MODULE 1: WELCOME AND OVERVIEW

Course Overview
Welcome to the course on the World Bank Environmental and Social
Framework.
This course is organized into eight modules:
Module 1: Welcome and Overview
Module 2: Environmental and Social Framework, Policy and Directives s
Module 3: Assessment and Management of Environmental and Social
Risks and Impacts (ESS1)
Module 4: Stakeholder Engagement and Information Disclosure (ESS10)
Module 5: Port Redevelopment Project
Module 6: Multi-Purpose Dam Project
Module 7: Financial Intermediaries (ESS9)
Module 8: Summary

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Port Redevelopment Project

The Port Redevelopment Project addresses:
 Labor and Working Conditions (ESS2)
 Resource Efficiency and Pollution Prevention and Management (ESS3)
 Community Health and Safety (ESS4)

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Multi-Purpose Dam Project

The Multi-Purpose Dam Project addresses:
 Land Acquisition, Restrictions on Land Use and Involuntary
Resettlement (ESS5)
 Biodiversity Conservation and Sustainable Management of Living
Natural Resources (ESS6)
 Indigenous Peoples/Sub-Saharan African Historically Underserved
Traditional Local Communities (ESS7)
 Cultural Heritage (ESS8)

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

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

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Module 1: Welcome & Overview

ENTER

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Module 1 - Menu
Topic: Welcome
Topic: Benefits of the Environmental and Social Framework
Topic: What are the Elements of the Environmental and Social
Framework?
Topic: Characteristics of the Environmental and Social Framework
Topic: ESF Effectiveness
Topic: Summary

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Introduction to the Module

The first module provides background to the Environmental and Social
Framework.
By the end of this module, you will be able to:
 Explain why the World Bank has adopted the Environmental and Social
Framework
 Discuss what are the elements and characteristics of the
Environmental and Social Framework
Completion time: Approximately 30-35 minutes

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Why has the World Bank Adopted the Environmental and Social
Framework?
The World Bank has adopted the ESF in recognition of the importance of:
 Addressing development demands and challenges
 Consolidating and modernizing requirements
 Broadening coverage
 Monitoring and managing risks and impacts
 Providing a systematic planning tool

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Why is the Environmental and Social Framework a Step Forward?

The Environmental and Social Framework (ESF) is a step forward because
it:
 Stakeholder engagement
 Integrated risks and impacts
 The Borrower framework and strengthening institutions
 Boundaries for application
 Roles and responsibilities
 Informed judgement
 Common approach
 Proportionality applied to risks
 Adaptive risk management
 Four-tiered risk classification
 Resources adapt to risks

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Stakeholder Engagement
Places a strong emphasis on transparency, stakeholder engagement, and
meaningful consultation throughout the project cycle.

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Integrated Risks and Impacts

Promotes and facilitates integrated management of environmental and
social risks and impacts.

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The Borrower Framework and Strengthening Institutions

Promotes efficiency gains through the use of the Borrower’s framework for
project implementation in certain circumstances, together with an
emphasis on strengthening the Borrower’s institutions.

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Boundaries for Application

Provides clear boundaries for application of the Framework, including
explicit definitions for projects and “associated facilities.”

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Roles and Responsibilities

Clarifies roles and responsibilities of the World Bank and the Borrower
including the Borrower’s obligations relating to contractors and suppliers.

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Informed Judgement
Provides more room for informed judgement, taking into account Good
International Industry Practice (GIIP) and specific project conditions, and
guided by the ESF, related guidance materials, institutional technical
resources, and decision-making structures.

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Common Approach
Facilitates efficient use of time and resources through greater convergence
with requirements of other development partners and by enabling the
World Bank to agree on a “Common Approach” for co-financed projects.

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Proportionality Applied to Risks

Supports a risk management approach, based on assessment, mitigation,
and monitoring of environmental and social risks and impacts in a manner
that is proportionate to the nature and scale of potential risks and impacts.

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Adaptive Risk Management

Means adjusting decisions and actions in a timely manner, based on
information obtained through monitoring and evaluating the results of
previous actions as well as changes in the context and environment in
which a project is being implemented.

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Four-tiered Risk Classification

Utilizes a four-tiered risk classification system
(High/Substantial/Moderate/Low) that takes into account both the nature
and scale of potential risks and impacts and the capacity of the Borrower
to manage them.

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Resources Adapt to Risks

Uses the project’s risk classification, which is changeable over the life of
the project, to facilitate appropriate deployment of resources.

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The Environmental and Social Framework

Here are the main elements of the ESF.

