World Bank Environmental and Social Framework (ESF) 1

1. Background

The Environmental and Social Framework (ESF)  ‘sets out the World Bank’s commitment to
sustainable development, through a Bank Policy and a set of Environmental and Social Standards
that are designed to support Borrowers’ projects, with the aim of ending extreme poverty and
promoting shared prosperity.’

The ESF replaced the earlier World Bank environmental and social policies known as the "Safeguard
Policies."2 These polices were the mechanism for addressing environmental and social issues in
project design, implementation and operation, and they provide a framework for consultation with
communities and for public disclosure. Examples of these requirements include conducting
environmental and social impact assessments, consulting with affected communities about potential
project impacts, and restoring the livelihoods of displaced people.

The World Bank Safeguards consist of 11 Operational Policies3

1. Environmental Assessment

2. Natural Habitats

3. Pest Management

4. Indigenous Peoples,

5. Physical Cultural Resources

6. Involuntary Resettlement

7. Forests

8. Safety of Dams

9. Projects in Disputed Areas

10. Projects in Disputed Areas

11. Projects on International Waterways

The ESF was approved by the Board of Executive Directors on August 4, 2016. It applies to all
IPF projects initiated on or after October 1, 2018.  The Safeguard Polices are still in use for projects
that started before that date.

2. The ESF Framework

The ESF supports green, resilient and inclusive development by strengthening protections for people
and the environment and making important advances in areas such as labor, inclusion and non-
1
https://www.worldbank.org/en/projects-operations/environmental-and-social-framework
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https://www.worldbank.org/en/projects-operations/environmental-and-social-policies#safeguards
3
https://ppfdocuments.azureedge.net/3900.pdf
discrimination, gender, climate change, biodiversity, community health and safety, and stakeholder
engagement.

It uses a risk-based and proportionate approach that applies increased oversight and resources to
complex projects and allows for greater responsiveness to changes in project circumstances through
adaptive risk management and stakeholder engagement. It promotes integrated environmental and
social risk management.

The ESF places an emphasis on strengthening national environmental and social management
systems and institutions, and supporting Borrower capacity building. It promotes enhanced
transparency and stakeholder engagement through timely information disclosure, meaningful and
ongoing consultations throughout the project life cycle, and responsive grievance mechanisms to
facilitate resolution of concerns and grievances of project-affected parties.

The framework consists of:

• A Vision for Sustainable Development, which sets out the Bank’s aspirations regarding
environmental and social sustainability;

• The World Bank Environmental and Social Policy for Investment Project Financing
(IPF), which sets out the mandatory requirements that apply to the Bank. It sets out the
requirements that the Bank must follow regarding projects it supports through Investment
Project Financing; and

• The Environmental and Social Standards, together with their Annexes, which set out the
mandatory requirements that apply to the Borrower and projects.

The standards set out the requirements for Borrowers relating to the identification and
assessment of environmental and social risks and impacts associated with projects supported
by the Bank through Investment Project Financing. The Bank believes that the application of
these standards, by focusing on the identification and management of environmental and
social risks, will support Borrowers in their goal to reduce poverty and increase prosperity in
a sustainable manner for the benefit of the environment and their citizens. The standards will:
(a) support Borrowers in achieving good international practice relating to environmental and
social sustainability; (b) assist Borrowers in fulfilling their national and international
environmental and social obligations; (c)  enhance non-discrimination, transparency,
participation, accountability and governance; and (d) enhance the sustainable development
outcomes of projects through ongoing stakeholder engagement.

The ten Environmental and Social Standards establish the standards that the Borrower and the
project will meet through the project life cycle, as follows:

o Environmental and Social Standard 1: Assessment and Management of

Environmental and Social Risks and Impacts;
o Environmental and Social Standard 2: Labor and Working Conditions;
o Environmental and Social Standard 3: Resource Efficiency and Pollution
Prevention and Management;
o Environmental and Social Standard 4: Community Health and Safety;
o Environmental and Social Standard 5: Land Acquisition, Restrictions on Land
Use and Involuntary Resettlement;
 o Environmental and Social Standard 6: Biodiversity Conservation and
Sustainable Management of Living Natural Resources;
o Environmental and Social Standard 7: Indigenous Peoples/Sub-Saharan
African Historically Underserved Traditional Local Communities;
o Environmental and Social Standard 8: Cultural Heritage;
o Environmental and Social Standard 9: Financial Intermediaries; and
o Environmental and Social Standard 10: Stakeholder Engagement and
Information Disclosure.

Good Practice Notes, Templates and Checklists

To guide clients and World Bank staff in their use of the Environmental and Social Framework (ESF),
the World Bank is developing resources, including Good Practice Notes, Templates and Checklists.
They are not World Bank policy and their use is not mandatory. They are available here.

