Social & Environmental Principles

Scope and Objective of Social and Environmental Management System (SEMS)

  • Comply with applicable environmental and social policies and principles of its strategic investors;
  • Integrate social and environmental principles in the due diligence process;
  • Identify and assess social and environmental impacts, both adverse and beneficial, in the project’s area of influence;
  • Avoid, or where avoidance is not possible, minimize, mitigate, or compensate for adverse impacts on workers, affected communities, and the environment;
  • Ensure that affected communities are appropriately engaged on issues that could potentially affect them;
  • Provide operational guidance to its staff and developers in preparing projects for appraisal at IIF, in conducting subsequent monitoring and reporting, and in undertaking corrective actions;
  • Develop mechanisms for effective project supervision by IIF throughout the period of funding or investment;
  • Promote improved social and environmental performance of projects through effective use of management systems; and
  • Actively seek new business opportunities for example by developing environmentally friendly programs or addressing certain customer groups.


Applicable to all IIF projects

  • 8 IIF’s Social & Environmental Principles

Principle 1: Social and Environmental Assessment and Management System (SEMS)

Incorporates the following elements: Screening and categorization of projects; Social and environmental (S&E) assessment; S&E management program; Organizational capacity and competency; Training; Emergency preparedness and response; Stakeholder engagement; Monitoring and review; and Reporting.

Principle 2: Labour and Working Conditions

Promote the fair treatment, non-discrimination, and equal opportunity of workers; Establishes, maintains and improves worker-management relationship; Addresses child labour, forced labour, migrant workers, workers engaged by third parties, and workers in the client’s supply chain; and Promotes safe and healthy working conditions and practices.

Principle 3: Pollution Prevention, Abatement, & Climate Change

Addresses pollution prevention and management of impacts arising from project activities; Ensures conformance with global good practice and standards; Promote more sustainable use of resources; and Ensures that climate change issues associated with project activities are assessed, mitigated, and monitored over the life of IIF’s investment.

Principle 4: Community Health, Safety, & Security/Dam Safety

Seeks to avoid or minimize the risks and impacts to Affected Community health, safety and security that may arise from project activities; The project’s direct impacts on priority ecosystem services may result in adverse health and safety risks and impacts to Affected Communities; Ensures that the safeguarding of personnel and property is carried out in accordance with relevant human rights principles and in a manner that avoids or minimizes risks to the Affected Communities; and Includes special requirements related to the safety of dams associated with projects.

 Principle 5: Land Acquisition and Involuntary Resettlement

Refers to both physical displacement (relocation or loss of shelter) and economic displacement (loss of assets or access to assets that leads to loss of income sources or means of livelihood) as a result of project-related land acquisition; Does not apply to physical displacement or resettlement resulting from voluntary land transactions; Avoid, minimize, mitigate or compensate for adverse social and economic impacts from land acquisition or restrictions on land use through the process of Social and Environmental Assessment under Principle 1; and No forced evictions will be carried out except in accordance with law and the requirements of this Principle.

Principle 6: Biodiversity Conservation and Sustainable Natural Resources Management

Includes protection, conservation and sustainable management of biodiversity and living natural resources; Maintain the benefits from ecosystem services; and Evaluate primary suppliers’ risk of significant conversion of natural and/or critical habitats.

Principle 7: Indigenous People (IP)

Includes identification of all impacts (positive & negative) on IP; social assessment, informed consultation and Participation (ICP) to Indigenous Peoples’ Development Plan; Anticipate and avoid, or when avoidance is not possible, minimize and/or compensate project adverse impacts on communities of Indigenous Peoples; and Applies to projects that impact individuals or communities that meet the definition of Indigenous People, determination of which may require Free, Prior, and Informed Consent (FPIC)

Principle 8: Cultural Property and Heritage

Recognizes the importance of cultural property and heritage for current and future generations, consistent with the Convention Concerning the Protection of the World Cultural and Natural Heritage; and Seeks to guide IIF project sponsors in identifying and protecting cultural heritage in the course of project design and execution.

Project Documents related to Social & Environmental Aspect

  • Documents

IIF S&E Documents

IIF Portfolio Summary

For further enquiry, please contact: