MODULE 3: ASSESSMENT AND MANAGEMENT OF ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS (ESS1)

Module 3: Assessment and Management of Environmental and Social Risks and

Impacts (ESS1)
ENTER

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 MODULE 3: ASSESSMENT AND MANAGEMENT OF ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS (ESS1)

Topic: Welcome
Topic: Scope of Application
Topic: The Borrower’s Responsibilities
Topic: Environmental and Social Assessment Process
Topic: Other Environmental and Social Assessment Requirements
Topic: Environmental and Social Risk Management
Topic: Summary

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Read More
This course aims to provide an in-depth introduction to the elements of the World
Bank’s Environmental and Social Framework for Investment Project Financing.
Before taking this course, you are encouraged to read the Environmental and
Social Framework itself and to use it as a reference document as needed, both
while taking the training and in the future.

This course was developed for World Bank staff and therefore some references
may be specific to World Bank staff.

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Introduction to the Module

Welcome to Module 3 - Assessment and Management of Environmental and
Social Risks and Impacts (ESS1)
ESS1 sets out the Borrower’s responsibilities at all stages of a project for
Assessing, Managing and Monitoring environmental and social risks and
impacts.

ESS1 requirements apply to:

 All projects supported by the World Bank through Investment Project Financing
 Associated Facilities to the extent that the Borrower has control or influence
over them

Completion time: Approximately 40-50 minutes

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ESS1 Key Features

ESS1 objectives and requirements are applied in a manner that is appropriate to
the nature and scale of the project, and proportionate to the environmental and
social risks and impacts, including:
 Tailoring the environmental and social assessment process and tools to the
nature and needs of the project while ensuring information is sufficient to
support the decision-making process
 Involving stakeholders at all stages of the project in order to identify their
concerns and aspirations and improve the design and implementation of the
project

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Objectives of ESS1
The objectives of ESS1 are to:
 Identify, evaluate and manage the environmental and social risks and impacts
 Follow the Mitigation Hierarchy approach
 Adopt differentiated measures so that adverse impacts do not fall
disproportionately on the disadvantaged or vulnerable, and they are not
disadvantaged in sharing development benefits and opportunities
 Utilize national environmental and social institutions, systems, laws,
regulations and procedures
 Recognize and enhance Borrower capacity

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Learning Objectives
By the end of this module, you will be able to:
 Describe the Borrower’s responsibilities for assessing, managing and
monitoring environmental and social risks and impacts
 Explain the Mitigation Hierarchy approach
 Explain how to apply ESS1 to Associated Facilities, and Technical Assistance
supported through investment lending
 Describe several environmental and social assessment tools and explain when
they should be used
 Explain the meaning and importance of integrated environmental and social
risk assessment and management

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Investment Project Financing and Associated Facilities

ESS1 applies to:
 Investment Project Financing, including Technical Assistance under
Investment Project Finance lending
 Associated Facilities

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What is a project?
Activities for which the World Bank financing is sought by a Borrower, and as
defined in the legal agreement between the Borrower and the World Bank.

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What is an Associated Facility?

A facility or activity that is not funded as part of the project but:
 Is directly and significantly related to the project
 Is carried out or planned to be carried out, contemporaneously with the project
 Is necessary for the project to be viable and would not have been constructed,
expanded or conducted if the project did not exist

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The Borrower and Associated Facilities

Associated Facilities will meet the requirements of the Environmental and Social
Standards, to the extent that the Borrower has control or influence over them.
The Borrower is required to demonstrate the reasons and extent to which it
cannot exercise control or influence over the Associated Facilities. The
environmental and social assessment for the project should:
 Identify
 Explain
 Describe

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Identify
Identify the parties involved in design and operation of the Associated Facility and
their respective roles.

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Explain
Explain to what extent and for what reasons the Borrower lacks or has limited
control or influence over the design and /or operation of the Associated Facility.

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Describe
Describe and evaluate the risks, if any, which this lack or limitation of the
Borrower’s control or influence over the Associated Facility presents to the project,
the environment or project-affected people.
The Borrower is required to demonstrate the reasons and extent to which it
cannot exercise control or influence over the Associated Facilities.

