The Asian Development Bank (ADB) has approved a new Environmental and Social Framework (ESF) aimed at bolstering protections for people and the environment while improving risk management in development projects. Scheduled to become effective in January 2026, the ESF will replace the 2009 Safeguard Policy Statement (SPS), reflecting years of technical reviews and consultations with over 4,500 stakeholders.
The framework is designed to help ADB’s developing member countries better address the adverse impacts of development projects, particularly in vulnerable communities. ADB President Masatsugu Asakawa highlighted the importance of the initiative, stating, “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. 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’s approach with international best practices and other multilateral development banks, enabling more seamless co-financing opportunities. It includes new standards to address labor rights, community health and safety, biodiversity preservation, and climate change. Enhanced protections aim to safeguard communities and workers from risks, including sexual exploitation, abuse, and harassment, while a specific climate change standard reaffirms ADB’s support for the Paris Agreement. The framework also strengthens requirements for stakeholder engagement through meaningful consultations, better information disclosure, and effective grievance mechanisms.
Projects under the new framework will adopt an integrated risk classification and adaptive management approach to increase efficiency and reduce costs. Risk assessments will incorporate the unique contexts of projects and countries, particularly in fragile and conflict-affected areas or small island developing states. While the ESF allows for using borrowers’ environmental and social systems, ADB’s high standards will not be compromised.
The ESF rollout will begin in January 2025, with full implementation targeted for the following year. A long-term capacity-building program will accompany the rollout to assist member countries in aligning with the new standards. This program aims to strengthen institutional readiness and technical expertise across the region.
By incorporating stronger safeguards and adaptive strategies, ADB aims to foster sustainable, inclusive development while addressing modern challenges. Established in 1966, ADB, with 69 member countries, remains committed to creating a prosperous, resilient Asia and the Pacific and continues to prioritize eradicating extreme poverty through development efforts. This new framework represents a crucial step forward in achieving those goals.