Environmental and social framework

Asia and the Pacific continues to undergo rapid social and environmental changes. To achieve inclusive green economic growth and poverty reduction in the region, the Asian Development Bank (ADB) is committed to (i) protecting people and the environment from potential adverse risks and impacts of its development projects and (ii) strengthening the implementation capacity of its developing member countries (DMCs) and clients to manage such risks and impacts through its environmental and social (E&S) requirements.

Since 2010, ADB’s Safeguard Policy Statement (2009) (SPS) has guided ADB and its borrowers and clients in identifying, assessing, and managing E&S risks and impacts in its projects.1 In May 2020, ADB’s Independent Evaluation Department (IED) completed a corporate evaluation of the SPS and recommended revisions to the policy, business processes, and implementation requirements.2 Following the IED evaluation, ADB commenced a comprehensive SPS review and update (SPRU) process, considering the changing development context and the evolving challenges and capacities of its DMCs and clients. The main objectives of the SPRU are to (i) modernize the policy and apply good practices, (ii) harmonize with comparator multilateral development banks (MDBs), (iii) adapt to regional needs and financing, and (iv) enhance business processes and efficiency. These objectives are aimed at improving the implementation and outcomes for affected people and the environment.

This paper proposes a new Environmental and Social Framework (ESF), which comprises five parts: (i) the vision, (ii) the E&S Policy, (iii) 10 environmental and social standards (ESSs), (iv) requirements for financing modalities and products, and (v) a prohibited investment activities list. The paper highlights the key features of the ESF (the full ESF text is in the Annex).

The E&S Policy and the ESSs set out project-level mandatory E&S requirements that are designed to

• avoid and, where avoidance is not possible, minimize, mitigate, restore and/or compensate for adverse impacts of ADB projects on people and the environment, taking into consideration climate change risks;
• help borrowers and clients strengthen their E&S systems and improve their capacity to manage E&S risks and impacts;
• promote fair and nondiscriminatory labor and working conditions, and protect project workers and community health, safety, and security, including from any forms of sexual exploitation, abuse and harassment (SEAH).

source :
https://www.adb.org/documents/environmental-and-social-framework-policy-paper