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MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Module 2: Environmental and Social Framework Policy and Directives


ENTER

World Bank Environmental and Social Framework Page |1


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Topic: Welcome
Topic: Policy Overview
Topic: Due Diligence Through the Project Cycle
Topic: Special Applications
Topic: Use of the Borrower’s Environmental and Social Framework
Topic: Addressing Risks and Impacts on Disadvantaged or Vulnerable
Individuals or Groups
Topic: Summary

World Bank Environmental and Social Framework Page |2


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Read More

The Environmental and Social Policy and the Directives described in this
module detail responsibilities for World Bank staff.

World Bank Environmental and Social Framework Page |3


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Learning Objectives
Welcome to Module 2 - Environmental and Social Framework, Policy and
Directives. The policy details the responsibilities of the World Bank related to
implementation of the Environmental and Social Framework.
By the end of this module, you will be able to:
 Describe the World Bank’s due diligence responsibilities in relation to the
Environmental and Social Framework
 Outline how the World Bank carries out and documents its due diligence at
different stages of the project cycle
 Explain how the World Bank provides advice and guidance to the Borrower
with respect to the Environmental and Social Standards or ESS
 Describe how the World Bank supports the use of the Borrower's
framework in the assessment, development, and implementation of projects
 Explain responsibilities of the World Bank staff under the Bank Directive on
Addressing Risks and Impacts on Disadvantaged or Vulnerable Individuals
or Groups
 Recognize some helpful approaches, mindsets and behaviors that are key
for successful implementation of the Environmental and Social Framework

World Bank Environmental and Social Framework Page |4


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Completion Time: Approximately 50-60 minutes

World Bank Environmental and Social Framework Page |5


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

ESF Objectives and the World Bank’s Responsibilities


The Environmental and Social Policy:
 Mandatory requirements of the World Bank in relation to projects it supports
through Investment Project Financing

The World Bank is committed to:


 Supporting the Borrower in the development and implementation of
environmentally and socially sustainable projects
 Enhancing the capacity of the Borrower’s framework to assess and manage
the environmental and social risks and impacts of projects
 Assisting the Borrower in preparing and implementing projects in
accordance with the Environmental and Social Standards

To carry out this Policy, the World Bank will:


 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

World Bank Environmental and Social Framework Page |6


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

 Support the Borrower in carrying out early and continuing engagement and
meaningful consultation with stakeholders, in particular affected
communities
 Assist the Borrower in identifying appropriate methods and tools to assess
and manage the potential environmental and social risks and impacts of
projects
 Agree with the Borrower on the conditions under which the World Bank is
prepared to provide support to a project (as set out in the Environmental
and Social Commitment Plan)
 Monitor the environmental and social performance of a project in
accordance with the Environmental and Social Commitment Plan (ESCP)
and the Environmental and Social Standards

World Bank Environmental and Social Framework Page |7


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

The World Bank’s Environmental and Social Due Diligence


The World Bank conducts environmental and social due diligence for all
projects proposed for investment project financing.
The World Bank’s due diligence process as set out in the Policy consists of:
 Reviewing d information provideby the Borrower relating to environmental
and social risks and impacts of the project, and requesting additional
information where needed to complete its due diligence
 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 Environmental and
Social Standards
 Classifying the project’s environmental and social risk levels throughout
the life of the project
 Reviewing project design and implementation arrangements to establish
that they are consistent with achieving the objectives of the Environmental
and Social Standards
 Monitoring project implementation and requiring the Borrower to take
corrective action if objectives of the Environmental and Social Standards
are not being met

World Bank Environmental and Social Framework Page |8


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Environmental and Social Commitment Plan


The Borrower will prepare an Environmental and Social Commitment Plan
(ESCP), to be agreed with the World Bank. The ESCP will set out the
material measures and actions required for the project to meet the
Environmental and Social Standards over a specified time frame, and will form
part of the legal agreement.

The World Bank will require the Borrower to:


 Disclose the draft ESCP as early as possible, and before project appraisal
 Implement the measures and actions identified in the ESCP in accordance
with specified time frames
 Review the status of implementation of the ESCP as part of its monitoring
and reporting
 Include in the ESCP an agreed process that allows for adaptive
management

World Bank Environmental and Social Framework Page |9


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Use and Strengthen Borrower Capacity


Use of the Borrower’s environmental and social framework is supported for
project assessment, development and implementation, when it’s likely to:
 Address the risks and impacts of the project
 Enable the project to achieve objectives materially consistent with the
Environmental and Social Standards

Assessment of the Borrower’s framework


 Use of all, or part, of the Borrower’s framework will be agreed between the
World Bank and the Borrower, after:
o The World Bank completes an assessment of the parts of the
Borrower’s framework that are relevant to the environmental and
social risks and impacts of the project

The World Bank:


 Engages with relevant stakeholders when carrying out the assessment and
may consider recent studies, reviews and assessments when relevant

World Bank Environmental and Social Framework P a g e | 10


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

 Discloses the completed assessment on its website


 Works with the Borrower to identify and agree on how to address gaps and
strengthen the Borrower’s framework
 Requires the Borrower to revise the ESCP, if it becomes aware of a change
in the Borrower’s framework that could adversely affect the project

World Bank Environmental and Social Framework P a g e | 11


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Use of All, or Part, of the Borrower’s Framework


The decision to use all, or parts, of the Borrower’s framework will not relieve
the World Bank of any of its due diligence obligations in relation to the project,
as set out in the Environmental and Social Policy.

