Environmental and Social Safeguards
MIGA strives for positive development outcomes in the investment projects we insure. An important component of positive development outcomes is the social and environmental sustainability of projects, which we expect to achieve by applying a comprehensive set of social and environmental performance standards.
MIGA’s environmental and social safeguard policies are derived from our extensive experience insuring investments around the world. They are a powerful tool for identifying risks, reducing development costs, and improving project sustainability—benefiting affected communities and preserving the environment. During the underwriting process, we identify the policies and guidelines that are applicable to a project. Projects are expected to comply with those policies and guidelines, as well as applicable local, national, and international laws.
Through MIGA’s Policy on Social and Environmental Sustainability, English, French, Spanish [pdf] we put into practice our commitment to these issues. This policy applies to all investment guarantees for which Definitive Applications were received after October 2007.
We also adhere to the World Bank Group’s Environmental, Health, and Safety Guidelines available on IFC’s website.
In accordance with our policies, we categorize projects based on an assessment of their likely environmental and social impacts.
A proposed investment is classified as:
Category A if it may have potentially significant adverse social or environmental impacts that are diverse, irreversible, or unprecedented
Category B if it may have potentially limited adverse social or environmental impacts that are few in number, generally site specific, largely reversible, and readily addressed through mitigation measures
Category C if the project has minimal or no adverse social or environmental impacts, including certain financial intermediary projects with minimal or no adverse risks
Category FI is assigned to all financial intermediary projects excluding those that are Category C projects.
The decision with respect to classification of projects is the responsibility of MIGA.