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The nature of control or influence is complex and goes beyond a simple

understanding of ownership, regulatory authority or whether the facilities or
activities are located in sovereign territory. The Borrower’s extent of control or
influence does not necessarily include the ability, as a sovereign state, to regulate
facilities or activities outside the project. The Borrower’s ability to control or
influence Associated Facilities should be considered as part of the environmental
and social risk assessment of the project.

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Common Approach and Associated Facilities

Where a common approach has been agreed for the project, it will also apply to
the Associated Facilities.
Where 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
Environmental and Social Standards.

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Technical Assistance Supported Through Investment Project Financing

ESS1 applies to Technical Assistance that is supported by the World Bank
through Investment Project Financing. This Technical Assistance:
 May be in the form of a stand-alone project or as part of a project that also
supports physical investments
 May be used for many purposes, such as:
o Preparation of feasibility studies or technical or engineering designs
relating to the construction of infrastructure
o Drafting of policies, strategies, laws or regulations, which can often have
environmental or social impacts when they are applied
The Requirements of ESS1 (as set out in Paragraphs
14 - 18) and all the Environmental and Social Standards are applied to Technical
Assistance activities as relevant and appropriate to the nature of the risks and
impacts.
The Terms of Reference, work plans and other documents defining the scope and
outputs of Technical Assistance activities should be drafted so that the advice and
other support provided will be consistent with the Environmental and Social
Standards.

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Example
For example, if the Technical Assistance is:
 Supporting the preparation of a feasibility study for construction of new
infrastructure which will require land acquisition, the study (including cost
estimates and timeframes for implementation) should incorporate the relevant
requirements of ESS5 (Land Acquisition, Restrictions on Land Use and
Involuntary Resettlement)
 Advising on the preparation of a forest policy management, the analysis and
recommendations should incorporate the principles of habitat protection and
sustainable forest management of ESS6 (Biodiversity Conservation and
Sustainable Management of Living Natural Resources)

However, the Environmental and Social Standards do not apply to activities

implemented by the Borrower:
 That are not directly related to the Technical Assistance
 That are not financed by the World Bank, even if they are in the same sector or
line of business as the Technical Assistance

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 Following completion of the Technical Assistance (unless those activities are

financed by the World Bank)

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Common Approach: World Bank Co-financing with Other Multilateral or

Bilateral Funding Agencies
When the World Bank is jointly financing a project with other multilateral or
bilateral agencies, the Borrower and other financiers may together agree on a
Common Approach for the assessment and management of environmental and
social risks and project impacts.
A Common Approach can be used when it enables the project to achieve
objectives materially consistent with the Environmental and Social Standards.
 The World Bank takes into account the policies, standards and implementation
procedures of all co-financiers when determining whether the Common
Approach will enable the project to achieve such objectives.
Agreed measures and actions under the Common Approach are included in the
Environmental and Social Commitment Plan.

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How Does a Common Approach Apply to FIs?

When providing support to a Financial Intermediary (FI) that has already received
funding from a multilateral or bilateral agency, the World Bank may agree to rely
on the requirements of these other agencies for the assessment and
management of environmental and social risks and project impacts.
This may include institutional arrangements already established by the FI.

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Discovery Question
The World Bank and a Regional Development Bank are
co-financing the construction of a new gas-fired thermal power plant. The project
location is immediately adjacent to an existing coal-fired power plant which the
Ministry of Energy is in the process of upgrading with more modern technology to
reduce SO2 and particulate emissions. Just before the new power plant becomes
operational, the Ministry of Energy constructs a dedicated gas pipeline to connect
the new plant to an existing gas field which serves several regions of the country.
At the same time, an existing transmission line which previously evacuated power
from the coal-fired plant is upgraded to enable it to serve both the coal and the
new gas plant.
Five years after the new plant begins operations, the government uses a public-
private partnership to build an extension which increases its capacity by thirty
percent. At that time, the Government expands the gas field to help meet the
increased consumption of the expanded power plant as well as growing demand
from the domestic and industrial sectors nationwide.

