Guidance Note 1 - REV - 0 - Tracked Changes

Guidance Note 1 - REV -0
Assessment and Management of Social and Environmental Assessment and

Management SystemsRisks and Impacts
July07April 30, 2006 May 19, 2010
This Guidance Note 1 corresponds to Performance Standard 1. [p1]Please also refer to the
Performance Standards 2–8, as well as their corresponding Guidance Notes for additional
information. Bibliographical information on all referenced materials appearing in the text of this
Guidance Note can be found in the References Section section at the end.
Introduction
1. Performance Standard 1 underscores the importance of managing the social and

environmental performance associated with a client’s business activities during the project
life-cycle (design, construction, operation, and decommissioning or closure, where
applicable). throughout the life of a project (any business activity that is subject to
assessment and management)An effective social and environmental assessment and
management system is a dynamic and continuous process initiated and supported by
management, and involvesing meaningful communication between the client and its
1 2 2 3 4
stakeholders —workers, Affected Stakeholders, and other stakeholders. its
employeesworkers, and the local communities directly affected project (the affected
communities) Drawing on the elements of the established business management process of
“plan, implement do, check, and act,” the management system entails a methodological
approach to managing the thorough assessment of potential social and environmental
impacts and risks and impacts in a structured way on an ongoing basis.from the early
stages of project development, and provides order and consistency for mitigating and
managing these A good management system appropriate to the size and nature of a the
5 5
project activity promotes sound and sustainable social and environmental performance,
and can lead to improved financial, social, and environmental project outcomes.
1.2. At times, the assessment and management of certain social and environmental risks
and impacts may be the responsibility of the government or other third parties over which
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the client does not have control or influence. Examples of where this may happen include:
(i) when early planning decisions are made by the government or third parties which affect
the project site selection and/or design; and/or (ii) when specific actions directly related to
the project are carried out by the government or third parties such as providing land for a
project which may have previously involved the resettlement of communities or individuals
and/or land clearing of biodiversity. While the client cannot control or often even influence
these government or third party actions, an effective management system should identify
the different entities involved and the roles they play, and the corresponding risks they
present to the client in order to help achieve environmental and social outcomes that are
consistent with the Performance Standards.
_____________________
1
“Stakeholders” includes workers, Affected Stakeholders, and other Stakeholders.
2
Workers are defined as workers employed by the client, as well as other workers directly contracted by the
client to carry out work on the project.
3
Affected Stakeholders are people, groups, or communities, who are subject to actual or potential project-
related risks and/or adverse impacts on their physical environment, health, or livelihoods and who are often
located in the project's near geographical proximity, particularly those contiguous to the existing or proposed
project facilities.
4
Other stakeholders are defined as those people or groups that are not located in the project's geographical
area of influence and have an interest in a project and/or ability to influence its outcomes.
5
Recognizing the fact that the Performance Standards are used by financiers, insurers, and investors in
connection with financing and guarantees of specific or general business activities, and by companies generally
for compliance assessment and ongoing guidance, the term “project” as used in the Performance Standards
does not necessarily imply project finance or specific physical boundaries of business activities under
consideration. Instead, each user of the Performance Standards should define the business activity to which the
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Performance Standards should apply, and build its approach to assessment and management of social and
environmental risks and impacts, consistent with this Performance Standard.
6
Contractors retained by, or acting on behalf of the client(s), are not considered third parties for the purposes of
this Performance Standard.
Objectives
To identify and evaluate assesssocial and environmental risks and impacts both
adverse and beneficial, in the project’s area of influenceof the project
To adopt a mitigation hierarchy to avoid, or where avoidance is not possible, minimize,
reduce, mitigaterestore, or compensate/offset for risks and adverseimpacts toon
workers, aAffected communities Stakeholders, and the environment
To promote improved social and environmental performance of companies clients
through the effective use of management systems
To ensure that relevant environmental and social information related to the project is
accessible to Affected Stakeholders and other interested parties
To build constructive relationships and to ensure that aAffected communities
Stakeholders are appropriately engaged throughout the project life-cycle, on issues that
could potentially affect them
To ensure that projects manage communications and grievances from Affected
Stakeholders and other parties
G1. The assessment and management of Ssocial and Eenvironmental Management

Systemmanagement systemrisks and impacts is part of the larger client’s overall management
systemmanagement systemset of processes that a client uses to for manage its the
projectbusiness activities (i.e., the project) to be financed,. It includes the organizational
structure, responsibilities, policies, procedures and practices, and resources, and but is,
however, essential for successfully and sustainable implementing the project-specific
management program developed performance ofthrough the social and environmental
assessment of a projectfor these business activities. to be financed. Performance Standard 1
underscores the importance of the on-going managementing of a project’s the social and
environmental (including labor, health, safety, and security) performance of the business
activities to be financed throughout the life of the project investment. A good assessment and
management system enables continuous improvement of the project’s social and environmental
performance, and can lead to improved economic, financial, social, and environmental project
outcomes. For certain business activities and risks, it also explicitly recognizes the role of
responsible government agencies and other responsible third parties to ultimately assure the
desired social and environmental outcomes (i.e., it should extend to fully encompass relevant
and necessary third party .relationships). The degree to which these interactions can be
managed so as to achieve desired outcomes will depend on the nature of the third party and the
relationship that governs interactions between the client and the third party. The example in
Performance Standard 1 paragraph 2 is that of location of the activity to be funded. In this
instance, the government agency that arbitrates land use (e.g., through a regional planning
approach or zoning code) plays a pivotal role in how the activity to be funded can be designed
or realized, but is an area where the client has little ability to control or influence the outcome
and hence, possible associated impacts. A contractual arrangement with a supplier, on the
other hand, is an example of a situation where the client may have contractual, financial, and,
therefore, operational leverage enabling a level of control to be exerted that will directly
influence how the supplier performs with respect to related impacts and their avoidance,
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prevention, minimization, mitigation, or compensation. The appropriate assessment and

management of environmental and social risks and impacts will recognize the differences in
these relationships and will make provisions accordingly to best affect outcomes given inherent
limitations and constraints or opportunities.
G1.G2. Before IFC proceeds with an investment, IFC reviews the client’s social and
environmental management system. For details on IFC’s process of social and environmental
review, see the Environmental and Social Review Procedure, and for further information on
examples and benefits of improving sustainability performance, see IFC’s sustainability
resources (listed in the References section below).
Scope of Application
2.3. This Performance Standard applies to projects with social and/or environmental risks
and impacts that should be managed, from in the early stages of project development, and
on an ongoing basis during the project life-cycle.
G2. Examples of projects financed by IFC include direct lending to private enterprises including
corporate and project finance; lending to various types of financial intermediaries, facilities;
minority equity/shareholding in companies, financial institutions, and other entities; structured
finance products such as guarantees, securitizations, and municipal finance as well as Asset
Management Company investments.
G3. Business activities supported and financed by IFC include a wide range of investment and
products. Products with longer tenor include (i) direct lending to private sector companies
(including corporate and project finance); (ii) lending to various types of FIs, funds, and facilities;
(iii) minority equity stakes in companies (including financial institutions); and (iv) guarantee
facilities, municipal finance, as well as investments by IFC’s Asset Management Company, all of
which must meet the requirements of the Performance Standards. Products with shorter tenor
include short-term guarantees and trade finance products, among others. These products, when
determined to have low social and environmental risk, are subject to the IFC Exclusion List and
relevant national laws.
G4. Recognizing the fact that the Performance Standards are used by financiers, insurers, and
investors in connection with financing and guarantees of specific or general business activities,
and by companies generally for compliance assessment and ongoing guidance, the term
“project” as used in the Performance Standards does not necessarily imply project finance or
specific physical boundaries of business activities under consideration. Instead, each user of the
Performance Standards should define the business activity to which the Performance Standards
should apply, and build its approach to assessment and management of social and
environmental risks and impacts, consistent with this Performance Standard.
[insert PS para. 3]This Performance Standard applies to projects with social or

environmental risks and impacts that should be managed, in the early stages of project
development, and on an ongoing basis. This Performance Standard applies to financed
business activities with social or environmental risks and impacts that should be managed
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from the early planning stages through ongoing operation and, if applicable,
decommissioning and closure.
Requirements
Social and Environmental Assessment and Management System

3.4. The client, in coordination with other responsible government agencies and third
parties as appropriate, will conduct a process of social and environmental assessment and
establish and maintain a Social and Environmental mManagement system appropriate to the
nature and scale of the project and commensurate with the level of its social and
environmental risks and impacts. The mManagement sSystem will incorporate the following
elements: (i) PolicySocial Statement and Environmental Assessment; (ii) Identification of
Risks and Impacts (social and environmental assessment );management system); (iii)
Management Systems, Plans and Agreements; organizational capacity; (iv) Organizational
Capacity and Competencytraining; (v) Emergency Preparedness and Responsecommunity
engagement; (vi) Stakeholder Engagement; monitoring;and (vii) Monitoring and Review.
A Social and Environmental Assessment and Management System can take a variety of
forms and complexities. It can be stand alone, fully integrated with all business processes,
formal or informal, externally certified or self-declared to be sufficient in its scope, content and
operation. The design and implementation of such an assessment system should, however, be
singular in its intent. It should provide an organization with a structure, within which a sufficient
level of understanding of what the social and environmental risks and impacts associated with
their activities can be better gained, and a means to ensure these risks and impacts are
subsequently managed. according to what is known to be important to the organization.
Importance can be defined in many ways; legal requirements (local, regional, national and/or
international), company culture (what the company believes to be the way it should operate),
and other third party requirements (including those of the Performance Standards) to name a
few.
G5. The Social and Environmental Assessment and Management System required by this
Performance Standard can be considered to contain all the elements that are IFC deemeds to
be appropriate in order to “plan, do, check, act” with regard to social and environmental risks
and impacts. In this way it can be seen to be similar, but not identical, to the ISO 14001
environmental management system. Regardless, in the same manner as any management
system approach, it must be tailored to fit the needs of the organization. The management
system—and it must contain all four constituent parts to function as a management system—
governs a process. This process starts with planning (the identification of what is important (i.e.,
the risks and impacts). Next the organization must decide what it is going to do about these
risks and impacts (through development and implementation of management programs, plans
and agreements) and with what resources (organizational capacity and competency). While this
is happening, the organization must keep an eye on the unexpected (emergency preparedness
and response) and keep those informed who need to know while also learning from them
(external communication and grievance mechanisms). The organization must also check on
their own performance and act when that performance is not appropriate or needs enhancing,
so as to ensure progress stays on track (monitoring and review). Underpinning the process is
the policy at all stages, which is the statement of all that is summarily important to the
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organization and a document that should constantly provide direction and context to all actions
related to social and environmental risks and impacts.
G3.G6. The level of detail and complexity of the social and environment management
systemmanagement system and the resources devoted to it will depend on the level of impacts
and risks of the business activities to be financed that have been identified, in the social and
environmental assessment and the size and nature of the client’s organization. A satisfactory
mManagement sSystem appropriate to the nature and scale of the business activities to be
financed project and commensurate with the level of social and environmental risks and impacts
is a condition of IFC’s investment. If the client does not have a satisfactory mManagement
sSystem at the time of IFC’s appraisal of the business activities to be financedproject, one
should be developed and implemented over a reasonable period of time agreed with IFC, and
be in effect in time to manage project activities financed by IFC.
G4.G7. A t a minimum, a management system that meets the requirements of Performance

Standard 1 should be in place at the level of the client’s organization in which the funds from
IFC’s investment will be utilized (i.e., at the corporate or at the activity-specific level). In the
case of project financing of specific operating units or activities, whether greenfield or existing,
the system structure should address the social and environmental issues arising from the
business activities project being financed. In the case of corporate or financial intermediary
investments without iIdentified specific project activities to be financedfacilities (i.e., site-based
assets) at the time of investment, this will often mean establishing, building on, or maintaining a
corporate- or institution-level management framework.
G5.G8. The sSocial and eEnvironmental assessment and Management Systemmanagement

system requirements of Performance Standard 1 draw on the established dynamic business
management process of “plan, implementdo, check, and act”. In the context of accepted
international frameworks for quality and environmental management systemmanagement
systems (for examples, see the References section), this management process can be
summarized as follows:
• Definition of a set of policies and objectives for social and environmental

performance of the activities;
• Identification and review of the social and environmental impacts and risks of the
operationsactivities;
Definition of a set of policies and objectives for social and environmental performance
• Establishment of a management programs to achieve these objectivesof mitigation
and improvement measures and specific actions that address identified risks and
impacts;
• Establishment of an organizational structure to implement the program;
• Monitoring and review performance against these policies and
objectiveseffectiveness and performance of the impact and risk mitigation program.
Reporting of the results appropriately
Review of the system and outcomes, striving for continuous improvement
G6.G9. The effort needed to establish a Management Systemmanagement system depends on

the client’s existing management policies and practices. Production- and quality-based
management systemmanagement systems operating within the client’s organization can be
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used as a foundation on which to build the elements of a system consistent with Performance
Standard 1 in the absence of an existing environmental, health, and safety, human resource or
social management system. Where a client has an existing environmental, health, and safety,
human resource and/or social management systemmanagement system, its elements may
meet or can be appropriately modified or expanded to meet the requirements of Performance
Standard 1. Where a client has developed and implemented a formal environmental, labor,
health and safety, and/or social management system consistent with an internationally accepted
standard, the explicit incorporation of the applicable Performance Standards in the policy and
objectives elements of such system(s) (in addition to the relevant laws and regulations
applicable to their activities, and other corporate priorities and objectives) and implementation of
an appropriate management program may be sufficient to meet the requirements of
Performance Standard 1. Formal management systemmanagement systems certified under
international standards are not required by Performance Standard 1. While certified systems
are likely to meet most of IFC’s requirements, they do not eliminate the need for IFC’s due
diligence of the elements of the system required by Performance Standard 1may still need to be
revised to incorporate all the objectives of the applicable Performance Standards for the
particular business activity.
G7.G10. Even though many formal management systemmanagement systems address

external communication processes, paragraphs 192131 and 32 of Performance Standard 1 PS1
requires these to be expanded to include specific grievance mechanisms asdo not explicitly
address it, community engagement is an important process element in managing social and
environmental impacts and risks, and is specifically included in the Guidance Note for
paragraphs 19 through 23 of Performance Standard 91. Community engagement normally
involves the disclosure of information, consultation with affected communities (see guidance
under paragraph G154 on Stakeholder Identification), and the establishment of a grievance
mechanism. Community engagement should occur as an integral part of the Assessment and,
in the case of projects that have significant impacts on communities, will normally continue on
an ongoing basis during the life of a project. Community engagement is the responsibility of the
client. IFC undertakes its own disclosure of information in accordance with IFC’s Policy on
Disclosure of Information.. These mechanisms serve as a way to meet Performance Standard
PS requirements, prevent and address community concerns, reduce risk, and assist larger
processes that create positive social change.
Policy Statement
4.5. The client will conduct a process of Social and Environmental Assessment that will
consider in an integrated manner the potential social and environmental (including labor,
health, and safety) risks and impacts of the project provide an overarching Policy Statement
of the social and environmental objectives and principles to guide the project and achieve
sound social and environmental performance. The Policy Statement provides a framework
for the social and environmental assessment and management process, and will specify
that the project will comply with the Aapplicable laws and regulations of the jurisdictions in
which they project operates that pertain to social and environmental matter, are being
undertaken, including those laws implementing host country obligations under international
lawwill be taken into account. The Policy Statement should be consistent with the principles
of the Performance Standards. Under some circumstances, clients may also subscribe to
other internationally-recognized standards, certification schemes, or codes of practice and
these too should be included in the Policy Statement. The Policy Statement will indicate
who, within the client’s organization, will ensure conformance with the Policy Statement and
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be responsible for its execution (with reference to an appropriate responsible government

agency or third party, as necessary). The client must ensure that the Policy Statement is
properly communicated to all levels of the client’s organization. The Assessment process
will based on current information, including an accurate project description, and
appropriate social and environmental baseline data. The Assessment will consider all
relevant social and environmental risks and impacts of the project, including the issues
identified in Performance Standards 2 through 8, and those who will be affected by such
risks and impacts.
Social and Environmental Assessment

5. The client will conduct a process of Social and Environmental Assessment that will
consider in an integrated manner the potential social and environmental (including
labor, health, and safety) risks and impacts of the project. The Assessment process
will be based on current information, including an accurate project description, and
appropriate social and environmental baseline data. The Assessment will consider all
relevant social and environmental risks and impacts of the project, including the
issues identified in Performance Standards 2 through 8, and those who will be
affected by such risks and impacts. Applicable laws and regulations of the
jurisdictions in which the project operates that pertain to social and environmental
matters, including those laws implementing host country obligations under
international law, will also be taken into account.
6. Risks and impacts will be analyzed in the context of the project’s area of influence. This
area of influence encompasses, as appropriate: (i) the primary project site(s) and
related facilities that the client (including its contractors) develops or controls, such
as power transmission corridors, pipelines, canals, tunnels, relocation and access
roads, borrow and disposal areas, construction camps; (ii) associated facilities that
are not funded as part of the project (funding may be provided separately by the client
or by third parties including the government), and whose viability and existence
depend exclusively on the project and whose goods or services are essential for the
successful operation of the project; (iii) areas potentially impacted by cumulative
impacts from further planned development of the project, any existing project or
condition, and other project-related developments that are realistically defined at the
time the Social and Environmental Assessment is undertaken; and (iv) areas
potentially affected by impacts from unplanned but predictable developments caused
by the project that may occur later or at a different location. The area of influence
does not include potential impacts that would occur without the project or
independently of the project.
7. Risks and impacts will also be analyzed for the key stages of the project cycle,
including pre-construction, construction, operations, and decommissioning or
closure. Where relevant, the Assessment will also consider the role and capacity of
third parties (such as local and national governments, contractors and suppliers), to
the extent that they pose a risk to the project, recognizing that the client should
address these risks and impacts commensurate to the client’s control and influence
over the third party actions. The impacts associated with supply chains will be
considered where the resource utilized by the project is ecologically sensitive, or in
cases where low labor cost is a factor in the competitiveness of the item supplied.
The Assessment will also consider potential transboundary effects, such as pollution
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of air, or use or pollution of international waterways, as well as global impacts, such

as the emission of greenhouse gasses.
8. The Assessment will be an adequate, accurate, and objective evaluation and

presentation of the issues, prepared by qualified and experienced persons. In
projects with significant adverse impacts or where technically complex issues are
involved, clients may be required to retain external experts to assist in the
Assessment process.
9. Depending on the type of project and the nature and magnitude of its risks and impacts,
the Assessment may comprise a full-scale social and environmental impact
assessment, a limited or focused environmental or social assessment, or
straightforward application of environmental siting, pollution standards, design
criteria, or construction standards. When the project involves existing business
activities, social and/or environmental audits may need to be performed to determine
any areas of concern. The types of issues, risks and impacts to be assessed, and the
scope of the community engagement (see paragraphs 19 through 23 below) can also
vary considerably, depending on the nature of the project, and its size, location, and
stage of development.
10. Projects with potential significant adverse impacts that are diverse, irreversible, or
unprecedented will have comprehensive social and environmental impact
assessments. This assessment will include an examination of technically and
1
financially feasible alternatives to the source of such impacts, and documentation of
the rationale for selecting the particular course of action proposed. In exceptional
circumstances, a regional, sectoral or strategic assessment may be required.
11. Narrower scopes of Assessments may be conducted for projects with limited impacts
that are few in number, generally site-specific, largely reversible, and readily
addressed through mitigation measures.
12. Projects with minimal or no adverse impacts will not be subject to further assessment
beyond their identification as such.
13. As part of the Assessment, the client will identify individuals and groups that may be
differentially or disproportionately affected by the project because of their
2
disadvantaged or vulnerable status. Where groups are identified as disadvantaged
or vulnerable, the client will propose and implement differentiated measures so that
adverse impacts do not fall disproportionately on them and they are not
disadvantaged in sharing development benefits and opportunities.
_____________________
1
14. “Technical feasibility” is based on whether the proposed measures and actions can
be implemented with commercially available skills, equipment and materials, taking
into consideration prevailing local factors such as climate, geography, demography,
infrastructure, security, governance, capacity and operational reliability. “Financial
feasibility” is based on commercial considerations, including the relative magnitude
of the incremental cost of adopting such measures and actions compared to the
project’s investment, operating and maintenance costs and whether this incremental
cost could make the project nonviable to the client.
2
15. This status may stem from an individual’s or group’s race, color, sex, language,
religion, political or other opinion, national or social origin, property, birth or other
status. The client should also consider factors such as gender, ethnicity, culture,
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sickness, physical or mental disability, poverty or economic disadvantage, and

dependence on unique natural resources.
G11. G8. Clients, companies, projects or organizations can have a need for many different
types of policies. For example, policies may affect matters of human resources, ethics, travel or
any number of other business-related activities that must be defined, understood and
communicated to those whose actions need to be governed or guided by its content. The
pPolicy Statement as required by this Performance Standard pertains i) in case of projects with
defined scope and assets (e.g. project finance) expressly to the business activityproject to be
financed and must include specific social and ii) in case of projects with undefined scope of
assets (e.g. corporate lending) to corporate level performance. and environmental
considerations related to that activity as described in the following paragraphs. A successful
pPolicy Statement for a green field investment,—one that is understood, adhered and referred
to when making decisions related to social and environmental risks and impacts—contains
language that makes it clear it was written specifically for the project tobusiness activity to be
financed. In so being, employees, contractors, suppliers, and others directly involved in the
business activity can relate to the policy. They can apply it when making decisions to ensure
what was deemed to be important in governing social and environmental risks and impacts
when the policy was written is acted upon and reflected in decision making and outcomes. In
this way the policy becomes a “living document” and not something that is written once and then
forgotten.
G12. The Policy Statement will reflect the client’s investment philosophy regarding
management of social and environmental risks and impacts of the activities being financed, and
include specific objectives and aspiration’s the client has set in regard to its social and
environmental performance. The Policy Statement will have the commitment of, and be signed
by, a member of the client’s senior management. The Policy Statement should clearly reference
its commitment to ensuring that activities to be financed are operated in a manner consistent
with IFC’s Performance Standards.1
G13. G9. In many cases, the Policy Statement will also include other major social and
environmental commitments of the client such as compliance with international protocols or
industry-specific codes of practice’ standards to which the client has committed.
G14. G10. The Policy Statement will specify that the client’s activities being financed will
comply with all applicable social and environmental laws and regulations of the host country(ies)
in which these activities are undertaken and explicitly indicate that it will seek to ensure that
these same projects are operated in a manner consistent with IFC’s Performance Standards .
G15. G 11. The messages of the Policy Statement should be directed to all of the client’s
stakeholders, including its employees. An effective Policy Statement is one that is actively
endorsed by the client’s senior management team and actively communicated to employees at
all levels and all functions of the client organization. Good practice will also include externally
communicating the policy by presenting it in client statements and reports, and verbally
communicating it to all relevant stakeholders. Communities or other stakeholders affected by a
business activity to be funded who are aware of the content of the policy can make informed
1
IFC’s Performance Standards can be found at http://www.ifc.org/ifcext/sustainability.nsf/Content/PerformanceStandards.
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statements regarding social and environmental risks and impacts. This type of communication
can be valuable in assisting a business activity to be funded in improving social and
environmental performance.
G16. G 12. The Policy Statement for certain type of clients (financial institutions, funds, and
some corporate investments) will reference IFC’s Exclusion List2 and include a commitment that
the business activities to be financed will not include any of the activities contained in this
Exclusion List.
Risks and Impacts Identification