World Bank Environmental and Social Framework P a g e | 12


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Overview Assessment
To support increasing use and strengthening of the Borrower's framework, the
Bank may, at the request of the Borrower, conduct an overview assessment of
the Borrower’s existing policy, legal and institutional framework for addressing
environmental and social risks and impacts, with the objective of identifying
aspects of the existing framework that can be strengthened, and the capacity
building needed to support this.

The overview will not be a prerequisite for the use of all, or part of, the
Borrower’s framework for a specific project. However, where completed, it will
inform the Bank’s assessment of the Borrower’s framework.

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MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Use and Strengthen the Borrower Capacity


Instead of worrying about assessing the Borrower’s environmental and social
framework, would it not be easier to just require the Borrower to prepare and
follow environmental and social risk mitigation measures acceptable to the
World Bank?
It might seem faster and easier in the short term, but the Environmental and
Social Framework calls for strengthening of the Borrower’s institutions, policy
frameworks and capacity because it is important for long term sustainability
and for the Borrower ownership. These are both important objectives of the
Framework.

World Bank Environmental and Social Framework P a g e | 14


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

What Does “Proportionate” Mean?


The Environmental and Social Framework enables the Borrower to:
 Develop and implement projects 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
 Tailor assessments and mitigation measures to the depth and level needed
to understand and manage the potential risks of the particular project
This applies equally for the World Bank’s own due diligence process.

World Bank Environmental and Social Framework P a g e | 15


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Meet the Team


The World Bank team:
Teresa: New Task Team Leader
Aisha: Senior Environmental Specialist
Pyotr: Social Development Specialist, new to the World Bank
Giles: Lead Social Development Specialist

World Bank Environmental and Social Framework P a g e | 16


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Why Does the World Bank Undertake Environmental and Social Due
Diligence of Proposed Projects?
Teresa, the new Task Team Leader for an irrigation and drainage rehabilitation
project, is seeking advice from Aisha, the Senior Environmental Specialist,
regarding environmental and social due diligence at Project Concept Note
stage.

World Bank Environmental and Social Framework P a g e | 17


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

In the meeting this morning, you said something about the due diligence
aspects of the World Bank Environmental and Social Policy.

World Bank Environmental and Social Framework P a g e | 18


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Could you please tell me a bit more about it? I know that due diligence is about
avoiding unintentional harm to people and the environment.

World Bank Environmental and Social Framework P a g e | 19


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

You’re absolutely right, but it goes a bit beyond that. Here, let me show you in
the Policy itself.

World Bank Environmental and Social Framework P a g e | 20


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

These are the specific objectives of the World Bank’s environmental and social
due diligence process for investment projects:

World Bank Environmental and Social Framework P a g e | 21


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

 To support the World Bank’s global commitment to environmental and


social sustainability
 To help the World Bank decide whether to provide support for a project
 To help the World Bank decide how environmental and social risks and
impacts can be addressed as the project is assessed, developed and
implemented
 To confirm that the project is in line with the Environmental and Social
Standards and/or to understand what the Borrower needs to do to bring it in
line with the Environmental and Social Standards
 To understand the type of support that the World Bank needs to provide to
help the Borrower meet the required Standards, including updating risk
classification when necessary

World Bank Environmental and Social Framework P a g e | 22


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Due Diligence at Project Concept Stage: Screening


I also understand that the due diligence process differs between the project
preparation and project appraisal stages.

World Bank Environmental and Social Framework P a g e | 23


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

OK. Let’s look first at what is required at the project concept stage.

World Bank Environmental and Social Framework P a g e | 24


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

 The World Bank:


o Screens the proposed project for potential environmental and social
risks
o Assigns an initial risk classification
 The screening process frames the more detailed assessments that follow
during project preparation
 Later assessments include:
o The World Bank’s own due diligence process
o The environmental and social assessment that the Borrower carries
out

World Bank Environmental and Social Framework P a g e | 25


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Environmental and Social Risk Classification


Based on the outcome of the screening process, the Team proposes an initial
environmental and social risk classification for the project.

World Bank Environmental and Social Framework P a g e | 26


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

In order to determine the risk classification, we need to obtain relevant


information on potential project risks and impacts from the Borrower as well as
other sources such as community-based organizations or experts at academic
institutions.

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MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Risks
Environmental and social risk is a combination of the probability of certain
hazard occurrences and the severity of impacts resulting from such an
occurrence.

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MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

If there is any additional information we need in order to do the risk


classification, we may need to request this from the Borrower.

World Bank Environmental and Social Framework P a g e | 29


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Do you mean classifying a project as A, B or C?

World Bank Environmental and Social Framework P a g e | 30


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

No, this is different. We won’t be using the A/B/C categories any more. Those
categories were based only on the nature and scale and potential risks of the
project itself.

World Bank Environmental and Social Framework P a g e | 31


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Under the Environmental and Social Framework we now classify projects as


High, Substantial, Moderate or Low environmental and social risk.

World Bank Environmental and Social Framework P a g e | 32


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

High Risk Project


A High Risk project is likely to generate a wide range of significant adverse
risks and impacts on human populations or the environment, for example, as a
result of its large scale, hazardous nature or the sensitivity of its location, and
effective mitigation of some impacts may be not possible or unlikely.

World Bank Environmental and Social Framework P a g e | 33


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Substantial Risk Project


A Substantial Risk project may be less complex, and smaller in scale or in a
less sensitive area than a High Risk project. Alternatively, it may be complex
but be prepared and implemented in an environment where the technical
capacity is high, mitigating technology available, and legal frameworks strong
so that avoidance or effective mitigation of significant adverse impacts is more
likely.

World Bank Environmental and Social Framework P a g e | 34


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Moderate Risk Project


A Moderate Risk project is one in which the potential for adverse risks and
impacts is not likely to be significant.

