MIGA strives for positive development outcomes in the investment projects we insure. An important component of positive development outcomes is the environmental and social sustainability of projects, which we expect to achieve by applying a comprehensive set of environmental and social performance standards.
MIGA’s environmental and social sustainability 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 Environmental and Social Sustainability, we put into practice our commitment to these issues. This policy applies to all investment guarantees initiated after October 2013. The 2007 editions of the Policy on Social and Environmental Sustainability and Performance Standards apply to investment guarantees for which Definitive Applications were received after October 2007 and prior to October 2013.
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 business activities undertaken by Financial Intermediaries or through delivery mechanisms involving financial intermediation.
This category is further divided into:
FI 1: when existing or proposed portfolio expected to include substantial business activities that have potential significant adverse environmental or social risks or impacts that are diverse, irreversible, or unprecedented.
FI 2: when existing or proposed portfolio expected to include business activities that have potential limited adverse environmental or social risks or impacts that are few in number, generally site specific, largely reversible, and readily addressed through mitigation measures; or includes a very limited number of business activities with potential significant adverse environmental or social risks or impacts that are diverse, irreversible, or unprecedented.
FI 3: when existing or proposed portfolio expected to include business activities that predominantly have minimal or no adverse environmental or social impacts.
The decision with respect to classification of projects is the responsibility of MIGA.