World Bank Vision for Sustainable Development

 Vision for Sustainable Development;

“The World Bank Group Strategy4 sets out the corporate goals of ending extreme poverty
and promoting shared prosperity in all its partner countries. Securing the longterm future
of the planet, its people and its resources, ensuring social inclusion, and limiting the
economic burdens on future generations will underpin these efforts. The two goals
emphasize the importance of economic growth, inclusion and sustainability— including
strong concerns for equity.”

Inspired by this vision, the World Bank Group is globally committed to environmental
sustainability, including stronger collective action to support climate change mitigation and
adaptation, recognizing this as essential in a world of finite natural resources. This is reflected
in the various Bank Group’s thematic strategies2 for the coming decade. These strategies
recognize that all economies, particularly developing ones, still need to grow, but they need
to do so sustainably, so that income producing opportunities are not pursued in ways that
limit or close off opportunities for future generations. It recognizes that climate change is
affecting the nature and location of projects, and that World Bank-financed projects should
reduce their impact on the climate by choosing alternatives with lower carbon emissions. The
World Bank works on climate change because it is a fundamental threat to development in
our lifetime. The World Bank is committed to supporting its client countries to manage their
economies, to decarbonize and invest in resilience, while ending poverty and boosting shared
prosperity.

Equally, social development and inclusion are critical for all of the World Bank’s
development interventions and for achieving sustainable development. For the Bank,
inclusion means empowering all people to participate in, and benefit from, the development
process. Inclusion encompasses policies to promote equality and non-discrimination by
4
World Bank Group Strategy 2013,
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improving the access of all people, including the poor and disadvantaged, to services and
benefits such as education, health, social protection, infrastructure, affordable energy,
employment, financial services and productive assets. It also embraces action to remove
barriers against those who are often excluded from the development process, such as women,
children, persons with disabilities, youth and minorities, and to ensure that the voice of all
can be heard. In this regard, the World Bank’s activities support the realization of human
rights expressed in the Universal Declaration of Human Rights. Through the projects it
finances, and in a manner consistent with its Articles of Agreement,3 the World Bank seeks
to avoid adverse impacts and will continue to support its member countries as they strive to
progressively achieve their human rights commitments.

The World Bank uses its convening ability, financial instruments, and intellectual resources
to embed this commitment to environmental and social sustainability across all its activities,
which range from the Bank’s global engagement in issues such as climate change, disaster
risk management, and gender equality, to ensuring that environmental and social
considerations are reflected in all sector strategies, operational policies, and country
dialogues.

At the project level, these global aspirations translate into enhancing development
opportunities for all, particularly the poor and vulnerable, and promoting the sustainable
management of natural and living resources. Therefore, within the parameters of a project,
the Bank seeks to:

• Avoid or mitigate adverse impacts to people and the environment;

• Conserve or rehabilitate biodiversity and natural habitats, and promote the efficient and
equitable use of natural resources and ecosystem services;

• Promote worker and community health and safety;

• Ensure that there is no prejudice or discrimination toward project-affected individuals or

communities and give particular consideration to Indigenous Peoples, minority groups, and
those disadvantaged or vulnerable, especially where adverse impacts may arise or
development benefits are to be shared;

• Address project-level impacts on climate change and consider the impacts of climate change
on the selection, siting, planning, design and implementation and decommissioning of
projects; and

• Maximize stakeholder engagement through enhanced consultation, participation and

accountability.

The Bank’s vision goes beyond ‘do no harm’ to maximizing development gains. Where the
Borrower’s environmental and social assessment has identified potential development
opportunities associated with the project, the Bank will discuss with the Borrower the
feasibility of including these opportunities in the project. Where appropriate, such
opportunities may be utilized to promote further development.

The Bank will also work with Borrowers to identify strategic initiatives and goals to address
national development priorities, where appropriate, as part of country engagement. In
supporting such development priorities, the Bank will seek cooperative relationships with
Borrowers, donors and other international organizations. The Bank will maintain dialogue on
environmental and social issues with donor governments, international organizations,
countries of operation and civil society.

The Bank recognizes that the achievement of sustainable development is dependent on

effective collaboration with everyone who has a stake in the development outcome of a
project, including public and private sector development partners. The Bank is committed to
the use and development of borrower’s frameworks to avoid unnecessary duplication of
effort, build national capacity and achieve development outcomes that are materially
consistent with the objectives of the Environmental and Social Framework. The Bank is
committed to open dialogue, public consultation, timely and full access to information, and
responsive grievance mechanisms.

This Environmental and Social Framework converts these aspirations and principles into
practical, project-level applications within the context of the Bank’s mandate as set out in its
Articles of Agreement. While this Framework will not by itself guarantee sustainable
development outcomes, its proper implementation will ensure the application of standards
that provide a necessary foundation for that objective, and provide a leading example for
activities outside the scope of Bank-supported projects.

World Bank Environmental and Social Policy for Investment Project Financing (IPF), 

Purpose

The Environmental and Social Policy for Investment Project Financing sets out the
mandatory requirements of the Bank in relation to the projects it supports through Investment
Project Financing.