World Bank Environmental and Social Framework P a g e | 35


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Low Risk Project


A Low Risk project is one in which the potential for adverse risks and impacts
is minimal or negligible. Following initial screening, these projects will likely
require no additional assessment.

World Bank Environmental and Social Framework P a g e | 36


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Among other things, we now take a wider range of factors into account, and
the risk classification can be changed over the life of the project.

World Bank Environmental and Social Framework P a g e | 37


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

If new risks emerge during implementation the rating may be increased. It can
also be reduced if risks that were identified during preparation don’t materialize
during implementation or turn out to be less significant than we anticipated.

World Bank Environmental and Social Framework P a g e | 38


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

This approach brings the management of environmental and social risk in line
with the rest of the World Bank’s risk management processes.

World Bank Environmental and Social Framework P a g e | 39


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Risk Depends on Context


I’m used to categorizing project risks based on the nature and magnitude of
the potential environmental and social risks and impacts of the project and any
sensitive features of the project site. What are the types of factors I need to
consider for this risk classification system?

World Bank Environmental and Social Framework P a g e | 40


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Beyond the inherent project risks, you should consider the project’s context
and the capacity and commitment of the Borrower to manage environmental
and social risks and impacts.

World Bank Environmental and Social Framework P a g e | 41


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

So you mean that the same project that is classified as risky in one country
might be less risky in a different one?

World Bank Environmental and Social Framework P a g e | 42


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Exactly. For example, a project for cleaning up hazardous materials might be


high risk in a country that lacks a strong legal framework and the relevant
technical capacity to manage the materials.

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MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

However, the same project would be less risky if it is carried out in a country
where the laws are strong and enforced and there is sufficient technical
capacity to manage the materials.

World Bank Environmental and Social Framework P a g e | 44


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Helpful Approaches, Mindsets, and Behaviors


The Environmental and Social Standards are designed to help the Borrower
manage the risks and impacts of a project, and improve their environmental
and social performance, through a risk- and outcomes-based approach. It is
not expected that all project-related risks can be avoided, or that all risk
management measures can be identified and put in place prior to approval of
the project.

World Bank Environmental and Social Framework P a g e | 45


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Knowledge Check
Can you identify any other factors that could be important in determining risk?
Here is the World Bank Environmental and Social Framework for your
reference.
Correct Choice

Whether the country has a strong legal framework for that type
of project

If the government has demonstrated capacity and willingness to


enforce that legal framework

Whether there are factors within the existing landscape or


human environment that make some aspect of the project
inherently riskier, for example, if the project site is near a
densely-populated area or an important water source

World Bank Environmental and Social Framework P a g e | 46


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

A simmering local conflict

X All of the above

World Bank Environmental and Social Framework P a g e | 47


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

A Project’s Environmental and Social Risk Classification Can Change


Now it’s time to listen in on a discussion between Teresa and Aisha, as they
discuss the timing of risk classification.

World Bank Environmental and Social Framework P a g e | 48


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Once we establish the project's environmental and social risk classification at


the Project Concept Note stage, are we done?

World Bank Environmental and Social Framework P a g e | 49


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Not really. The risk classification should be reviewed on a regular basis during
preparation and appraisal, and also during implementation, and it should be
revised upwards or downwards as needed.

World Bank Environmental and Social Framework P a g e | 50


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

This is important as it will provide the team and World Bank management with
a current assessment of the risk which reflects more closely the reality on the
ground.

World Bank Environmental and Social Framework P a g e | 51


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

This will in turn enable the team and the World Bank to shift resources as
necessary to support the project.

World Bank Environmental and Social Framework P a g e | 52


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Thanks!
That was very helpful.

World Bank Environmental and Social Framework P a g e | 53


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Due Diligence During Project Preparation


The Project Concept Note has been approved. Aisha and Pyotr have been
assigned to serve as the Senior Environmental Specialist and the Social
Development Specialist on a project team.
Pyotr has recently joined the World Bank and this will be his first such
assignment. He has asked for a meeting in Aisha’s office.

World Bank Environmental and Social Framework P a g e | 54


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

More Information on Due Diligence


The World Bank’s due diligence process during project preparation will involve
some or all of the following, depending on the nature of the project:
 Determining whether the Borrower must retain an independent third party
specialist to carry out the environmental and social assessment
 Reviewing all project preparation documents provided by the Borrower,
including any environmental and social assessments and other studies
such as any available technical designs, requesting additional information
where there are gaps, and conducting site visits for high and substantial risk
projects
 Reviewing the capacity and commitment of the Borrower (personnel,
institutions, regulatory framework) to implement the project in accordance
with the Environmental and Social Standards
 Discussing and agreeing on adequate financing arrangements to implement
environmental and social mitigation measures
 Determining whether the recommendations of the environmental and social
assessment are properly addressed in project design
 Discussing with the Borrower the measures and actions in the
Environmental and Social Commitment Plan and their timeline

World Bank Environmental and Social Framework P a g e | 55


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

 Helping to identify important Borrower capacity strengthening needs the


project could directly support
 Ensuring that the Borrower has disclosed information in line with
Environmental and Social Standards requirements
 Carrying out an assessment of the Borrower’s framework if the Borrower
has proposed to apply its own framework to the project in place of applying
some or all of the Environmental and Social Standards (remember, that
agreeing to use the Borrower’s framework does not exempt the World Bank
from its due diligence responsibilities, such as reviewing the environmental
and social assessment documents prepared under the national law)

World Bank Environmental and Social Framework P a g e | 56


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Hi, I’ve just been assigned to be the social development specialist for this
irrigation and drainage rehabilitation project, and I’ve been going through the
Project Concept Note.