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6. The Client will identify the social and environmental risks and impacts of the project.
The type, scale, and location of the project guides the scope and level of effort devoted to
the risks and impacts identification process. The scope of the risks and impacts
8
identification process will be consistent with good international industry practice[PM2], and
will determine the appropriate and relevant methods and assessment tools. the The
Assessment may comprise a full-scale social and environmental impact assessment, a
limited or focused environmental or social assessment, or straightforward application of
environmental siting, pollution standards, design criteria, or construction standards. When
the project involves existing business activities, social and/or environmental audits may
need to be performed to determine any areas of concern or in other situations a risk/hazard
assessment. The risks and impacts identification process will be based on recent social and
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environmental baseline data at an appropriate level of detail. The process will consider all
relevant social and environmental risks and impacts of the project, including the issues
identified in Performance Standards 2 through 8, and communities or people who are likely
to be affected by such risks and impacts. The Assessment process will also consider
potential transboundary effects, such as pollution of air, or use or pollution of international
waterways, as well as the emissions of impacts, such as the of, as well as global impacts,
such as the emission of greenhouse gasses.
16.7. Risks and impacts will be identified analyzed in the context of the project’s area of
influence. This area of influence encompasses, as appropriate:
i) the primary project site(s) and related facilities that the client (including its contractors)
develops or controls, such as power transmission corridors, pipelines, canals, tunnels,
relocation and access roads, borrow and disposal areas, construction camps
The client’s activities, assets, and facilities that are directly owned, operated, or
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managed (including by contractors) and that are related to the project;;
(ii) Associated facilities are defined as those facilities that would not be constructed if
the client’s project did not exist and where the client’s project would not be viable
11
without the other facility. Associated facilities may be funded, owned, constructed and
operated separately; that are not funded as part of the project (funding may be
provided separately by the client or by third parties including the government), and
whose viability and existence depend exclusively on the project and whose goods or
services are essential for the successful operation of the project;
2
IFC’s Exclusion List can be found at http://www.ifc.org/ifcext/sustainability.nsf/Content/IFCExclusionList.
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Areas potentially affected impacts by cumulative impacts from further planned

development of the project, any existing project or condition, and other project-related
developments that are realistically defined at the time the Social and Environmental
12
Assessment is undertaken of the risks and impacts identification process;
_____________________
7
Relevant risks and impacts to consider and identify if reasonably expected to be significant include, among
others, those relating to climate change, human health, human rights, gender differences, ecosystem functions,
and access to water resources.
8
Defined as the exercise of professional skill, diligence, prudence and foresight that would reasonably be
expected from skilled and experienced professionals engaged in the same type of undertaking under the same
or similar circumstances globally.
9
An example of an appropriate level of detail is This includes accounting for projected variability in climatic and
environmental conditions due to potentially significant climate change that could occur over the life of over the
project which may require some level of adaptation where this is practical. Practicality will depend upon the
location of the project, and the availability of data at a scale that is relevant.
10
Examples include power transmission corridors, pipelines, canals, tunnels, relocation and access roads,
borrow and disposal areas, construction camps, and contaminated land (e.g., soil, groundwater, surface water,
and sediments).
11
Examples include railways, roads, power plants or transmission lines, pipelines, utilities, warehouses, and
logistics terminals.
12
Other developments may, based on specific conditions, include any combination of planned, proposed, or
permitted developments.
Areas potentially affected by impacts from unplanned but predictable developments

caused by the project that may occur later or at a different location.
The area of influence does not include potential impacts that would occur without the
project.
(iv) Areas potentially affected by impacts from unplanned but predictable developments
caused by the project that may occur later or at a different location. The area of influence
does not include potential impacts that would occur without the project or independently of
the project
17.8. Risks and impacts will also be analyzed for the key stages of the project life-cycle,
including pre-constructiondesign, construction, operations, and decommissioning or
closure, as appropriate. Where relevant, the the identification of risks and impacts
Assessment will also consider the role and capacity of third parties (such as local and
national governments, and contractors and suppliers), to the extent that they pose a risk to
the project, recognizing that the client should address these risks and impacts in a manner
that is commensurate to the client’s control and influence over the third party actions.
9. The impacts associated with supply chains will be considered where the resource
utilized by the project is ecologically sensitive (refer to Performance Standard 6), or in
cases where there is a high risk of child labor, forced labor, or significant occupational,
health and safety issues low labor cost is a factor in the competitiveness of the item
supplied(refer to Performance Standard 2).
18.10. The identification of risks and impacts will take into account the findings and
conclusions of related and applicable plans, studies, or assessments prepared by relevant
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July07April 30, 2006 May 19, 2010
government authorities that are directly related to the project. These include master
economic development plans, regional plans, feasibility studies, alternatives analyses, and
cumulative, regional, sectoral, or strategic environmental assessments where relevant. The
risks and impacts will reflect the outcomes of consultation with Affected Stakeholders.
The types of issues, risks and impacts to be assessed, and the scope of the community
engagement (see paragraphs 19 through 23 below) can also vary considerably, depending
on the nature of the project, and its size, location, and stage of developmentProjects with
potential significant adverse impacts that are diverse, irreversible, or unprecedented will
have comprehensive social and environmental impact assessments. This assessment will
include an examination of technically and financially feasible alternatives to the source of
such impacts, and documentation of the rationale for selecting the particular course of
action proposed. In exceptional circumstances, a regional, sectoral or strategic assessment
may be required.
Narrower scopes of Assessments may be conducted for projects with limited impacts that
are few in number, generally site-specific, largely reversible, and readily addressed through
mitigation measures.
19. Projects with minimal or no adverse impacts will not be subject to further assessment
beyond their identification as such.
20.11. As part of the process of identifying risks and impactsAssessment, the client will
identify individuals and groups and communities that may be directly and differentially or
disproportionately affected by the project because of their disadvantaged or vulnerable
. 13
status. Where groups are identified as disadvantaged or vulnerable, the client will
propose and implement differentiated measures so that adverse impacts do not fall
disproportionately on them and they are not disadvantaged in sharing development benefits
and opportunities.
12. The process of identification of risks and impacts Assessment will beconsist of an
adequate, accurate, and objective evaluation and presentation of the issues, prepared by
qualified and experienced individuals persons. ForIn projects posingwith potentially
significant adverse impacts or where technically complex issues are involved, clients may
will involve be required to retain external experts to assist in the risks and impacts
identificationAssessment process and to verify its monitoring information.
____________________________________________________________
13
This disadvantaged or vulnerable status may stem from an individual’s or group’s race, color, sex, language,
religion, political or other opinion, national or social origin, property, birth, or other status. The client should also
consider factors such as gender, age, ethnicity, culture, literacy, sickness, physical or mental disability, poverty
or economic disadvantage, and dependence on unique natural resources.
General issues
G17. G13. Potential impacts and risks should be identified and documented for each key stage
of the development cycle for the activities to be financed, including design and planning,
construction, operations, and decommissioning or closure and for their short-term, long-term,
and cumulative contexts (see paragraphs G29 through G36 below), keeping in mind the
dynamic and shifting nature of these impacts and risks. For real sector projects where the
scope and assets of the project are known potential impacts and risks should be identified and
documented for each key stage of the development cycleof the project, including design and
planning, construction, operations, and decommissioning or closure and for their short-term,
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July07April 30, 2006 May 19, 2010
long-term, and cumulative contexts, keeping in mind the dynamic and shifting nature of these
impacts and risks. In case of projects with undefined scope and assets (e.g. corporate loans)
identification process should be based on inherent risks related to particular sector and project
settings. IFC within its due diligence will check client’s existing environment and social
management system and capacity to address those risks.
G18. In case of investment through Financial Intermediaries IFC will delegate to FIs the
responsibility for transaction appraisal and monitoring as well as overall portfolio management.
Environmental and social risk management is part of the responsibilities delegated to FIs. In
order to appropriately manage its environmental and social risks related to FI investments, IFC
conducts due diligence of the business portfolio of its FI client to identify activities where the FIs
and IFC could be exposed to reputational risks as a result of their investments and defines
requirements for managing these. IFC reviews implementation capacity of FIs against its
requirements as well as environmental and social management systems as required by
Performance Standard 1. These Systems should be commensurate with the level of
environmental and social risks associated with their projects and type of investment made by
with IFC. FI clients request their clients (sub-projects) to identify impacts and risks as described
below. They will also have a procedure(s) to verify risk and impact identification conducted by
their clients (see section on Social and Environmental Assessment and Management Systems)
G19. G14. The process of identifying sSocial and eEnvironmental risks and impacts
Assessment (the Assessment) addresses the full scope of social and environmental impacts
and risks (including labor, health, and safety, and security) associated with the business
activities to be financedof a proposed project. It is an important first step in managing and
improving project social and environmental performance, as it helps the client to assess theall
relevant potential impacts and risks associated with the business activities to be financedproject
(whether addressed through the Performance Standards or not), and identify any mitigation or
corrective measures that will enable the business activitiesproject to meet the applicable
requirements in Performances Standards 2 through 898, any applicable local laws and
regulations, as well as any additional priorities and objectives for social or environmental
performance identified by the client. For guidance on howard to address labor issues in the
process of, or in addition to, the client’s process of risk and impact identificationAssessment,
see paragraph G4 of Guidance Note 2. An example of health impact assessment process and
critical elements in a health assessment can be found in Annex C of Guidance Note 4 and itsB
and References Ssection. Guidance on risk assessment related to security issues can also be
found in Guidance Note 4.
G20. The risk and impact identification process should be based on recent, up-to-date
information, including detailed description of the activities to be financed, in their geographic,
ecological, social, health and temporal context. For example, in case of greenfield project
finance, relevant information will include any related facilities that may be required (e.g.,
dedicated pipelines, access roads, power plants, water supply, housing, and raw material and
product storage facilities). The description will encompass facilities and activities by third parties
that are essential for the successful operation of the business activities to be financed. The
collection and analysis of social and environmental baseline data, at an appropriate level of
detail for the business activities to be financed, is essential to assess the dimensions of the
business activities’ area of influence, and describe relevant physical, biological, socioeconomic,
health and labor conditions, including any changes anticipated to occur in the foreseeable
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July07April 30, 2006 May 19, 2010
future, and current and proposed development activities within the business activities’ area but
not directly connected to the business activities to be financed.
Direct and indirect climate change impacts may affect social and environmental
performance associated with a client’s business activities, and significantly impact on
sustainable development objectives. Changing weather patterns due to climate change may
have an impact on business activities in a variety of ways, including physical risks arising from
damage associate with significant climatologic events, such as storms or floods, but also
including impacts associated with availability of natural resources such as water or other
ecosystem services, and potential effects on the supply chain (for instance increasing costs of
raw materials), as well as on operations or working practices of the business activities. Other
potential effects associated with change in climatic conditions and temperature is related to
possible changing patterns in demand for goods and services provided by the business
activities to be financed.
Within this framework, the client should incorporate certain aspects of climate change into
their baseline analyses, using recently updated climatologic data and accounting for projected
variability in climatic and environmental conditions due to climate change that could occur over
the life of the business activities. Recently updated climatologic data should be used in the
design of applicable associated infrastructure of the business activities, or for modeling the fate
and transport of emitted pollutants from an industrial facility, or for water sustainability studies.
Where technically and financially feasible, and appropriate to the scale of the business activities
to be financed, the social and environmental risks and impacts identification process should
(i) identify all direct and indirect climate related impacts and risks that may affect the business
activity during its life cycle, including natural resources availability and other business-related
Performance Standards issues (ii) identify the impact of climate change on natural resources
availability and other related impacts throughout the business activities’ life cycle, (iii) identify
potential risks of climate change for the business activities to be financed, as appropriate, and
iv) determine the need for appropriate monitoring and risk management (adaptation) measures.
Risks and Impacts Identification Methods
G21. The risk and impact identification process should include all the necessary steps and
methods thatwhich are required to screen, identify, analyze, measure, or assess, in quantitative
terms to the extent possible, the potential risks and impacts (including environmental, social,
health, and safety, and labor and security) associated with the business activities to be
financed. It is expected that the client will apply the methods, consistent with current
internationally-recognized best practice, which are appropriate and relevant to the type of
business activities. Those methods include, but are not limited to (i) full-scale Environmental
and Social Impact Assessments (ESIAs);, (ii) special environmental and social studies such as
climate impact assessments, human rights impact assessments, health impact assessments, or
and risk/hazard assessments for certain activities;, (iii) environmental and social audits for
acquisitions;, and (iv) environmental and social due diligence for financial institutions and
investment funds.
G22. Environmental and Social Impact Assessment. For certain business activities, and
particularly for greenfield investmentsprojects [rs3]and business activities (including, but not
limited to, major expantension or transformation-conversion activitiesprojects) that are likely to
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July07April 30, 2006 May 19, 2010
have a significant adverse environmental and social impacts, the risk and impact identification
effortprocess will require a comprehensive, full-scale ESIA process. The ESIA’s key process
elements of an ESIA generally consist of (i) initial screening of the business activity to be
financedproject and the scoping of the assessment process; (ii) examination of alternatives; (iii)
stakeholder identification and gathering of social and environmental baseline data; (iv) impact
identification, prediction, and analysis; (v) generation of mitigation or management measures
and actions; (vi) significance evaluation of residual impacts; and (vii) documentation of the
assessment process (ESIA report). The breadth, depth and type of analysis should be
proportionate to the nature and scale of the proposed activity(ies)project’s potential impacts as
identified during the course of the assessment process. The ESIA must conform to the
requirements of the host country’s environmental assessment laws and regulations, including
the relevant disclosure of information and public consultation requirements, and should be
developed following principles of international best practice (see the References section for
further guidance). In exceptional circumstances, a regional, sectoral or strategic assessment
may be required, as discussed in Paragraphs GX and GX. Further guidance on mitigation
measures and management programs is provided in Paragraph GX through GX.
G23. The ESIA process will predict and assess the business activities’ likely positive and
negative impacts, in quantitative terms to the extent possible. It will evaluate social and
environmental impacts and risks from associated facilities and other third party activities. The
ESIA will identify and define a set of social and environmental mitigation and management
measures to be taken during the implementation of the project to avoid, reduce, mitigaterestore,
or compensate/offset for adverse social and environmental impacts, in the order of priority, and
their timelines, and will identify any residual negative impacts that cannot be mitigated. The
desired outcomes of the mitigation and management measures should be set as measurable
events to the extent possible, such as performance indicators, targets or acceptance criteria that
can be tracked over defined time periods. The assessment process will indicate the resources,
including budget, and responsibilities required for implementation for the mitigation and
management program. The assessment will explore opportunities for enhancement. The ESIA
will also provide with an identification and estimate of the extent and quality of available data,
key data gaps, and uncertainties associated with predictions, and specifies topics that do not
require further attention. For those activities with potentially significant adverse impacts
predominantly in the social area (e.g., involuntary resettlement), the impacts and risks
identification process should largely focus on generating appropriate social baseline data,
impacts analysis, and mitigation measures (e.g., Resettlement Action Plan).
G24. The ESIA will include an examination of technically and financially feasible alternatives to
the source of such impacts, and documentation of the rationale for selecting the particular
course of action proposed. These projects will normally need to conduct an alternatives analysis
as part of the social and environmental assessment. The purpose of alternative analysis is to
improve project design, construction, and operation decisions based on feasible project
alternatives to the proposed activities.. This analysis may facilitate the consideration of social
and environmental criteria at the early stages of project development and make decisions based
on the differences between real choices. The alternatives analysis should be conducted as
early as possible in the Assessment process and examine feasible alternatives such as
alternative project locations, designs or operational processes, or alternative ways of dealing
with social and environmental impacts.
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July07April 30, 2006 May 19, 2010
G25. It is best practice to ensure that appropriate follow up actions are conducted to verify that
the terms and condition of approvals are met and to implement a monitoring program on project
impacts and effectiveness of mitigation measures.
G15.G26. A formal ESIA report should be prepared in compliance with applicable and
relevant legal requirements and in accordance with accepted international practice. Guidance
on international best practice is provided by internationally-recognized organizations (see the
References section). Summaries of analyses should explain findings clearly and objectively, and
be understandable to laypersons. activities
G27. Environmental and Social Studies and Risk/Hazard Assessments. The business
activities to be financed may consist ofin specificcertain activities with limited adverse social and
environmental impacts and risks, and for which the development of a comprehensive, full scale
ESIA is not required by the host country’s environmental assessment laws and regulations.
These activities may include, for example, modernization and upgrade of existing production
facilities, not involving major expansions;, transformations or land conversions;, real estate
projects in urban areas and/or developed areas with the needed infrastructure;, development of
social infrastructure such as health and education facilitiesprojects, etc. The methods for the
risk and impact identification process for such activities include streamlined social and
environmental assessments that are narrower in scope than a full-scale ESIA, and hazard/risk
assessments thatwhich are specific to potential social, environmental, and health and safety
impacts, and risks associated with the business activity.
G28. The determination of the analyses and assessments needed should be conducted
through a process of screening, which is a systematic approach to reviewing and documenting
the social and environmental effects of the business activities to be financed and determining
the need to (i) eliminate or minimize (mitigate) the adverse effects;, (ii) to modify the business
activity plan; or (iii)to determine the need of further assessment. Screenings will vary in time
required, length and depth of analysis, depending on the circumstances of the business
activities, the existing environment, and the likely social and environmental effects. Examples of
streamlined analyses and assessments include air quality impact studies, noise impact studies,
water quality impact and water sustainability studies, and traffic impact assessments.
G29. As discussed under Performance Standard 3, where a project has the potential to release
toxic, hazardous, flammable or explosive material, or where project operations could result in
injury to plant personnel or the public as identified by the risk and impact identification studies,
the client should conduct a hazard analysis of their operations, as part of their risks and impacts
identification process. Hazard analysis is often conducted in conjunction with Hazard
Identification (HAZID) studies and Hazard and Operability (HAZOP) studies. Other examples of
risk/hazard assessments include life and fire safety assessments (as required under
Performance Standard 4), quantitative risk assessments (QRA that are conducted for industrial
facilities with potential for major accidents), and human health and environmental risk
assessments (e.g., industrial facilities with significant emissions to the environment, brownfield
development projects with conversion from industrial to commercial or residential uses).
Environmental site assessments are used to identify the nature and extent of contamination on
a specific site. D[p4]Further guidance on international practice on risk/hazard assessments is
provided in the References section.
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July07April 30, 2006 May 19, 2010
G30. The client will document the activities to be financed, the screening process to identify
key social and environmental aspects, impacts and risks analysis contained in the specific
social and environmental studies and risk/hazard assessments, and proposed mitigation
measures and management program/plans. Compliance with the legal and regulatory
framework, the applicable Performance Standards and the environmental and health and safety
performance levels established for the activities to be financedproject will be also documented.
G31. Environmental and Social Audits for Acquisitions. These methods should be applied in
case of business activities that involve existing activities and facilities and include corporate
finance, as well as property and asset acquisitions by the IFC client. Audits (or due diligence)
should be used to evaluate the environmental and social management system in place,
conformity with IFC Performance Standards, and regulatory compliance of a specific operation.
Environmental and social audits should provide identification and quantification of environmental
and social aspects, risks and liability, in a systematic, documented and objective process. The
audit should document the main environmental and social aspects of company operations (e.g.,
air emissions, wastewater effluents, hazardous waste generated, contaminated sites, land
acquisition, occupational health and safety, public / community safety, labor management and
standards, impacts on cultural resources), and identify the key environmental and social
concerns associated to the business activities to be financed and the known areas of past,
current or future non-compliance with national law and requirements and with IFC Performance
Standards. In addition to assessing compliance with relevant statutory and IFC requirements,
the audit should assess management control of environmental and social practices, and state
corrective actions (in particular actions to address known environmental and social non-
compliance situations and liabilities). Environmental and social improvement opportunities
should be considered and identified, including, but not limited to, energy efficiency, cleaner
technologies, water use reduction, emission reduction, safer working conditions, and community
development programs. Audits should be aimed at establishing the baseline for the
development of effective environmental and social management systems.
G32. Environmental and social audit reports should be prepared in accordance with accepted
international practice, and follow the table of contents . A discussion of the process used to
conduct environmental audits and some examples of accepted practice are provided in Annex
A.
G33. Environmental and Social Due Diligence for Financial Institutions and Investment Funds.
The level of environmental and social due diligence (ESDD) should be based on the project’s
environmental and social risk profile and potential impacts, for example, whether they are
majorsignificant (e.g., irreversible, unprecedented, involving large resettlement) andor moderate
(generally site-specific, largely reversible and mitigable). The ESDD shall typically consist of: (i)
review of all relevant documents and information provided by the investee and other sources;
and (ii) site reconnaissance comprising visual observations of relevant areas and meetings and
interviews with relevant stakeholders (investee personnel, governmental officials, Affected
communitiesStakeholders, etc.). Upon completion of the due diligence, the findings,
conclusions, and recommendations shall be presented in the ESDD report.
Impacts and Risks
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G8.G34. Even if social and environmental impacts and risks are not specifically identified
in Performance Standards 2 through 8, they should be assessed under Performance Standard 1
as part of the clientproject’s approach to risk management. For example, all relevant adverse
impacts on the livelihoods and income of the affected Affected communities Stakeholders within
the business activities’project area of influence should be assessed. Of such impacts, those
that result from project-related land acquisition associated with the activities to be financed
should be addressed through Performance Standard 5 on Land Acquisition and Involuntary
Resettlement, while other adverse impacts on livelihoods that result from other project activities
should be addressed under Performance Standard 1. Examples of adverse impacts that should
be addressed under Performance Standard 1 include loss of access to state-owned sub-surface
mineral rights3 by artisanal miners; loss of access to marine fishing grounds due to
businessproject activities; restriction of access to resources located within state-determined
exclusion zones not acquired by the client; and demonstrated decreases in agricultural,
livestock, forest, hunting and fishing yields resulting from project-related disturbance and/or
pollution related to the business activities. For related guidance, see paragraph G10 of
Guidance Note 5. Depending on the circumstance, it may be appropriate to model mitigation
measures for adverse impacts on livelihoods assessed under Performance Standard 1 after
livelihood restoration measures specified under Performance Standard 5 for economic
displacement resulting from land acquisition. Integrating social and environmental
considerations in the context of an overall assessment of the business activitiesproject will
enable clients to articulate the overall project risks and benefits and inform the clients’ decisions.
G9.The Assessment’s key process elements generally consist of (i) project definition; (ii)
(initial) screening of the project and the scoping of the Assessment process; (iii) stakeholder
identification and gathering of social and environmental baseline data, where relevant;
(iv) impact identification and analysis; and; (v) generation of mitigation or management
measures and actions. The breadth, depth and type of analysis should be proportionate to the
nature and scale of the proposed project’s potential impacts as identified during the course of
the Assessment process. The Assessment must conform to the requirements of the host
country’s environmental assessment laws and regulations, including the relevant disclosure of
information and public consultation requirements.
G10.[move this para. to “Organizational Capacity” section] Clients can use in-house staff and/or
external consultants or experts to carry out the Assessment work, provided that the applicable
requirements of the Performance Standards are met. The in-house staff or external personnel
conducting the Assessment must be in a position to do so adequately, accurately and
objectively, as well as have the requisite qualifications and experience. For projects with issues
that may pose significant adverse impacts and risks, clients should consider retaining external
experts to assist in the conduct of all or part of the Assessment. These experts should have
relevant and recognized experience in similar projects and operate independently from those
responsible for design and construction. They should be engaged early in the project’s
development phase and, as necessary, in the various stages of project design, construction,
and commissioning. In some high-risk cases, IFC may require a panel of external experts to
advise the client and/or IFC. In addition, external experts are required in certain defined
circumstances, on issues concerning biodiversity (as provided in paragraph 4 of Performance
3
In most countries, surface land rights are legally distinct from sub-surface mineral rights.
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July07April 30, 2006 May 19, 2010
Standard 6), Indigenous Peoples (as provided in paragraph 11 of Performance Standard 7) and
cultural heritage (as provided in paragraph 4 of Performance Standard 8).
G11.Early in IFC’s engagement with the client on a prospective project, IFC will review the
stage of development of the project and status of the client’s social and environmental
assessment process and documentation. In many cases, clients will have undertaken some
level of such assessment to satisfy host country requirements or as part of their own corporate
due diligence processes. For specific issues, such as labor and working conditions or the use
of security personnel, the client may have conducted a separate labor assessment or risk
assessment, respectively. These existing documents can be considered as part of the client’s
Assessment consistent with the requirements of Performance Standard 1, as long as key
baseline data and assumptions have not materially changed by the time of IFC’s review. Based
on this review, IFC will identify and agree with the client on any additional assessment work that
may be necessary to meet the requirements of Performance Standard 1, the parties responsible
for such assessment, and the timeline for its completion.
Project Definition
G12.The project definition should include a concise description of the proposed project and its
contexts to be assessed. The project description will normally address new facilities or
business activities to be financed by IFC. These facilities are expected to meet the applicable
requirements in Performance Standards 1 through 8 at the outset or, as agreed with IFC, over a
reasonable period of time. If a proposed business activity to be financed by IFC relates to
existing facilities (e.g., restructuring projects, expansions, modernizations, privatizations of such
facilities), IFC will work with the client to develop a management program, including an Action
Plan, that is technically and financially feasible and cost-effective for these facilities to meet the
applicable Performance Standards within a reasonable time frame. Further guidance onAn
example of a detailed project descriptions can be found in Annex A.
Initial Screening
G13.The initial screening of the project against the applicable local laws and regulations and the
Performance Standards will indicate whether the project may pose social or environmental risks
that should be further analyzed through additional Assessment process steps. It should identify
the extent and complexity of potential impacts and risks in the project’s area of influence, which
is the total area likely to be affected by both on-site and off-site impacts from project activities
(see also paragraph 5 of Performance Standard 1, and paragraphs G18 and 22 below). If the
initial screening indicates potential adverse impacts, the scope of the Assessment should be
determined and further impact identification and analysis (based on relevant baseline data, if
any, and considering identified stakeholders) will be necessary to ascertain the nature and scale
of impacts, the affected communities, and possible mitigation measures. Where the initial
screening process concludes that a project will have no or minimal potential adverse impacts,
the client should document this screening process and its conclusions. No further Assessment
or establishment of a Management SystemManagement system will be required.
Stakeholder Identification and Information Gathering
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G14.Stakeholder identification broadly involves the determination of the various individuals or