Objectives and principles

The Bank is committed to supporting Borrowers4 in the development and implementation of

projects that are environmentally and socially sustainable, and to enhancing the capacity of
Borrowers’ environmental and social frameworks to assess and manage the environmental
and social risks5 and impacts6 of projects. To this end, the Bank has defined specific
Environmental and Social Standards (ESSs), which are designed to avoid, minimize, reduce
or mitigate the adverse environmental and social risks and impacts of projects. The Bank will
assist Borrowers in their application of the ESSs to projects supported through Investment
Project Financing in accordance with this Environmental and Social Policy for Investment
Project Financing (Policy).

To carry out this Policy, the Bank will:

(a) Undertake its own due diligence of proposed projects, proportionate to the nature and
potential significance of the environmental and social risks and impacts related to the project;

(b) As and where required, support the Borrower to carry out early and continuing
engagement and meaningful consultation with stakeholders,7 in particular affected
communities, and in providing project-based grievance mechanisms;

(c) Assist the Borrower in identifying appropriate methods and tools to assess and manage the
potential environmental and social risks and impacts of the project;
(d) Agree with the Borrower on the conditions under which the Bank is prepared to provide
support to a project, as set out in the Environmental and Social Commitment Plan (ESCP);8
and

(e) Monitor the environmental and social performance of a project in accordance with the
ESCP and the ESSs.

4. The environmental and social risks and impacts which the Bank will take into account in
its due diligence are project-related and include the following:

(a) Environmental risks and impacts, including: (i) those identified in the World Bank Group
Environmental, Health, and Safety Guidelines (EHSGs);10 (ii) those related to community
safety (including dam safety and safe use of pesticides); (iii) those related to climate change
and other transboundary or global risks and impacts; (iv) any material threat to the protection,
conservation, maintenance and restoration of natural habitats and biodiversity; and (v) those
related to ecosystem services and the use of living natural resources, such as fisheries and
forests; and

(b) Social risks and impacts, including: (i) threats to human security through the escalation of
personal, communal or interstate conflict, crime or violence; (ii) risks that project impacts fall
disproportionately on individuals or groups who, because of their particular circumstances,
may be disadvantaged or vulnerable;11 (iii) any prejudice or discrimination toward
individuals or groups in providing access to development resources and project benefits,
particularly in the case of those who may be disadvantaged or vulnerable; (iv) negative
economic and social impacts relating to the involuntary taking of land or restrictions on land
use; (v) risks or impacts associated with land and natural resource tenure and use, including
(as relevant) potential project impacts on local land use patterns and tenurial arrangements,
land access and availability, food security and land values, and any corresponding risks
related to conflict or contestation over land and natural resources; (vi) impacts on the health,
safety and well-being of workers and project-affected communities; and (vii) risks to cultural
heritage.

5. Projects supported by the Bank through Investment Project Financing are required to meet
the following Environmental and Social Standards:

 ESS 1: Assessment and Management of Environmental and Social Risks and Impacts;
 ESS  2: Labor and Working Conditions;
 ESS  3: Resource Efficiency and Pollution Prevention and Management;
 ESS  4: Community Health and Safety;
 ESS  5: Land Acquisition, Restrictions on Land Use and Involuntary Resettlement;
 ESS  6: Biodiversity Conservation and Sustainable Management of Living Natural
Resources;
 ESS  7: Indigenous Peoples/Sub-Saharan African Historically Underserved
Traditional Local Communities; • Environmental and Social Standard 8: Cultural
Heritage;
 ESS  9: Financial Intermediaries; and
 ESS  10: Stakeholder Engagement and Information Disclosure.

6. The Environmental and Social Standards are designed to help Borrowers to manage the
risks and impacts of a project, and improve their environmental and social performance,
through a risk and outcomes based approach. The desired outcomes for the project are
described in the objectives of each ESS, followed by specific requirements to help Borrowers
achieve these objectives through means that are appropriate to the nature and scale of the
project and proportionate to the level of environmental and social risks and impacts.

Scope of application

7. This Policy and the ESSs apply to all projects supported by the Bank through Investment
Project Financing.12, 13 The Bank will only support projects that are consistent with, and
within the boundaries of, the Bank’s Articles of Agreement and are expected to meet the
requirements of the ESSs in a manner and within a timeframe acceptable to the Bank.

8. For the purpose of this Policy, the term “project” refers to the activities for which the Bank
support referred to in paragraph 7 above is sought by the Borrower, as defined in the project’s
legal agreement between the Borrower and the Bank.14 Projects may include new facilities or
activities and/or existing facilities or activities, or a combination of the same. Projects may
include subprojects.