World Bank Environmental and Social Framework P a g e | 57


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

I understand you will be joining the team as well.

World Bank Environmental and Social Framework P a g e | 58


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Could we review what we need to do together regarding due diligence at this


stage of the project cycle?

World Bank Environmental and Social Framework P a g e | 59


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Yes, of course! The Environmental and Social Framework provides a good


breakdown of what we need to do to guide and assist the Borrower to develop
the project in a way that meets the Environmental and Social Standards.

World Bank Environmental and Social Framework P a g e | 60


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Let’s have a look.

World Bank Environmental and Social Framework P a g e | 61


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Due Diligence During Project Preparation: Environmental and Social


Assessment
As part of our due diligence process during Preparation, we have an
obligation to support the Borrower by:
 Providing advice on the type of assessment that should be undertaken and
the process to be followed
 Reviewing and commenting on draft Terms of Reference (ToRs) for
assessments and studies to be carried out
 Advising on the development of appropriate mitigation measures consistent
with the Mitigation Hierarchy
 In cases where an estimate of the project’s greenhouse gas emissions is
required, assisting the Borrower in carrying out this estimate if requested.

World Bank Environmental and Social Framework P a g e | 62


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Mitigation Hierarchy
This is an internationally accepted tiered approach to addressing potential
risks and impacts on a project. The steps are sequential but iterative, as new
information from sources such as environmental and social assessment or
stakeholder input may make it appropriate to revisit an earlier step:
1. Anticipate and avoid the risk and impact
2. Where avoidance is not possible, minimize or reduce risks and impacts to
acceptable levels
3. Once risks and impacts have been minimized or reduced, mitigate
4. Where significant residual impacts remain, compensate for or offset them,
where technically and financially feasible
The Borrower will implement Steps 1 to 3 (avoidance, minimization and
mitigation) to address, as far as possible, the environmental and social risks
and impacts of a project.
The fourth step of the Mitigation Hierarchy is to take measures to compensate
for or offset significant residual adverse impacts, where technically and
financially feasible. However, for many social and some environmental impacts
it may not be possible or appropriate for certain residual impacts to be offset or
compensated.

World Bank Environmental and Social Framework P a g e | 63


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Where it is determined that it is not technically or financially feasible to


compensate or offset for such residual impacts, the rationale for this
determination (including the options that were considered) will be set out in the
environmental and social assessment.

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MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Due Diligence at Project Appraisal


It is now a few months later. Pyotr, the Social Development Specialist on the
project team and Giles, a Lead Social Development Specialist, as the team is
getting ready for project appraisal.

World Bank Environmental and Social Framework P a g e | 65


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Hi, thanks for agreeing to meet with me.

World Bank Environmental and Social Framework P a g e | 66


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

The Project Appraisal mission is coming up in a few weeks and I just wanted to
run through things with you to make sure I’m fully prepared for it.

World Bank Environmental and Social Framework P a g e | 67


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

I’m happy to go over it with you.

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MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

I’m sure you know that you will need to confirm that the Borrower has provided
sufficient information to stakeholders on the project’s potential risks and
impacts, as part of its stakeholder engagement process.

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MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

They should be able to provide documentation demonstrating that this


information was provided in a timely and accessible manner so that
stakeholders have been able to provide meaningful input to project design and
mitigation measures.

World Bank Environmental and Social Framework P a g e | 70


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Yes, there is a good summary of the stakeholder engagement process in the


environmental and social assessment report.

World Bank Environmental and Social Framework P a g e | 71


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

OK. Is there anything the World Bank needs to disclose prior to Project
Appraisal?

World Bank Environmental and Social Framework P a g e | 72


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

Has the environmental and social assessment report been disclosed on the
World Bank’s external website?

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MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

This is not necessarily required for a Low or Moderate Risk project such as this
one, although it would be for a project classified as Substantial or High Risk.

World Bank Environmental and Social Framework P a g e | 74


MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

We disclosed an advanced draft version. Do the final versions of the


documents need to be disclosed before Project Appraisal?

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MODULE 2: ENVIRONMENTAL AND SOCIAL FRAMEWORK POLICY AND DIRECTIVES

No, that’s fine. The ESF provides the flexibility to disclose draft documents as
long as they provide adequate information to inform stakeholder engagement
and World Bank decision making. The final draft should be disclosed at a later
point, when it is ready.

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What if there are not enough details about the project investments prior to
Project Appraisal to be able to provide this type of documentation?

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We handle this situation by making sure that preparation of the appropriate


documents is included in the Environmental and Social Commitment Plan
for the project,

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including the timetable and as many other details as possible, and then
explaining this in the Project Appraisal Document.

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Project Appraisal Document


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: details on the objectives and proposed
content of the document; the rationale for the timing of preparation; the
arrangements and estimated costs for preparation and implementation; and
the source of funding. These details and timing for delivery of the documents
will be set out in the ESCP, as appropriate.

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Again, this applies specifically for Substantial Risk and High Risk projects.

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 For all projects, the Borrower engages in consultation with project


stakeholders as set out in ESS10 (Environmental and Social Standard on
Stakeholder Engagement and Information Disclosure) This includes:
o Providing sufficient information about potential risks and impacts so
that stakeholders can give meaningful input into project design and
mitigation measures
o Ensuring and documenting that stakeholder engagement:
 Takes place in a timely manner
 Is accessible to stakeholders with different needs
 Allows for meaningful stakeholder input into project design and
mitigation measures
 For projects classified as High Risk or Substantial Risk:
o The World Bank discloses documentation relating to the
environmental and social risks and impacts on its external website
prior to Project Appraisal
o Either final or draft documents may be disclosed as long as they
provide adequate information to inform stakeholder engagement and
World Bank decision-making

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o The final drafts should be disclosed at a later point, when ready


o The Project Appraisal Document and ESCP will describe project-
related documents that will be prepared and disclosed after Board
Approval

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Due Diligence during Project Implementation


Giles and Teresa meet in the hallway, soon after the project was approved by
the World Bank Board.

