Social & Environmental

IIF’s Social & Environmental Management System (SEMS) is established to ensure consistent and effective implementation of social & environmental management practices in all its activities, products and services.

This management system detail the Social and Environment safeguard policies, principles, procedures, institutional arrangements, and workflows that IIF follows for making its investments.

The SEMS serves the following purposes: Integrated project assessment to identify social and environmental impacts, risks and opportunities; Effective stakeholder’s engagement through disclosure of project-related information, and consultation with Affected Communities on matters that directly and indirectly affect them; and Management of social and environmental performance throughout the project life cycle.

IIF’s S&E Policy:

• Ensure project developers comply with all applicable national and local environmental and social requirements, particularly, those governing land acquisition, compensation, involuntary resettlement as well as those protecting the rights of indigenous people, and requirements of IIF’s strategic investors;
• Ensure that social safeguards, based on the principle of restoration and possible improvement in the economic status of Project Affected People (PAP) and/or Affected Communities are integrated by developers into the project design prior to its financing and in its implementation during the construction and operational phases;
• Follow national labour laws and regulations and internationally recognized labour practices;
• Finance projects only when they are expected to be designed, built operated and maintained in a manner consistent with the applicable requirements;
• Ensure that all projects are operated in compliance with the applicable requirements on an on-going basis, during the tenor of IIF financing;
• Mitigate S&E risks of the projects through corrective actions acceptable to the relevant authorities and its strategic investors; and
• Ensure transparency in IIF’s S&E risk assessment and mitigation process.

The objectives of SEMS are to:

• 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 environment 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 environment 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.