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Discovery Question
In the scenario, which of the following would be an Associated Facility to a World
Bank-financed project, as defined in ESS1?
Correct Choice

Gas field

Expansion of the gas field

X Gas pipeline

Old power plant

X Upgrading of the transmission line

Extension to the World Bank-financed power plant

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Environmental and Social Risks and Impacts

The Borrower is responsible for:
 Assessing environmental and social risks and impacts
 Managing environmental and social risks and impacts throughout the project
life-cycle
 Monitoring and reporting environmental and social performance
 Engaging with stakeholders and disclosing information throughout the project
life-cycle
 Providing information to assist the World Bank in carrying out its assessment
of proposed use of the Borrower’s framework

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Risks and Impacts

Risk: Exposure to danger, harm or loss; a probability or threat of damage, injury,
loss, liability or other adverse outcome. The level of risk is a function of the
probability of an event occurring and the likely severity of its impacts.
Impact: To have a marked or noticeable effect or influence, for example, on a
person, activity, concept, situation or outcome.
Alternatively, impact is the force of influence or impression of one thing on
another.

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Objectives
Here are the objectives of the environmental and social assessment process.

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The Borrower:
 Conducts an environmental and social assessment to:
o Identify and evaluate potential environmental and social risks and project
impacts
o Design measures to mitigate and manage these risks and impacts
 Consults with the World Bank to help identify potential issues and to define the
process to be used and the tools to be prepared

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The environmental and social assessment process integrates environmental and

social risks and impacts so that they are:
 Considered together
 Analyzed in terms of how they influence and interact with one another
An integrated process will result in risk management measures that are
complementary.

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The environmental and social assessment process documents how the Mitigation
Hierarchy was followed in project design and preparation, including:
 Describing and analyzing alternative locations, technologies or approaches
that were considered
 Indicating why alternatives were or were not adopted or recommended

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Where residual adverse risks or impacts are anticipated, the environmental and
social assessment:
 Describes the nature and significance of the residual risks and impacts
 Identifies risks and impacts considered to be significant
The assessment covers the entire life cycle of the project and may continue into
the implementation phase.

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Types of Impacts
The environmental and social assessment process should consider, identify and
evaluate all potential risks and impacts associated with the project, including:
 Direct, Indirect and Cumulative Risks and Impacts
 Local, Offsite and Transboundary Risks and Impacts
 Residual Risks and Impacts

An impact which is caused by the project, and occurs contemporaneously in the

location of the project.
The impact of inundating a valley on villages and habitats on the valley floor.
An impact caused by the project, later in time or farther removed in distance than
a direct impact, but still reasonably foreseeable.
In a project to develop tourism in a forested area, deforestation resulting from the
informal collection of fuelwood and timber to meet the needs of tourists and
tourism operators and workers.
The incremental impact of the project when added to impacts from other relevant
past, present and reasonably foreseeable developments, as well as unplanned

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but predictable activities that are enabled by the project and that may occur later
or at a different location. Cumulative impacts can result from individually minor but
collectively significant activities taking place over a period of time.
Six “run of the river” hydropower projects along a single river channel, each
diverting water for a relatively small percentage of the total length of the river, but
collectively resulting in loss of a large percentage of riverine ecosystem.
The collective impacts of dozens of small scale poultry farms in an area, all of
which are sources of manure entering the same river.
Impact remaining following application of avoidance, minimization and mitigation
measures
Traffic noise remaining after all feasible traffic noise reduction options have been
implemented.
The Borrower will also address risks and impacts associated with any primary
suppliers of the project, as set out in ESS2 and ESS6.

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Primary Suppliers
Primary suppliers are those suppliers who, on an ongoing basis, provide directly
to the project goods or materials essential for the core functions of the project.