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Hi, Giles. I’m glad I saw you. I wanted to let you know that the Board approved
the project last week.

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Helpful Approaches, Mindsets, and Behaviors


While the environmental and social specialists play a principal role, carrying
out appropriate environmental and social due diligence is the responsibility of
the entire project team.

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Congratulations, Teresa, that’s great news.

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I wonder if we could get together later for a short meeting. I would like to ask
for your advice regarding my team’s responsibilities for due diligence during
project implementation.

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I remember from my training on the Environmental and Social Framework that


this is very important.

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It’s true that with the Environmental and Social Framework, the World Bank is
putting greater emphasis on our responsibility for more continuous monitoring
and implementation support relating to the environmental and social
performance of projects.

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Maintaining close attention over the whole of the project’s life cycle is an
important element of risk management.

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Your team’s monitoring and implementation support should be based on the


Environmental and Social Commitment Plan, and any specific environmental
and social management plans that have been prepared or will be prepared
during project implementation.

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SUMMARY
 Monitoring and implementation support of the environmental and social
performance of projects throughout the project’s life cycle is an important
element of risk management.
 Monitoring and implementation support should be based on:
o the Environmental and Social Commitment Plan
o any specific environmental and social management plans that have
been prepared or will be prepared during project implementation
o information obtained from missions and reporting, as well as from
other resources, such as civil society

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Alternative Arrangements
There are four circumstances under which the Borrower can use alternative
arrangements, rather than applying the Environmental and Social Standards
directly:
 Where, following an assessment by the World Bank, the World Bank and
the Borrower have agreed to use all or part of the Borrower’s framework for
the project
 Where the World Bank is jointly financing a project with other multilateral or
bilateral funding agencies, and all parties agree to use a Common
Approach
 Where the World Bank is supporting a project involving a Financial
Intermediary, which has been or will be receiving financing from other
multilateral or bilateral funding agencies
 Where a World Bank-supported project involves multiple subprojects
Alternative arrangements may be used as long as risks and impacts of the
project will be addressed, and the project is able to achieve objectives
materially consistent with the Environmental and Social Standards.

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Borrower’s Environmental and Social Framework


Where use of the Borrower's environmental and social framework is being
proposed for a project, the World Bank should disclose its intention to assess
the Borrower’s framework as early as possible, specifying the aspects of the
Framework that the assessment will focus on. The assessment will be
informed by engagement with relevant stakeholders and may include a review
of studies, reviews and other assessments carried out previously by the World
Bank or other stakeholders. The summary of the assessment of the Borrower’s
framework is disclosed on the World Bank’s website.
While the World Bank will need to assess the Borrower’s framework as it
relates to specific proposed investment projects, the Borrower can also
request the World Bank to conduct an overview assessment of its national or
local policies, legal and institutional framework and implementation capacity.
An overview assessment of this type is not a prerequisite for considering use
of the Borrower’s framework for a given project. It is also not a substitute for
the project-specific assessment, but can be useful for informing it.
The Borrower’s framework comprises:
 The environmental and social laws and regulations in a given
country/region, or sector within that country/region

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 The associated institutions or agencies responsible for implementing the


laws and regulations
 The personnel required to implement those laws and regulations on
a project

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Common Approach
Under the Common Approach, the World Bank can agree with multilateral and
bilateral agencies and the Borrower on a single set of requirements for the
assessment and management of environmental and social risks and impacts
of the project, as long as it will enable the project to achieve results that are
materially consistent with the objectives of the Environmental and Social
Standards. The World Bank will also coordinate with these partners so that just
one set of project-related documents and materials can be disclosed for
stakeholder engagement, if possible. The World Bank may also choose to rely
on the environmental and social due diligence and supervision provided by
another co-financing agency.
When the World Bank agrees to rely on another co-financing agency’s due
diligence process, this must be documented in written agreements with the
agency and the Borrower. These agreements must ensure that the World Bank
is kept adequately informed on an ongoing basis of:
 The status of the project’s compliance with the agreed Environmental and
Social requirements
 Any material changes to the co-financing agency’s environmental and
social policies and procedures

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Financial Intermediaries
In the case of jointly-financed Financial Intermediaries, the World Bank may
agree to rely on the requirements of the other agencies for the assessment
and management of environmental and social risks and impacts of the project,
including the institutional arrangements that the Financial Intermediary has
already established. Following review by the World Bank, a Financial
Intermediary may be required to enhance its Environmental and Social
Management System if the World Bank considers it necessary to ensure
results materially consistent with the Environmental and Social Standards.

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Projects Involving Multiple Subprojects


For projects involving multiple small subprojects, that are identified, prepared
and implemented during the course of the project, the Borrower will carry out
an appropriate environmental and social assessment of subprojects, and
prepare and implement such subprojects, as follows:
 High Risk subprojects, in accordance with the Environmental and Social
Standards
 Substantial Risk, Moderate Risk and Low Risk subprojects, in accordance
with national law and any requirements of the Environmental and Social
Standards that the Bank deems relevant to such subprojects
If the risk rating of a subproject increases to a higher risk rating, the Borrower
will apply the relevant requirements of the Environmental and Social Standards
and the ESCP will be updated as appropriate.

