POLICY DEVELOPMENT

23
Environmental and Social Management Guidelines

This publication provides a systematic procedurefor integrating environmental and social safeguards
into the ITTO project-cycle process. It builds on andconsolidates guidance contained in various ITTO
guidelines and manuals and draws on best practices
in other global bodies in mitigating and preventing
harm to the environment.

ITTO
Environmental and Social
Management Guidelines

International Tropical Timber Organization

Policy development series 23

International Organizations Center, 5th Floor, Pacifico-Yokohama, 1-1-1, Minato-Mirai, Nishi-ku, Yokohama, 220-0012, Japan
Tel 81-45-223-1110 Fax 81-45-223-1111 Email itto@itto.int Web www.itto.int© ITTO 2020

ITTO

International Tropical Timber Organization

ITTO environmental and social management guidelines

1

ITTO Environmental andSocial Management Guidelines

Policy development series No. 23

International Tropical Timber Organization

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Preferred citation: ITTO 2020. ITTO environmental and social management guidelines. ITTO Policy Development Series No. 23.
International Tropical Timber Organization (ITTO), Yokohama, Japan.
The International Tropical Timber Organization (ITTO) is an intergovernmental organization promoting the conservation andsustainable management, use and trade of tropical forest resources. Its members represent the bulk of the world’s tropicalforests and of the global tropical timber trade. ITTO develops internationally agreed policy documents to promote sustainable
forest management and forest conservation and assists tropical member countries to adapt such policies to local circumstances
and to implement them in the field through projects. In addition, ITTO collects, analyzes and disseminates data on the
production and trade of tropical timber and funds projects and other actions aimed at developing sustainable forest industries
at both the community and industrial scales. Since it became operational in 1987, ITTO has funded more than 1000 projects,
pre-projects and activities valued at more than USD 400 million. All projects are funded by voluntary contributions, the major
donors to date being the governments of Japan and the United States of America.
© ITTO 2020
This work is copyright. Except for the ITTO logo, graphical and textual information in this publication may be reproduced inwhole or in part provided that it is not sold or put to commercial use and its source is acknowledged.
Disclaimer
The designations employed and the presentation of material herein do not imply the expression of any opinion whatsoeverconcerning the legal status of any country, territory, city or area, or of its authorities or concerning the delimitation of its
frontiers and boundaries.
ISBN 978-4-86507-058-3
Front-cover photo: Local women work at the “Las Teresas” nursery established under an ITTO project in Chimborazo, Ecuador.
The project has empowered local women and improved their livelihoods while helping restore the Chimbo River basin.
Photo: R. Idrovo/SENDAS
Back-cover photo: Members of the Association of Women Producers and Traders of Secondary Forest Products (MALEBI)
in Dimbokro, Côte d’Ivoire, pose as they plant a tree in the Ahua gazetted forest as part of their efforts to restore degraded
land and develop sustainable enterprises, supported by an ITTO project. Photo: Afrique Green Side

ITTO environmental and social management guidelines

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Contents
Foreword		

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Acronyms		

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Executive summary .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

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I. Introduction

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II. ESM policies and principles . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

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III. ESM standards and requirements .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

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IV. ESM risk and impact assessment process .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

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Annex 1: Indicative types of project proposals, by risk category .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

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Annex 2: ITTO environmental and social screening checklist questionnaire . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

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Annex 3: K ey elements of an ITTO environmental and social impact assessmentand environmental and social analysis .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

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Tables1 ITTO environmental and social standards .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

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2 ITTO risk categories for project proposals  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

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3 Environment and social review steps, responsible parties and requirements  .  .  .  .  .  .  .  .  .  .  .  .  .

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Figure1 ES screening process .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .

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Foreword
ITTO’s objectives and mandate, as laid out in the International Tropical Timber Agreement (ITTA),
2006, are to promote the expansion and diversification of international trade in tropical timber fromsustainably managed and legally harvested forests and to promote the sustainable management of
tropical timber-producing forests. Environmental and social safeguards are essential for ensuringthat programmes, projects and activities undertaken in ITTO’s name are good for people and theplanet and in accordance with evolving international best practices and norms.
This publication, the ITTO Environmental and Social Management Guidelines, formalizes theOrganization’s commitment by providing a user-friendly and implementable system for integrating
safeguards and risk management into the ITTO project-cycle process. The publication builds on andconsolidates guidance contained in various existing ITTO guidelines and manuals and draws on bestpractices in other global bodies in mitigating and preventing harm to people and the environment.
The ITTO Environmental and Social Management Guidelines were adopted formally by theInternational Tropical Timber Council in December 2019. The document has been the work of many,
but I would especially like to recognize the crucial roles played by Stephanie Caswell, Hiras Sidabutar,
James Gasana and Ricardo Umali. I also thank Council delegates and the many other people who
provided valuable comments and other inputs to ensure the high quality of these guidelines.
The ITTO Environmental and Social Management Guidelines will be an essential tool for raising
the standard of ITTO’s work and its contributions to achieving the objectives of the ITTA, theGlobal Forest Goals of the United Nations Forum on Forests, and the 2030 Agenda’s Sustainable
Development Goals.