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Environmental and Social Assessment as a Process

The environmental and social assessment:
 Is a progressive and iterative process
 Is conducted in parallel with project design
 Contributes to the improvement of project design
 Is informed by consultation with stakeholders in accordance with ESS10

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Assessing environmental and social risks and impacts continues throughout the
life-cycle of the project, through monitoring of indicators, such as:
 Emissions into air and water
 Populations of indicator species
 Road accidents

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The environmental and social assessment includes:

 Carrying out detailed studies of particular elements such as biodiversity,
seismology, hydrology, social conflicts and cultural assets, where appropriate
 Identifying and developing plans for the implementation of measures and
actions to avoid or manage risks and impacts
 Assessing the capacity of institutions responsible for carrying them out

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 Assessment reports may take different forms depending on topics covered,

level of detail, and timing relative to project activities, as described in ESS1
Annex 1
 Contents, timing and uses of environmental and social assessment reports
may be specified in national laws
Participating in the assessment process can contribute to individual and
institutional capacity building.

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Stages of the Environmental and Social Assessment Process

Main stages of the environmental and social assessment process to be carried
out by the Borrower:
 Screening
 Scoping
 Assessment
 Risk Management Planning
 Monitoring

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Screening
Most countries have laws requiring that environmental assessments be carried
out for certain types of projects, usually based on factors relating to the nature,
scale and location of the proposed activities. Often these laws include
differentiated assessment requirements based on a screening and classification
process similar to that described in the World Bank’s Environmental and Social
Policy (Paragraph 20), although the categories and criteria may be different from
those used by the World Bank. A comparison of the national system for project
risk screening with the assessment requirements associated with different risk
categories is one of the aspects the World Bank will assess when considering
whether to agree that the Borrower will apply part or all of its own framework to
implement a World Bank-supported project to meet the requirements of the ESF.
The World Bank also assesses the capacity of the Borrower or Financial
Intermediaries to screen subprojects against the relevant laws or World Bank
criteria in the case of projects involving multiple subprojects that are identified,
prepared and implemented during the course of the project.

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Environmental Assessments
Most national laws refer to environmental assessment rather than environmental
and social assessment, but also usually call for addressing social risks and
impacts arising from changes in the physical or biological environment.

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Scoping
Refers to identifying potential environmental and social risks and impacts on
which the environmental and social assessment should focus, the methods to be
used and the level of effort needed to fully understand the risks and impacts and
the options for mitigating them. The results of the scoping process should inform
the preparation of the Terms of Reference for the environmental and social
assessment, including any studies on specific aspects such as a social conflict
analysis, a cultural heritage assessment, and a biodiversity management plan.

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Assessment
This step includes: (i) Detailed identification and evaluation of potential risks and
impacts, based on collection and analysis of specific data, and (ii) Identification
and recommendation of appropriate and feasible measures to reduce and
manage the risks and impacts and identification of likely residual (unavoidable
and non-mitigatable) risks and impacts.

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Risk Management Planning

Involves the preparation of one or more plans identifying specific mitigation
measures to be implemented, their estimated costs, monitoring indicators for
assessing their effectiveness and institutional responsibilities. In addition to a
general Environmental and Social Management Plan, this may include, for
example, a Biodiversity Management Plan, a Cultural Heritage Management Plan,
a Resettlement Action Plan and a Pest Management Plan.

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Monitoring
Monitoring project implementation may also be regarded as part of adaptive
management, as information from monitoring should be used to improve project
approaches or implementation as needed.

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Methods and Tools

Methods and tools used to carry out the environmental and social assessment
include, among others:
 Environmental and Social Impact Assessment
 Strategic Environmental and Social Assessment
 Environmental Audit
 Hazard or Risk Assessment

Scoping helps the Borrower determine, in consultation with the World Bank, which
tools to use, depending on baseline information available and the nature and
significance of the project’s potential risks and impacts. For example:
 A full and comprehensive Environmental and Social Impact Assessment (see
outline in ESS1, Annex 1) for large, complex projects with multiple significant
risks that are not fully understood or may be difficult to manage
 A limited or targeted assessment, or only an environmental and social
management plan, when potential project risks and impacts are easily
identified, and appropriate and reliable mitigation measures are well known

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 No further assessment or plans if screening and scoping indicate minimal or

no adverse environmental or social risks and impacts of the project

Interim environmental and social assessment reports may be disclosed and

considered for projects that are appraised or presented to the World Bank’s Board
at a relatively early stage of preparation. Such interim assessments are refined as
further information about the project becomes available.