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Use of the Borrower’s Framework


Most countries have their own laws and regulations governing environmental
and social performance of a project. When the World Bank requires application
of its own Environmental and Social Standards for projects, this can put an
additional burden on Borrowers as they need to meet two, sometimes different,
sets of requirements (their own, and the World Bank’s). Establishing project-
specific mechanisms that “bypass” the Borrower’s own environmental and
social risk management systems also undermines the objective of
strengthening the Borrower’s capacity.
The World Bank supports the use of the Borrower’s 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 Environmental and Social Standards. The use of all, or part,
of the Borrower’s framework will be agreed between the World Bank and the
Borrower, following completion of an assessment by the World Bank.

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Questions and Answers


How does the World Bank assess if some or all of the Borrower’s framework
can be used for the project?

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To assess the Borrower’s framework, the World Bank has to look at what the
Borrower has in place for the preparation and implementation of the project,
and how this addresses the environmental and social risks of the project. This
means that the Bank should look at:
 The policy, legal and institutional framework, including national, subnational
or sectoral implementing institutions as relevant to the risks and impacts of
the project
 Applicable laws, regulations, rules and procedures
 Implementation capacity
 Track record of implementation on previous projects
The World Bank will engage with relevant stakeholders so that their views can
inform the assessment, and may consider recent studies, reviews and other
assessments relevant to the proposed project. When an assessment has been
completed, the Bank will disclose a summary of the assessment on its website.

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What are the key elements to keep in mind while assessing the Borrower’s
environmental and social framework?

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 The assessment is customized to the nature and circumstances of the


project and the Borrower
 The details of the assessment will vary based on factors such as type, scale,
location and potential environmental and social risks and impacts of the
project and the role and authority of different institutions

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What happens if the World Bank’s assessment concludes that the Borrower’s
environmental and social framework cannot enable the project to achieve
objectives that are materially consistent with the Environmental and Social
Standards?

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In some cases, the World Bank may conclude that the Borrower’s framework
can be used for implementation of the project if some specific gaps are filled.
This may involve strengthening any element of the Framework-policies, laws or
regulations, or institutional capacity for implementation or monitoring and
enforcement. Specific “gap-filling” measures should be agreed with the
Borrower and set out in the Environmental and Social Commitment Plan,
including appropriate timelines and indicators.
In other cases, the World Bank and the Borrower may agree that key gaps
cannot realistically be filled in a time frame that is relevant to the project, and
that use of the Borrower’s framework is therefore not appropriate for that
project.

The final decision as to whether or not the Borrower’s framework will be used
for a given project in place of the whole or part of the Environmental and Social
Standards lies with the World Bank (specifically, the Chief Environmental and
Social Standards Officer).

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What happens if there is a change in the Borrower’s environmental and social


framework?

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Where the Bank becomes aware of a change in the Borrower's environmental


and social framework that may materially adversely affect the project, the Bank
will discuss the change with the Borrower. If, in the opinion of the Bank, the
change is inconsistent with the Environmental and Social Commitment Plan
and undermines the ability of the project to achieve objectives materially
consistent with the Environmental and Social Standards, the Bank will have
the right to require revisions to the ESCP as necessary to meet the
requirements of the Environmental and Social Standards, and to take other
measures as the Bank deems appropriate, including applying the Bank’s
remedies.

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Knowledge Check
The Scenario
A Borrower has proposed to use its own environmental and social framework
to implement a slum upgrading project which will involve demolishing about six
hundred informal residences and businesses, clearing and cleaning the 200
hectare site, and constructing two modern, low income public housing
complexes on that site. It is expected that most of the new residences will be
occupied by the former residents of the slum area, who will qualify for rent
subsidies. The World Bank project team carried out an assessment of the
Borrower’s framework relevant to the project and concluded that the country’s
environmental laws and regulations and institutional capacity provide an
adequate basis for achieving the Environmental and Social Standards.
However, the applicable national laws on housing and on land tenure and
expropriation only allow for compensation to property owners with legal titles,
and only provide rent subsidies to married couples and single mothers who are
either widows or legally divorced. These are identified as gaps between the
Borrower’s framework and ESS5.

What recommendation should the environmental and social specialists on the


team make to the team leader?

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Correct Choice

Inform the Borrower that the Bank will not support the project
until the applicable laws have been changed

Advise the Borrower that the Bank will not support the project
unless it is revised to avoid any needs for land or property
acquisition

Inform the Borrower that all requirements of ESS5 will need to


be met through project-specific measures, which will need to be
agreed upon prior to project appraisal

X Invite the Borrower to work with the World Bank to identify and
agree on measures and actions to address these gaps

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Knowledge Check
Where the World Bank has agreed to apply a common approach or to rely on
the requirements of other agencies, it may choose to rely on the environmental
and social due diligence carried out by those agencies for project preparation
and appraisal but not for supervision and implementation support.
This statement is:
Correct Choice

True

X False

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What is the Bank Directive on Addressing Risks and Impacts on


Disadvantaged or Vulnerable Individuals or Groups?
Definition:

This Bank Directive on Addressing Risks and Impacts on Disadvantaged or


Vulnerable Individuals or Groups establishes what World Bank staff are
required to do for due diligence in relation to the Borrower’s identification and
mitigation of risks and impacts on individuals or groups who, because of their
particular circumstances may be disadvantaged or vulnerable.

The objective of the World Bank Directive is:


“To help ensure that disadvantaged and vulnerable groups are not further
disadvantaged by the development of the project, and get access to its
benefits.”