groups who may have an interest in the project or who may affect or be affected by the project.
The process of stakeholder identification includes distinct steps, including: (i) identifying
individuals, groups or local communities that may be affected by the project, positively or
negatively, and directly or indirectly, making special effort to identify those who are directly
affected, including those who are disadvantaged or vulnerable; (ii) identifying broader
stakeholders who may be able to influence the outcome of the project because of their
knowledge about the affected communities or political influence over them; (iii) identifying
legitimate stakeholder representatives, including elected officials, non-elected community
leaders, leaders of informal or traditional community institutions, and elders within the affected
community; and (iv) mapping the impact zones by placing the affected groups and communities
within a geographic area, which will help the client define or refine the project’s area of influence
(see paragraph 5 of Performance Standard 1, and paragraphs G18 and 22 below).
G15.The baseline information gathering phase is an important and often a necessary step in the
Assessment process to enable the determination of the potential impacts and risks of a project.
Baseline information gathering should describe the relevant existing conditions, such as
physical, biological, medical and socio-economic. Analysis of project- and site-specific impacts
should be based on current and verifiable primary information. Reference to secondary
information on the project’s area of influence is acceptable, but it may still be necessary to
gather primary information from field surveys to establish baselines appropriate to the proposed
project’s potential impacts and risks. Often rRelevant data aremay be available from various
host governmental, NGO and academic studies. However, clients should carefully evaluate data
sources and potential data gaps. Accurate and up-to-date baseline information is essential, as
rapidly changing situations, such as in-migration of people in anticipation of a project or
development, or lack of data on disadvantaged or vulnerable individuals and groups within an
affected community, can seriously affect the efficacy of social mitigation measures. In–migration
can pose significant impacts on host communities. Demographic surveillance systems that can
accurately track community level influx have been established in many settings and there are
established methodologies that can be readily consulted (for examples, see the References
section). Limitations on data, such as the extent and quality of available data, assumptions and
key data gaps, and uncertainties associated with predictions, should be clearly identified.
Impacts and Risks
G16.Potential impacts and risks should be assessed identified and documented for each key
stage of the project cycle including design and planning, construction, operations, and
decommissioning or closure and for their short-term, long-term, and cumulative contexts (see
paragraph G22xx below), keeping in mind the dynamic and shifting nature of these impacts and
risks.
Area of Influence
G17.G35. The size of thea project’s area of influence , as well as and the social and
environmental impacts and risks within the area, can vary considerably depending on the nature
of the activities to be financed. Some of these impacts and risks, particularly those described in
the Performance Standards, may be attributable to third parties within the area of influence.
The larger the area of influence, the more likely that third party action or non-performance could
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pose risks to to the activities to be financedprojects. Where relevant, the Assessment risk and
impact identification process will includes these third party risks, particularly risks over which the
client may have a degree of control or influence.
G18.In addition to adverse impacts and risks, the Assessment can assess potential positive or
beneficial impacts of a project and propose measures to enhance them. These measures can
be implemented through the client’s social and environmental management program. If
requested by clients, IFC can assist clients to enhance the positive outcomes of the project
through various technical and financial assistance and programs.
Global Impacts - Climate Change
G36. Direct and indirect climate change impacts may affect social and environmental
performance associated with a client’s projects, and significantly impact on sustainable
development objectives. Changing weather patterns due to climate change may have an
impact on projects in a variety of ways, including physical risks arising from damage associate
with significant climatologic events, such as storms or floods, but also including impacts
associated with availability of natural resources such as water or other ecosystem services, and
potential effects on the supply chain (for instance increasing costs of raw materials), as well as
on operations or working practices of the projects . Other potential effects associated with
change in climatic conditions and temperature is related to possible changing patterns in
demand for goods and services provided by the projects to be financed.
G37. The client should incorporate certain aspects related to climate change into their baseline
analyses especially in case of projects located in climate sensitive areas, consuming significant
amounts of water, emitting significant amounts of GHG gases and having other significant
impacts on climate, using recently updated climatologic data and accounting for projected
variability in climatic and environmental conditions due to climate change that could occur over
the life of the projects. Recently updated climatologic data should be used in the design of
applicable associated infrastructure of the projects , or for modeling the fate and transport of
emitted pollutants from an industrial facility, or for water sustainability studies.
G38. In case of projects located in climate sensitive areas, consuming significant amounts of
water, emitting significant amounts of GHG gases and having other significant impacts on
climate the client should, where technically and financially feasible, conduct a climate change
risks and impacts assessment either as stand-alone process or as part of the social and
environmental risks and impacts identification process. Such an assessment should: (i) identify
all direct and indirect climate related impacts and risks that may affect the project during its life
cycle, including natural resources availability and other business-related Performance
Standards issues (i) identify the impact of climate change on natural resources availability and
other related impacts throughout the projects’ life cycle, (ii) identify potential risks of climate
change for the projects to be financed, as appropriate, and (iii) determine the need for
appropriate monitoring and risk management (adaptation) measures.
G19.G39. Specific requirements and guidance on greenhouse gases and ozone-depleting

substances can be found in Performance Standard 3 and its accompanying Guidance Note, and
on biodiversity, in Performance Standard 6 and its accompanying Guidance Note.
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Global Impacts[rs5]
G19.While the impacts of specific activities individual project impacts on climate change, ozone
layer, biodiversity or similar environmental issues may not be significant, when taken together
with impacts created by other human activities, they can become nationally, regionally, or
globally significant. When the business activities to be financeda project haves the potential for
large scale impacts that can contribute toward adverse global environmental impacts, the
process of risk and impact identification Assessment should consider these impacts. Specific
requirements and guidance on greenhouse gases and ozone-depleting substances can be
found in Performance Standard 3 and its accompanying Guidance Note, and on biodiversity, in
Performance Standard 6 and its accompanying Guidance Note.
Transboundary Impacts
G21.G40. Transboundary impacts are impacts that extend to multiple countries, beyond the
host country of the business activities to be financedproject, but are not global in nature.
Examples include air pollution extending to multiple countries, use or pollution of international
waterways,4 and transboundary epidemic disease transmission.5 If the Assessment determines
that (i) the business activities to be financedproject entail activities that may cause adverse
effects through air pollution or abstraction of water from or pollution of international waterways;
(ii) the affected countries and the host country have entered into any agreements or
arrangements or have established any institutional framework regarding the potentially affected
airshed, waterway, subsurface water, or other resources; or (iii) there are unresolved
differences between the affected and host countries regarding the potentially affected resource,
and the likelihood of a resolution is not imminent, the client may be required to provide notice of
the proposed business activitiesproject to the affected country or countries. When requested by
the client, IFC will assist the client with notifying competent authorities of the affected countries.
IFC’s role in this regard is outlined in paragraph X of the IFC Policy on Social and
Environmental Sustainability (Sustainability Policy). IFC’s procedure for notification of
competent authorities can be found in the Environmental and Social Review Procedure.
Examples of regional systems of assessment and notification of transboundary impacts can be
found in the References section.
4
IFC defines an international waterway as: i) any river, canal, lake, or similar body of water that forms a boundary between, or any
river or body of surface water that flows through, two or more states, whether IFC members or not; ii) any tributary or other body of
surface water that is a component of any waterway described in i) above; and iii) any bay, gulf, strait, or channel bounded by two or
more states or, if within one state, recognized as a necessary channel of communication between the open sea and other states—
and any river flowing into such waters.
5
Transboundary epidemic disease transmission is well known and has been observed in many settings. Many infectious diseases,
such as cholera, influenza and meningitis, can be rapidly and easily spread across national borders, particularly when a project
attracts a large influx of potential job seekers during a construction phase. Similarly, a project may bring in large numbers of
overseas workers for short-term specialty construction work. In some situations, the disease spectrum of the imported workers may
be quite different than the host country, e.g., multi-drug resistant tuberculosis, vivax versus falciparum forms of malaria. In some
cases, it may be appropriate for very large scale transboundary projects to consider the potential for global or regional level disease
epidemic transmission, e.g., avian influenza and SARS.
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July07April 30, 2006 May 19, 2010
G22.
Cumulative Impacts
G41. G22 –Government concessions and/or businessproject developers oftentypically

concentrate around available natural resources (e.g., watersheds with hydro-electric potential,
wind resources, coastal port zones, oil reserves, mining oresresources, forestsry), potentially
leading to multiple business activities in the same geographical area. Multiple environmental
and social impacts from existing business activities, combined with the potential incremental
impacts resulting from the proposed and/or anticipated future business activities may result in
significant cumulative impacts that would not be expected in the case of a stand-alone project or
business activity.
G42. G23 – As outlined in paragraph 7 of Performance Standard 1, a good environmental and

social impact and risk evaluation or Environmental and Social Impact Assessment (ESIA)
typically includes an assessment of the combined effects of the multiple components associated
with the business activity or project (e.g., quarries, roads, associated facilities). In situations
where multiple business activities occur in, or are planned for, the same geographic area, as
described above, it may be appropriate to include a Cumulative Impact Assessment (CIA) as
part of the risk and impact identification process.
G43. G24 – In practice, however, it may not be appropriate for the CIA to be performed by
business activity sponsors or individual project developers, as it requires the consideration of
some concepts that are not always found in a conventional EIA process. For example (i)
impacts over a large area that may cross jurisdictional boundaries (e.g., watershed, airshed,
forest), (ii) effects that may have occurred or will occur over a longer period of time, (iii) impacts
on specific ecosystem components or characteristics that will increase significance and/or
irreversibility when evaluated in the context of a series of existing or planned business activities,
projects or developments, and not just in the context of effects associated to the single project
or business activity under review. Examples of cumulative impacts include ambient conditions
such as incremental contribution of SO2 emission in an airshed, increase in pollutant
concentrations in a water body, reduction of flow of multiple water withdrawals, erosion control
or sediment load (see Performance Standard 3), interference with migratory routes or wildlife
free movement in a Natural Habitat, increased pressure on the carrying capacity or the survival
of indicator species in a given ecosystem, wildlife population reduction associated to several
unrelated business actives in the same area such as hunting, road kills and forestry operation,
or depletion of a forest as a result of multiple wood product extraction concessions, (see
Performance Standard 6), among others. Even secondary or induced social impacts, such as in
migration or substantially increased transport activity in an project area of influence (see
paragraphs G5, G22, and G23 of Guidance Note 4), can be considered as cumulative impacts.
G44. G25 – Even though cumulative impacts effects mayare not necessarily bethat much
different in quality from impactseffects analyzedexamined in an ESIA; and in fact they are often
the same, ESIAs focus on the specific area and timeframe related to the business activities’y
direct footprint and execution timetable. A CIAs simply enlargeenlarges the scale and timeframe
of the assessment in which the business activity is performed. At a For the practitcal levelioner,
the challenge will be in is determining how large an area around the business activity should be
assessed, in what period of time, and how to practically assess the often complex interactions
among different business activities occurring at different times. The main difference with an
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July07April 30, 2006 May 19, 2010
ESIA process is that a CIA always transcends a single project development or business activity,
and the potential management or mitigation measures resulting from a CIA typically require
participation from a more complex and diverse number mesh of stakeholders in order to be
implemented for its efficiently and effectively implementation. Furthermore, mitigation measures
associated with a CIAs will typically requireinclude the active participation of government
authorities to, which assess the incremental contribution of each developer or business activity
to the cumulative impacts, determines and coordinates the mitigation measures corresponding
to each business activity, and enforces and documents their implementation. In all other ways a
CIA is are fundamentally the same as an ESIAs and, therefore often reliesay on established
ESIA practices, including scoping, analysis of effects, evaluation of significance, identification of
mitigation measures, and follow-up.6
G45. G26 – According to paragraph 7(iii) of Performance Standard 1, the aAssessment of a

business activity considering IFC financing should include an evaluatation of its potential
cumulative environmental and social impacts. However, this assessment necessarily has to be
commensurate with the incremental contribution, source, extent, and severity of the cumulative
impacts anticipated. As a result, the geographic and temporal boundaries of the cCIAumulative
impact assessment willould depend on the potential cumulative impacts that are attributable to
the business activity under evaluation and those that affect the business activity as a result of
reasonably foreseeable activities by third parties, and will influence the final definition of the
area of influence or unit of evaluation. Furthermore, the aAssessment must determine if the
business activity to be financed is incrementally responsible for adversely affecting an
ecosystem component or specific characteristic beyond an acceptable predetermined threshold
(carrying capacity) by the relevant government entity, in consultation with other relevant
stakeholders (sSee Performance Standard 9). Therefore, although the total cumulative
environmental and social impacts due to many business activities actions are typically identified
in a government sponsored CIA, the aAssessment must make clear the to what degree to which
the business activity under review is alone contributing to the total cumulative effects.
G23. G27 - The client’s baseline study should indentifyidentify any relevant existing business
activity, or project or condition that could lead to cumulative impacts. In terms of anticipated
future projects, priority should be given to assessing cumulative impacts stemming from the
business activity being considered for financing, such as further planned development
associated with of the business activity or project and other project-related future developments
that are realistically defined at the time of the aAssessment (for example, and anticipated future
development for which licenses or permits have been issued should be included, even if it is not
yet in implementation).
G46. The client’s baseline study should identify any relevant existing business activity, project
or condition that could lead to cumulative impacts. In terms of anticipated future projects, priority
should be given to assessing cumulative impacts stemming from the business activity being
considered for financing, such as further planned development associated with of the business
activity or project and other future developments in the project's area of influence that are
realistically defined at the time of the assessment (this may include any combination of
developments which are either proposed, licensed or for which permits exist).
6
A good practitioners CIA reference can be found in http://www.ceaa-acee.gc.ca/default.asp?lang=En&n=43952694-1&toc=show
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July07April 30, 2006 May 19, 2010
G47. G28 - If the business activity’s incremental contribution to the cumulative effects is likely
to be negligible or not significant, and the potentially cumulative impacts are likely to occur
regardless of the business activity to under IFC’s evaluation for financbe financeding, then a
standard aAssessment and associated mitigation measures will be expected toshould suffice.
While the client is responsible for gathering information on cumulative impacts under paragraph
7 of Performance Standard 1, the client is expected to address risks and impacts
commensurate to its activities and its’s control and influence over third party actions.
G24.G48. In situations where On the other hand, if the incremental contribution to the
cumulative impacts associated with the business activity under evaluation is believed to be
significant, IFC will work with the client to identify existing data and studies, and if necessary will
consider available technical and financial assistance mechanisms on a case-by-case basis to
provide support to the relevant authorities in the development of a CIA. Whenever feasible, the
IFC will ensure that the Client uses best efforts to engage relevant government the local
authorities, other developers, and all other relevant stakeholders, in the assessment, design,
implementation and enforcement of coordinated mitigation measure to manage the potential
cumulative impacts resulting from multiple business activities in the same geographical area or
unit of analysis. In situations where cumulative impacts are likely to occur from activities by third
parties parties in the project region, a regional or sectoral assessment may be more appropriate
than a CIA. For further guidance on such assessments see pParagraphs GX and GX below.
The combination of multiple impacts from existing projects, the proposed project, and/or
anticipated future projects may result in significant adverse and/or beneficial impacts that would
not be expected in case of a stand-alone project. The Assessment should identifyevaluate
these cumulative impacts in the project area of influence and take them into account in
proposing mitigation measures. The scope of a cumulative impact assessment should be
commensurate with the source, extent, and severity of cumulative impacts anticipated. As a
result, the geographic and temporal boundaries of the cumulative impact assessment would
depend on the potential cumulative impacts that are attributable to the project and those that
affect the project as a result of reasonably foreseeable activities by third parties, and will
influence the final definition of the project area of influence. Examples of cumulative impacts
include ambient conditions in an airshed (see paragraph 9 of Performance Standard 3),
conditions in a watershed, or secondary or induced social impacts, such as in-migration or
substantially increased transport activity in a project area of influence (see paragraphs G5, G22,
and G23 of Guidance Note 4). The client’s baseline study should identify any relevant existing
project or condition. In terms of anticipated future projects, priority should be given to assessing
cumulative impacts stemming from the proposed project, such as further planned development
of the project and other project-related future developments that are realistically defined at the
time of the Assessment (for example, an anticipated future development for which licenses or
permits have been issued should be included, even if it is not yet in implementation). IFC will
work with the client to identify existing data and studies, and if necessary will consider available
technical and financial assistance mechanisms on a case-by-case basis. In situations where
cumulative impacts are likely to occur from activities by third parties in the project region, a
regional or sectoral assessment may be appropriate. It may not be feasible for the client to
undertake such a study, for example, in situations where the impacts from the client’s own
operations are expected to be a relatively small amount of the cumulative total. For further
guidance on such assessments, see paragraph G31 and 32 below. While the client is
responsible for gathering information on cumulative impacts under paragraph 5 of Performance
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July07April 30, 2006 May 19, 2010
Standard 1, paragraph 6 of the Performance Standard also indicates that the client is expected
to address risks and impacts commensurate to the client’s control and influence over third party
actions.
G21.
Human Rights
G49. The key human rights concepts can be found in the International Bill of Rights, consisting
of the Universal Declaration of Human Rights, the International Covenant on Civil and Political
Rights (ICCPR), and the International Covenant to Economic, Social and Cultural Rights
(ICESC). While states have the primary duty to implement the obligations contained these
instruments, private sector companies have a responsibility to respect these human rights in
their operations. Several important human rights analyses recently examined the relevance of
rights in the International Bill of Rights to projects, and concluded that, while the possibility that
businesses can impact all human rights expressed in the International Bill of Rights cannot be
ruled out, there are certain rights that are of particular relevance to the conduct of business.7
G50. The Performance Standards provide a framework for a business to address human rights
issues in its operations and helps the business meet its responsibility to respect human rights.8
The Performance Standards are also intended to support the framework for business and
human rights, established in the report of the Special Representative of the Secretary-General
on the issue of human rights and transnational corporations and other business enterprises (the
SRSG), known as the Protect, Respect and Remedy Framework. The "respect" and "remedy"
aspects are both emphasized in Performance Standard 1: the need for human rights due
diligence through risks and impacts identification, and management of risks and impacts
through a management system, of which ongoing stakeholder engagement is an important part.
Performance Standard 1 also calls for a company level grievance mechanism to provide redress
to stakeholder concerns and complaints.
G51. In many cases, the process of social and environmental assessment will help identify the
pertinent human rights issues in a project. In certain projects with high risks inherent in the
sector (for example, extractive projects or sector or projects with a potential to rely on child or
forced labor), or projects proposed in conflict zones or other high risk situations, a freestanding
human rights impact assessment, undertaken early in the project development stage, will be
appropriate. Financiers and supporter that provide financial services to these projects may
benefit from such human rights impact assessment in their decision making process.
G52. The human rights aspects of the risk and impact identification and management
processes are explained in greater detail in the Guide to Human Rights Impacts Assessment
7
UN Human Rights Council, Protect, Respect and Remedy: a Framework for Business and Human
Rights: Report of the Special Representative of the Secretary-General on the issue of human rights and
transnational corporations and other business enterprises, John Ruggie, April 2008, A/HRC/8/5; Human
Rights Translated: A Business Reference Guide, Castan Centre for Human Rights Law, International
Business Leaders Forum, Office of the United Nations High Commissioner for Human Rights, and United
Nations Global Compact Office, 2008; and the Human Rights Compliance Assessment tool of the Danish
Institute for Human Rights (v1 and v2).
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July07April 30, 2006 May 19, 2010
and Management, a joint publication of the International Business Leaders Forum and IFC
[provide a link]. The human rights risks and impact identification process should also explicitly
address the risk that the company may be complicit in a third party's violation of human rights.
Complicity in this context refers to indirect involvement of companies in human rights abuses
(Ruggie, 2008 A/HRC/8/16), and may involve the state, state agents, or private actors (e.g., joint
venture partners, suppliers). A key component of complicity is knowingly supporting, endorsing
or deriving s benefit from a third party’s violation of human rights. The human rights impact
assessment process should specifically review the possibility that a business may be deriving
benefit from third parties in violation of human rights. If such benefit is identified, the business
should take appropriate management action to address the risk of being perceived to be
associated with such situation. In these situations, the fact that the business may have no
significant control or influence of any kind over the situation may not be an argument for not
taking any action. Even if the business decides not to take any action, IFC may for its own
reason decide not to finance the project.
G26. A number of international agreements and conventions have established basic human
rights (a list of these international instruments can be found in the References section of
Guidance Note 2; other useful guidance supporting human rights can be found in the
References section of Guidance Notes 3, 4, 5, and 7). While states are responsible for
protecting these human rights, it is increasingly expected that private sector companies conduct
their affairs in a way that would uphold these rights and not interfere with states’ obligations
under these instruments. In addition, business conduct that is inconsistent with these basic
human rights can pose risks to business, and as a result, the aAssessment process is a useful
tool to analyze these risks and to consider management measures. Descriptions of some of
these risks can be found in Performance Standards 2, 3, 4, 5 and 7. IFC recently released a
draft of the Guide to Human Rights Impact Assessment and Management (Guide to HRIA)make
this link live], jointly developed by IFC and the International Business Leaders Forum. .The draft
Guide to HRIA was released to enable voluntary road-testing of the HRIA by a number of
companies. If human rights are likely to be a significant and specific risk for the business
activities to be financed, companies can consider carrying out an HRIA along with the Social
and Environmental Assessment.
Ecosystem Services
G53. Ecosystems provide businesses, people and communities with a wide range of goods
and services. For example, forests supply timber and wood fiber for production purposes,
regulate climate by absorbing carbon dioxide, provide material for shelter to local communities
who depend on such resources and yield genetic resources for medicines. These and many
other benefits from nature are known as “ecosystem services”9. In recent years, the
fundamental importance of ecosystem services is being realized, both in terms of the
dependence on such services by business and the impacts resulting from projects on local
communities whose livelihoods directly depend on such services.
G54. Ecosystem services are divided into four categories of service10: “provisioning services”
(i.e., the products people and businesses obtain from ecosystems such as food, fiber,
9
Adapted from Guidelines for Identifying Business Risks and Opportunities Arising from Ecosystem Change (The Corporate Ecosystem Services
Review), Version 1.0, produced by the World Resources Institute, World Business Council for Sustainable Development and the Meridian
Institute.
10
As defined in the Millennium Ecosystem Assessment: www:millenniumecosystem.org
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July07April 30, 2006 May 19, 2010
freshwater and biomass), “regulating services” (i.e., the benefits people and businesses obtain
from the regulation of ecosystem processes, such as flood and erosion control, natural hazard
regulation, surface water purification and carbon storage and sequestration), “supporting
services” (the natural processes such as nutrient cycling that maintain the other services) and
cultural services (the nonmaterial benefits people obtain from ecosystems such as spiritual
fulfillment).
G55. In certain instances as defined in Performance Standard 6, the client would be expected
to identify “priority” ecosystem services as part of the overall identication of risks and impacts
process.
G56. Priority services are the provisioning, regulating and cultural services that are most likely
to be a source of opportunity for the project (i.e., dependence) and/or risk to the project (impact
on directly affected stakeholders). Tools and methodologies for conducting an ecosystem
services assessment are as follows11: i) World Resources Institute, World Business Council for
Sustainable Development and the Meridian Institute (2008). The Corporate Ecosystem Services
Review: Guidelines for Identifying Business Risks & Opportunities Arising from Ecosystem
Change, Version 1.0.; ii) Natural Capital Project, in association with the World Wildlife Fund
(WWF), The Integrated Valuation of Ecosystem Services and Tradeoff (InVEST) tool; iii) Fauna
& Flora International (FFI) and UNEP (2009). The Ecosystem Services Benchmark. A Guidance
Document; iv) Roundtable on Sustainable Biofuel (2009). Ecosystem and Conservation
Specialist Guidelines in the Annex to the Guidelines for environmental and social impact
assessment, stakeholder mapping and community consultation specific to the biofuels sector.
Disadvantaged or Vulnerable Groups
G23.G57. There may be individuals or groups within the project area of influence who are
particularly vulnerable or disadvantaged and who could experience adverse impacts from the
proposed business activitiesproject more severely than others, as described in footnote 2 of
Performance Standard 1. Large scale business activitiesprojects with a large project area of
influence and multiple affected Affected communities Stakeholders are more likely to expose
these individuals and groups to adverse impacts than smaller scale business activitiesprojects
with site specific issues. Where it is anticipated that the business activitiesproject will impact
one or more affected Affected communitiesStakeholders, the aAssessment process should use
accepted sociological and health methods to identify and locate vulnerable individuals or groups
within the affected community, collecting data on a disaggregated basis. Using this
disaggregated information, the client should assess potential impacts, including differentiated
impacts, on these individuals and groups and propose specific (and if necessary separate)
measures in consultation with them to ensure that potential impacts and risks to them are
appropriately avoided, mitigated or compensated. Vulnerable or disadvantaged individuals and
groups should be able to benefit from project opportunities equally with the rest of the Aaffected
communityStakeholder; this may require that differentiated benefit-sharing processes and levels
(such as ensuring that compensation for a house taken during resettlement is provided equally
to the woman and man of the household, providing training for individuals or groups who might
lack the necessary skills to find a job with the business activitiesproject, ensuring access to
medical treatments for medical conditions resulting from the business activitiesproject, etc.) are
11
Performance Standard 6 (annex) also provides a ecosystem services review methodology.
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July07April 30, 2006 May 19, 2010
available. M Project monitoring should track these individuals or groups on a disaggregated