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Projects Consisting of Multiple Subprojects

Annex 1 also refers to an Environmental and Social Management Framework.
When is it appropriate for the Borrower to use this tool?

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When a project consists of a program or a series of subprojects, and the risks and
impacts cannot be determined until the program or subproject details have been
identified during project implementation, the Borrower can prepare an
Environmental and Social Management Framework that sets out the principles,
rules, guidelines and procedures for assessing their environmental and social
risks and impacts as part of the process of preparation and approval of the
subprojects.

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Projects Consisting of Multiple Subprojects

Does ESS1 make any special provisions for projects which support multiple
subprojects that are all small scale, such as Community-Driven Development
Projects or matching grant schemes?

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Yes. This is an example of applying the proportionality principle. For these types
of projects ESS1 sets different requirements for how the Borrower carries out the
environmental and social assessment and prepares and implements the
subprojects depending on their risks:
 For High Risk subprojects, it is in accordance with the Environmental and
Social Standards
 For Substantial, Moderate or Low Risk subprojects, it is in accordance with
national law and any requirements of the Environmental and Social Standards
that the World Bank deems relevant to particular subprojects
 For subprojects that are identified during the scoping process as being likely to
have minimal or no adverse environmental or social risks, no further
environmental and social assessment is required
It is important to note that these provisions do not apply to subprojects in
Financial Intermediary projects, which are addressed separately in ESS9.

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Pre-existing Environmental and Social Assessment

For an environmental and social assessment completed by the Borrower before
the World Bank becomes involved, a review and gap analysis of the existing
assessment is carried out by the Borrower in consultation with the World Bank.
Based on this review, the World Bank may request the Borrower
to carry out additional work to meet the requirements for an environmental and
social assessment as set out in ESS1.
For example:
 To cover additional topics not addressed in the existing assessment, such as
community health and safety or labor
 To require a more detailed biodiversity survey or collection of baseline data
covering all seasons
 To increase the extent or quality of public consultation
 To demonstrate how the steps of the Mitigation Hierarchy have been applied,
such as through a thorough analysis of alternatives

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Use of Independent Specialists

The Borrower is required to engage independent specialists to carry out
environmental and social assessments:
 For projects classified as High or Substantial Risk
 In cases where the Borrower has limited capacity to carry out an assessment
The Borrower may be required to engage internationally recognized independent
specialists to provide independent advice and oversight:
 For projects that are High Risk or contentious, or involve serious
multidimensional environmental or social risks or impacts

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Independent specialists
The Borrower should ensure that the persons carrying out the environmental and
social assessment have the necessary technical expertise, competency and
experience to evaluate the project’s risks and impacts and determine how the
relevant requirements of the Environmental and Social Standards will be met.
The use of independent specialists to carry out environmental and social
assessments is intended to ensure objectivity and avoid real or perceived conflict
of interest. The independent specialist should generally not be involved in other
aspects of preparation, design and implementation of the project. However, in
certain circumstances where an expert has been involved in some aspects of the
project (such as feasibility studies), he/she may be engaged by the Borrower for
the environmental and social assessment if the Borrower can demonstrate to the
satisfaction of the World Bank that there is no conflict of interest and that doing so
would benefit the assessment.

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Information Disclosure
Under ESS10:
 The Borrower is expected to engage with, and provide sufficient information to,
stakeholders:
o Throughout the life-cycle of the project
o Starting as early as possible in project identification and preparation
 The Borrower discloses information from the environmental and social
assessment process in a timely and accessible manner

Under ESS1:
 The Borrower provides to the World Bank and publicly discloses
documentation relating to the environmental and social risks and impacts of
High Risk and Substantial Risk projects, prior to project appraisal

The documentation:
 Addresses key risks and impacts of the project

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 Provides sufficient detail to inform stakeholder engagement and World Bank

decision-making

When documentation disclosed prior to appraisal is a draft or an interim version,

the Environmental and Social Commitment Plan specifies when and how the
Borrower will disclose and provide to the World Bank, updated and final versions.