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Here are the main elements of the Environmental and Social Framework.
The Vision for Sustainable Development sets out the aspirations for an
equitable and sustainable future as described in the World Bank’s goals.
These blue boxes outline the responsibilities of the World Bank.
Here are the ones for the Borrowers.
The Legal Agreement between the Borrower and the World Bank, includes
the Environmental and Social Commitment Plan (ESCP), which sets out
the responsibilities for the Borrower.
Here are the guidance notes, case studies and tools.

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Vision
Let’s learn about the vision of the Environmental and Social Framework.

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A Vision for Sustainable Development

The Vision for Sustainable Development sets out the World Bank’s
aspirations regarding both environmental and social sustainability as key
components for realizing the World Bank’s twin goals of ending extreme
poverty and promoting shared prosperity.

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World Bank’s Responsibilities

Here are the main elements of the Environmental and Social Framework.

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Environmental and Social Policy

The Environmental and Social Policy sets out the World Bank’s
responsibilities in relation to investment project financing.
Some of the most important elements of this Policy are:
 To improve project implementation and outcomes through both due
diligence and support for strengthening the Borrower’s capacity
 To use a risk and outcome-based approach in order to strengthen and
improve environmental and social performance
 To apply requirements in a manner that is proportionate to the nature,
scale, and level of social and environmental risks and impacts
 To introduce a comprehensive set of Environmental and Social
Standards that can be applied to all investment project financing
 To facilitate effective and efficient management of environmental and
social risks and impacts throughout the life of a project through
implementation of an Environmental and Social Commitment Plan
(ESCP), which can be adapted over time
 To support stronger and sustained stakeholder engagement throughout
the life of a project

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World Bank Directives

Environmental and Social Directives
The Environmental and Social Directive sets out the requirements that
govern the World Bank’s implementation of the Environmental and Social
Framework. This includes specific steps and actions for:
 Undertaking its own due diligence on the proposed project and
preparing the Environmental and Social Review Summary (ESRS) as
public record of this process
 Providing implementation support to the Borrower to meet the
Environmental and Social Standards requirements, such as identifying
appropriate methods and tools to assess and manage risks and
impacts, and to carry out continuing and meaningful stakeholder
engagement
 Where appropriate, assessing whether all or part of the Borrower’s
framework can be used for implementation of a World Bank-supported
project
 Monitoring Borrower compliance with the Environmental and Social
requirements of a project

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Bank Directive Addressing Risks and Impacts on Disadvantaged or

Vulnerable Individuals or Groups
This Directive sets out responsibilities of the Bank staff, regarding due
diligence obligations relating to the identification of, and mitigation of risks
and impacts on, individuals or groups who, because of their particular
circumstances, may be disadvantaged or vulnerable.

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The Borrower’s Responsibilities

Here are the main elements of the Environmental and Social Framework.

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Environmental and Social Standards

The Environmental and Social Framework sets out the Borrower’s
responsibilities in a series of 10 Environmental and Social Standards,
which are described in greater detail in subsequent modules.
They are:
ESS1: Assessment and Management of Environmental and Social Risks
and Impacts
ESS2: Labor and Working Conditions
ESS3: Resource Efficiency and Pollution Prevention and Management
ESS4: Community Health and Safety
ESS5: Land Acquisition, Restrictions on Land Use and Involuntary
Resettlement
ESS6: Biodiversity Conservation and Sustainable Management of Living
Natural Resources
ESS7: Indigenous Peoples/Sub-Saharan African Historically Underserved
Traditional Local Communities
ESS8: Cultural Heritage
ESS9: Financial Intermediaries

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ESS10: Stakeholder Engagement and Information Disclosure

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Environmental, Health, and Safety Guidelines

The Borrower is also expected to apply the relevant Environmental, Health,
and Safety Guidelines - a set of technical reference documents with
general and industry-specific information on Good International Industry
Practice.
The Environmental, Health, and Safety Guidelines contain the
performance levels and measures that are generally considered
achievable in a new facility with existing technology and at a reasonable
cost.
In the Environmental, Health, and Safety Guidelines, you will find
environmental, health, and safety guidance for a range of industries and
sectors, for example, Ports, Aquaculture, Construction Material Extraction.
When national laws and requirements differ from the levels and measures
presented in the Environmental, Health, and Safety Guidelines, the
Borrower will be required to achieve or implement whichever is more
stringent.
If less stringent levels or measures than those provided in the
Environmental, Health, and Safety Guidelines are appropriate in view of
the Borrower’s limited technical or financial constraints, or other specific
project circumstances, the Borrower will provide full and detailed
justification for any proposed alternatives through the environmental and

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social assessment. This justification must demonstrate, to the satisfaction

of the Bank, that the choice of any alternative performance level is
consistent with the objectives of the Environmental and Social Standards
and the applicable Environmental, Health, and Safety Guidelines, and is
unlikely to result in any significant environmental or social harm.

