Environmental and social risk management
The new environmental and social risk management policy adopted in January 2007 replaces the former environmental assessment policy which had applied to funding since 2000. It meets the harmonization objectives for environmental and social procedures for official development assistance agencies targeted by the Paris Declaration on aid effectiveness.
The changes are as follows:
- The introduction of a social risk assessment and management procedure relating to funding. Risks mainly concern the respect of basic human rights according to recognized international standards, laws and conventions: human traffic, sex tourism, population displacement, forced labour, equity for underprivileged or excluded social groups (particularly women), non respect of cultural diversity
- The extension of environmental and social risk assessment and management procedures to financial intermediation projects.
- The application of a principle of continuous assessment and monitoring of environmental and social impacts from processing to ex post evaluation in financed operations. In line with this principle, AFD also proposes to strengthen its supervision of Owner implementation of mitigation, reduction or compensation measures provided for in projects in terms of environmental and social impacts identified in the assessment.