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What Makes an Individual or Group Disadvantaged or Vulnerable?


Definition:

The term “disadvantaged or vulnerable” refers to those who may be more likely
to be adversely affected by a project’s impacts and/or more limited than others
in their ability to take advantage of a project’s benefits. Such individuals or
groups are also more likely to be excluded from/unable to participate fully in
the mainstream consultation process and as such may require specific
measures and/or assistance to do so. This will take into account
considerations relating to age, including the elderly and minors, and including
in circumstances where they may be separated from their family, the
community or other individuals upon whom they depend.
Some other examples of factors which could lead to people being
disadvantaged or vulnerable, depending on their circumstances, include those
listed below:
 Gender
 Ethnicity
 Religion
 Physical or mental disability

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 Social Status
 Civic Status
 Health Status
 Sexual Orientation
 Gender Identity
 Economic Status
 Indigenous Status
 Dependence on unique natural resources
Any of the above may make an individual or group more likely to be adversely
impacted by a project, or less able to take advantage of project benefits.

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What are the Team’s Responsibilities Under the World Bank Directive?
The team is responsible to determine that:
 The Borrower has identified all disadvantaged or vulnerable stakeholders
for the project
 The Borrower has ensured that all such groups are able to participate fully
in the consultation process. This means that the Borrower has made special
accommodations for vulnerable stakeholders, where required
 When assessing risks and impacts, the Borrower has identified specific
issues or needs of such groups, and developed appropriate and
differentiated mitigation measures where necessary

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Special Accommodations for Vulnerable Stakeholders


Some examples are as follows:
 Providing transportation to a meeting
 Carrying out consultations in locations that are convenient for
disadvantaged or vulnerable stakeholders
 Changing the time of key meetings
 Providing simultaneous interpretation (language, signing)
 Protecting such stakeholders from adverse consequences of participating

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What Tools Help Us Carry Out These Responsibilities?


Giles, Teresa and Pyotr have been discussing the provisions of the World
Bank Directive. Teresa is concerned about the implications for her team.

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This sounds like a lot of responsibility, and it seems to require information that
we might not have. How do we go about verifying these things?

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Our main tools are:


 The Environmental and Social Assessment of the Project
 The Stakeholder Engagement Plan
 The Environmental and Social Commitment Plan

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The Environmental and Social Assessment of the Project


 The Team reviews the Terms of Reference for preparation of the
assessment to ensure they include:
o Identification of groups or individuals affected by the project that may
be disadvantaged or vulnerable
o Assessment of relevant project risks and impacts and identification of
differentiated mitigation measures as needed to address their needs
for protection and inclusion
 The Team reviews the draft and final versions of the assessment to verify
that it addresses the relevant project risks and impacts, including:
o The risk of project-related impacts falling disproportionately on
disadvantaged or vulnerable groups
o The risk of prejudice or discrimination against any individuals or
groups resulting in their failing to have equitable access to
development resources and project benefits
 In some cases, considering the potential significance of risks and impacts
on disadvantaged and vulnerable groups, the World Bank may also decide
to engage, or require the Borrower to retain, independent third party
specialists to assist in the identification of such individuals or groups and

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assessment of the potential risks and impacts on them

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The Stakeholder Engagement Plan


 The Team reviews the Borrower’s Stakeholder Engagement Plan to verify
that it:
o Identifies disadvantaged or vulnerable groups or individuals
o Includes differentiated measures as needed to allow their effective
participation in the Stakeholder Engagement process
 The Team monitors implementation of the Stakeholder Engagement Plan to
ensure that the Borrower has engaged and consulted with the identified
individuals and groups
If appropriate in the context of a particular project, the World Bank team might
also participate in the Borrower’s stakeholder consultation activities to
understand the concerns of affected people and how they are being addressed
by the Borrower.

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The Environmental and Social Commitment Plan


The Environmental and Social Commitment Plan forms part of the legal
agreement.
It is:
 Prepared by the Borrower
 Agreed between the Borrower and the World Bank
 Disclosed, implemented and reported on by the Borrower
 Monitored by the World Bank
It should:
 Be prepared as early as possible and disclosed prior to project appraisal
 Set out any aspects of the Borrower’s framework to be used for the project
 Set out the management measures, processes, tools and plans to be used
 Include completion dates for specified activities
 Set out the institutional arrangements (including personnel, budget) and
timelines for implementations as well as training provisions

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How Do the Tools Help Us?


So once we have all this information from the environmental and social
assessment and the Stakeholder Engagement Plan and so on, what do we do
with it?

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The Team’s responsibility is to ascertain whether the environmental and social


assessment process has properly identified any disadvantaged or vulnerable
individuals or groups, and to ensure that appropriate differentiated mitigation
measures have been incorporated into the project design and documented in
relevant project documents.

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If the Team feels this is not the case, you should first try to work with the
Borrower to find ways to address the issues and find an acceptable solution
that is consistent with the objectives of the Environmental and Social
Standards.

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Of course we would try to do that. But what if we can’t find an acceptable


solution?

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In that case you would need to bring the situation to the attention of the
Operations Environmental and Social Review Committee.

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In the end, all of this contributes to the World Bank’s decision as to whether or
not to support the proposed project, and under what conditions.

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Let’s say we want to proceed with the project, but only under specific agreed
conditions.
What do we do then?

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That’s where the Environmental and Social Commitment Plan comes in.

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The Team ensures that the Environmental and Social Commitment Plan, which
is part of the project’s legal agreement, reflects the measures and actions
agreed between the World Bank and the Borrower to address risks or impacts
on disadvantaged or vulnerable individuals or groups.