basis. Specific considerations and measures for Indigenous Peoples are described in
Performance Standard 7 and the accompanying Guidance Note. Clients should exercise
discretion in gathering personal data and information and should treat such data or information
as confidential (except where disclosure is required by law). Where Performance Standard 1
requires disclosure of plans based on personal info or data collected, (such as a resettlement
action plan) the client should ensure that any personal data or information cannot be associated
with particular individuals.
Disability
Disability para to be inserted here
Gender
G28.G58. Clients should determine whether There are country laws, regulations, and/or
other guidance pertaining specifically to people with disabilities, whom are highly vulnerable to
disproportionate impact from the business activities to be financedprojects. Impacts in the
project area of influence include adverse and beneficial, direct and indirect, individually and
cumulatively significant, long and short-term, and diverse, irreversible, or unprecedented effects.
Where no adequate legal framework existsis present for people with disabilities,, the client
should identify appropriate alternatives to avoid, minimize, mitigaterestore, or compensate for
potential adverse impacts and risks on people with disabilities. The alternatives should be
focused on creating access to the resources and social and environmental aspects services
offor the community (e.g., social – accessibility to education, medical assistance, training,
employment, tourism, and consumer goods; and physical accessibility to transportation,
schools, hospitals/clinics, work facilities, hotels, restaurants, stores, and other commercial
areas). See the References Section for A Design Manual for a Barrier Free Environment, and
The U.S. Access Board. Clients should also consider incorporating the principles of universal
design (defined as the design of products, environments, programs and services to be usable
by all people, to the greatest extent possible, without the need for adaptation or specialized
design12) into design, construction, and operation (including emergency and evacuation plans),
whether new construction or restructuring, expansion, or modernization of facilities, to maximize
use by all potential users, including people with disabilities.
into project design, construction, and operation, whether new construction or
restructuring, expansion, or modernization of facilities, to maximize use by all potential users.
Gender
G24.G59. The business activities to be financedA project may have different impacts on
women and men, due to their differentiated socioeconomic roles and their varying degrees of
control over and access to assets, productive resources, and employment opportunities. There
may be norms, societal practices, or legal barriers that impede the full participation of persons of
one gender (usually women, but potentially men) in consultation, decision-making, or sharing of
project benefits. These legal and societal norms and practices may lead to gender
discrimination or inequality. Gender-differentiated impacts should be assessed and the
12
“Universal design” shall not exclude assistive devices for particular groups of persons with disabilities where this is needed (Article
2 of the United Nation Convention on the Rights of Persons with Disabilities adopted December 13, 2006).
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July07April 30, 2006 May 19, 2010
aAssessment should propose measures designed to ensure that one gender is not
disadvantaged relative to the other in the context of the business activities to be financedproject.
This may include providing opportunities to enhance full participation and influence in decision-
making through separate mechanisms for consultation and grievances, and developing
measures that allow both women and men equal access to project benefits (such as land titles,
compensation, and employment).
G30.G60. Health performance indicators and gender are strongly associated with each
other. Demographic Health Surveys (DHS) have repeatedly demonstrated the profound
connection between gender (usually women) and a wide variety of key health performance
indicators. Proposed interventions should be sensitive to and aware of the unique role played
by women in health. The use of peer educators and community level women’s organizations
should be considered. In many developing country settings, there are marked differences in the
literacy and educational attainment levels of women. Typically, female literacy and educational
attainment levels are marked lower than men, even if the woman is the household head.
Household level education literacy/attainment is also strongly tied to many critical health
performance indicators. Therefore, proposed mitigation interventions and/or outreach efforts
must factor this “ducation gap” into the planning process.
Third Party Impacts including Supply Chain Considerations[rs6]
G25.G61. The client may have limited or no leverage on third parties, such as a
government agency in charge of controlling in-migration in the project area, or an illegal logging
operation taking advantage of project access roads through forests. Nonetheless, the project
description of the business activities in the aAssessment report should encompass facilities and
activities by third parties that are essential for the successful operation of the business
activitiesproject, and the aAssessment process for activities project with a large area of
influence should identify the roles of third parties and the potential impacts and risks from their
actions or non-performance. Clients should collaborate with third parties and take action to the
extent of their influence or control over them. IFC will work with the client on a case-by-case
basis to have the client and, where feasible, third parties develop appropriate mitigation
strategies.
G26.G62. Among these third parties are operators of associated facilities (see item (ii) in
paragraph 5 7 of Performance Standard 1) that may have a particularly close relationship with
the business activitiesproject. Because of this relationship, the client will normally have some
commercial leverage on the operators of such facilities. Where such leverage allows,
undertakings can be secured from these operators to operate their facilities consistent with the
applicable Performance Standards. In addition, the client should identify its own actions, if any,
that will support or supplement the actions of the associated facilities.
G27.G63. As with the third party impacts and risks described above, projects’ relationships
with supply chains could pose a particular challenge in certain sectors. The aAssessment
should identify the roles, impacts and risks of key primary suppliers in relation to labor issues
(child and forced labor and significant OHS risks) and ecologically sensitive resources, as
described in paragraph 6 8 of Performance Standard 1. Generally, where the client has
commercial leverage over its suppliers, IFC will expect the client to work with its suppliers to
propose mitigation measures proportionate to identified risks on a case-by-case basis, while
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July07April 30, 2006 May 19, 2010
recognizing that assessing and addressing supply chain implications beyond the first or the
second tier suppliers would not be practical or meaningful to the client or the supplier.
Additional information on addressing labor issues of the client’s key suppliers, particularly those
related to child labor and forced labor, can be found in paragraph 18 of Performance Standard 2
and the accompanying guidanceGuidance Note 2. For biodiversity issues in the supply chain,
see Performance Standard 6 and the accompanying Guidance Note 6.
Regional, Sectoral or Strategic Assessments
G28.G64. In exceptional circumstances, regional, sectoral, or strategic social and

environmental assessment may be required in addition to the social and environmental impact
assessment. Regional assessment is conducted when an activityproject or series of
activitiesprojects are expected to have a significant regional impact or influence regional
development (e.g., an urban area, a watershed, or a coastal zone), and is also appropriate
where the region of influence spans two or more countries, or where impacts are likely to occur
beyond the host country. Sectoral assessment is useful where several activitiesprojects are
proposed in the same or related sector (e.g., power, transport, or agriculture) in the same
country, either by the client alone or by the client and others. Strategic assessment examines
impacts and risks associated with a particular strategy, policy, plan, or program, often involving
both the public and private sectors. Regional, sectoral, or strategic assessment may be
necessary to evaluate and compare the impact of alternative development options, assess legal
and institutional aspects relevant to the impacts and risks, and recommend broad measures for
future social and environmental management. Particular attention is paid to potential
cumulative impacts of multiple activities. These assessments are typically carried out by the
public sector, though they may be called for in some complex and high risks private sector
projects.
G29.G65. When the need for such assessments is indicated, IFC will work with the client to
identify existing data and studies already carried out by other institutions, such as the World
Bank, other multilateral financial institutions and/or national agencies. In the absence of such
data or studies, IFC will assist the client to identify the appropriate terms of reference for such
assessments, and will consider available technical and financial assistance mechanisms.
Mitigation Measures
Documentation of Assessment Process
G31.The outcome of the Assessment process should be documented. The assessment

process may result in one or more documents with separate analysis, particularly when the
client engages various experts to address multiple Performance Standards.
G32.Projects with limited adverse impacts and risks, both new projects and those involving
existing facilities (the type of projects likely to be considered as Category B projects by IFC),
need documentation on the screening process, impacts analysis, proposed mitigation
measures, and the process of disclosure of information, and community engagement (if there
are affected communities). Compliance with the legal and regulatory framework, the applicable
Performance Standards and the environmental and health and safety performance levels
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July07April 30, 2006 May 19, 2010
established for the projectAt a minimum, clients should have one or more documents or analysis
that describe:
The project and its social and environmental aspects

Maps and drawings of the project and a delineation or description of its area of
influence
Compliance with the legal and regulatory framework, the applicable Performance
Standards and the environmental and health and safety performance levels
established for the project
Key potential impacts and risks, including the identification of the affected
communities
Planned mitigation and any areas of concern that need to be further addressed
The process of community engagement
G33.If early analysis for the Assessment identifies potentially significant adverse social and
environmental impacts and risks that are diverse, irreversible, or unprecedented (the type of
projects likely to be considered as Category A projects by IFC), a formal social and
environmental impact assessment report will be prepared in accordance with accepted
international practice, and consistent with Annex A. For these projects, summaries of analyses
should explain findings clearly and objectively, and be understandable to laypersons. For those
projects with potentially significant adverse impacts predominantly in the social area (e.g.,
involuntary resettlement), the Assessment process should largely focus on generating
appropriate social baseline data, impacts analysis, and mitigation measures (e.g., Resettlement
Action Plan).
G39. These projects will normally need to conduct an alternatives analysis as part of the
social and environmental assessment. The purpose of alternative analysis is to improve project
design, construction, and operation decisions based on feasible project alternatives. This
analysis may facilitate the consideration of social and environmental criteria at the early stages
of project development and make decisions based on the differences between real choices.
The alternatives analysis should be conducted as early as possible in the Assessment process
and examine feasible alternatives such as alternative project locations, designs or operational
processes, or alternative ways of dealing with social and environmental impacts. The analysis is
subject to the disclosure and consultation requirements of the Assessment. Additional
information regarding the analysis of alternatives is provided in Annex A.
G40. When projects involve existing facilities, environmental and social audit reports and
hazard/risk assessment reports should be prepared in accordance with accepted international
practice and follow the table of contents provided in Annex B.
Management System, Plans, and Agreements

21.13. Consistent with the client’s Policy Statement and the objectives and principles
described therein, the client, s4Taking into account the relevant findings of the Social and
Environmental Assessment and the result of consultation with affected communities, the
client will establish and manage a management system of mitigation and performance
improvement measures and actions that address the identified social and environmental
risks and impacts of the project. xxxxxxxxxxxxxxxxxxxxx (the management program
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July07April 30, 2006 May 19, 2010
system).
22.14. Depending on the nature of the project, mManagement systems will consist of
some a combination, duly documented, of operationalpolicies, procedures, and practices,
plans, and related supporting documents that are managed in a systematic way. The
management system, plans and agreements[PM7] may may apply broadly across the client’s
14
organization, which includes contractors and primary suppliers over which they have
management control, or to specific sites, facilities, or activities. In certain cases, some of
the measures and actions will include those imposed by financiers or investors as
conditions of financing based on their independent evaluation of the project’s ability to
15
meet the requirements of Performance Standards 1 through 8. [PM8] The mitigation
hierarchy measures and actions to address identified impacts and risks and impacts will
favor the avoidance and prevention of impacts over minimization, mitigationreduction,
16
restoration, or compensation/offset, wherever technically and financially feasible.
23.15. Where risks and impacts cannot be avoided or prevented, mitigation measures and
actions will be identified so that the project operates in compliance with applicable laws and
regulations, and meets the requirements of Performance Standards 1 through 8 (see
paragraph 16below). The level of detail and complexity of this management system and the
priority of the identified measures and
_____________________
13
Primary suppliers are those first-tier suppliers who are providing goods or materials essential for the core
business function.
14
As a result of any independent due diligence of the project conducted by financiers, additional measures and
actions (supplemental action plans) may be identified beyond those previously identified in the client’s
management system, and will be included as part of the overall management system.
15
Technically feasible is based on whether the proposed measures and actions can be implemented with
commercially available skills, equipment, and materials, taking into consideration prevailing local factors such
as climate, geography, demography, infrastructure, security, governance, capacity, and operational reliability.
16
Financial feasibility is based upon the ability to apply sufficient financial resources to install the measures and
maintain them in operation in the long term.
documented actions and plans will be commensurate with the project’s risks and impacts
and will reflect the outcome of any relevant consultation with Affected Stakeholders.
24.16. The management system will define desired outcomes and actions to address the
17
issues raised in the risks and impacts identification process, as measurable events to the
extent possible, with elements such as performance indicators, targets, or acceptance
criteria that can be tracked over defined time periods, and with estimates of the resources
and responsibilities for implementation. As appropriate, it shall the management system will
recognize and incorporate the role of relevant actions and events controlled by third parties
to address identified risks and impacts. Recognizing the dynamic nature of the project,
development and implementation process,the management system will be responsive to
changes in project circumstances, unforeseen events, and the results of monitoring and
review. (see paragraph 24 below)
_____________________
17
For example, the risks and impacts identification process may result in various plans such as Resettlement
Action Plans, Biodiversity Action Plans, Water Resource Management Plans, Community Safety Plans,
Community Development Plans or Indigenous Peoples Development Plans. The plans will likely contain actions
that then need to be implemented through the management system.
33
July07April 30, 2006 May 19, 2010
G41.G66. If the assessment process confirms potential impacts and risks associated with
the activities to be financed, clients should develop a program of measures and actions to avoid,
minimize, mitigate, compensate for, or offset potential adverse impacts, or, in case of positive or
beneficial impacts, to enhance them. As a general principle for adverse social and
environmental impacts, the impact and risk identification process should focus on measures to
prevent these from occurring in the first place, as opposed to minimizationreduction, mitigation,
or compensation. At the same time, however, IFC recognizes this can pose challenges for
business activities. Where these impacts are within the client’s capacity to control or influence,
the client should capture the mitigation or corrective measures in a management program and
relevant management plans and agreements, and implement these through the Management
System.
G67. The level of detail and complexity of the management program should be commensurate
with the project’s anticipated impacts and risks of the business activities to be financed. Where
an ESIA is required Social and Environmental Impact Assessment format is required as
described in paragraphs G16 through G19 above9 of Performance Standard 1, the
management program should include any plans Action Plan and agreements resulting from the
ESIA process and documented in the ESIA reportas described in paragraph 16 of Performance
Standard, and contain the measures listed under the heading “Management Program” in Annex
A.
G36.G68. For activities projects with limited potential impacts, the management program
should address those limited impacts, and isare likely to be less elaborate. In the case of
existing facilities, the management program system is likely to include corrective measures and
an Action plansPlan to address areas of improvement identified in the social and environmental
audits as described above. Similarly, the management program should reflect the findings of,
and include specific recommended actions devolving from, specialized assessments and
studies such as those described above in this Guidance Note.
G36.G69. As noted, certain types of business activities may result in, or contribute to,
impacts that occur outside the geographic or temporal boundaries of the activities themselves.
Examples of these include cumulative, transboundary, and global impacts. Where the
incremental contribution of the business activities under evaluation is believed to be significant,
the management programsystem may include activities that support efforts to be carried out by
relevant authorities to manage and monitor these larger scale impacts.
G70. As discussed above, for some business activities, the risks and impacts associated with
supply chains may be significant. In such cases, these impacts should be assessed, and clients
should collaborate with third parties to take appropriate actions related to supply chain impacts,
to the extent of their influence or control over such parties. All such actions should be
incorporated into the client’s management programsystem.
G36.G71. As part of the management programsystem, the client may wish to establish its
own internal performance measures so as to enhance positive project impacts and the desired
outcomes as measurable events to the extent possible. These include measures such as
performance indicators, targets, or acceptance criteria that can be tracked over defined time
periods, to ensure continuous improvement of performance in these areas.
34
July07April 30, 2006 May 19, 2010
G37.G72. The management program should be implemented through the client’s Social
and Environmental Management System (see paragraph 3 of Performance Standard 1 and the
accompanying guidance), so that it will enable Tthe client should to determine adequate
allocation of financial resources and designateion of responsible personnel within the client’s
organization to implement the management system,. and to implement as part of overall site,
project or corporate management. .
G37.G73. For certain types of clients (financial institutions, funds) the client may integrate
the management programsystem, plans and agreements either by revising existing credit and
risk management procedures or investment cycle procedures or through the development of
stand-alone documents.
G37.G74. The recommendations of the ESDD conducted for financial institutions (FI) and
investment funds should include the necessary actions which must be implemented for the
proposed investment to proceed to financial closure. At a minimum, these shall consist of a set
of mitigation, management, monitoring, and institutional measures to be taken during project
implementation and operation to address any gaps with the FI’s or fund’s Social and
Environmental Policy. Any mitigating actions addressed in the ESDD report should clearly
indicate the (achievable) level of environmental compliance with the Policy, the existing
performance gaps, and the corrective actions that need to be taken to close these gaps along
with reasonable timelines (collectively, the action plan), and should be thoroughly discussed and
agreed with the business activities’ sponsor. The fund manager should remain engaged in the
due diligence process, and involve other investors or stakeholders in reviewing the due
diligence report and determining the soundness of the action plan. Additional reviews or due
diligence work may be triggered as a result of such stakeholder engagement. Finally, the
results of the ESDD should be presented to the fund’s investment committee in concert with the
results of the other due diligence conducted on the prospective investment.
Action Plan
25.17. Where the client identifies specific mitigation measures and actions necessary for
the project to comply with applicable laws and regulations and to meet the requirements of
Performance Standards 1 through 8, the client will prepare an Action Plan. These measures
and actions will reflect the outcomes of consultation on social and environmental risks and
adverse impacts and the proposed measures and actions to address these, consistent with
the requirements under paragraph 2122. The Action Plan may range from a
18
brief description of routine mitigation measures to a series of specific plans. The Action
Plan will: (i) describe the actions necessary to implement the various sets of mitigation
measures or corrective actions to be undertaken; (ii) prioritize these actions; (iii) include the
time-line for their implementation; (iv) be disclosed to the aAffected communities
Stakeholders (see paragraph 26 below); and (v) describe the schedule and mechanism for
external reporting on the client’s implementation of the Action Plan.
_____________________
18
For example, Resettlement Action Plans, Biodiversity Action Plans, Hazardous Materials Management Plans,
Emergency Preparedness and Response Plans, Community Health and Safety Plans, and Indigenous Peoples
Development Plans.
G38.G75. [rs9]IFC’s independent due diligence assessment of specific business activities

to be financed often results in a finding that the client will need to carry out additional actions or
measures to ensure compliance with the Performance Standards, host country law, or other
35
July07April 30, 2006 May 19, 2010
obligations. Where such findings are made, Taking the result of the Social and Environmental
Assessment process, including the result of consultation during this process (see paragraphs 19
through 23 of Performance Standard 1 and the accompanying Guidance Notes), IFC will
develop an Environmental and Social Iinvestment Supplemental Action Plan[rs10], to be agreed
with the client prior to approving the investment. Such Investment Supplemental Action Plans
will be the client should prepare its Action Plan, which is a part of the incorporated into the
client’s management program, focusing on the specific additional measures and actions
necessary for the client to comply with applicable national laws and regulations and to meet
these requirements, laws and obligations of the applicable Performance Standards. The Action
Plans will include a description of action items identified to ensure compliance with IFC
requirements, responsible entity for implementation of the actions and measures, relevant
completion indicators and timeline. It can exclude information that is of an internal nature, such
as proprietary information, cost data, information that would compromise the project site security
and safety of the business activities, and detailed procedures, business processes, and
instructions for workers (which should be included in the management program). Such Action
Plans are disclosed by IFC on the disclosure portal of the IFC website, together with the IFC
Environmental and Social Review Summary (ESRS), along with relevant client environmental
and social documentation. The final investment agreements reflect the terms of such
supplemental Action Plans developed during the review process, including disbursement
conditions.
G38.G76. As part of its ongoing engagement with aAffected communities

