The Road to the SDGs

resilience to address current and future social and environmental vulnerability of IsDB-financed interventions – Leveraging resources, by establishing sustainable partnerships to maximise financing available for MCs. X The three policy enablers for mainstreaming the ESSP in IsDB’s operations are: – Identification of potential environmental and social risks and impacts of IsDB-financed interventions – Integration of sound environmental and social management plans into the project design to address potential environmental and social risks and impacts – Implementation of the agreed plans by the beneficiaries for sustainable development effectiveness. X The guiding principles of sustainability, proportionality and risk management that underpin the policy pillars and overarching goal are realised through an environmental and social management approach. X The ESSP will be implemented through IsDB’s newly decentralised business model. IsDB staff will receive support for the following: – Implementation of the ESSP – Ensuring compliance – Providing capacity development services – Sharing knowledge and lessons learnt. X In the field, the Regional Hubs will be supported through field-based short-term consultants as required. X An advanced and specialised training programme will be implemented to enhance capacity of internal staff both at HQ and in the field. X In addition to the ESSP, two ESS Standards (Environmental and Social Assessment and Management, and Land Acquisition and Involuntary Resettlement) have been developed, together with an Environmental and Social Exclusion List. Together these form a structured framework for safeguards at IsDB. X The ESSP may be further expanded in future, potentially to include new ESS standards in operations, such as on indigenous peoples, labour, and introduction of an independent accountability mechanism. ACHIEVEMENTS X By developing its ESSP, IsDB has joined all the other MDBs (ADB, AfDB, AIIB, EBRD, EIB, IADB, IFC and WB) that have such policies in place. It has also introduced a policy on information disclosure, in line with the other MDBs. X The ESSP demonstrates IsDB’s commitment to: – Address environmental and social risks and impacts in a structured operational framework across the project cycle – Ensure environmental and social soundness and sustainability of investments – Support integration of environmental and social aspects into the decision-making process – Provide public consultation and disclosure of information. X The introduction of safeguards requires adjustments and fine-tuning in the business processes across the project cycle, including: – Preliminary review of environmental and social assessments during early phases of project programming/ identification and preparation – Categorisation and development of required environmental and social mitigation plans – Updates to covenants of financing agreements – Review and policy compliance mechanisms during processing and implementation – Accommodating an IsDB-wide due diligence process for the Delegation of Authority Matrix. INVESTMENT X IsDB’s ESSP enhances the investment standing of IsDB in the following ways: – By demonstrating IsDB’s unique situation as a Shariah-compliant MDB – By enhancing IsDB’s global position as an AAA+ MDB – By enabling compliance with the ESG requirements of Fitch, Moody’s and S&P when issuing Sukuk – By ensuring it meets the accreditation requirements of the GIF, GCF and GEF. E S S P G U I D I N G P R I N C I P L E S The guiding principles of sustainability , proportionality and risk management are realised through an environmental and social management approach [ 173 ] T H E R O A D T O T H E S D G s | P R O G R E S S A N D A C H I E V E M E N T S