IFC Performance Standard 1

Social and Environmental Assessment and Management System

Selected key questions to be addressed during due diligence:
IFC Performance Standard 1

Environmental and Social Management System

  • Does the client have an E&S policy in place defining the environmental and social objectives and principles that guide the project to achieve sound environmental and social performance?
  • Does the client have a management system in place to identify the environmental and social impacts?
  • Has the client properly defined the project’s area of influence as described in PS 1? This includes the areas directly affected, associated facilities as well as cumulative impacts.
  • Does the client have sufficient resources earmarked?
  • Do they have any best practice certifications (e.g. ISO 14000 for environmental management system, OHSAS 18000 for occupational health and safety management system or SA 8000 for social management system)?

Organizational Capacity and Competency

  • Has the client establish an organizational structure that defines roles, responsibilities, and authority to implement the ESMS?
  • Are the designated experts sufficiently qualified to carry out their related jobs?
  • Does the client have training programs in place for the persons responsible?

Emergency Preparedness and Response

  • Does the project foresee an emergency preparedness and response system which assures 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?

Monitoring and review

  • Does the client have procedures in place to monitor effectiveness of the management program?

Stakeholder Engagement

  • Has the client properly identified all relevant stakeholders to the project?
  • Have the stakeholders been engaged into the project planning?
  • Does the client have a community engagement process for affected communities?
  • Does this process ensure free, prior and informed consultation of the affected community?
  • Does the client have a grievance mechanism in place for affected communities?

External Communications and Grievance Mechanisms

  • Has the client implemented procedures for external communications?
  • Has the client established a grievance mechanism to receive and facilitate resolution of Affected Communities’ concerns about the client’s environmental and social performance?

Ongoing Reporting to Affected Communities

  • Does the client provide periodic reports to the Affected Communities that describe progress on issues that involve ongoing risk to or impacts on Affected Communities and on issues that the consultation process or grievance mechanism have identified as a concern?

All IFC Performance Standards at a glance