Stakeholdersconducted pursuant Performance Standard 9, the client is required to disclose
business activities’ environmental and social assessment information locally, including
environmental and social management programs (that will integrate any Supplemental Action
Plans developed by and agreed with IFC), the Investment its Action Plan in advance of project
implementation of the business activities to be financed to aAffected communities and
sStakeholders, and provide updates throughout the life of the activitiesproject as mitigation
measures are adjusted and upgraded, reflecting the feedback from the affected
communitiesstakeholders.
G38.
Organizational Capacity and Competency

26.18. The client, in collaboration with appropriate and relevant third parties, will
establish, maintain, and strengthen as necessary an organizational structure that defines
roles, responsibilities, and authority to implement the management systemincluding the
Action Plan. Specific personnel, including management representative(s), with clear lines of
responsibility and authority should be designated. Key social and environmental
responsibilities should be well defined and communicated to the relevant personnel and to
the rest of the client’s organization. Sufficient management sponsorship and human and
financial resources will be provided on an ongoing basis to achieve effective and
continuous social and environmental performance.
G39.G77. The successful implementation of the management program, including the Action
Plan, calls for the commitment of management and employeesworkers of the client’s
organization. Accordingly, the client should designate specific in-house personnel, including
management representative(s), with clear lines of responsibility and authority for social and
environmental issues. The management representative is a key function within the organization.
36
July07April 30, 2006 May 19, 2010
They should act as a link between senior decision makers and those working in
functions/departments within the organization that need to implement, maintain and perform
accordingly with respect to social and environmental risks and impacts. The management
representative should be a part of the senior management team themselves.
G39.G78. As management systems have evolved, so has the recognition that their success
depends on efforts of those within departments that have perhaps traditionally been seen to be
beyond the reach of social and environmental issues. Departments or entities such as human
resources, production areas, procurement, maintenance or other specialist functions should
now be considered important contributors to management system success. Whereas it is
expected that the management of social and environmental issues will continue to be led by
social and environmental professionals, how an organization integrates this into the business as
a whole can greatly impact the success of dealing with social and environmental risks and
impacts. The role of individuals within the above departments should be relative to the identified
social and environmental risks and impacts. For example, managing training needs (human
resources), contracts and contractor performance (procurement), up-keep of equipment to boost
energy efficiency and avoid spills, leaks or other emergency situations (maintenance) and
material storage and handling and waste minimization (production areas) are but a few
examples where those not considered social and environmental professionals can be found to
play a role. Leveraging the focused contributions from many throughout an organization, under
the guidance of social and environmental professionals, is seen to be a cost-effective and
intelligent way to manage an organization’s social and environmental risks. Organizations must
carefully consider then how they will work to integrate requirements associated with risks and
impacts throughout all elements of the organization so as to best manage them according to
their policy. If functions are outsourced to third partiescontractors, the client’s agreement with
these parties contractors should include actions and measures necessary for the parties to
perform the agreement consistent with the management programsystem. In large or complex
organizations multiple personnel or operational units may be designated. In small or medium-
sized enterprises, these responsibilities may be undertaken by one individual. It is also
important that the kKey social and environmental responsibilities must be are well defined and
communicated to the relevant personnel within the and the rest of the organization. Appropriate
human and financial resources should be allocated to those designated as responsible for the
implementation of the management program system and any additional performance measures.
Some Annex C contains a series of questions that may be useful for clients to pose to assess
adequacy of its capacity and process are as follows: .
G39.
How does the client’s organization identify and allocate the human, technical, and
financial resources, including external experts, necessary to manage social and
environmental performance?
How has social and environmental management been integrated into the overall
business management process?
What is the process for balancing and resolving conflicts between social,
environmental and other business objectives and priorities?
What are the responsibilities and accountability of personnel who manage,
perform, and verify work effecting social and environmental issues, and are these
well defined and documented?
How has top management established, reinforced and communicated
organizational commitment?
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July07April 30, 2006 May 19, 2010
Is there a process for periodic review of the management programsystem in the

event of changed project circumstances?
G39.
G79. [move this para. to “Organizational Capacity” section] Clients maycan use in-house staff
and/or external consultants or experts to carry out the risks and impacts identification
processaAssessment work, provided that the applicable requirements of the Performance
Standards are met. The in-house staff or external personnel conducting the aAssessment risks
and impacts identification process must be in a position to do so adequately, accurately and
objectively, as well as have the requisite qualifications and experience. For projects with issues
that may pose significant adverse impacts and risks, clients should consider retaining external
experts to assist in the conduct of all or part of the Assessmentassessment. These experts
should have relevant and recognized experience in similar projects and operate independently
from those responsible for design and construction. They should be engaged early in the
project’s development phase and, as necessary, in the various stages of project design,
construction, and commissioning of the business activities. In some high-risk cases, IFC may
require a panel of external experts to advise the client and/or IFC. In addition, external experts
are required in certain defined circumstances, on issues concerning biodiversity (as provided in
paragraph 4 of Performance Standard 6), Indigenous Peoples (as provided in paragraph 11 of
Performance Standard 7) and cultural heritage (as provided in paragraph 4 of Performance
Standard 8).
G16.
G39.
27. Training
28.19. Personnel within the client’s organization with direct responsibility for the project’s
social and environmental performance will The client will train employees and contractors
with direct responsibility for activities relevant to the project’s social and environmental
performance so that theyhave the knowledge and skills necessary to perform their work,
including current knowledge of the host country’s regulatory requirements and the
applicable requirements of Performance Standards 1 through 8. Personnel training will will
also possess the knowledge and skills to implement address the specific measures and
actions required under the management program system including the Action Plan, and the
methods required to perform the actionsitems in a competent and efficient manner.
G40.G80. The organization management program should identify the knowledge and skills
necessary for its implementation of the management programsystem, including any
requirements implementation of the InvestmentSupplemental Action Plan[rs11] resulting from
investment due diligence activities. Prior background, time in the job, and other past
experiences of personnel, These should be considered in personnel selection, training, skills
development and , on-going education, and new recruitment if necessary can all play a role in
determining whether a person has sufficient knowledge and skills to carry out their part of the
management system. In summary, to determine whether they can be deemed competent to do
what is required of them. Organizations should consider all of the above contributions to a
person’s background and, if necessary, new recruitment to ensure they select appropriate
individuals.
G81. One common method of supplying additional skills and knowledge to individuals is that of
training. Training can be considered to be an effort to change a behavior or manner in which an
38
July07April 30, 2006 May 19, 2010
individual acts or carries out a task that is a part of their job. In short, that they will do in the
future what is needed in order to carry out the task appropriately. In order to be successful
training needs to be thought out carefully and systematically. The list below is one example of
the elements that should be considered as part of tTraining programs typically have the
following elements:
Identification of training needs for employees. This can be triggered by past

events (emergency situations, spills, community suggestions or grievances),
shortcomings in performance as identified by audits, benchmarking with other
companies or organizations or direct suggestions or requests from employees
themselves. Do not forget about others that conduct work for the organization,
either directly or indirectly such as suppliers and contractors.
Development of a training plan to address defined needs. What is lacking in
skills, comprehension, experience that can be addressed by training; in short
what does someone need to be judged competent in how they do their job?
Verification of training programs to ensure consistency with organizational policy,
and other applicable requirements such as regulatory considerations,
Training of target employees. This can be formal, informal (on-the-job), one-time,
periodic, etc.
Documentation of training received. To prove it was done (to regulators or
government agencies, financial institutions, etc.) and to provide a record for the
employee as part of job or career development,
Evaluation of training received to determine its effectiveness. Ultimately this is
the arbiter of success of the training program; to ascertain whether the individual
is now competent to carry out the task at hand. This can be in the form of a test
(written or verbal), the demonstration of the new skill that was the subject of the
training (e.g., successfully conduct a stakeholder meeting) or the successful
operation of a new piece of equipment (if supervised and conducted under safe
conditions for both trainer and trainee). If it is determined through any of the
above assessments, or others that are appropriate, that the training is not
effective then the organization should review all aspects of the training, as
applicable (curriculum, delivery, competence of the trainer, etc.) to determine
what should be changed, if anything, so as to obtain a successful outcome next
time around.
Some questions a client may pose to help with planning and organizing training
programs:
How does the client’s organization identify social and environmental training needs?
How are training needs of specific job functions analyzed?
Is training needed for contractors?
Is training developed and reviewed and modified as needed?
How is the training documented and tracked?
G82. The client will ensure train employees and third parties with direct responsibility for
activities relevant to the social and environmental performance of the business activities to be
financed are competent, so that they have the knowledge and skills necessary to perform their
39
July07April 30, 2006 May 19, 2010
work, including current knowledge of the host country’s regulatory requirements and the
applicable requirements of Performance Standards 1 through 98. Methods to ensure this
Training will also address the specific measures and actions required under the management
programsystem and the actions methods required to perform the actionmanagement items in a
competent and efficient manner.
G41.G83. Training relevant to implementing specific action items in the management

program may be necessary. Training designed to help the employees gain appropriate
knowledge base and skills to perform their work may include current knowledge of host country
regulatory requirements, the applicable requirements of Performance Standards 2 through 8,
the material impacts predicted through the Assessment process, the content of the
management program, including the Investment Action Plan, and the methods required to
perform the action items in a competent and efficient manner. When the business activities to
be financed area project is likely to impact vulnerable or disadvantaged individuals or groups
within aAffected communitiessStakeholders, employees who will interact with such individuals
or groups should be trained so that theycompetent in their understanding of the specific issues
related to such individuals or groups.
G42.G84. When specific aspects of the business activities to be financedproject or the

implementation of the management program system are outsourced to contractors, the client
should also ensure that these contractors have the requisite knowledge, skills, and training to
perform the work in a competent manner in accordance with the management program system
and the requirements of Performance Standards 2 through 8, consistent with the guidance in
paragraph G441 above.
G42.
Emergency Preparedness and Response
29.20. An important element of the management system will be to establish an emergency
preparedness and response system so that the client, in collaboration with appropriate and
relevant third parties, will be prepared to respond to accidental and emergency situations
associated with the project in a manner appropriate to prevent and mitigate any harm to
people and/or the environment. This preparation will include the identification of areas
where accidents and emergency situations may occur, communities and individuals that
may be impacted, response procedures, provision of equipment and resources, designation
of responsibilities, communication, including that with potentially Affected Stakeholders
and periodic training to ensure effective response.
30.21. Where applicable, the client will also assist and collaborate with the potentially
Affected Stakeholders (refer to Performance Standard 4) and the local government agencies
in their preparations to respond effectively to emergency situations, especially when their
participation and collaboration are necessary to ensure effective response. If local
government agencies have little or no capacity to respond effectively, the client will play an
active role in preparing for and responding to emergencies associated with the project. The
client will document its emergency preparedness and response activities, resources, and
responsibilities, and will provide appropriate information to potentially Affected
Stakeholders and relevant government agencies.
G85. The emergency preparedness and response requirements of this Performance Standard
refer to (i) the contingencies that could affect personnel and facilities within the physical
40
July07April 30, 2006 May 19, 2010
boundaries of the business activities to be finance, (ii) the need to protect the health and safety
of business activities’ workers (as noted in Performance Standard 2) and (iii) the need to protect
the health and safety of the affected community (as noted in Performance Standard 4). The
client should address emergency preparedness and response in an integrated way. Whether
clients are developing new business activities or expanding an existing facility, they should
address contingencies associated with process upset and accidental circumstances through the
use of emergency response plans or other similar tools appropriate to the specific industry
sector, as part of their management programsystem. Additional guidance is provided in the
General EHS Guidelines and Industry Sector EHS Guidelines.
G29.G86. Effective emergency response plans help clients prepare for the best outcomes
while assuming the worst possible scenarios. They include clearly assigned responsibilities for
the assessment of the degree of risk to life, property and environment with procedures on whom
to communicate different types of emergencies with and how. These plans should also include
specific procedures designed based on the emergency level classification (emergency tiers).
Procedures for shutting down equipment and production processes and for evacuations,
including a designated meeting place (i.e., muster point) outside the business activities’ site,
should be part of the emergency response plans. Additionally, effective emergency plans
should include specific training and practice schedules and equipment requirements for
employees who are responsible for rescue operations, medical duties, hazardous responses,
fire fighting and other responses specific to the business activities’ site. Other important
aspects of emergency preparedness and response include:
• Trained emergency response teams

• Emergency contacts and communication systems / protocols
• Procedures for interaction with local and regional emergency, health and
environmental authorities
• Permanently stationed emergency equipment and facilities (e.g. first aid stations,
firefighting equipment, spill response equipment, personal protection equipment for
the emergency response teams)
• Protocols for the use of the emergency equipment and facilities
• Clear identification of evacuation routes and muster points
• Emergency drills and their periodicity based on the level or tier of the emergency
• Decontamination procedures and procedures to proceed with urgent remedial
measures to contain, limit and reduce pollution within the physical boundaries of the
business activities’ property and assets
Further guidance on minimizing the occurrence and harmful effects of technological accidents
and environmental emergencies can be found in the References section.
Community EngagementCommunity engagement is an on-going process
involving the client’s disclosure of information. When local communities
may be affected by risks or adverse impacts from a project, the
engagement process will include consultation with them. The purpose of
community engagement is to build and maintain over time a constructive
relationship with these communities. The nature and frequency of
community engagement will reflect the project’s risks to and adverse
impacts on the affected communities. Community engagement will be
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July07April 30, 2006 May 19, 2010
free of external manipulation, interference, or coercion, and intimidation,

and conducted on the basis of timely, relevant, understandable and
accessible information.
Stakeholder Engagement
31.22. Stakeholder engagement is the basis for building strong, constructive, and
responsive relationships that are essential for the successful management of a project's
19
social and environmental impacts. Stakeholder engagement is an on-going process which
may involveing disclosure ofinformation disclosure to, consultation with, and participation
of stakeholders, particularly those who when local communities may be directly affected by
risks or adverse impacts from the project (Affected Stakeholders).The purpose of
community engagement is to build and maintain over time a constructive relationship with
these communities The nature, frequency and level of effort of stakeholder engagement may
vary considerably and will be commensurate with the project’s risks and adverse impacts
on the Affected Stakeholders and the project’s phase of development. Stakeholder
engagement will (i) start as early as possible in the project cycle; (ii) continue throughout
the life of the project; (iii) will be free of external manipulation, interference, or coercion, or
intimidation; (iv) enable community members to freely convene and express their views,
including objections to the project; (v) be conducted on the basis of timely, relevant,
understandable, and accessible information in a culturally appropriate format.
_____________________
19
Requirements regarding engagement of workers are found in Performance Standard 2.
G87. G46G1. The purpose of communitystakeholder engagement is to establish and maintain

a constructive relationship with a variety of external stakeholders affected communities over the
life of the project. In some industry sectors, this engagement is considered as an important
process that enables the client to obtain and maintain its “social license to operate.” and an
integral part of an effective and adaptive environmental and social management system. An
effective engagement process allows the community’s views, interests and concerns of
stakeholders, particularly of those directly affected, to be heard, understood, and taken into
account in project decisions and creation of development benefits. Depending on the nature of
the project, its risks and potential impacts, the size and characteristics of the Aaffected
Stakeholderscommunities, and the stage of the project cycle, engagement may entail varying
degrees of interaction between the company and its external affected stakeholders.
communities The stakeholder engagement process should be commensurate with the project
risks and impacts and development stage and tailored to the characteristics and interests of the
Affected Stakeholders and it should be described in a document with clear principles, objectives
and actions. EEngagement should reflect the specific needs of the different segments. of the
stakeholder individuals and groups or within the community, including those who are
disadvantaged or vulnerable (see paragraph 12 22 and footnote 222 of Performance Standard 1
and the accompanying guidance). Depending on the nature, risks and impacts of a project and
the presence, or not, of directly Affected Stakeholders the level of required stakeholder
engagement can range from the implementation of a basic channel to received communications
from any stakeholder to a comprehensive consultation process involving the active and
informed participation of Affected Stakeholders. The client should also create a community
liaison function within its organization to manage relations with its stakeholders; the resources
required to fulfill this function will vary from project to project. Maintaining consistency in the
personnel who interact with members of the affected communities improves the quality of
42
July07April 30, 2006 May 19, 2010
interaction and can help build trust over time. See also the Stakeholder Engagement: A Good
Practice Handbook for Companies Doing Business in Emerging Markets.
G88. G2. It is widely accepted that engaging with those external to an organization is good
business practice. Stakeholders, customers, clients, or other interested parties can provide
valuable information to an organization. Such information can be in the form of suggestions on
product improvement, feedback on a customer interaction with an organization’s employees, or
a myriad of other opinions, comments or contributions regarding an organization’s performance,
real or perceived. When the business activity to be financed involves project development of
specific facilities that are likely to generate risks on directly Affected Stakeholders it will require
consultation with them. Many other situations, however, that do not require conducting
consultation, can still generate input that should be addressed appropriately. For example, when
an investment is in the form a corporate loan not allocated to a specific business activity the
organization must still be prepared to respond to communication originating outside of the
organization. Some projects may not have an affected community that can be identified but
could still have inherent environmental risks and therefore be the focus of intense scrutiny from
more disparate sources. Given the global interconnectedness of the world today, it is often very
hard to know who may have an interest in an organization and their activities and therefore to
predict from where communication may originate. Having in place a means to receive input, a
process to classify it based upon the real or perceived gravity of the input and resources to
provide the commensurate response and to track performance and outcomes are however
important considerations to make as an organization contemplates how to best manage the
system. Responses should be based upon an organization’s adjudged value of the input; some
instances may call for elevated levels of action including more involved follow-up, possibly with
tailored broadcast messages to those outside the organization. A good external communication
system can facilitate such a response if well planned and run. In the end only the organization
itself will know best what weight it assigns to a comment, suggestion or complaint and how it
should react in order to best manage the situation to create a business advantage for itself and
leverage its position accordingly.
G89. For the purposes of Performance Standard 1, stakeholders are defined as persons,
groups or communities external to the core operations of a project who may be affected by the
project, interested in it and/or have ability to influence its outcomes. This may include
individuals, businesses, communities, local government authorities, and local non-governmental
and other institutions, and other interested or affected parties. Performance Standard 1
requirements are focused on engagement with directly Affected Stakeholders, who are defined
as any people or communities located in the project's near geographical proximity, particularly
those contiguous to the existing or proposed project facilities, who are subject to actual or
potential project-related risks and/or adverse impacts on their physical environment, health or
livelihoods. Directly Affected Stakeholders are usually grouped in communities, however there
is not exact definition of community and it could vary from project to project, but in general terms
it refers to a group of people or families who live in a particular locality, sometimes share a
common interest (water users associations, fishers, herders, grazers, and the like), often have
common cultural and historical heritage and have different degrees of cohesiveness. This is
particularly relevant in the case of applicability of requirements related to Broad Community
Support (BCS) and Indigenous Peoples. Engagement with internal stakeholders such as
workers is addressed in Performance Standard 2. Engagement with suppliers, contractors,
distributors, or customers, because interaction with these parties is a core business function for
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July07April 30, 2006 May 19, 2010
most companies and subject to national regulations and/or established corporate policies and
procedures.
G4. If the process to identify risks and impacts Assessment process indicates that there
may be potential impacts and risks to the stakeholders communities within the project’s area of
influence, companies should seek early engagement with these aAffected
communitiesStakeholders. Engagement should be based on the timely dissemination of
relevant project information, including the social and environmental impacts and risks of the
project identified in the Aassessment and proposed mitigation measures, in languages and
methods preferred by the Aaffected communitiesStakeholders. In cases where the
aAssessment has been completed prior to IFC involvement in a project, IFC reviews the
process of communitystakeholders engagement carried out by the client. If necessary, IFC and
the client will agree on a supplemental communitystakeholders engagement program.
G90. G5. When applicable, and Tthroughout the life of the project, clients should build upon the
channels of communication and engagement with aAffected communitiesStakeholders
established during the risks and impacts identification processAassessment process. In
particular, clients should use the appropriate communitystakeholders engagement practices
described in this Performance Standard 1 to disclose information and receive feedback on the
effectiveness of the implementation of the mitigation measures in the clients management
programsystem Action Plan as well as the affected communitiesstakeholders’ on-going interests
and concerns about the project. Guidance regarding different engagement strategies and
project scenarios can be found in Appendix 2 of Stakeholder Engagement: A Good Practice
Handbook for Companies Doing Business in Emerging Markets.
Stakeholder Analysis and Engagement Planning