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Environmental and Social Commitment Plan

Here are the main elements of the Environmental and Social Framework.

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The Environmental and Social Commitment Plan

The Environmental and Social Commitment Plan (ESCP) is prepared by
the Borrower. It sets out the Borrower’s obligations for managing
environmental and social risks and impacts in relation to a particular
project.
These can include:
 Project-specific commitments that the Borrower makes to the Bank for
managing environmental and social risks, including information on roles
and responsibilities and budgets
 Measures to enable adaptive management, such as monitoring and
reporting
 Appropriate human and financial resources to carry out agreed actions
Preparation of the ESCP should start early in the project cycle and the
draft of the ESCP should be disclosed as early as possible, and before
Appraisal.
The ESCP is a key part of the legal agreement between the World Bank
and the Borrower.

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Good Practice Notes and Guidance Notes

Let's learn more about the Good Practice Notes and Guidance Notes.

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Good Practice Notes

Good Practice Notes for Bank staff support implementation of the ESF.
Good Practice Notes are available in the Resource Section of this course

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Guidance Notes
Guidance Notes for the Borrowers will support implementation of the
Environmental and Social Standards.
Guidance Notes are available in the Resource Section of this course.

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Knowledge Check
Which of the following is NOT a part of the Environmental and Social
Framework?
Correct Choice
The Environmental and Social Directive
The Environmental, Health, and Safety Guidelines
X The World Bank Sustainability Review
The Environmental and Social Standards’ Guidance Notes

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Integrated Approach & Expanded Coverage

The Environmental and Social Framework integrates and provides
expanded coverage of environmental and social issues. The coverage
includes:
Social
 Project-associated threats to human security, health and safety, and
well-being of project-affected parties and project workers, including
conflict, crime or violence
 Risk of project impacts falling disproportionately on individuals or
groups, who may be disadvantaged or vulnerable due to their
circumstances
 Prejudice or discrimination toward individuals or groups (particularly the
disadvantaged or vulnerable) in providing access to development
resources and project benefits
 Negative economic and social impacts relating to the involuntary taking
of land or restrictions on land use
 Risks or impacts associated with land and natural resource tenure and
use (such as project-related impacts on local land use patterns and
tenurial arrangements, land access and availability, food security, and
land values)

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 Corresponding risks related to conflict or contestation over land and

natural resources
 Risk of loss or deterioration of economically or socially significant
ecosystem services
 Recognition and protection of Indigenous Peoples/Sub-Saharan African
Historically Underserved Traditional Local Communities, including
requiring a process for obtaining Free, Prior, and Informed Consent of
these communities under a range of circumstance
 Provision of universal access to the design and construction of new
buildings and structures where technically and financially feasible
 Risks to cultural heritage

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Universal Access
Universal access means unimpeded access for people of all ages and
abilities in different situations and under various circumstances, as set out
in Good International Industry Practice.

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Labor
 Safeguarding workers, including occupational health and safety, and
promoting fair treatment and equal opportunity
 Preventing the use of all forms of forced and child labor
 Providing project workers with accessible means to raise workplace
concerns

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Stakeholder Engagement
 Emphasizing stakeholder engagement throughout the project life-cycle,
including a requirement for the Borrower to prepare and implement a
Stakeholder Engagement Plan
 Adoption of a grievance mechanism for all aspects of the project
 Better recognition and protection of Indigenous Peoples/Sub-Saharan
African Historically Underserved Traditional Local Communities,
including the application of Free, Prior, and Informed Consent in a
variety of circumstances

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Grievance Mechanism
The Grievance Mechanism:
 Allows stakeholders to register grievances, concerns, suggestions,
inquiries, and compliments
 Supports submission of grievances at multiple locations and through
multiple mechanisms
 Where feasible and suitable, may use existing formal and informal
grievance mechanisms, supplemented as needed
 Should be proportionate to the nature of the project and the potential
risks and impacts of the project

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Environment & Natural Resources

 Addressing broad project-level impacts of climate mitigation and
adaptation
 Where applicable, estimating a project’s gross Greenhouse Gas (GHG)
emissions
 Promoting sustainable management of living natural resources
 Providing clear definitions on the range and scope of different types of
habitats and the requirements pertaining to each
 Establishing clear criteria and requirements for use of biodiversity
offsets under appropriate circumstances, as a last resort, to
compensate for unavoidable residual adverse impacts on biodiversity

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Risk Management
The Environmental and Social Framework places significant focus on risk
management. It introduces a dynamic, risk-based approach to addressing
environmental and social risks and impacts throughout the project life-
cycle.
The Environmental and Social Framework adopts four risk classifications.
 High
 Substantial
 Moderate
 Low
This classification system is coupled with the concept of “proportionality”
which enables the appropriate level of financial resources and staff
experience to be dedicated to the project, in line with the level of risk.
The Environmental and Social Framework also emphasizes adaptive
management and utilizes feedback from project monitoring to adapt
mitigation measures and the ESCP, as necessary throughout
implementation to more effectively respond to changing circumstances and
risks.