9. Where the Bank is jointly financing a project with other multilateral or bilateral funding
agencies,15 the Bank will cooperate with such agencies and the Borrower in order to agree on
a common approach for the assessment and management of environmental and social risks
and impacts of the project. A common approach will be acceptable to the Bank, provided that
such an approach will enable the project to achieve objectives materially consistent with the
ESSs.16 The Bank will require the Borrower to apply the common approach to the project.
The Bank will also coordinate with such agencies so that the Bank and the Borrower may be
able to disclose one set of project-related materials for stakeholder engagement.

10. This Policy also requires the application of the ESSs to Associated Facilities. Associated
Facilities will meet the requirements of the ESSs, to the extent that the Borrower has control
or influence over such Associated Facilities.17

11. For the purpose of this Policy, the term “Associated Facilities” means facilities or
activities that are not funded as part of the project and, in the judgment of the Bank, are:
(a) directly and significantly related to the project; and (b)  carried out, or planned to be
carried out, contemporaneously with the project; and (c) necessary for the project to be viable
and would not have been constructed, expanded or conducted if the project did not exist.18

12. Where: (a) A common approach has been agreed for the project, the common approach
will apply to the Associated Facilities; (b) Associated Facilities are being funded by other
multilateral or bilateral funding agencies, the Bank may agree to apply the requirements of
such other agencies for the assessment and management of environmental and social risks
and impacts of the Associated Facilities, provided that such requirements will enable the
project to achieve objectives materially consistent with the ESSs.

13. Where the Bank is providing support to a project involving a Financial Intermediary (FI),
and other multilateral or bilateral funding agencies will or have already provided financing to
the same FI, the Bank may agree to rely on the requirements of such other agencies for the
assessment and management of environmental and social risks and impacts of the project,
including the institutional arrangements already established by the FI, provided that such
requirements will enable the project to achieve objectives materially consistent with the
ESSs.
14. Where a Borrower is deemed by the Bank to: (a) be in urgent need of assistance because
of a natural or man-made disaster or conflict; or (b) experience capacity constraints because
of fragility or specific vulnerabilities (including for small states), the applicable provisions of
OP 10.00 will apply.19

Bank requirements

15. The Bank will require Borrowers to conduct environmental and social assessment of
projects proposed for Bank support in accordance with ESS1.20

16. The Bank will require the Borrower to prepare and implement projects so that they meet
the requirements of the ESSs in a manner and a timeframe acceptable to the Bank. In
establishing the manner and an acceptable timeframe, the Bank will take into account the
nature and significance of the potential environmental and social risks and impacts, the
timing for development and implementation of the project, the capacity of the Borrower and
other entities involved in developing and implementing the project, and the specific measures
and actions to be put in place or taken by the Borrower to address such risks and impacts.

17. Where the Bank has agreed that the Borrower may plan or take specific measures or
actions to avoid, minimize, reduce or mitigate specific risks and impacts of the project over a
specified timeframe, the Bank will require that the Borrower commit to not carrying out any
activities or taking any actions in relation to the project that may cause material adverse
environmental or social risks or impacts until the relevant plans, measures or actions have
been completed in accordance with the ESCP.

18. If the project comprises or includes existing facilities or existing activities that do not
meet the requirements of the ESSs at the time of approval by the Bank, the Bank will require
the Borrower, as part of the ESCP, to adopt and implement measures satisfactory to the Bank
so that the material aspects of such facilities or activities meet the requirements of the ESSs
within a timeframe acceptable to the Bank. In determining satisfactory measures and an
acceptable timeframe, the Bank will take into account the nature and scope of the project and
the technical and financial feasibility of the proposed measures.

19. The Bank will require the Borrower to apply the relevant requirements of the EHSGs.21
The EHSGs contain the performance levels and measures that are normally acceptable and
applicable to projects. When host country requirements differ from the levels and measures
presented in the EHSGs, the Bank will require the Borrower to achieve or implement
whichever is more stringent. If less stringent levels or measures than those provided in the
EHSGs are appropriate in view of the Borrower’s limited technical or financial constraints or
other specific project circumstances, the Bank will require the Borrower to provide full and
detailed justification for anyproposed alternatives through the environmental and social
assessment. This justification must demonstrate, to the satisfaction of the Bank, that the
choice of any alternative performance level is consistent with the objectives of the ESSs and
the applicable EHSGs, and is unlikely to result in any significant environmental or social
harm.

A. Environmental and social risk classification

20. The Bank will classify all projects (including projects involving Financial Intermediaries
(FIs)) into one of four classifications: High Risk, Substantial Risk, Moderate Risk or Low
Risk. In determining the appropriate risk classification, the Bank will take into account
relevant issues, such as the type, location, sensitivity, and scale of the project; the nature and
magnitude of the potential environmental and social risks and impacts; and the capacity and
commitment of the Borrower (including any other entity responsible for the implementation
of the project) to manage the environmental and social risks and impacts in a manner
consistent with the ESSs. Other areas of risk may also be relevant to the delivery of
environmental and social mitigation measures and outcomes, depending on the specific
project and the context in which it is being developed. These could include legal and
institutional considerations; the nature of the mitigation and technology being proposed;
governance structures and legislation; and considerations relating to stability, conflict or
security. The Bank will disclose the project’s classification and the basis for that
classification on the Bank’s website and in project documents.