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Mitigation Hierarchy
The Borrower is responsible for developing mitigation measures, in line with the
Mitigation Hierarchy.
The steps of the Mitigation Hierarchy are:
 Anticipate and Avoid
 Minimize or Reduce
 Mitigate
 Compensate For or Offset Significant Residual Risks

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Anticipate and Avoid

Examples of avoidance measures include selecting project sites that are not
environmentally or social sensitive, and finding ways to enable current residents
to continue to live on the project site rather than re-locating them.

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Minimize or Reduce
Examples of measures to reduce or minimize risks include use of low-emission
and “benign by design” technologies, and lowering the height of a proposed dam
to reduce the number of people needing resettlement.

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Mitigate
Examples of mitigation measures include providing alternative access to
important cultural or natural resource assets, installing underpasses or green
bridges across busy roadways, and physical rehabilitation or ecological
restoration of construction sites.

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Compensate for or Offset Significant Residual Risks

In the final step, the terms “compensation” or “offsetting” usually refer to
establishing biodiversity offsets to achieve “no net loss” or “net gain” in
biodiversity value. This is acceptable only as a last resort under specific
circumstances, as set out in ESS6. Compensation can also refer to providing
benefits of various kinds to help make some types of project impacts acceptable
to stakeholders, as in the case of the project proponent developing a new
community recreation area if the existing areas used for recreation are made less
attractive or accessible as a result of the project. However, the term
“compensation” as used in the Mitigation Hierarchy does not refer to financial
compensation for project-affected people for loss of land or land-based assets in
accordance with ESS5.
Where it is determined that it is technically or financially not feasible to
compensate or offset for residual impacts, the rationale for this determination
(including the options that were considered) should be set out in the
environmental and social assessment documentation and will be taken into
consideration in the World Bank’s decision on whether to support the proposed
project.

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Environmental and Social Commitment Plan (ESCP)

What is the ESCP?
The ESCP:
 Is developed by the Borrower in agreement with the World Bank
 Sets out measures and actions needed for the project to achieve compliance
with Environmental and Social Standards over a specified timeframe
 Is an essential mechanism to enable the World Bank and the Borrower to
agree in advance on any assessments, planning and actions to be carried out
during implementation to manage environmental and social risks and impacts
in accordance with the Environmental and Social Framework
 Is prepared taking into account findings of the environmental and social
assessment, the World Bank’s environmental and social due diligence and the
results of engagement with stakeholders

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The ESCP
 Provides a full and accurate summary of material measures and actions
required to avoid, minimize, reduce or otherwise mitigate the potential
environmental and social risks and impacts of the project, including:
o Measures to revise policies or strategies or to build capacity within the
institutions involved in implementing the project
o Actions required by national laws and regulations that are also relevant
to satisfying the requirements of the Environmental and Social
Standards
o Actions that the Borrower may have taken prior to approval of the project
by the World Bank
 Sets out the institutional arrangements (including personnel, budget and
timelines for implementation)
 Includes all the relevant measures and agreed actions where:
o Use of the Borrower framework has been agreed
o A “Common Approach” is used for a project co-financed by the World
Bank and financing partners.