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Proportionality
Proportionality means that assessments, mitigation measures and
implementation support are conducted at the level needed to understand
and manage the potential risks of the particular project.

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High Risk Project

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

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Substantial Risk Project

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

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Moderate Risk Project

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

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Low Risk Project

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

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Outcome-based Approach
The Environmental and Social Standards are designed to help countries
achieve desired project outcomes and objectives.
The Environmental and Social Framework is outcome-oriented, flexible,
and responsive:
 The Environmental and Social Standards’ objectives focus on
environmental and social outcomes, and the Environmental and Social
Standards’ requirements support achievement of their objectives
 Application of requirements of the Environmental and Social Standards
and the World Bank’s due diligence are proportionate to project risks
and impacts, as long as this enables the project to achieve outcomes
materially consistent with the objectives of the Environmental and
Social Standards

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Disclosure of Environmental and Social Assessments and

Instruments
The Environmental and Social Framework calls for preparation and
disclosure of environmental and social assessments when appropriate,
during preparation or implementation, in accordance with an agreed
Environmental and Social Commitment Plan.
For all projects, the Borrower provides sufficient information about the
potential risks and impacts of the project for meaningful consultation with
stakeholders.
For High Risk and Substantial Risk projects:
 The Borrower ensures that adequate information on key environmental
and social risks and impacts is available to inform stakeholder
engagement and World Bank decision-making
 The World Bank discloses documentation relating to the environmental
and social risks and impacts of the project prior to Appraisal

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The Borrower Framework

The World Bank Environmental and Social Framework:
Emphasizes and provides for greater country ownership of environmental
and social issues
Focuses on strengthening the Borrower capacity and institutions
Allows the World Bank to determine whether applying relevant parts of the
Borrower’s framework alone to a project is likely to achieve objectives
materially consistent with the relevant Environmental and Social Standards
 In some cases the World Bank may conclude that the Borrower’s
framework can be sufficient, possibly together with gap-filling measures
 Agreed gap-filling measures are set out in the ESCP

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The Common Approach

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

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The Environmental and Social Framework Applies to Investment

Project Financing
In practice:
 Projects with an approved Project Concept Note prior to October 1,
2018 apply the existing Safeguard Policies throughout the life of the
project
 Projects with a Project Concept Note approval on or following October
1, 2018 apply the Environmental and Social Framework throughout the
life of the project
 Therefore, there will be a period of approximately five to seven years
during which the World Bank’s portfolio will contain older projects that
are subject to the Safeguard Policies, as well as newer projects that are
subject to the Environmental and Social Framework.

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Knowledge Check
The World Bank can agree that a project can be implemented by using
some or all of the Borrower framework, or agree with the Borrower and
multilateral or bilateral funding agencies, to use a Common Approach
where:
Correct Choice
The Bank carries out an assessment and concludes that this will
enable the project to meet all the national laws and regulations
X The Bank carries out an assessment and concludes that this will
enable the project to achieve objectives that are materially
consistent with the Environmental and Social Standards
The Bank carries out an assessment and concludes that this will
greatly reduce the Borrower’s costs
The Bank carries out an assessment and concludes that the
Borrower has stated a strong commitment to apply Good
International Industry Practice and comply with all relevant
United Nations Conventions

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Knowledge Check
The ESF categorizes projects as A, B, or C depending on the level of risk.
Correct Choice
True
X False

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Knowledge Check
The concept that the level of financial resources and staff experience
should be in line with the level of risk of a project is called:
Correct Choice
Balanced risk
Risk mitigation
X Proportionality
Risk response
None of the above

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Recap
Here is a quick recap of the main points covered in this module.
 Benefits
 Elements
 Approach

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Benefits
 Addressing development demands and challenges
 Broadening coverage
 Monitoring and managing risks and impacts
 Providing a systematic planning tool

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Elements:
 Vision
 Bank Policy and Directives
 Environmental and Social Standards
 Environmental and Social Commitment Plan
 Environmental, Health, and Safety Guidelines
 Guidance Materials

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Approach:
 Outcome-oriented, flexible and responsive
 Risk Management
 Expanded Coverage

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