Executive Directors Meeting - 8/4/2016 - Review and Update of the Environmental and Social

Review and Update of the World Bank’s Safeguard Policies:

Environmental and Social Framework

Chair Summary *

August 4, 2016

Executive Directors approved the Environmental and Social Framework (ESF), comprising the proposed Vision for Sustainable Development, the World Bank Environmental and Social Policy for Investment Project Financing, and the Environmental and Social Standards. The ESF will replace the Bank’s current safeguard policies and will protect people and the environment in the Bank’s Investment Project Financing. They agreed that the ESF supported the Bank’s goals to end extreme poverty and promote shared prosperity in a sustainable manner. Directors acknowledged that the ESF reflects a consensus position that balances the views of the Bank’s shareholders. They expressed appreciation for the extensive consultations and intensive efforts that led to the proposal.

Directors requested Management to focus efforts on implementation, ensure that implementation is well resourced, and ensure that staff have the right incentives to implement the ESF. They emphasized the role of the Bank in strengthening borrower institutions through capacity building, in particular for borrowers in FCS and countries with low capacity. Directors asked Management to support a cost-efficient and responsive implementation approach that enablesprojects to achieve theirdevelopment objectives and outcomes. Directors also asked for a robust monitoring and evaluation program, including indicators and metrics to measure the performance of ESF implementation, to be presented within six months. Directors asked that Management report back regularly on implementation progress and conduct an implementation review 5 years after the ESF becomes effective. Directors suggested that oversight should be delegated to the Budget Committee and Committee on Development Effectiveness.

Directors asked Management to develop guidanceto address issuesraised at the Board meeting, including, but not limited to, risk classification of projects and sub-projects andthe implementation of specific requirements relating to labor and the alternative mechanism; land acquisition and resettlement;greenhouse gas (GHG) emission estimation;Free, Prior and Informed Consent (FPIC); the use of borrower frameworks; the Environmental and Social Commitment Plan;and Financial Intermediaries. Management confirmed that clarifications made in the Staff Statement will be reflected in Guidance.

The Chair confirmed that nothing in the Environmental and Social Framework is intended to change in any way the mandate and the role or responsibilities of the Inspection Panel as they are currently set forth in the 1993 Resolution establishing the Inspection Panel and the 1996 and 1999 Clarifications.

Management will finalize and issue the Environmental and Social Procedure andBank Directive Addressing Risks and Impacts on Disadvantaged or Vulnerable Individuals or Groups to complete the new Environmental and Social Framework. The Framework will replace Operational Policy/Bank Procedure (OP/BP) 4.00, OP/BP 4.01, OP/BP 4.04, OP 4.09, OP/BP 4.10, OP/BP4.11, OP/BP 4.12, OP/BP 4.36, and OP/BP 4.37for new projects when it becomes effective on a date that Management will set after assessing the Bank’s readiness to implement the ESF.

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* This summary is not an approved record.