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ESCP as an Adaptive Management Tool

The ESCP:
 Includes provisions for continuing stakeholder engagement throughout project
implementation. This includes but is not limited to grievance mechanisms
covering all aspects of the project
 Includes processes to allow for making appropriate changes to the project
design or approach in response to unforeseen circumstances, and specifies
how such changes will be developed, agreed, managed, reported and
documented. This may include revision of project management instruments
including the ESCP itself
 Is implemented by the responsible parties in accordance with the timeframe
indicated. The Borrower will review the status of implementation of the ESCP
as part of monitoring and reporting on project implementation

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ESCP - The Borrower’s Responsibilities

The Borrower’s responsibilities are:
 To implement diligently the measures and actions identified in the ESCP in the
timeframe indicated
 To review the implementation of the ESCP as part of its monitoring and
reporting
 To notify the Bank promptly of any proposed changes to the scope, design,
implementation or operation of the project that are likely to cause an adverse
change in the environmental or social risks or impacts of the project
 To carry out, as appropriate, additional assessment and stakeholder
engagement in accordance with the Environmental and Social Standards and
propose changes as necessary

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Monitoring and Reporting

The Borrower has primary responsibility for:
 Monitoring:
o Ensuring implementation of mitigation and management measures and
Environmental and Social Commitment Plan provisions on their own
projects, in accordance with the legal agreement, and identifying any
necessary corrective actions
o Engaging third parties to verify its monitoring processes or activities,
where necessary
 Reporting:
o Providing regular reports on its performance against the Environmental
and Social Commitment Plan provisions to the World Bank
o Notifying the World Bank promptly of any accident or incident with
significant adverse impacts, and taking immediate action to address it
and to prevent a recurrence
o Amending the Environmental and Social Commitment Plan or relevant
management tool if such corrective actions are necessary

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Managing Contractors
Contractors can have a major impact on communities and the environment
depending on how they operate their business and manage their staff. Therefore,
managing contractors is an essential element of environmental and social risk
management.
The Borrower is ultimately responsible for ensuring that the project is
implemented in a manner consistent with the Environmental and Social Standards.
Contractors retained by or acting on behalf of the Borrower or its implementing
agency are considered to be under the direct control of the Borrower.

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The Borrower's Responsibility for Managing Contractors

The Borrower is required to manage contractors effectively, including:
 Assessing environmental and social risks associated with those contracts
 Vetting contractors to ensure that they are legitimate and reliable and have
required knowledge and skills to deliver on their contract
 Incorporating relevant Environmental and Social Commitment Plan elements
into tender documents
 Incorporating relevant commitment and management tools into contracts
including effective remedies for non-compliance
 Monitoring their compliance with contractual commitments
 Requiring contractors to have equivalent arrangements with their
subcontractors

The same responsibilities and requirements apply to contractors for managing

any subcontractors engaged by them.

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Knowledge Check
How many Environmental Standards and Social Standards are there?
Correct Choice

7 Environmental and 3 Social

10 Environmental and no Social

5 Environmental and 5 Social

X None of the above

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Recap
Here is a quick recap of the main points covered in this module.
 ESS1
 The Borrower’s Responsibilities
 Methods and Tools
 The ESA Process
 Impact
 Stages

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ESS1
 Applies to all activities, including Technical Assistance, supported through
Investment Project Financing, and to Associated Facilities
 Requires engaging with stakeholders and disclosing information throughout
the project life-cycle

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The Borrower’s Responsibilities

 Engaging independent specialists to carry out environmental and social
assessment
 Engaging with stakeholders and disclosing information throughout the project
life-cycle
 Managing environmental and social risks throughout the project life-cycle
 Monitoring and reporting environmental and social performance
 Assessing environmental and social risks and impacts
 Monitoring and reporting
 Developing mitigation measures, in line with the Mitigation Hierarchy
 Providing information to assist the World Bank in carrying out its assessment
of proposed use of the Borrower’s framework

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Methods and Tools

 Environmental and Social Impact Assessment
 Strategic Environmental and Social Assessment
 Environmental Audit
 Hazard or Risk Assessment

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The ESA Process

 Allows for environmental and social risks to be:
o Considered together
o Analyzed in terms of how they influence and interact with one another
 Results in risk management measures that are complementary

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Impact
The ESA process should consider, identify and evaluate all potential risks and
impacts associated with the project, including:
 Direct, Indirect and Cumulative Risks and Impacts
 Residual Risks and Impacts

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Stages
The main stages of the environmental and social assessment process to be
carried out by the Borrower are:
 Screening
 Scoping
 Assessment
 Risk Management Planning
 Monitoring

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