ADB unveils new framework to enhance social and environmental protections for projects

Source: ADB

The ESF, which is targeted to become effective in January 2026, will replace the 2009 Safeguard Policy Statement (SPS). Its approval follows 4 years of technical reviews and consultations with more than 4,500 stakeholders. The policy will help developing member countries to better manage risks, addressing adverse impacts on people and the environment from development projects.

“Our region faces a growing set of severe development challenges. We must maximize the positive impact of our projects, especially for poor and vulnerable communities,” said ADB President Masatsugu Asakawa. “Clearer standards and broader protections are critical, and this framework represents a significant step forward in our efforts to ensure that development is inclusive, sustainable, and beneficial to all.”

The ESF reflects good international practice on environmental and social requirements and aligns ADB’s approach with other multilateral development banks. This will provide greater opportunities for streamlined cofinancing arrangements.

Under the ESF, new standards on labor and community health and safety will protect children, workers and communities from risks including sexual exploitation, abuse, and harassment. A new climate change standard affirms ADB’s support for the Paris Agreement, and a stakeholder engagement standard strengthens ADB’s commitment to meaningful consultations, enhanced information disclosure, and effective grievance mechanisms. Current standards for biodiversity protection have also been strengthened, supporting nature positive investment.  

ADB projects will implement a new integrated approach to risk classification and adaptive management to enhance efficiency and reduce costs. Risk assessments will consider project and country contexts, including implementation in fragile and conflict-affected situations and for small island developing states. Clear parameters are set for using borrowers’ environmental and social systems, while ensuring that ADB environmental and social standards are not diluted.

The ESF will be rolled out starting in January 2025, along with a long-term capacity support program that will assist ADB and its members to strengthen capacity to implement the new framework./.