32.23. As part of the process of identification of project’s risks and impacts, the client will
identify the project’s key stakeholders and will prioritize those who may be affected by
project risk and impacts. In projects with potentially significant adverse impacts, the client
may identify a broader set of relevant stakeholders who should be engaged, such as local
authorities or neighboring projects.
24. Based on the stakeholder analysis, the client may or may not need to develop and
implement a Stakeholder Engagement Plan covering the requirements of this Performance
Standard. This engagement process will be commensurate with the project risks and
impacts, and development stage, and tailored to the characteristics and interests of the
Affected Stakeholders. Projects with no Affected Stakeholders do not need an engagement
plan; projects with a few stakeholders will need a limited engagement plan, and projects
with potentially significant impacts to Affected Stakeholders will need a comprehensive
engagement plan. This process should be part of the project’s management system and
results of this engagement should help inform the client’s senior management as well as its
board of directors or an equivalent body. The Stakeholder Engagement Plan will reflect
relevant stakeholder engagement-related requirements in other Performance Standards, as
appropriate. Where applicable, this Plan will also include differentiated measures to ensure
the effective participation of those identified as disadvantaged or vulnerable, to ensure their
active and effective participation in the engagement process. When the stakeholder
20
engagement process depends substantially on stakeholder representatives, the client will
make every reasonable effort to verify that such persons do in fact represent the views of
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July07April 30, 2006 May 19, 2010
Affected Stakeholders and that they can be relied upon to faithfully communicate the results
of consultations to their constituents.
33.25. In cases where the exact location of the project is not known, but it is reasonably
expected to have significant impacts on stakeholders, the client will prepare a Stakeholder
Engagement Framework, as part of its management system, outlining general principles and
a strategy to identify Affected Stakeholders and plan for an engagement process compatible
with this Performance Standard that should be implemented once the physical location of
the proejctproject is known.
_____________________
20
For example, community and religious leaders, local government representatives, civil society
representatives, politicians, school teachers, and others representing one or more affected stakeholder groups.
G91. G6. Stakeholder identification broadly involves the determination of the various
individuals, or groups or communities who may have an interest in the project or who may
affect or be affected by the project. The process of stakeholder identification includes distinct
steps, including: (i) identifying individuals, groups, or local communities and other stakeholders
that may be affected by the project, positively or negatively, and directly or indirectly, making
special effort to identify those who are directly affected, including those who are disadvantaged
or vulnerable; (ii) identifying broader stakeholders who may be able to influence the outcome of
the project because of their knowledge about the affected communitiesstakeholders or political
influence over them; (iii) identifying legitimate stakeholder representatives, including elected
officials, non-elected community leaders, leaders of informal or traditional community
institutions, and elders within the affected community; and (iv) mapping the impact zones by
placing the aAffected groups and communitiesStakeholders within a geographic area, which will
help the client define or refine the project’s area of influence (see paragraph X of Performance
Standard 1, and paragraph G83 below). When the stakeholder engagement process depends
substantially on stakeholder representatives (e.g., community and religious leaders, local
Government representatives, civil society representatives, politicians, schoolteachers and
others representing one or more Affected Stakeholder groups., the client will make every
reasonable effort to verify that such persons do in fact represent the views of affected groups
and that they can be relied upon to faithfully communicate the results of consultations to their
constituents.
G92. G7. There may be individuals or groups within the project area of influence who are
particularly vulnerable or disadvantaged and who could experience adverse impacts from the
proposed project more severely than others, as described in footnote 2 of Performance
Standard 1. Large scale projects with a large project area of influence and multiple affected
Affected communitiesStakeholders are more likely to expose these individuals and groups to
adverse impacts than smaller scale projects with site specific issues. Where it is anticipated
that the project will impact one or more Aaffected communitiesStakeholders, the risks and
impacts identification process Aassessment process should use accepted sociological methods
to identify and locate vulnerable individuals or groups within the affected community population,
collecting data on a disaggregated basis (including gender-disaggregated data). Using this
disaggregated information, the client should assess potential impacts, including differentiated
impacts, on these individuals and groups and propose specific (and if necessary separate)
measures in consultation with them to ensure that potential impacts and risks to them are
appropriately avoided, mitigated or compensated. Vulnerable or disadvantaged individuals and
45
July07April 30, 2006 May 19, 2010
groups should be able to benefit from project opportunities equally with the rest of the Aaffected
communityStakeholders; this may require that differentiated benefit-sharing processes and
levels (such as ensuring that compensation for a house taken during resettlement is provided
equally to the woman and man of the household, providing training for individuals or groups who
might lack the necessary skills to find a job with the project, etc.) are available. Project
monitoring should track these individuals or groups on a disaggregated basis. Specific
considerations and measures for Indigenous Peoples are described in Performance Standard 7
and the accompanying Guidance Note. Clients should exercise discretion in gathering personal
data and information and should treat such data or information as confidential (except where
disclosure is required by law). Where Performance Standard 1 requires disclosure of plans
based on personal info or data collected, (such as a resettlement action plan) the client should
ensure that any personal data or information cannot be associated with particular individuals.
G93. G8. A project may have different impacts on women and men, due to their differentiated
socioeconomic roles and their varying degrees of control over and access to assets, productive
resources, and employment opportunities. There may be norms, societal practices, or legal
barriers that impede the full participation of persons of one gender (usually women, but
potentially men) in consultation, decision-making, or sharing of project benefits. These legal
and societal norms and practices may lead to gender discrimination or inequality. Gender-
differentiated impacts should be assessed and the Aassessment should propose measures
designed to ensure that one gender is not disadvantaged relative to the other in the context of
the project. This may include providing opportunities to enhance full participation and influence
in decision-making through separate mechanisms for consultation and grievances, and
developing measures that allow both women and men equal access to project benefits (such as
land titles, compensation, and employment). Where deemed useful, it may include a separate
women’s consultative process.13 Gender considerations of engagement processes can be
found in the Stakeholder Engagement: A Good Practice Handbook for Companies Doing
Business in Emerging Markets.
G94. G9. IFC encourages clients with high-risk projects to also identify and engage with other
stakeholders, beyond those who will be affected by the project, such as local government
officials, community leaders and civil society organizations, particularly those who work in or
with the Aaffected communities Stakeholders. While these groups may not be directly affected
by the project, they may have the ability to influence or alter the relationship of the client with
aAffected communitiesStakeholders, and in addition may play a role in identifying risks,
potential impacts and opportunities for the clients to consider and address in the Aassessment
process.
G95. G10. The stakeholder engagement process should be commensurate with the project
risks and impacts and development stage and tailored to the characteristics and interests of the
Affected Stakeholders and it should be described in a document with clear principles, objectives
and actions. If a full Stakeholder Engagement Plan is required, it may include: project
description (including maps if possible); description of risks and impacts; summary of any
previous engagement activities (including documentation of any documents (i.e., agreements,
minutes of meetings, etc); identification, characterization and priority of stakeholders, focusing
13
While women and men are not homogenous groups, there may be norms, societal practices, or legal barriers that impede the full
participation of persons of one gender (usually women, but men can also be affected) in consultation, decision-making, or sharing of
project benefits.
46
July07April 30, 2006 May 19, 2010
on those directly affected and identifying any vulnerable individuals or groups; engagement
program (including indication on how interactions should be formalized (i.e., agreements,
acknowledgment of receipt of information, etc); description of the grievance redress
mechanisms; timetable/periodicity; and resources and responsibilities. In some cases the
Engagement Plan may include a description of any local community development initiative
being, or to be, supported by the client. A Stakeholder Engagement Framework should:
describe the potential projects and likely impacts; requisites and regulations; potential area of
influence; possible stakeholders; engagement principles, objectives and criteria; strategy for the
engagement process and grievance mechanism (particularly if it will be linked with and
assessment process) and step by step process and responsibilities to prepare an Engagement
Plan once exact location is known. See Appendix 3 of Stakeholder Engagement: A Good
Practice Handbook for Companies Doing Business in Emerging Markets.
DisclosureDisclosure of relevant project information helps affected

communities understand the risks, impacts and opportunities of the
project. Where the client has undertaken a process of Social and
Environmental Assessment, the client will publicly disclose the
Assessment document. If communities may be affected by risks or
adverse impacts from the project, the client will provide such
communities with access to information on the purpose, nature and scale
of the project, the duration of proposed project activities, and any risks to
and potential impacts on such communities. For projects with adverse
social or environmental impacts, disclosure should occur early in the
Social and Environmental Assessment process and in any event before
the project construction commences, and on an ongoing basis (see
paragraph 26 below).
Access to Information
34.26. Disclosure Access to informationof relevant project information helps Affected
Stakeholders communities understand the risks, impacts and opportunities of the project.
Where the client has conducted a social and environmental assessment and/or developed a
management system, the client will publicly disclose the corresponding relevant
21
documentAssessment document. If stakeholders communities may be affected by risks or
adverse impacts from the project, the client will provide such communities Affected
Stakeholders with (i) access to information on the purpose, nature, and scale of the project;
(ii) , the duration of proposed project activities; (iii), any risks to and potential impacts on
such communities stakeholders and relevant elements of the management system; (iv), the
envisaged stakeholder engagement,; and (v) the grievance redress mechanism. For projects
with adverse social or environmental impacts, disclosure should occur early in the process
of identification of Ssocial and Eenvironmental risks and impacts, Assessment process and
in any event before the project construction commences, and on an ongoing basis. .The
information provided should be transparent, objective, meaningful, easily accessible, in
culturally appropriate local language(s) and format, and understandable to all Affected
Stakeholders.
_____________________
21
Depending on the scale of the project and significance of the risks and impacts, relevant document(s) could
range from full Environmental and Social Assessments and Action Plans (i.e., Stakeholder Engagement Plan,
Resettlement Action Plans, Biodiversity Action Plans, Hazardous Materials Management Plans, Emergency
Preparedness and Response Plans, Community Health and Safety Plans, and Indigenous Peoples
Development Plans, etc.) to easy-to-understand summaries of key issues and commitments.
47
July07April 30, 2006 May 19, 2010
G96. G1148. Information disclosure involves delivering and ensuring access to information
about the project to the Affected communities Stakeholders and other interested partiesand
other stakeholders. The information should be in appropriate language(s). It should be made
accessible and understandable to the various segments of the affected communities, in ways
appropriate to the communitydirectly Affected Stakeholders. For example, information can be
made available in city halls, public libraries, in the local print media, over the radio, or in public
meetings. The timing and the method of disclosure will vary depending on national law
requirements, the type of Aassessment involved, and the stage of the project’s development or
operation. As a minimum, the client should disclose the relevant information related to the
assessment process and the proposed management programsystem final Assessment
document and the Action Plan prior to the commencement of construction or other
implementation activities. In some cases, disclosure of information will occur earlier in the risks
and impacts identification processAassessment process. For projects with potential adverse
impacts to local stakeholderscommunities, timely disclosure of information should occur after
the initial screening, and should include information on the purpose, nature and scale of the
project, the duration of proposed project activities, and any risks to and potential impacts on
such stakeholders and relevant elements of the management programsystem, the envisaged
stakeholder engagement, and the grievance redress process.communities Depending on the
scale of the project and its risks and impacts, Ssuch disclosure may range from disclosing the
draft Environmental and Social Assessments and Action Plans (i.e., Stakeholder Engagement
Plan, Resettlement Action Plans, Biodiversity Action Plans, Hazardous Materials Management
Plans, Emergency Preparedness and Response Plans, Stakeholders Health and Safety Plans,
and Indigenous Peoples Development Plans) to easy-to-understand summaries of key issues
and commitments be achieved by disclosing a draft Assessment document. In addition, it may
also be appropriate for the client to disclose relevant elements of the draft management
programsystem, including any supplementary measures requested by financial institutions, a
draft Action Plan so that the measures proposed by the client to mitigate the identified risks and
impacts can be explained. Disclosure of information will be the basis of the client’s consultation
process (see paragraphs 21 and 22 of Performance Standard 1 and the accompanying
guidance). Clients are encouraged to also disclose information to Affected Stakeholders about
the project’s potential benefits and developmental impacts, if it is expected that it would not
unnecessarily create unrealistic expectations. Examples of different techniques to share
information can be found at IAP2 Public Participation Toolbox – Techniques to Share
Information.
G59.G97. In the extractive industries and infrastructure sectors in particular, where a

project can have potentially broader implications for the public at large, disclosure of information
is an important means to manage governance risks. Accordingly, clients should be aware that
IFC has sector-specific initiatives on disclosure of project-related information, as described in
paragraphs X21 through 23 X of IFC's Sustainability Policy. Further guidance on the Extractive
Industries Transparency Initiative and how the private sector can support this initiative can be
found in the References section
Consultation
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July07April 30, 2006 May 19, 2010
35.27. The extent and degree of engagement required by the consultation process should
be commensurate with the project’s risks and adverse impacts and with the concerns raised
by the Affected Stakeholders. Effective consultation is a two-way process that (i) should
begin early in the process of identification of social and environmental risks and impacts,
and will (i) be documented; (ii) should be based on the prior disclosure of relevant and
adequate information, including, draft documents and plans; (iii) should begin early in the
Ssocial and Eenvironmental Aassessment process; (iv) will focus on the social and
environmental risks and adverse impacts, and themeasures and actions to address these;
(iii) prioritize those directly affected; and (ivi) will be carried out on an ongoing basis as
risks and impacts arise. The consultation process will be undertaken in a manner that is
22
inclusive of various segments of the Affected Stakeholders and culturally appropriate. The
client will tailor its consultation process to the language preferences of the Affected
Stakeholderscommunities, their decision-making process, and the needs of disadvantaged
or vulnerable groups.
_____________________
22
Such as men, women, the elderly, youth, displaced persons, and vulnerable and disadvantaged persons or
groups.
28. For projects with limited risks and adverse impacts on Affected StakeholdersIf affected
communities may be subject to risks or adverse impacts from a project, the client will
undertake the a process of consultation in a manner that provides the Affected
Stakeholderscommunities with opportunities to express their views on project risks,
impacts, and proposed management system mitigation measures, and allows the client to
consider and respond to them.
29. For projects with significant adverse impacts on Affected Stakeholderscommunities,

the consultation process will ensure their free, prior, and informed consultation and
facilitate their informed participation. Informed participation involves a more in-depth
exchange of views and information, and an organized and iterative consultation, leading to
the client’s incorporating into their decision-making process the views of the aAffected
communities Stakeholders on matters that affect them directly, such as the proposed
mitigation measures, the sharing of development benefits and opportunities, and
implementation issues. The client will document the process, in particular the measures
taken to avoid or minimize risks to and adverse impacts on the Affected
Stakeholderscommunities. Free, prior, and informed consultation and informed participation
are also required for projects with potential adverse impacts to Indigenous Peoples (see
Performance Standard 7).
If affected communities may be subject to risks or adverse impacts from a project, the client
will undertake a process of consultation in a manner that provides the affected communities
with opportunities to express their views on project risks, impacts, and mitigation measures,
and allows the client to consider and respond to them. Effective consultation: (i) should be
based on the prior disclosure of relevant and adequate information, including draft
documents and plans; (ii) should begin early in the Social and Environmental Assessment
process; (iii) will focus on the social and environmental risks and adverse impacts, and the
proposed measures and actions to address these; and (iv) will be carried out on an ongoing
basis as risks and impacts arise. The consultation process will be undertaken in a manner
that is inclusive and culturally appropriate. The client will tailor its consultation process to
the language preferences of the affected communities, their decision-making process, and the
needs of disadvantaged or vulnerable groups.
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July07April 30, 2006 May 19, 2010
For projects with significant adverse impacts on affected communities, the consultation
process will ensure their free, prior and informed consultation and facilitate their informed
participation. Informed participation involves organized and iterative consultation, leading
to the client’s incorporating into their decision-making process the views of the affected
communities on matters that affect them directly, such as proposed mitigation measures, the
sharing of development benefits and opportunities, and implementation issues. The client
will document the process, in particular the measures taken to avoid or minimize risks to
and adverse impacts on the affected communities.
G98. G1351. Consultation involves two-way communication between the client and the
affected stakeholders. Effective consultation provides opportunities for the client to learn from
the experience, knowledge, and concerns of the aAffected Stakeholderscommunities, as well as
to manage communitytheir expectations by clarifying the extent of its responsibilities and
resources so that misunderstandings and unrealistic demands can be avoided. For the
consultation process to be effective, project information needs to be disclosed and explained to
the stakeholderscommunities, and sufficient time should be allocated for them to consider the
issues. Consultation should be inclusive of various segments of the affected stakeholders,
including both women and men, and accessible to the disadvantaged and vulnerable groups
within the community. Based on an earlier preliminary stakeholder analysis, the client’s
representatives should meet with the Aaffected communities Stakeholders and explain the
project information, answer questions and listen to comments and suggestions. In addition to
community meetings with communities and other Affected Stakeholdersopen to members of the
affected communities, the client should identify community leaders and any formal or informal
existing decision-making mechanisms so that their input can be sought. The client should inform
in a timely manner the Affected Stakeholders about the result of the consultation process and
how their suggestions and concerns have been considered.
G99. G1452. Some projects may not require a process of consultation, unless community
members seek to engage with the client on disclosed project information or raise
grievances.Consultation should be undertaken in most situations where the project presents a
specific but limited number of potential adverse impacts to affected communities. In these
cases, the client should consult with the affected communities during the process of
aAssessment after the risks and impacts have been identified and analyzed. In the case of
projects with significant adverse impacts on Aaffected communitiesStakeholders, and projects
with adverse impacts on Indigenous Peoples, the process of free, prior, and informed
consultation and informed participation is required (see paragraph G53 GX below). In addition to
the requirements in Performance Standard 1, requirements on consultation can be found in
Performance Standards 4–8.
Free, Prior, and Informed Consultation
G100. G1553. For projects with significant potential adverse impacts to the affected Affected
communitiesStakeholders, the client’s consultation process will include their free, prior and
informed consultation and informed participation. Such consultation should be “free” (free of
intimidation or coercion), “prior” (timely disclosure of information) and “informed” (relevant,
understandable and accessible information), and should continue through the entire life of the
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July07April 30, 2006 May 19, 2010
project and not only during the early stages of the project. Consultation with aAffected
Stakeholderscommunities should be part of the early scoping process that establishes the terms
of reference for the aAssessment process, which includes an inventory of risks and impacts to
be assessed. Informed participation entails organized and iterative consultation on issues
concerning potential impacts to the affected communities, so that the client can incorporate into
their decision-making process their views on these issues. Free, prior, and informed
consultation and informed participation are also required for projects with potential adverse
impacts to Indigenous Peoples (see Performance Standard 7). The client should document
specific actions, measures or other instances of decision-making that have been influenced by
or resulted directly from the input of those who participated in the consultation. Annex ?DC
describes the type of information IFC will seek from its client during its social and environmental
review to ascertain that the client’s process of communitystakeholders engagement involves the
free, prior, and informed consultation of the Affected communitiesStakeholders.
Broad Community Support
G101. G1654. As outlined in paragraphs 19 ? and ?20 of the IFC Sustainability Policy, IFC will
review the client’s communitystakeholders engagement process and, through its own
investigation, assure itself that there was free, prior, and informed consultation and informed
participation, leading to broad community support for the project by those e affected
communities. IFC will make this investigation when a project may pose significant adverse
impacts to local stakeholderscommunities, or in the case of communities of Indigenous Peoples,
adverse impacts on such communities. Broad community support is a collection of expressions
by the affected communitiescommunities and other Affected Stakeholders, through individuals
and their recognized representatives, in support of the project. There may be broad community
support even if some individuals or groups object to the project. IFC’s inquiry on the existence of
free, prior and informed consultation and broad community support is an inquiry on the overall
engagement process of the client. This inquiry is not intended to establish any consent or veto
right for the aAffected Stakeholderscommunities. IFC’s Environmental and Social Review
Procedure describes the type of information IFC will seek to ascertain that the client’s process
of free, prior, and informed consultation led to the broad community support for the project
within the Aaffected communitiesStakeholders. After the Board approval of the project, IFC will
continue to monitor the client’s communitystakeholder engagement process as part of its
portfolio supervision.
Reporting to Affected Stakeholderson Action Plans

36.30. The client will disclose the Action Planto the affected communities. The client, will
provide periodic reports to the Affected Stakeholders that describe progress with
implementation of the project Action Plan on issues that involve ongoing risk to or impacts
on Affected communities Stakeholders and on issues that the consultation process or
grievance mechanisms has identified as of concern to those communitiesstakeholders. If
the management program system results in material changes in, or additions to, the
mitigation measures or actions described in the Action Plan on issues of concern to the
aAffected communitiesStakeholders, the updated relevant mitigation measures or actions
will also be disclosed communicated to Affected Stakeholders. These reports will be in a
format accessible to the aAffected communitiesStakeholders. The frequency of these
reports will be proportionate to the concerns of Affected communities Stakeholders but not
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July07April 30, 2006 May 19, 2010
less than annually. In addition, clients are encouraged to publish periodic reports
accessible to all stakeholders on their environmental and social performance.
G102. G17. The client should provide periodic updates to the affected communities at least
annually on the implementation and progress on the specific items in the Action
Planenvironmental and social management programsystem that involve ongoing risks to or
impacts on affected communities. As appropriate, where amendments and updates to the
Action Planmanagement programsystem materially change impacts to affected communities,
the client will also disclose this to directly Affected Stakeholderscommunities. In addition,
information should be made available to Aaffected communities Stakeholders in response to
stakeholder community feedback or grievance and as a means to further involve the aAffected
Stakeholder community in the social and environmental performance of the project.
G103. G18.67. Clients may wish to consider using sustainability reports to report on the
financial, environmental and social aspects of its operations, including areas of success of its
performance measures and positive project impacts that are being enhanced, as well as any
unsuccessful outcomes and the lessons learned. Reporting initiatives, guidelines, including
sector-specific guidelines, and good practices are rapidly emerging in this area. The most
notable is the Global Reporting Initiative as included in the References section. IFC can work
with clients to develop appropriate sustainability report formats upon request.
Grievance Mechanism
31. 19. The client will respond to communities’ concerns related to the project. If the
client anticipates ongoing risks to or adverse impacts on affected communities, tThe client
will establish implement and maintain a procedure for handling, at a minimum, external
communications associated with the environmental and social performance of its project
with Affected Stakeholders and other interested parties. This procedure will include a
grievance redress mechanism to receive and facilitate resolution of the affected
communities’ concerns and grievances about the client’s environmental and social scaled
to the project’s identified risks and adverse impacts of the project, focusing on Affected
Stakeholders. The mechanism should include methods to (i) receive and register enquiries,
concerns, grievances, and complaints from Affected Stakeholders; (ii) screen and assess
the issues raised by the enquiry or complaint and determine how to address the issues
raised; (iii) develop and implement procedures and timelines for providing responses; and
(iv) track and document response. In some cases, the design of the grievance mechanism
may be based on feedback and suggestions from Affected Stakeholders.
32. 20. It The grievance mechanism should address concerns promptly, using an
understandable and transparent process that is culturally appropriate and readily
accessible to all segments of the affected communities, and at no cost and without
retribution to the party that originated the issue or concern. The mechanism should not
impede access to judicial or administrative remedies. The client will inform the aAffected
communities Stakeholders about the mechanism in the course of its stakeholdercommunity
engagement process. The implementation of the grievance mechanism should allow for the
continual improvement of the project’s management system. In some cases, due to project-
specific circumstances, the client may need to involve an independent third party as part of
its grievance redress process.
19 The client will respond to communities’ concerns related to the project. If the
client anticipates ongoing risks to or adverse impacts on affected communities, t
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July07April 30, 2006 May 19, 2010
G104. G68G19. Except in the simplest cases, the cClients should establish a procedure for
receiving, addressing, and recording/documenting complaints and communications from
external stakeholders. This procedure should clearly define who can raise complaints, and
ensure that the confidentiality of the persons raising the complaint is protected. In cases where
there are directly Affected Stakeholders, the client shall ensure that it is It should also be easily
accessible, and understandable to the members of the affected community and should be and
its availability communicated to themaffected community. The client may wish to seek solutions
to complaints in a collaborative manner with the involvement of the aAffected
communitiesStakeholders. If the project is unable to solve a complaint, it may be appropriate to
enable complainants to have recourse to external experts or neutral parties. Clients should be
aware of judicial and administrative mechanisms available in the country for resolution of
disputes, and should not impede access to these mechanisms. Communications and
Ggrievances received and responses provided should be documented (such as the name of the
individual or organization; the date and nature of the complaint; any follow up actions taken; the
final decision on the complaint; how and when relevant project decision was communicated to
the complainant; and whether management action has been taken to avoid recurrence of
communitystakeholders concerns in the future), and reported back to the affected communities
periodically. In addition to the requirements in this Performance Standard 91, specific
requirements for grievance mechanisms can be found in Performance Standards 2, 4, 5, and 7.
For additional guidance on grievance mechanisms, see IFC’s publications: Stakeholder
Engagement: A Good Practice Handbook for Companies Doing Business in Emerging Markets
and Addressing Grievances From Project-Affected Communities (IFC, 2009). Also see CAO’
publication: A Guide to Designing and Implementing Grievance Mechanisms for Development
Projects (CAO, 2008)
G105. G20. In the case of large projects with potentially complex issues, a robust grievance
mechanism should be established and maintained from the beginning of the assessment
process onwards. This mechanism should be communicated to Affected Stakeholders and
designed in a way that is appropriate for them, easy to understand and adapted to the
communications challenge they may face (e.g., language, low level of literacy, no access to
technology.) Complaints should be investigated to determine appropriate response and course
of action. This function should be separate from the personnel in charge of management of the
business activities. The responsibility for receiving and responding to grievances should be
handled by experienced and qualified personnel within the client organization. In addition,
suggestion boxes and periodic community meetings and other communication methods to
receive feedback may be helpful.
Private Sector Responsibilities Uunder Government-Lled Stakeholder Engagement