21. The Bank will review the risk classification assigned to the project on a regular basis,
including during implementation, and will change the classification where necessary, to
ensure that it continues to be appropriate. Any change to the classification will be disclosed
on the Bank’s website.

22. Where the Bank is providing support to one or more FIs, the risk classification of the
project will be determined by the Bank taking into account the type of financial instrument or
product involved to be provided, the nature of the FI’s existing portfolio, and the level of risk
associated with the proposed subprojects.

B. Use and strengthening of borrower’s environmental and social framework

23. The Bank supports the use of the Borrower’s ES Framework in the assessment,
development and implementation of projects supported through Investment Project
Financing, provided this is likely to address the risks and impacts of the project, and enable
the project to achieve objectives materially consistent with the ESSs. The use of all, or part,
of the Borrower’s ES Framework will be agreed between the Bank and the Borrower,
following completion of the assessment referred to below.

24. The Borrower’s ES Framework will include those aspects of the country’s policy, legal
and institutional framework, including its national, subnational, or sectoral implementing
institutions and applicable laws, regulations, rules and procedures, and implementation
capacity, which are relevant to the environmental and social risks and impacts of the project.
The aspects that are relevant will vary from project to project, depending on such factors as
the type, scale, location and potential environmental and social risks and impacts of the
project and the role and authority of different institutions.

25. If the Bank and the Borrower propose to use all, or part, of the Borrower’s ES
Framework, the Bank will review the Borrower’s ES Framework to assess whether such use
will meet the requirement of paragraph 23.

26. The Bank will disclose the intention to conduct the assessment as early as possible,
specifying the aspects of the Borrower’s ES Framework that will be assessed. The Bank will
engage with relevant stakeholders, so that their views can inform the assessment. In
conducting the assessment, the Bank may consider recent studies, reviews and other
assessments conducted by the Bank, other funding agencies, or the Borrower or relevant
stakeholders, to the extent these are relevant to the proposed project. When an assessment of
the Borrower’s ES Framework has been completed, the Bank will disclose a summary of the
assessment on its website.
27. The Bank will work with the Borrower to identify and agree on measures and actions to
address gaps24 and strengthen the Borrower’s ES Framework, to the extent that such
measures and actions are necessary to meet the requirement of paragraph 23. The agreed
measures and actions, together with the timeframes for completion of such measures and
actions, will form part of the ESCP.

28. Where the Bank becomes aware of a change in the Borrower’s ES Framework that may
materially adversely affect the project, the Bank will discuss the change with the Borrower.
If, in the opinion of the Bank, such change is inconsistent with paragraph 23 and the ESCP,
the Bank will have the right to require revisions to the ESCP as necessary to meet the
requirements of the ESSs and take such other measures as the Bank deems appropriate,
including applying the Bank’s remedies. 25

29. To support increasing use and strengthening of the Borrower‘s ES Framework, the Bank
may, at the request of the Borrower and where the Bank deems this to be feasible, conduct an
overview assessment of the Borrower’s existing policy, legal and institutional framework for
addressing environmental and social risks and impacts, and related implementation capacity.
The overview assessment will identify aspects of the existing framework that can be
strengthen, and the capacity-building needed to support this. The overview assessment will
not be a prerequisite for the use of all, or part of, the Borrower’s ES Framework for a specific
project. However, where the overview assessment has been completed, it will inform the
Bank’s assessment of the Borrower’s ES Framework, as referred to in paragraph 26. C.

Environmental and social due diligence

30. The Bank will conduct environmental and social due diligence of all projects proposed
for support through Investment Project Financing. The purpose of the environmental and
social due diligence is to assist the Bank in deciding whether to provide support for the
proposed project and, if so, the way in which environmental and social risks and impacts will
be addressed in the assessment, development and implementation of the project.

31. The Bank’s environmental and social due diligence will be appropriate to the nature and
scale of the project, and proportionate to the level of environmental and social risks and
impacts, with due regard to the mitigation hierarchy. 26 The due diligence will assess
whether the project is capable of being developed and implemented in accordance with the
ESSs.

32. The Bank’s due diligence responsibilities will include, as appropriate:

(a) reviewing the information provided by the Borrower relating to the environmental and
social risks and impacts of the project,27 and requesting additional and relevant information
where there are gaps that prevent the Bank from completing its due diligence; and

(b) providing guidance to assist the Borrower in developing appropriate measures consistent
with the mitigation hierarchy to address environmental and social risks and impacts in
accordance with the ESSs. The Borrower is responsible for ensuring that all relevant
information is provided to the Bank so that the Bank can fulfill its responsibility to undertake
environmental and social due diligence in accordance with this Policy.

