective actions when needed.