33. Where stakeholder engagement is the responsibility of the host government, the client
will collaborate with the responsible government agency, to the extent permitted by the
agency, to achieve outcomes that are consistent with the objectives of this Performance
Standard. In addition, where government capacity is limited, the client will play an active
role during the stakeholder engagement planning, implementation, and monitoring. If the
process conducted by the government does not meet the relevant requirements of this
Performance Standard, the client will conduct a complementary process and prepare a
supplemental Stakeholder Engagement Plan.
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G106. G21. Host governments may reserve the right to manage the stakeholder engagement
process directly associated with a project, particularly when it involves consultation.
Nevertheless, the outcome of this process should be consistent with the requirements of
Performance Standard 1. In such cases, clients should take an active role during the
preparation, implementation and monitoring of the process and should coordinate with the
relevant government authorities those aspects of the process that can be facilitated more
efficiently by the client or other agents such as consultants or civil society organizations.
Whether the client will be permitted to play an active role will depend in part on the applicable
national law and the judicial and administrative processes and practices of the responsible
government agency. IFC will assess at appraisal the extent to which the client will be able to
collaborate with the responsible government agency and agree on the key achievable outcomes
that need to be achieved to ensure consistency with the Performance Standard 1. Where IFC
ascertains that the outcome of the government-managed stakeholder engagement is not likely
to meet the requirements of Performance Standard 1, IFC may choose to not proceed with the
proposed financing of the project, or proceed only if its Board of Directors agrees. In all cases,
regardless of government involvement, the client must have in place its own communications
and grievance redress procedure. It must be clear that the stakeholder engagement process
covered under this provision refers to any engagement process with stakeholders who are
directly affected by the project regarding issues directly linked to the development of the specific
project, and not in reference to broader policy decisions or other matters external to the project.
G107. G22. Under certain circumstances, a government agency or other authority may have
already conducted the consultation process directly linked to the project, however the client
should make a determination as to whether the process conducted and its outcomes are
consistent with the requirements of Performance Standard 1 and, if not, any corrective action is
feasible to address the situation. If correction action is feasible, the client should undertake
corrective measures as soon as possible.
G108. G23. Under government-managed stakeholder engagement, the client should collaborate
with the appropriate agencies to establish methods for developing and implementing the
Stakeholder Engagement Plan or Framework. Where gaps exist between national law or policy
and the requirements with respect to stakeholder engagement detailed in Performance
Standard 1, the client should apply alternative measures to achieve outcomes consistent with
the objectives of Performance Standard 1. Such measures could range from conducting
additional engagement activities to facilitating access and cultural appropriateness of relevant
environmental and social information.
G109. G24. Where the responsible government agency will enable the client to participate in the
ongoing monitoring of the engagement process, the client should pay particular attention to
those who are poor and vulnerable so as to ensure that they are engaged effectively and in
accordance to their particularities. Where the client is prevented from adequately monitoring the
implementation of the Stakeholder Engagement Plan and there exists a risk that the Plan will
not be monitored according to Performance Standard 1, IFC may choose to not proceed with
the project financing.
Monitoring and Review
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July07April 30, 2006 May 19, 2010
34. As an element of its Management System, the clientThe client, in collaboration with
appropriate and relevant third parties, will establish procedures to monitor and measure the
effectiveness of the management program system, as well as compliance with any related
legal and/or contractual obligations and regulatory requirements.. Where appropriate,
clients will consider involving representatives from Affected Stakeholders to complement or
verify monitoring activities. The client’s monitoring program should be overseen by the
23
appropriate level in the organization.
In addition to recording information to track performance and establishing relevant

operational controls, the client should use dynamic mechanisms, such as internal
inspections and audits, where relevant, to verify compliance and progress toward the
desired outcomes. For projects with significant impacts that are diverse, irreversible, or
unprecedented, the client will retain qualified and experienced external experts to verify its
monitoring information. The extent of monitoring should be commensurate with the
project’s risks and impacts and with the project’s compliance requirements. Monitoring will
normally include recording information to track performance and comparing this against the
previously established benchmarks or requirements in the management system., plans and
legal agreements. Monitoring should be adjusted according to performance experience and
feedback, actions requested by relevant regulatory authorities, and should The client will
document monitoring results, and identify and reflect feedback from Affected Stakeholders
and other stakeholders, as appropriate. The client will document monitoring results and
identify and reflect the necessary corrective and preventive actions in the amended
management system and plans. The client, in collaboration with appropriate and relevant
third parties, will implement these corrective and preventive actions, and follow up on these
actions in upcoming monitoring cycles to ensure their effectiveness.
____________________
23
For example, participatory water monitoring.
37. Reporting
38. Internal Reporting
39.35. Senior management in the client organization will receive periodic performance
reviews assessments of the effectiveness of the management program system, based on
systematic data collection and analysis. The scope and frequency of such reporting will
depend upon the nature and scope of the activities identified and undertaken in accordance
with the client’s management program system and other applicable project requirements.
Based on results within these performance reviews, senior management will take the
necessary and appropriate steps to ensure the intent of the client’s Policy Statement is met,
that procedures, practices, and plans are being implemented, and are seen to be effective.
G55.G110. Monitoring is the client’s primary means for tracking and evaluating progress
towards the implementation of the management programsystem, including action items
specified in the Investment Action Plan and other aspects of the management program. Clients
should establish a system for measuring and monitoring consisting of: (i) the key impacts of the
business activitiesproject on employeesworkers, communities and the natural environment as
identified by the aAssessment; (ii) compliance with laws and regulations; and (iii) monitoring
progress with the implementation of the management programsystem. The type, extent and
frequency of monitoring should be commensurate with the potential impacts and risks of the
business activitiesproject as identified by the risks and impacts identification process, and as
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July07April 30, 2006 May 19, 2010
specified in the management programsystem. In addition, depending on the natures of the

business activitiesproject, it may be appropriate for the client to establish, track and measure
key indicators and other performance measures over time to illustrate the improvement in a
improve the project’s performance or highlight areas where more effort is required.
G56.G111. Social monitoring programs may be established to enhance the effective follow-
up of social issues identified in the aAssessment and to respond to on-going issues from
operations identified through assessment of these issues. As part of the monitoring programs
established in the management programsystem, it would be appropriate for the client to
establish key social development measurements and indicators, quantitative and qualitative
measures of success, or community engagement practices included in the
InvestmentSupplemental Action Plan in order to improve performance on social issues identified
in the aAssessment process.
G57.G112. The factors to be considered in establishing an environmental monitoring

program include engineering estimates, environmental modeling, pollutant source, noise,
ambient water, and air and workplace contaminant measurements. The focus and extent of the
monitoring should be commensurate with the risk of the pollutant releases as related to the
sensitivity of the surrounding areas, taking into account the affected community’s perception of
project risks to their health and environment resulting from the business activities. Appropriate
processes should also be in place to ensure the reliability of data, such as calibration of
instruments, test equipment, and software and hardware sampling. Specific environmental
monitoring measures comprise the parameters to be measured, methods to be used, sampling
locations, frequency of measurements, detection limits (where appropriate), and the definition of
thresholds that signal the need for corrective actions. Where external laboratories or other
analytical services are required to analyze samples, these should be certified under nationally
recognized schemes to ensure measurements and data provided to the business activity to be
funded are accurate, defensible and reliable.
G58.G113. Monitoring results should be documented, and the necessary corrective and
preventive actions identified. Clients should also ensure that these corrective and preventive
actions have been implemented and that there is a systematic follow-up to ensure their
effectiveness. The client should normally carry out the monitoring using its internal resources,
as part of its management programsystem. For projects with significant adverse impacts that
are diverse, irreversible, unprecedented, the client will retain qualified and experienced external
experts to verify its monitoring information. Participatory monitoring (i.e., involvement of
affected communities and other stakeholders) should be considered for large, high-risk projects.
In these cases, the client should evaluate the capacity of those participating in the monitoring
and provide periodic training and guidance as appropriate.
G59.G114. The outcome of monitoring may indicate that the mitigation measures in the
management program system should be adjusted or upgraded. As part of on-going
maintenance of its Management SystemManagement system, the client should update the
management program system from time to time, so that it can adequately address the change in
the social or environmental risks arising from any change in the client’s business or
circumstances.
External Reporting on Action Plans
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40. The client will disclose the Action Plan to the affected communities. In addition, the
client will provide periodic reports that describe progress with implementation of the
Action Plan on issues that involve ongoing risk to or impacts on affected
communities, and on issues that the consultation process or grievance mechanism
has identified as of concern to those communities. If the management results in
material changes in, or additions to, the mitigation measures or actions described in
the Action Plan on issues of concern to the affected communities, the updated
mitigation measures or actions will also be disclosed. These reports will be in a
format accessible to the affected communities. The frequency of these reports will be
proportionate to the concerns of affected communities but not less than annually.
G60.G115. The results of social and environmental monitoring should be evaluated and
documented. Periodic reporting of progress and monitoring results should be made to the
senior management of the client’s organization, as a function of the client’s management
systemmanagement system. Reports should furnish the information and data needed to
determine compliance with relevant host country legal requirements and progress on
implementing the management programsystem. The format of these reports can vary according
to the nature of the organization, but should include summary of findings and recommendations.
This information should also be made available broadly within the client’s organization and the
relevant workers as appropriate.
G61.G116. As part of IFC’s ongoing review of portfolio projects, IFC requires its clients to
submit Monitoring Reports on social and environmental performance pursuant to the project’s
management programsystem, including the Investment Action Plan and any other key social
and environmental criteria. The format and frequency of the Monitoring Reports to IFC will be
initially agreed with the client. Reporting formats can vary according to theproject
circumstances of the business activities in question, and can be based on the existing formats
used by the client to prepare internal or external reports. Monitoring reports will normally be on
an annual basis unless IFC and the client agree otherwise. The Monitoring Reports should
contain sufficient data and descriptive information to enable IFC to track the project’s progress
on implementing the management program system and the Investment Action Plan. IFC’s
procedural requirements in relation to the Monitoring Reports can be found in the ESRP. The
client will also establish, in discussion with IFC, appropriate project specific performance
indicators to ascertain ongoing compliance of the business activities being financedproject with
the applicable Performance Standards and to improve its performance over time. The
suggested performance indicators can be found in the Environmental and Social Review
Procedure. The client should also report to IFC all amendments (subject to IFC’s consent) and
updates to the Investment Action Plan as part of its Monitoring Report.
G62.G117. The client should provide periodic updates to the affected communities
stakeholders at least annually on the implementation and progress on the specific items in the
management programAction Plansystem that involve ongoing risks to or impacts on affected
communities. As appropriate, where amendments and updates to the management
programAction Plansystem materially change impacts to affected communitiesstakeholders, the
client will also disclose this to communities. In addition, information should be made available to
affected communities stakeholders in response to community feedback or grievance and as a
means to further involve the affected community in the social and environmental performance of
the business activities to be financedproject.
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G63.Clients may wish to consider using sustainability reports to report on the financial,
environmental and social aspects of its operations, including areas of success of its
performance measures and positive project impacts that are being enhanced, as well as any
unsuccessful outcomes and the lessons learned. Reporting initiatives, guidelines, including
sector-specific guidelines and good practices are rapidly emerging in this area. The most
notable is the Global Reporting Initiative as included in the References section. IFC can work
with clients to develop appropriate sustainability report formats upon request.
G63.G118. Some questions that may be useful to pose as the type, extent, scope, frequency
and management of a monitoring program are considered:
G63.
How is social and environmental performance regularly monitored?
Have specific quantitative and/or qualitative performance indicators been
established that relate to the clients compliance requirements and management
programsystem, and what are they?
What control processes are in place to regularly calibrate and sample environmental
measuring and monitoring equipment and systems?
What social monitoring methods are in place to track social impacts and assess
progress toward mitigation and development outcomes?
What is the process to periodically evaluate compliance with laws and regulations,
and to meet the applicable Performance Standards?
And some for reporting on the management systemsystem in general and consideration
of who might wish to see such information:
What social and environmental information is reported to client’s senior

management, IFC, and communities?
How is this information managed?
Is information made available to those who need it when they need it?
G71.
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Annex A[p12]
Content of a Social and Environmental Impact Assessment (SEIA) Report
A social and environmental impact assessment (SEIA) report focuses on the significant issues
of a project. The report's scope and level of detail should be commensurate with the project's
potential impacts and risks. The SEIA report typically includes the following items (not
necessarily in the order shown):
Non-technical executive summary. Concisely discusses significant findings and

recommended actions in lay language.
Policy, legal, and administrative framework. Discusses the policy, legal, and
administrative framework within which the Assessment is carried out, including host country
regulations, including obligations implementing relevant international social and environmental
treaties, agreements, and conventions, IFC Performance Standards, as well as any additional
priorities and objectives for social or environmental performance identified by the client.
Explains the environmental requirements of any co-financiers.
Project description. Concisely describes the proposed project and its geographic,
ecological, social, health and temporal context, including any related facilities that may be required
(e.g., dedicated pipelines, access roads, power plants, water supply, housing, and raw material
and product storage facilities). Encompasses facilities and activities by third parties that are
essential for the successful operation of the project. Normally includes maps showing the project
site and the project's area of influence.
Baseline data. Assesses the dimensions of the study area and describes relevant
physical, biological, socioeconomic, health and labor conditions, including any changes
anticipated before the project commences. Also takes into account current and proposed
development activities within the project area but not directly connected to the project. Data
should be relevant to decisions about project location, design, operation, or mitigation measures.
The section indicates the accuracy, reliability, and sources of the data.
Social and Environmental impacts. Predicts and assesses the project's likely positive and
negative impacts, in quantitative terms to the extent possible. Identifies mitigation measures and
any residual negative impacts that cannot be mitigated. Explores opportunities for enhancement.
Identifies and estimates the extent and quality of available data, key data gaps, and uncertainties
associated with predictions, and specifies topics that do not require further attention. Evaluates
impacts and risks from associated facilities and other third party activities. Examines global,
transboundary, and cumulative impacts as appropriate.
Analysis of Alternatives. Compares reasonable alternatives to the proposed project site,

technology, design, and operation in terms of their potential environmental impacts; the
feasibility of mitigating these impacts; their capital and recurrent costs; their suitability under
local conditions; and their institutional, training, and monitoring requirements. States the basis
for selecting the particular project design proposed and justifies recommended emission levels
and approaches to pollution prevention and abatement.
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Management Program. Consists of the set of mitigation and management measures to be

taken during implementation of the project to avoid, reduce, mitigate, or compensate for adverse
social and environmental impacts, in the order of priority, and their timelines. May include multiple
policies, procedures, practices, and management plans and actions. Describes the desired
outcomes as measurable events to the extent possible, such as performance indicators, targets or
acceptance criteria that can be tracked over defined time periods, and indicates the resources,
including budget, and responsibilities required for implementation. Where the client identifies
measures and actions necessary for the project to comply with applicable laws and regulations
and to meet the Performance Standards, the management program will include an Action Plan,
which is subject to disclosure to the affected communities and ongoing reporting and updating.
Appendixes:
- List of SEIA report preparers – individuals and organizations.
- References – written materials, both published and unpublished, used in study
preparation.
- Record of interagency and consultation meetings, including consultations for obtaining the
informed views of the affected communities and other stakeholders. The record specifies any
means other than consultations (e.g., surveys) that were used to obtain the views of affected
groups.
- Tables presenting the relevant data referred to or summarized in the main text.
- Associated reports, audits, and plans (e.g., Resettlement Action Plan or Indigenous
Peoples/ Natural Resource Dependent Community plan, community health plan).
- Action Plan that (i) describes the actions necessary to implement the various sets of
mitigation measures or corrective actions to be undertaken, (ii) prioritizes these actions, (iii)
includes the time-line for their implementation, and (iv) describes the schedule for
communicating with affected communities when on-going disclosure or consultation is expected.
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Annex BA
Content of an Background on Accepted International Practice in Conducting and

Compiling Environmental Audit Reports, References and Links to examples
An environmental audit is a tool to be used to determine the degree to which an activity,

process, operation, product or service is meeting stipulated requirements. Stipulated
requirements are considered audit criteria. They are the requirements to be audited against –
and can vary depending on the need/outcome for the audit. They can be focused on media
(e.g., water or air), the requirements of a specific piece of regulation, permit requirements or
element of a management system, only look at a limited geographic coverage (e.g., specific
plant or area of operation that may be a target of acquisition) or they can be used to assess
ongoing performance or other attributes or activities of a business as needed. Criteria and the
organization or entity to be audited form the scope of the audit. The scope defines what is to be
audited and (by definition) what is not. Scope must be carefully considered to ensure all that is
material to the audit is reviewed during the conduct of the audit.
Regardless of the scope of an audit, the audit must strictly follow an audit procedure to ensure it
is planned, staffed, and conducted in a manner that ultimately allows the results to be used with
confidence., Confidence means that when the audit presents the difference between what is
supposed to occur (the requirements) and what is actually occurring or has occurred (based on
observations, records reviewed or interviews with people to generate objective evidence) such
findings can be relied upon as truthful and accurate. Findings are detailed in an audit report and
summarized as audit conclusions. Often it is only the conclusions that are reviewed by those
who originally commissioned the audit and are used to inform decisions. It is therefore very
important to have conducted the audit in a manner that allows the recipients of the conclusions
to trust them implicitly.
A good specification on the conduct of all audits is contained within ISO 19011, available from
the International Organization for Standardization (ISO) at http://www.iso.org/iso/home.htm.
As mentioned above, the report, and often only the audit conclusions, is the key output of an
environmental audit. The content of the report will necessarily vary depending on the scope of
the audit. None-the-less, the following outline is a good example of what can be included in an
environmental audit report. An environmental audit report focuses on: (i) compliance of existing
facilities and operations with relevant laws and regulations, and applicable IFC Performance
Standards; and (ii) the nature and extent of significant adverse environmental impacts, including
contamination of soils, surface and ground water, and structures as a result of historical
activities. The environmental audit report typically includes the following items (not necessarily in
the order shown):
Executive Summary: A concise discussion of all environmental and occupational

health and safety areas of concern. Possible additional summary information
may include, recommended mitigation measures and their priority, the cost of
mitigation, and a schedule for compliance. These are sometimes made by
auditors but are also sometimes left to the organization that “owns” the issues as
they may be better placed to provide more accurate data. The inclusion of such
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information depends on the terms of reference that guide the conduct of the audit
and must be agreed upon prior to conducting the audit.
Scope of the audit: A description of what the audit focused upon (where the audit
was conducted, what was audited (processes, organization, operations, etc),
when the period of performance began and ended – did the audit cover a month,
a year, or all operations since inception?).
Facilities Description: A concise description of the project facilities, including
both past and current operations. The description should focus on aspects or
components with potential environmental and occupational health and safety
impacts.
Regulatory Setting: Tabular summary of host country, local and any other
applicable environmental and occupational health and safety laws, regulations,
guidelines, and policies as they may directly pertain to the facilitiesscope of the
audit.
Audit and Site Investigation Procedure: Brief overview of the approach used to
conduct the audit. A discussion of the records review, site reconnaissance, and
interview activities; a description of the site sampling plan and chemical testing
plan, ; a description of field investigations, environmental sampling and chemical
analyses and methods, if applicable.
Findings and Areas of Concern: Detailed discussion of all environmental and
occupational health and safety areas of concern. The areas of concern should
be discussed in terms of both existing facilities and operations and contamination
or damages due to past activities, including the affected media and its quality and
recommendations for further investigation and remediation, if applicable. The
report may wish to consider Areas of concern should be prioritizinged findings
into one of three categories: immediate action; mid-term action; and long-term
action.
Corrective Action Plan, Costs and Schedule (CAP): For each area of concern,
the audit report may include provide specifics on the appropriate corrective
actions to mitigate the areas of concern and why they are necessary. If so, they
should iIndicate priorities for action, p. Provide estimates of the cost of
implementing the corrective actions and a schedule for their implementation if
this has been agreed to between the auditor and auditee. Schedules should be
recommended within the context of any planned capital expenditure for the
facility. Each site CAP should be formatted as a table with columns for area of
concern, corrective action, priorities, schedule, and cost estimates.
Annexes: These should include references, copies of interview forms, any details
regarding the audit protocol not already included, and data obtained during the
audit but not included directly above.
Examples of audit reports can be found at the following addresses[p13]:
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Annex A[p14]B
Stakeholder Engagement Plan (Sample Contents)
A good Stakeholder Engagement Plan should:
describe regulatory, lender, company, and/or other requirements for consultation and
disclosure
identify and prioritize key stakeholder groups
provide a strategy and timetable for sharing information and consulting with each of
these groups
describe resources and responsibilities for implementing stakeholder engagement
activities
describe how stakeholder engagement activities will be incorporated into a company’s
management system
The scope and level of detail of the plan should be scaled to fit the needs of the project (or
company operations).
1. Introduction
Briefly describe the project (or the company’s operations) including design elements and
potential social and environmental issues. Where possible, include maps of the project site
and surrounding area.
2. Regulations and Requirements
Summarize any legal, regulatory, lender, or company requirements pertaining to stakeholder

engagement applicable to the project or company operations. This may involve public
consultation and disclosure requirements related to the social and environmental assessment
process.
3. Summary of any Previous Stakeholder Engagement Activities If the company has undertaken
any activities to date, including information disclosure and/or consultation, provide the
following details:
Type of information disclosed, in what forms (e.g. oral, brochure, reports, posters,
radio, etc.), and how it was disseminated
The locations and dates of any meetings undertaken to date
Individuals, groups, and/or organizations that have been consulted
Key issues discussed and key concerns raised
Company response to issues raised, including any commitments or follow-up actions
Process undertaken for documenting these activities and reporting back to
stakeholders
4. Project Stakeholders
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List the key stakeholder groups who will be informed and consulted about the project (or the
company’s operations). These should include persons or groups who:
are directly and/or indirectly affected by the project (or the company’s operations)
have “interests” in the project or parent company that determine them as stakeholders
have the potential to influence project outcomes or company operations (Examples of
potential stakeholders are affected communities, local organizations, NGOs, and
government authorities. Stakeholders can also include politicians, other companies,
labor unions, academics, religious groups, national social and environmental public
sector agencies, and the media.)
5. Stakeholder Engagement Program
Summarize the purpose and goals of the program (either projectspecific or corporate).
Briefly describe what information will be disclosed, in what formats, and the types of
methods that will be used to communicate this information to each of the stakeholder
groups identified in section 4 above. Methods used may vary according to target
audience, for example:
Newspapers, posters, radio, television

Information centers and exhibitions or other visual displays
Brochures, leaflets, posters, non-technical summary documents and reports
Briefly describe the methods that will be used to consult with each of the stakeholder
groups identified in section 4. Methods used may vary according to target audience, for
example:
Interviews with stakeholder representatives and key informants
Surveys, polls, and questionnaires
Public meetings, workshops, and/or focus groups with specific groups
Participatory methods
Other traditional mechanisms for consultation and decision-making
Describe how the views of women and other relevant sub-groups (e.g. minorities,
elderly, youth etc.) will be taken into account during the process.
Describe any other engagement activities that will be undertaken, including participatory
processes, joint decision-making, and/or partnerships undertaken with local
communities, NGOs, or other project stakeholders. Examples include benefit-sharing
programs, stakeholders development initiatives, resettlement and development
programs, and/or training and micro-finance programs.
6. Timetable
Provide a schedule outlining dates and locations when various stakeholder engagement
activities, including consultation, disclosure, and partnerships will take place and the date by
which such activities will be incorporated into the company’s management system (at either
the project or corporate level).
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7. Resources and Responsibilities
Indicate what staff and resources will be devoted to managing and implementing the
company’s Stakeholder Engagement Program.
Who within the company will be responsible for carrying out these activities? What budget
has been allocated toward these activities?
For projects (or multiple company operations) with significant or diverse impacts and multiple
stakeholder groups, it is good practice for a company to hire a qualified Stakeholders Liaison
Officer(s) to arrange and facilitate these activities at the project and/or corporate level.
Integration of the stakeholders liaison function with other core business functions is also
important, as is management involvement and oversight.
8. Grievance Mechanism
Describe the process by which people affected by the project (or company’s operations) can
bring their grievances to the company for consideration and redress. Who will receive public
grievances, how and by whom will they be resolved, and how will the response be
communicated back to the complainant?
9. Monitoring and Reporting
Describe any plans to involve project stakeholders (including affected communities) or

third-party monitors in the monitoring of project impacts and mitigation programs.
Describe how and when the results of stakeholder engagement activities will be reported
back to affected stakeholders as well as broader stakeholder groups?
Examples include social and environmental assessment reports; company newsletters;
annual monitoring reports submitted to lenders; company annual report; company or
corporate sustainability report.
10. Management Functions
How will stakeholder engagement activities be integrated into the company’s environmental
and social management system and with other core business functions?
Who will have management oversight for the program?
What are the plans for hiring, training, and deploying staff to undertake stakeholder
engagement work?
What will be the reporting lines between stakeholders liaison staff and senior
management?
How will the company’s stakeholder engagement strategy be communicated internally?
What management tools will be used to document, track, and manage the process? (e.g.
stakeholder database, commitments register, etc.)
For projects or company operations involving contractors, how will the interaction
between contractors and local stakeholders be managed to ensure good relations?
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Annex C
Useful questions to assess Management Capacity and Process:
Client’s social and environmental management organization and capacity:

How does the client’s organization identify and allocate the human, technical, and
financial resources, including external experts, necessary to manage social and environmental
performance?
How has social and environmental management been integrated into the overall
business management process?
What is the process for balancing and resolving conflicts between social, environmental
and other business objectives and priorities?
What are the responsibilities and accountability of personnel who manage, perform, and
verify work effecting social and environmental issues, and are these well defined and
documented?
How has top management established, reinforced and communicated organizational
commitment?
Is there a process for periodic review of the management program in the event of
changed project circumstances?
Training:
How does the client’s organization identify social and environmental training needs?
How are training needs of specific job functions analyzed?
Is training needed for contractors?
Is training developed and reviewed and modified as needed?
How is the training documented and tracked?
Monitoring:
How is social and environmental performance regularly monitored?
Have specific quantitative and/or qualitative performance indicators been established
that relate to the clients compliance requirements and management program, and what are
they?
What control processes are in place to regularly calibrate and sample environmental
measuring and monitoring equipment and systems?
What social monitoring methods are in place to track social impacts and assess
progress toward mitigation and development outcomes?
What is the process to periodically evaluate compliance with laws and regulations, and
to meet the applicable Performance Standards?
Reporting:
What social and environmental information is reported to client’s senior management,
IFC, and communities?
How is this information managed?
Is information made available to those who need it when they need it?
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Annex DC
An example of Indicators and Validation Methods for Ascertaining
the Process of Free, Prior and Informed Consultation
The determination (scores) for these considerations will be made against the scaling system
used by the Environment and Social Development Department for project supervision.
Material Consideration Examples of Validation Methods
1. Company Strategy, Policy, or Principles on

Engagement Client’s strategy, policy or principles or other supporting
Strategy, policy, or principles for on-going engagement documents.
with explicit mention of project-affected persons and/or
communities.
2. Stakeholder Identification and Analysis

As part of the Social and Environmental Assessment Stakeholder analysis document as part of SEIA or SEA.
process, identification of all project-affected
communities, their disaggregation (numbers, locations) Client’s planning documentation for
in terms of different levels of vulnerability to adverse communitystakeholders engagement, e.g.
project impacts and risks, and an analysis of the effect communications strategy, consultation plan, Public
of adverse project impacts and risks on each group. Consultation and Disclosure Plans, and stakeholder
Part of the Social and Environmental Assessment engagement plan.
process, this analysis should also look at communities
and individuals that will benefit from the project.
3. CommunityStakeholders Engagement
A process of consultation that is ongoing during the
project planning process (including the process of Client’s schedule and record of communitystakeholders
Environmental and Social Assessment), such that: engagement.
(a) affected communities have been engaged in:
(i) identifying potential impacts and risks; (ii) assessing Client’s record of discussions with recognized
the consequences of these impacts and risks for their communitystakeholders representatives, respected key
lives; and (iii) providing input into the proposed informants, and legitimate representatives of sub-
mitigation measures, the sharing of development groups (e.g., women, minorities).
benefits and opportunities and implementation issues;
and that (b) new impacts and risks that have come to
light during the planning and assessment process have
also been consulted upon.
4. Information Disclosure Client’s materials prepared for disclosure and

Timely disclosure by the client of project information by consultation.
the client to all project-affected communities about the
purpose, nature and scale of the project; the duration of Client’s record of discussions with recognized
proposed project activities; and expected risks, impacts communitystakeholders representatives; respected key
and development benefits that directly affect them. informants; and legitimate representatives of sub-
Disclosure should be in a form that is understandable groups.
and meaningful.
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July07April 30, 2006 May 19, 2010
5. Consultation
Client’s record of discussions with recognized
a) Free communitystakeholders representatives, respected key
Evidence from the communities adversely affected by informants, and legitimate representatives of
the project that the client or its representatives have not subgroups.
coerced, intimidated or unduly incentivized the affected
population to be supportive of the project.
b) Prior
Consultation with affected communities must be
sufficiently early in the project planning process:(i) to
allow time for project information to be interpreted and Client’s record of discussions with recognized
comments and recommendations formulated and communitystakeholders representatives, respected key
discussed; (ii) for the consultation to have a meaningful informants, and legitimate representatives of
influence on the broad project design options (e.g., subgroups.
siting, location, routing, sequencing, and scheduling);
(iii) for the consultation to have a meaningful influence
on the choice and design of mitigation measures, the
sharing of development benefits and opportunities, and
project implementation.
c) Informed
Consultation with affected communities on project
operations and potential adverse impacts and risks,
based on adequate and relevant disclosure of project Client’s record of discussions with recognized
communitystakeholders representatives; respected key
information, and using methods of communication that
informants; and legitimate representatives of sub-
are inclusive (i.e., accommodating various levels of
vulnerability), culturally appropriate, and adapted to the groups.
communities’ language needs and decision-making,
such that members of these communities fully
understand how the project will affect their lives.
6. Informed Participation Client’s schedule and record of communitystakeholders

engagement.
Evidence of the client’s organized and iterative
consultation, leading to the client’s specific decisions to The client’s documentation of measures taken to avoid
incorporate the views of the affected communities on or minimize risks to and adverse impacts on affected
matters that affect them directly, such as the avoidance communities in response to communitystakeholders
or minimization of project impacts, proposed mitigation feedback received during consultation.
measures, the sharing of project benefits and
opportunities, and implementation issues. Drafts of Action Plan.
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July07April 30, 2006 May 19, 2010
Stakeholder analysis as part of SEIA or SEA or

7. Vulnerable Groups – Consultation and Mitigation
socio-economic baseline data.
Evidence that individuals or groups particularly
vulnerable to adverse project impacts and risks have Client’s record of communitystakeholders engagement,
been party to effective prior, free and informed including record of discussions with legitimate
consultation as well as informed participation, and representatives of vulnerable groups.
evidence that the potential impacts and specific or
exacerbated risks to them will be mitigated to the Client’s documentation of measures taken to avoid or
satisfaction of these parties. minimize risks to and adverse impacts on vulnerable
groups in response to feedback received during
consultation.
Drafts of Action Plan.
8. Grievance Mechanism – Structure, Procedure, Client’s organizational structure and responsibilities,

and Application and procedures for managing grievances.
An effective grievance mechanism procedure that is
fully functioning: (i) throughout the process of Client’s record of grievances received about the project
environmental and social assessment; and (ii) that is and addressed, including expressions in support or
suitable for the operational phase of the project to dissent.
receive and address the affected communities’
concerns about the client’s social and environmental
performance. The mechanism should be culturally Client’s record of discussions with recognized
appropriate, readily accessible to all segments of the communitystakeholders representatives, respected key
affected communities, and available to affected informants, and legitimate representatives of
communities at no cost and without retribution. subgroups.
Client’s record of communitystakeholders engagement.

9. Feedback to affected communities
Client’s documentation of measures taken to avoid or
Documentation that the client provided the results of
minimize risks to and adverse impacts on affected
consultation to the project-affected communities, and
communities.
either: (i) demonstrated how the comments and
recommendations made by the project-affected
Discussions with recognized communitystakeholders
communities have been accommodated in the project
representatives, respected key informants, and
design, mitigation measures, and/or sharing of
legitimate representatives of subgroups.
development benefits and opportunities; or (ii) provided
a rationale why these comments and recommendations
Client’s ongoing reporting on implementation of Action
have not been accommodated.
Plan.
Revised management program or Action Plan.
The client may also use perception surveys to pose questions to affected stakeholders and solicit their responses
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July07April 30, 2006 May 19, 2010
References
Several of the requirements set out in the Performance Standard are based on principles
expressed in the following international agreements and the related guidelines:
Espoo Convention – Convention on Environment Impact Assessment in a
Transboundary Context (UNECE, 1991), lays down the general obligation of states
to notify and consult each other on all major projects under consideration that are
likely to have a significant adverse environmental impact across boundaries.
http://www.unece.org/env/eia/eia.htm
Guidelines on Environmental Impact Assessment in a Transboundary Context in the

Caspian Sea Region (UNEP & Caspian Environment Programme, 2003) – provides
a regional based framework for implementation of EIA in a transboundary context in
the Caspian region. http://www.caspianenvironment.org/report_technical.htm
In addition to the international human rights conventions referenced in GN2, the UN Convention
on the Rights of Persons with Disabilities elaborates in detail the rights of persons with
disabilities and sets out a code of implementation.
http://www.un.org/disabilities/convention/conventionfull.shtml
UN “Optional Protocol to the Convention on the Rights of Persons with Disabilities”
http://www.un.org/disabilities/convention/optprotocol.shtml
Additional international agreements are referred to at the end of other Guidance Notes.
IFC and the World Bank have published a number of resource materials:
Addressing Grievances From Project-Affected Communities (IFC, 2009)
http://www.ifc.org/ifcext/sustainability.nsf/AttachmentsByTitle/p_GrievanceMechanis
ms/$FILE/IFC+Grievance+Mechanisms.pdf
A Guide to Designing and Implementing Grievance Mechanisms for Development

Projects (CAO, 2008)
http://www.cao-ombudsman.org/howwework/advisor/documents/implemgrieveng.pdf
Participatory Water Monitoring: A Guide for Preventing and Managing Conflict (CAO,
2008)
http://www.cao-ombudsman.org/howwework/advisor/documents/watermoneng.pdf
IFC’s Environmental and Social Review Procedure (IFC, 2006), gives direction to
IFC officers in implementing the Sustainability Policy and reviewing compliance and
implementation by private sector projects.
http://ifcln1.ifc.org/ifcext/enviro.nsf/Content/ESRP
IFC’s Policy on Disclosure of Information (IFC, 2006) defines IFC’s obligations to

disclose information about itself as an institution and its activities
http://ifcln1.ifc.org/ifcext/enviro.nsf/Content/Disclosure
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July07April 30, 2006 May 19, 2010
Good Practice Note: Addressing the Social Dimensions of Private Sector Projects
(IFC, 2003) – A practitioner’s guide to undertaking social impact assessment at the project
level for IFC-financed projects.
http://ifcln1.ifc.org/ifcext/enviro.nsf/Content/Publications
Stakeholder Engagement: A Good Practice Handbook for Companies Doing

Business in Emerging MarketsDoing Better Business through Effective Public
Consultation and Disclosure: A Good Practice Manual (IFC, 19982007) explains new
approaches and forms of engagement with affected local communities, including
guidance on grievance mechanismsprovides advice on managing the expectations of
local communities, tailoring consultation to a private sector context, and encouraging
consultation between companies and their local stakeholders throughout a project's lifecycle.
http://ifchq14.ifc.org/ifcext/enviro.nsf/AttachmentsByTitle/p_StakeholderEngagement_Full/$F
ILE/IFC_StakeholderEngagement.pdf
http://ifcln1.ifc.org/ifcext/enviro.nsf/AttachmentsByTitle/p_pubconsult/$FILE/PublicCo
nsultation.pdf [need to confirm link]
The World Bank’s Environmental Assessment Sourcebook and Updates (World

Bank, 2001) provides assistance for advisory tasks, through discussions of
fundamental environmental considerations; summaries of relevant Bank policies; and
analyses of other topics that affect project implementation http://www.worldbank.org/
World Bank’s Operational Policy 7.50 International Waterways (World Bank, 2001)
World Bank’s policy for projects that may involve the use or pollution of international
waterways.
http://lnweb18.worldbank.org/ESSD/sdvext.nsf/52ByDocName/InternationalWaterways
The following are examples of accepted international standards for formal environmental, health
and safety and social management systemmanagement systems:
ISO 14001 - Environmental Management SystemManagement systems
(International Organization of Standardization, 2004) details the requirements for
an environmental management systemmanagement system, to enable an
organization to develop a policy and objectives taking into account legislative
requirements and information about significant environmental impacts. ISO
14004:2004 gives general EMS guidelines
http://www.iso.org/iso/iso_catalogue/management_standards/iso_9000_iso_1400
0/iso_14000_essentials.htm http://www.iso.org/iso/en/iso9000-14000/index.html
Technical Committee on Environmental Management - Technical Committee 207

(ISO 14001) Committee under which ISO 14000 series on Environmental
Management standards are being developed. Provides useful information on the
standardization of Environmental Management. http://www.tc207.org/faq.asp
EMAS - Eco-Management and Audit Scheme (European Commission, 1995) - EU

voluntary instrument which acknowledges organizations that improve their
environmental performance on a continuous basis.
71
July07April 30, 2006 May 19, 2010
http://ec.europa.eu/environment/emas/index_en.htm
http://europa.eu.int/comm/environment/emas/index_en.htm
OHSAS 18001 - Occupational Health and Safety Zone - an international

occupational health and safety resource that specifies policies and procedures to
minimize risks to employees and improve OH&S management systemmanagement
systems.
http://www.ohsas-18001-occupational-health-and-safety.com/
SA8000 - Social Accountability International – a standard and verification system that

assures humane workplaces and provides standards and guidance on protecting the
basic human rights of workers.
http://www.sa-intl.org/index.cfm?fuseaction=Page.viewPage&pageId=473
Guidance and certification support can be obtained from several certification bodies and from
national accreditation bodies.
• International Accreditation Forum (IAF), details of national certification body

accreditation and certification bodies worldwide
http://www.iaf.nu/
Example of support toolkit, especially designed to support SMEs in implementing an EMS, can
be found at the following addresses:
• IFC Corporate Advisory Department developed a toolkit for SMEs, which include
modules on environmental responsibilities and a specific module on creating an EMS
http://www.smetoolkit.org/smetoolkit/en/content/en/279/Creating-an-Environmental-
Management-System-EMS-
• An EMAS toolkit for small organization is available at the European Commission
website: http://ec.europa.eu/environment/emas/toolkit/
• European Environment Agency published a handbook, “Environmental Management
Tools for SMEs - A Handbook” which is available at
http://www.eea.europa.eu/publications/GH-14-98-065-EN-C
• IEMA and the Acorn Scheme, a UK model for the staged approach to the
implementation to an environmental management system for SMEs,
www.iema.net/ems/acorn_scheme
• The Project ACORN workbook developed by the IEMA is a toolkit for SMEs,
www.iema.net/ems/acorn_scheme/acorndownloads
• EMASeasy, a European framework for the implementation of EMAS within SMEs,
www.emas-easy.eu
• INEM has developed several online tools to assist organisations in implementing EMS,
www.inem.org/default.asp?menue=94
A training kit in EMS, prepared by the United Nations Environment Programme (UNEP), the
International Chamber of Commerce (ICC) and the International Federation of Consulting
Engineers (FIDIC), is available from the following addresses:
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July07April 30, 2006 May 19, 2010
• http://www.uneptie.org/scp/business/emp/
• http://www1.fidic.org/resources/globalcompact/
Guidance on best international practice for the development of environmental and social impact
assessments and studies is provided by the following organizations:
International Association for Impact Assessment (IAIA): forum for advancing
innovation, development, and communication of best practice in impact assessment.
http://www.iaia.org/publications/
Institute of Environmental Management and Assessment (IEMA): a not-for-profit
membership organization established to promote best practice standards in
environmental management, auditing and assessment
http://www.iema.net/
European Commission, Directorate-General for the Environment
http://ec.europa.eu/environment/eia/eia-support.htm
U.S. Environmental Protection Agency, National Environmental Policy Act (NEPA)
Policies & Guidance
http://www.epa.gov/compliance/resources/policies/nepa/index.html
European Commission, Joint Research Centre, IA TOOLS: an online platform with a
repository of guidance, information and best practices for the impact assessment of
new policies and legislative measures
http://iatools.jrc.ec.europa.eu/bin/view/IQTool/WebHome.html
Netherlands Commission on Environmental Assessment : an organization assisting
environment and sector ministries, environmental assessment professionals and
non-governmental organizations to achieve better environmental assessment
practice
http://www.eia.nl/
World Bank, Environmental Assessment Sourcebook and Updates
http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/ENVIRONMENT/EXTENVA
SS/0,,contentMDK:20282864~pagePK:148956~piPK:216618~theSitePK:407988,00.
html
Guidance on hazard/risk assessments is provided by the following organizations:
U.S. Environmental Protection Agency risk portal: This site provides basic
information about environmental risk assessments for the public. Additionally, the
site offers a comprehensive set of links to key EPA tools, guidance and guidelines
http://www.epa.gov/risk/
European Environment Agency (EEA), Environmental Risk Assessment -
Approaches, Experiences and Information Sources
http://www.eea.europa.eu/publications/GH-07-97-595-EN-C2
UK Health and Safety Executive, providing useful guidance on risk assessment for
occupational health and safety,
http://www.hse.gov.uk/risk/expert.htm
International Organization for Standardization (ISO) has several standards
associated with risk/hazard assessment (including safety assessment) and risk
management, such ISO 31000:2009 on Risk Management – Principles and
73
July07April 30, 2006 May 19, 2010
Guidelines, and several sectoral standards

http://www.iso.org/iso/home.htm
World Bank, Environmental Assessment Sourcebook Update on Environmental
Hazard and Risk Assessment
http://siteresources.worldbank.org/INTSAFEPOL/1142947-
1116493361427/20507357/Update21EnvironmentalHazardAndRiskAssessmentDec
ember1997.pdf
Additional guidance published by the following organizations provides useful information:

IFC Sustainability Resources (IFC) – examples and benefits of improving
sustainability performance. http://www.ifc.org/sustainability
GRI Guidelines and Sector Supplements – (Global Reporting Initiative) provides a

framework for reporting and organization’s sustainability performance.
http://www.globalreporting.org/
DIHR Human Rights Quick Check (Danish Institute for Human Rights) - a diagnostic
self-assessment tool designed to detect human rights risks in business operations.
https://hrca.humanrightsbusiness.org/
The Auditing Roundtable - a professional organization dedicated to the development

and professional practice of environmental, health, and safety (EHS) auditing.
http://www.auditing-roundtable.org/fw/main/Home-1.html
Guide to Human Rights Impact Assessment and Management is a road-testing

version of the assessment tool to be used alongside the social assessment process.
http://www.ifc.org/ifcext/enviro.nsf/Content/OurStories_SocialResponsibility_HumanRigh
ts
EITI Source book (Extractives Industries Transparency Initiative – 2005) ) - the initiative
supports improved governance in resource-rich countries through the full publication and
verification of aggregated company payments and government revenues from oil, gas
and mining.
http://www.eitransparancy.org/http://www.eitransparency.org/UserFiles/File/keydocumen
ts/sourcebookmarch05.pdf
Demographic Surveillance Site (DSS) (The INDEPTH Network) – DDS is an

extremely cost-effective and well established program that can transparently and
longitudinally collect and evaluated a wide range of social, health and economic
survey data.
http://www.indepth-network.org/
A Design Manual for a Barrier Free Environment (United Nations Division for Social
74
July07April 30, 2006 May 19, 2010
Policy and Development) – This Manual is a design guidebook made for the purpose
of providing architects and designers with the basic information and data necessary
for a barrier- free environment
http://www.un.org/esa/socdev/enable/designm
The U.S. Access Board – This website provides additional accessibility guidelines
and standards, technical assistance, and training downloadable publications.
http://www.access-board.gov/
IAP2 (International Association for Public Participation) Public Participation Toolbox

– Techniques to Share Information (2006).
http://www.iap2.org/associations/4748/files/06Dec_Toolbox.pdf
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Assessment and Management of Social and Environmental Assessment and

1. Performance Standard 1 underscores the importance of managing the social and

G1. The assessment and management of Ssocial and Eenvironmental Management

prevention, minimization, mitigation, or compensation. The appropriate assessment and

[insert PS para. 3]This Performance Standard applies to projects with social or

Social and Environmental Assessment and Management System

G4.G7. A t a minimum, a management system that meets the requirements of Performance

G5.G8. The sSocial and eEnvironmental assessment and Management Systemmanagement

• Definition of a set of policies and objectives for social and environmental

G6.G9. The effort needed to establish a Management Systemmanagement system depends on

G7.G10. Even though many formal management systemmanagement systems address

be responsible for its execution (with reference to an appropriate responsible government

Social and Environmental Assessment

of air, or use or pollution of international waterways, as well as global impacts, such

8. The Assessment will be an adequate, accurate, and objective evaluation and

sickness, physical or mental disability, poverty or economic disadvantage, and

Risks and Impacts Identification

Areas potentially affected impacts by cumulative impacts from further planned

Areas potentially affected by impacts from unplanned but predictable developments

Risks and Impacts Identification Methods

Impacts and Risks

Stakeholder Identification and Information Gathering

G14.Stakeholder identification broadly involves the determination of the various individuals or

Impacts and Risks

Global Impacts - Climate Change

G19.G39. Specific requirements and guidance on greenhouse gases and ozone-depleting

G41. G22 –Government concessions and/or businessproject developers oftentypically

G42. G23 – As outlined in paragraph 7 of Performance Standard 1, a good environmental and

G45. G26 – According to paragraph 7(iii) of Performance Standard 1, the aAssessment of a

Disadvantaged or Vulnerable Groups

available. M Project monitoring should track these individuals or groups on a disaggregated

Disability para to be inserted here

Third Party Impacts including Supply Chain Considerations[rs6]

Regional, Sectoral or Strategic Assessments

G28.G64. In exceptional circumstances, regional, sectoral, or strategic social and

Documentation of Assessment Process

G31.The outcome of the Assessment process should be documented. The assessment

The project and its social and environmental aspects

Management System, Plans, and Agreements

G38.G75. [rs9]IFC’s independent due diligence assessment of specific business activities

G38.G76. As part of its ongoing engagement with aAffected communities

Organizational Capacity and Competency

Is there a process for periodic review of the management programsystem in the

Identification of training needs for employees. This can be triggered by past

G41.G83. Training relevant to implementing specific action items in the management

G42.G84. When specific aspects of the business activities to be financedproject or the

• Trained emergency response teams

free of external manipulation, interference, or coercion, and intimidation,

G87. G46G1. The purpose of communitystakeholder engagement is to establish and maintain

Stakeholder Analysis and Engagement Planning

DisclosureDisclosure of relevant project information helps affected

G59.G97. In the extractive industries and infrastructure sectors in particular, where a

29. For projects with significant adverse impacts on Affected Stakeholderscommunities,

Free, Prior, and Informed Consultation

Broad Community Support

Reporting to Affected Stakeholderson Action Plans

Private Sector Responsibilities Uunder Government-Lled Stakeholder Engagement

Monitoring and Review

In addition to recording information to track performance and establishing relevant

specified in the management programsystem. In addition, depending on the natures of the

G57.G112. The factors to be considered in establishing an environmental monitoring