Environmental and Social Handbook

1 European Investment Bank Environmental and Social Handbook European Investment Bank EIB Environmental and Social Handbook Environmental AND Social Handbook The content of this Document is subject to continuous review and revisions. In particular, it may be reviewed without notice to reflect changes to the EIB s internal rules and processes in accordance with decisions with the EIB s governing bodies. Environment, Climate and Social Office Projects Directorate Version of 02/12/2013 European Investment Bank Environmental and Social Practices and Standards 2 FOREWORD The promotion of sustainable development - in particular the protection and enhancement of biodiversity, the fight against climate change and the respect of human rights underpins EIB s lending strategy and objectives.

2 An overarching document, the EIB Statement on Environmental and Social Principles and Standards, sets the policy context for the protection of the environment and human well-being. This framework promotes the EU approach to Environmental and Social issues, and is aligned with international best practice. The purpose of the Environmental and Social Handbook (the Handbook ) is to provide an operational translation of those policies, principles and standards.

3 In order to achieve the objectives embodied in the Statement, the EIB relies to a large extent on activities undertaken by borrowers and project promoters, and on the legislative, regulatory and institutional framework in place in the host country. Volume I of the Handbook provides external actors with a description of the standards to achieve, grouped across 10 thematic areas covering the full scope of Environmental , climate and Social impacts. Through our engagement with promoters we encourage them to align with EU standards.

4 The Bank s services, too, are engaged in the pursuit of those objectives through their routine practices in due diligence, monitoring, reporting, advisory work and policy discussions. Volume II describes how the services are expected to carry out that important work within the procedures and processes supporting EIB s activities. Sector and thematic guidance will be built up progressively to provide further specific orientation, assistance and interpretation in the application of the standards to external actors and EIB staff alike.

5 This guidance will be included in Volume III. The Handbook reflects the wealth of experience gained by the EIB in financing projects throughout the world, and is the subject of regular review and revision. The current version of the Handbook was completed following an in-depth review aimed at clarifying its structure, integrating human rights consideration in our Social standards in a more explicit manner, and taking stock of work done in other IFIs.

6 The review was supported by extensive internal and external dialogues with key stakeholders, and established a new framework. A more holistic approach is presented to Environmental and Social matters, putting greater emphasis on the important dimensions of human rights, climate and biodiversity. In addition to the principle of do no harm , the active support of sustainable development is promoted. The revised Handbook will contribute to reinforcing and enhancing the effectiveness of EIB policies, in particular by clarifying which standards are mandatory, and which standards promoters may progressively realise through engagement with the EIB.

7 It is hoped the EIB Environmental and Social Handbook will continue to be of high value to internal and external readers and users alike. Our thanks are expressed to the numerous contributors, inside and outside the EIB, who have provided us with valuable comments, insights and suggestions. Further input is encouraged and will be considered for subsequent updates. C. Hurst Director General Projects Directorate European Investment Bank Environmental and Social Practices and Standards 3 TABLE OF CONTENT FOREWORD.

8 2 TABLE OF CONTENT .. 3 GLOSSARY .. 5 LIST OF ACRONYMS AND ABBREVIATIONS .. 8 VOLUME I : EIB Environmental AND Social STANDARDS .. 10 1. ASSESSMENT AND MANAGEMENT OF Environmental AND Social IMPACTS AND RISKS .. 12 2. POLLUTION PREVENTION AND ABATEMENT .. 24 3. EIB STANDARDS ON BIODIVERSITY AND ECOSYSTEMS .. 30 4. EIB CLIMATE-RELATED STANDARDS .. 45 5. CULTURAL HERITAGE .. 47 6. INVOLUNTARY RESETTLEMENT .. 52 7. RIGHTS AND INTERESTS OF VULNERABLE GROUPS .. 63 8. LABOUR STANDARDS .. 70 9. OCCUPATIONAL AND PUBLIC HEALTH, SAFETY AND 77 10.

9 STAKEHOLDER ENGAGEMENT .. 85 VOLUME II: EIB Environmental AND Social PRACTICES AND PROCEDURES . 94 A. RATIONALE AND CONCEPTS .. 96 INTRODUCTION .. 96 BACKGROUND .. 96 ROLES AND RESPONSIBILITIES .. 97 OPERATIONAL CONTEXT .. 99 Environmental and Social Eligibility .. 99 Types of Operations .. 100 Environmental AND Social ASSESSMENT GUIDING PRINCIPLES .. 101 B. INVESTMENT LOANS AND FRAMEWORK LOANS .. 103 PRE-APPRAISAL STAGE .. 103 Introduction .. 103 Attribution of PJ Staff and First Reaction.

10 103 Environmental and Social Screening and Project Identification Note (PIN).. 104 Opinion for Appraisal and Categorisation .. 107 Screening for Legislative Compliance .. 109 Screening for Social Issues .. 111 Screening for Biodiversity .. 111 Screening for Climate Mitigation and Adaptation .. 112 Request for the Opinion of the Commission Article 19 Procedure .. 113 APPRAISAL STAGE .. 116 Main task in the E&S Due 116 SEA and ESIA Assessment .. 119 Appraising Social Issues.