33. The Bank recognizes that Borrowers may have different levels of information regarding
the environmental and social risks and impacts available at the time the Bank carries out its
due diligence. In such circumstances, the Bank will assess the risks and impacts of the
proposed project based on the information that is available to the Bank, together with an
assessment of:

(a) the risks and impacts inherent to the type of project and the specific context in which the
proposed project will be developed and implemented; and

(b)  the capacity and commitment of the Borrower to develop and implement the project in
accordance with the ESSs. The Bank will assess the significance of the gaps in information,
and the potential risk this may present to achieving the objectives of the ESSs. The Bank will
reflect this assessment in the relevant project documents at the time the proposed financing is
submitted for Board approval.

34. Where the Bank is approached to provide support for a project that is under construction,
or where the project has already received national permits, including the approval of local
environmental and social impact assessments, the Bank’s due diligence will include a gap
analysis against the ESSs to identify whether any additional studies and/ or mitigation
measures are required to meet the Bank’s requirements.

35. Depending on the potential significance of environmental and social risks and impacts,
the Bank will determine whether the Borrower will be required to retain independent third-
party specialists to assist in the assessment of environmental and social impacts. D. Special
project types Projects involving multiple small subprojects

36. For projects involving multiple small subprojects,28 that are identified, prepared and
implemented during the course of the project, the Bank will review the adequacy of national
environmental and social requirements relevant to the subprojects, and assess the capacity of
the Borrower 28Paragraphs 36 to 39 apply to a Bank supported project with multiple small
subprojects, as in the case of community-driven development (CDD) projects, projects
involving matching grant schemes, or similar projects designated by the Bank. to manage29
the environmental and social risks and impacts of subprojects as required by paragraph 37.
When necessary, the project will include measures to strengthen the capacity of the
Borrower.

37. The Bank will require the Borrower to carry out appropriate environmental and social
assessment of subprojects, and prepare and implement such subprojects, as follows:

(a) High Risk subprojects, in accordance with the ESSs;

(b) Substantial Risk, Moderate Risk and Low Risk subprojects, in accordance with national
law and any requirement of the ESSs that the Bank deems relevant to such subprojects. 30

38. If the Bank is not satisfied that adequate capacity exists on the part of the Borrower, all
High Risk and, as appropriate, Substantial Risk subprojects will be subject to prior review
and approval by the Bank until it is established that adequate capacity exists.

39. If the risk rating of a subproject increases to a higher risk rating, the Bank will require
the Borrower to apply relevant requirements of the ESSs31 in a manner agreed with the
Bank. The measures and actions agreed will be included in the ESCP, and will be monitored
by the Bank.

Projects involving financial intermediaries (FI)

40. Where the Bank is providing support to an FI,32 the Bank will review the adequacy of
national environmental and social requirements relevant to the project, taking into account
the type of FI subprojects33 being undertaken and the level of risk associated with the FI’s
portfolio and the capacity of the FI to manage environmental and social risks and impacts.
The Bank will require FIs to put in place and maintain an Environmental and Social
Management System (ESMS) to identify, assess, manage, and monitor the environmental and
social risks and impacts of FI subprojects on an ongoing basis. The ESMS will be
commensurate with the nature and magnitude of environmental and social risks and impacts
of FI subprojects, the types of financing, and the overall risk aggregated at the portfolio level.
The Bank will review the adequacy of the ESMS.

41. The Bank’s requirements and the scope of their application for a project involving an FI
will depend on the type of Bank support being provided to the FI, the type of FI subprojects
being undertaken and the level of risk associated with the FI’s portfolio.

42. The Bank will require that the ESMS of the FI sets out requirements to (a) screen all FI
subprojects against any exclusions in the legal agreement; (b) screen all FI subprojects for
environmental and social risks and impacts; (c) require that FI subprojects be prepared and
implemented in accordance with relevant environmental and social national and local laws
and regulations; (d) require specified FI subprojects (as identified in paragraph 44) to apply
the relevant requirements of the ESSs; and (e) conduct appropriate environmental and social
due diligence of FI subprojects, including environmental and social assessment.

43. The Bank may require the FI to adopt and implement additional or alternative
environmental and social requirements, depending on the environmental and social risk and
impacts of the potential FI subprojects and the sectors in which the FI is operating.

44. Where a project involving an FI is classified by the Bank as High Risk or Substantial

Risk and the Bank is not satisfied that adequate capacity exists for categorizing, carrying out
environmental and social assessment or reviewing the results of environmental and social
assessment, all FI subprojects that involve resettlement (unless the risks or impacts of such
resettlement are minor), adverse risks or impacts on Indigenous Peoples or significant risks or
impacts on the environment, community health and safety, labor and working conditions,
biodiversity or cultural heritage will be subject to prior review and approval by the Bank until
it is established that adequate capacity within the FI exists.