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We can make sure all the right assessments are done and appropriate
measures are included in the Environmental and Social Commitment Plan and
the Stakeholder Engagement Plan.

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But unfortunately, there’s no guarantee that the measures will all be


implemented or effective.

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You’re right. And this can be a particularly high risk when we’re dealing with
deeply embedded prejudices or a long history of discrimination.

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That’s why the World Bank Directive doesn’t stop at Board approval of the
project. It also says that during project implementation, the World Bank
monitors the implementation of the Borrower’s obligations, as set out in the
Environmental and Social Commitment Plan and the Stakeholder Engagement
Plan.

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This includes reviewing information provided by the Borrower and, where


appropriate, collecting its own information. Where appropriate, the Team may
engage independent third party specialists or consult with stakeholders to
verify monitoring information.

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SUMMARY
 The responsibility of the World Bank team is:
o To ascertain whether the environmental and social assessment
process has properly identified any disadvantaged or vulnerable
individuals or groups, and
o To ensure that appropriate differentiated mitigation measures have
been incorporated into the project design and documented in relevant
project documents
 If this is not the case, the team works with the Borrower to find ways to
address issues and find an acceptable solution that is consistent with the
objectives of the Environmental and Social Standards
 If an acceptable solution cannot be found, the Operations Environmental
and Social Review Committee will assess the situation
 Finally, the World Bank will make a determination as to whether or not to
support the proposed project, and under what conditions
 For a project that proceeds under specific agreed conditions, the World
Bank Team ensures that the Environmental and Social Commitment Plan
reflects the measures and actions agreed between the World Bank and the
Borrower to address risks or impacts on disadvantaged or vulnerable

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individuals or groups
 During project implementation, the World Bank will monitor the
implementation of the Borrower’s obligations, as set out in the
Environmental and Social Commitment Plan and the Stakeholder
Engagement Plan, including:
o Reviewing information provided by the Borrower, and
o Collecting its own information, when appropriate, and
o Engaging, where necessary, independent third party specialists or
consulting with stakeholders to verify monitoring information

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Who Can Help?


My team knows a lot about the country and the project sector, but I’m not sure
we have the knowledge or skills to carry out all these responsibilities and make
these judgements.

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Do I have to hire a lot of specialist consultants, or are there people in the


World Bank who can help us?

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Sure, the World Bank has been building its internal capacity to address these
complex issues. For example, we now have a Sexual Orientation and Gender
Identity advisor, an Indigenous People’s advisor, a Disability advisor and an
advisor on Labor and Working Conditions. There are also specialized training
courses available.

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Helpful Approaches, Mindsets and Behaviors


The Environmental and Social Framework is introducing complex new
objectives and requirements, as well as the need to make informed
judgements, sometimes on the basis of limited information. Task Teams are
encouraged to seek advice and guidance from these advisors, other technical
specialists and institutional support structures such as the Operations
Environmental and Social Review Committee.

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We all want to do what we can to protect and support disadvantaged and


vulnerable individuals and groups.

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But in our case we’re actually concerned that identifying some of these groups,
and requiring differentiated mitigation measures for them, could actually create
risks of harm for them.

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And frankly, we might need to be a bit worried about possible implications for
our own safety…

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In that case, the World Bank Directive says you need to seek the advice of the
Operations Environmental and Social Review Committee (OESRC).

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They will advise you on how to handle this type of situation, and will also
advise you on whether or not to proceed with the project and, if so, on what
basis.

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In any case, all along the way you need to document the Team’s good faith
efforts to apply this World Bank Directive and the Borrower’s response to these
efforts.

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Recap
Here is a quick recap of the main points covered in this module.
 World Bank’s Responsibilities
 Risk Classification
 Due Diligence
 World Bank Directive
 Alternative Arrangements
 Tools

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World Bank’s Responsibilities


 Undertake own due diligence of proposed projects
 Support the Borrower in meaningful consultation with stakeholders, in
particular affected communities
 Assist the Borrower in identifying appropriate methods and tools
 Agree with the Borrower on the conditions under which the World Bank is
prepared to provide support to a project
 Monitor the performance of the project in accordance with the ESCP and
the Environmental and Social Standards

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Risk Classification
 Definition: Environmental and social risk is a combination of the probability
of certain hazard occurrences and the severity of impacts resulting from
such an occurrence
 Types:
o High
o Substantial
o Moderate
o Low

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Due Diligence
 Reviewing information and requesting additional information if required
 Providing guidance to the Borrower in developing measures consistent with
the Mitigation Hierarchy
 Classifying environmental and social risk levels
 Reviewing project design and implementation arrangements
 Monitoring project implementation
 Recommending corrective action to the Borrower if required

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World Bank Directive


 Definition: The World Bank Directive on Disadvantaged or Vulnerable
Individuals or Groups establishes what World Bank staff are required to do
for due diligence in relation to the Borrower’s identification and mitigation of
risks and impacts on individuals or groups who, because of their particular
circumstances, may be disadvantaged or vulnerable
 Objective: To help ensure that disadvantaged and vulnerable groups are
not further disadvantaged by the development of the project, and get
access to its benefits

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Alternative Arrangements
 Following an assessment, the World Bank and the Borrower agree to use
all or part of the Borrowers ESF for the project
 The World Bank jointly finances a project with other agencies, and all
parties agree to use a Common Approach
 The World Bank supports a project involving a Financial Intermediary,
which has been or will be receiving financing from other multilateral or
bilateral funding agencies
 A World Bank-supported project involves multiple sub-projects

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Tools
 The environmental and social assessment of the project
 The Stakeholder Engagement Plan
 The Environmental and Social Commitment Plan

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