The Asian Development Bank (ADB) approved a new Environmental and Social Framework (ESF) to provide stronger safeguards for people and the environment. The updated framework replaces the 2009 Safeguard Policy Statement (SPS) and improves risk management while addressing the adverse impacts of development projects on vulnerable communities and ecosystems.
The ESF will take effect in January 2026, after four years of consultations and technical reviews involving over 4,500 stakeholders. The framework will guide ADB’s operations, ensuring projects in developing countries are inclusive, sustainable, and beneficial to all stakeholders.Masatsugu Asakawa, ADB President said, “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.”
He added, “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 aligns ADB with international best practices, harmonizing environmental and social standards to improve cofinancing opportunities with other banks.
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Key Features of the New Framework
The new Environmental and Social Framework (ESF) introduces several key improvements to enhance protections and risk management. It updates Labor and Community Health and Safety Standards to protect better children, workers, and communities from exploitation, abuse, and harassment.
A new Climate Change Standard reaffirms the Asian Development Bank’s (ADB) commitment to the Paris Agreement. Additionally, the framework introduces a Stakeholder Engagement standard that emphasizes meaningful consultations, improved information sharing, and effective grievance mechanisms. Strengthened Biodiversity Protection standards will also promote “nature positive” investments, ensuring better protection for ecosystems and biodiversity.
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Enhanced Risk Management and Adaptive Approaches
The ESF also introduced an integrated approach to risk classification and adaptive management. This approach aims to improve efficiency, reduce costs, and consider the specific contexts of projects, such as fragile or conflict-affected situations and small island developing states. The risk assessment will include factors like country-specific challenges and project contexts, ensuring a tailored approach to managing risks.
The new framework sets parameters for borrowers’ environmental and social systems, ensuring that ADB standards are consistently upheld. A long-term capacity support program launching in January 2025 will help ADB and its members implement the new framework effectively. The program will provide tools and resources to strengthen ADB and its partners’ capacity to implement the new standards effectively.