45. If the risk profile of a FI subproject increases significantly, the Bank will require the FI
to (a) notify the Bank; (b) apply relevant requirements of the ESSs in a manner agreed with
the Bank as set out in the ESMS (The ‘relevant requirements of the ESSs’ will relate to the
reasons for which the risk profile of the FI subproject has increased.); and (c) monitor the
measures and actions agreed, and report to the Bank as appropriate.

E. Environmental and Social Commitment Plan (ESCP)

46. The Bank will agree on an ESCP with the Borrower. 35 The ESCP will set out the
material measures and actions required for the project to meet the ESSs over a specified
timeframe. The ESCP will form part of the legal agreement. The legal agreement will
include, as necessary, obligations of the Borrower to support the implementation of the
ESCP.
47. The Bank will require the Borrower to implement the measures and actions identified in
the ESCP diligently, in accordance with the timeframes specified in the ESCP, and to review
the status of implementation of the ESCP as part of its monitoring and reporting. The draft
ESCP will be disclosed as early as possible, and before project appraisal.

48. The Bank will require the Borrower to prepare, submit to the Bank for approval and
implement a process that allows for adaptive management of proposed project changes or
unforeseen circumstances. The agreed adaptive management process will be set out in the
ESCP. The process will specify how such changes or circumstances are to be managed and
reported, and how any necessary changes will be made to the ESCP and the management
tools used by the Borrower.

F. Information disclosure

49. The Bank will apply the World Bank Policy on Access to Information with regard to all
documents provided to it by the Borrower.

50. The Bank will require the Borrower to provide sufficient information about the potential
risks and impacts of the project for the Borrower’s consultations with its stakeholders. Such
information will be disclosed in a timely manner, in an accessible place, and in a form and
language understandable to project-affected parties and other interested parties as set out in
ESS10, so they can provide meaningful input into project design and mitigation measures.

51. The Bank will disclose documentation relating to the environmental and social risks and
impacts of High Risk and Substantial Risk projects prior to project appraisal. This
documentation will reflect the environmental and social assessment of the project, and be
provided in draft or final form (if available). The documentation will address, in an adequate
manner, the key risks and impacts of the project, and will provide sufficient detail to inform
stakeholder engagement and Bank decision making. Final or updated documentation will be
disclosed when available.

52. For High Risk and Substantial Risk projects, the Bank will indicate in the Project
Appraisal Document the project-related documents that will be prepared and disclosed after
Board approval. For each key document, the Bank will provide, where possible, the following
details: the objectives and proposed content of the document; the rationale for the timing of
preparation; the estimated costs associated with the preparation of the document and its
implementation; the source of funding; and the arrangements for preparation. These details
and timing for delivery of the document will be set out in the ESCP, as appropriate.

G.  Consultation and participation

53. The Bank recognizes the importance of early and continuing engagement and meaningful
consultation with stakeholders. The Bank will require the Borrower to engage with
stakeholders, including communities, groups, or individuals affected by proposed projects,
and with other interested parties, through information disclosure, consultation, and informed
participation in a manner proportionate to the risks to and impacts on affected communities.
The Bank will have the right to participate in consultation activities to understand the
concerns of affected people, and how such concerns will be addressed by the Borrower in
project design and mitigation measures in accordance with ESS10. The Bank will monitor, as
part of its due diligence, the implementation of consultation and stakeholder engagement by
the Borrower.
54. In order to determine the applicability of ESS7, the Bank will undertake a screening in
accordance with the criteria in paragraphs 8 and 9 of ESS7, to determine whether Indigenous
Peoples (or as they may be referred to in the national context) are present in, or have
collective attachment to, the proposed project area. In conducting this screening, the Bank
may seek the technical advice of specialists with expertise on the social and cultural groups in
the project area. The Bank will also consult the Indigenous Peoples concerned and the
Borrower. The Bank may follow the Borrower’s national processes during project screening
for identification36 of Indigenous Peoples, where these processes meet the requirements of
ESS7. Where Indigenous Peoples are present in, or have a collective attachment to, the
proposed project area, the Bank will require the Borrower to undertake a process of
meaningful consultation tailored to Indigenous Peoples in 36In accordance with paragraphs 8
and 9 of ESS7. accordance with ESS7. 37 The outcome of the meaningful consultation will
be documented. The Bank will undertake the necessary due diligence and ascertain the
outcome of the meaningful consultation, and this will contribute to the Bank’s decision
making as to whether to proceed with the proposed project or not.

55. In addition, the Bank recognizes that Indigenous Peoples (or as they may be referred to
in the national context) may be particularly vulnerable to the loss of, alienation from or
exploitation of their land and access to natural and cultural resources. In recognition of this
vulnerability, the Bank will require the Borrower to obtain the Free, Prior and Informed
Consent (FPIC) of the affected Indigenous Peoples when such circumstances described in
ESS7 are present. 38 There is no universally accepted definition of FPIC. It does not require
unanimity and may be achieved even when individuals or groups within or among affected
Indigenous Peoples explicitly disagree. For the purposes of ESS7, consent refers to the
collective support of affected Indigenous Peoples communities for the project activities that
affect them, reached through a culturally appropriate process. It may exist even if some
individuals or groups object to such project activities. When the Bank is unable to ascertain
that such consent is obtained from the affected Indigenous Peoples, the Bank will not proceed
further with the aspects of the project that are relevant to those Indigenous Peoples for which
FPIC cannot be ascertained. In such cases, the Bank will require the Borrower to ensure that
the project will not cause adverse impacts on such Indigenous Peoples.

H.  Monitoring and implementation support

56. The Bank will monitor the environmental and social performance of the project in
accordance with the requirements of the legal agreement, including the ESCP, and will
review any revision of the ESCP including changes resulting from changes in the design of a
project or project circumstances. The extent and mode of Bank monitoring with respect to
environmental and social performance will be proportionate to the potential environmental
and social risks and impacts of the project. The Bank will monitor projects on an ongoing
basis as required by OP 10.00. 39 A project will not be considered complete until the
measures and actions set out in the legal agreement (including the ESCP) have been
implemented. To the extent that the Bank evaluation at the time of project completion
determines that such measures and actions have not been fully implemented, the Bank will
determine whether further measures and actions, including continuing Bank monitoring and
implementation support, will be required.

57. The Bank will provide implementation support regarding the environmental and social
performance of the project, which will include reviewing the Borrower’s monitoring reports
on compliance of the project with the requirements of the legal agreement, including the
ESCP.
58. Where appropriate and as set out in the ESCP, the Bank will require the Borrower to
engage stakeholders and third parties, such as independent experts, local communities or
nongovernmental organizations (NGOs), to complement or verify project monitoring
information. Where other agencies or third parties are responsible for managing specific risks
and impacts and implementing mitigation measures, the Bank will require the Borrower to
collaborate with such agencies and third parties to establish and monitor such mitigation
measures.

59. Where the Bank has identified and agreed with the Borrower and, as relevant, other
agencies,40 on corrective or preventive measures and actions, all material measures and
actions will be included in the ESCP. Such measures and actions will be addressed in
accordance with the timeframe set out in the ESCP or, if they are not included in the ESCP,
in a reasonable timeframe, in the opinion of the Bank. The Bank will have the right to apply
the Bank’s remedies if the Borrower fails to implement such measures and actions in the
timeframes specified.

I. Grievance mechanism and accountability

60. The Bank will require the Borrower to provide a grievance mechanism, process, or
procedure to receive and facilitate resolution of concerns and grievances of project-affected
parties arising in connection with the project, in particular about the 40Where the Bank has
agreed on a common approach with other multilateral or bilateral funding agencies, the Bank
will review any corrective or preventive measures and actions agreed with the Borrower in
accordance with paragraph 9. Borrower’s environmental and social performance. The
grievance mechanism will be proportionate to the risks and impacts of the project.41

61. Project-affected parties may submit complaints regarding a Bank-financed project to the
project grievance mechanism, appropriate local grievance mechanism, or the World Bank’s
corporate Grievance Redress Service (GRS). The GRS ensures that complaints received are
promptly reviewed in order to address project-related concerns. After bringing their concerns
directly to the World Bank’s attention and giving Bank Management a reasonable
opportunity to respond, project-affected parties may submit their complaint to the World
Bank’s independent Inspection Panel to request an inspection to determine whether harm has
occurred as a direct result of World Bank noncompliance with its policies and procedures.
Institutional and implementation arrangements

62. The Bank will allocate responsibilities and appropriate resources to support an effective
implementation of this Policy.

63. Projects receiving initial approval by Bank management prior to the entry into force of
this Policy will be subject to the Bank’s existing Policies identified in footnote 1 of this
Policy.

64. The Bank will develop and maintain directives, procedures and appropriate guidance and
information tools to assist in implementing this Policy. 65. This Policy will be reviewed on
an ongoing basis and will be amended or updated as appropriate, subject to approval by the
Board of Directors.
Assessment and Management of Environmental and Social Risks and Impacts (ESS1) 5
ESS1 Assessment and Management of Environmental and Social Risks and Impacts sets out the
Borrower’s responsibilities for assessing, managing and monitoring environmental and social risks
and impacts associated with each stage of a project supported by the Bank through Investment
Project Financing (IPF), in order to achieve environmental and social outcomes consistent with the
Environmental and Social Standards (ESSs).

Read the full ESS1: Assessment and Management of Environmental and Social Risks and Impacts

The Guidance Note for Borrowers Environmental & Social Framework for IPF Operations provides
additional background and guidance on the process.

5
https://www.worldbank.org/en/projects-operations/environmental-and-social-framework/brief/
environmental-and-social-standards?cq_ck=1522164538151#ess1