Gerhard Dieterle
ITTO Executive Director

ITTO environmental and social management guidelines

AcronymsESenvironmental and social

ESA

ES analysis

ESIA

ES impact assessment

ESM

ES management

ESMP ES management plan
ESS

ES standard

GFG

Global Forest Goal

ITTO International Tropical Timber Organization
SDG

Sustainable Development Goal

SFM

sustainable forest management

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Executive summary
The ITTO Environmental and Social Management Guidelines provide a systematic procedure for
integrating safeguards and risk management into the ITTO project-cycle process. They apply to all
field-project proposals entering the ITTO project cycle, including those addressing forest
management, forest landscape restoration and the production, processing and supply chains offorest products. Intended users are ITTO members, the ITTO Secretariat, and the Expert Panel for
the Technical Appraisal of Project and Pre-Project Proposals.
The guidelines enshrine five principles flowing from the Sustainable Development Goals and the
Global Forest Goals that are essential for achieving ITTO’s core objectives: 1) environmental
sustainability; 2) social sustainability; 3) gender equality and empowering women; 4) good governance;and 5) security of tenure to forest land and access to forest resources. Under the broad umbrella ofthese principles are seven interconnected environmental and social standards addressing: 1) stakeholder
engagement; 2) gender analysis; 3) conservation of biodiversity and protection of ecosystem services;
4) forest-based climate-change mitigation (including carbon storage in wood products) andadaption; 5) sustainable management of natural tropical forests; 6) restoration and rehabilitation of
degraded forest landscapes; and 7) forest product production and processing (wood and non-wood).
The guidelines identify three risk categories for project proposals: high—projects with potential
significant adverse environmental or social risks or impacts that are diverse, irreversible orunprecedented; moderate—projects with 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; and low—projects with minimal or no adverse environmental orsocial risks or impacts. The guidelines set out a process for assessing the environmental and social
risks presented by project proposals.

ITTO environmental and social management guidelines

I. Introduction
1.	 Environmental and social (ES) safeguards are essential tools for preventing and mitigatingharm to people and their environment in the development process and for helping ensure thesuccess of proposed project activities. The process of identifying and assessing potential impacts
can be an important opportunity for engaging stakeholders, empowering women, resolving
conflicts, enhancing the quality of project proposals and increasing the ownership of project
outcomes.
2.	 ITTO has been committed to responsible ES management in its field projects since the original
publication of the ITTO Manual for Project Formulation in 1993. Subsequent editions of the
project manual and the ongoing development of ITTO’s policy and guidelines series 1
demonstrate the Organization’s progressive commitment to ES sustainability and to an ongoingprocess of improvement in this regard.
3.	 The ITTO Environmental and Social Management (ESM) Guidelines continue thiscommitment by providing a user-friendly and implementable system for integrating safeguards
and risk management into the ITTO project-cycle process.2 Specifically, the ESM Guidelines:• build on the guidance contained in the ITTO Manual for Project Formulation (publishedin 2009), notably appendices A and B,3 taking into account recent developments in ES
impact assessments;• streamline and refine the Guidelines for Environmental and Social Risks and Impacts
Assessment in ITTO Projects (ESIA Guidelines)4 in a user-friendly manner and clarify therisk assessment process;• take into account and complement the ITTO Policy Guidelines on Gender Equality and
Empowering Women (published in 2017) and Appendix D of the Project Manual;5 and• take into account the ES risk assessment processes used by the Food and Agriculture
Organization of the United Nations and the International Union for Conservation of
Nature.
4.	 This document has four sections. Section II presents the environmental and social management(ESM) policy framework, including guiding principles. Section III sets out seven ES standards
and their associated scope and requirements. Section IV outlines the ESM risk and impact
assessment process.

Publications in the ITTO policy series can be found at www.itto.int/policy_papers
The ESM Guidelines were adopted in Decision 6(LV) of the International Tropical Timber Council. They may be
adjusted in future to reflect the results of Decision 8(LV) regarding pilot implementation of a programmatic approachand streamlined project cycle.
3
Appendix A: Guidelines for ensuring stakeholder participation in the project cycle. Appendix B: Guidelines to takeaccount of the environmental impacts of projects
4
The ESIA Guidelines were approved by the Committee on Reforestation and Forest Management in 2016 with therecommendation that they be implemented on a pilot basis.
5
Appendix D: Guidelines for project-related gender analysis.
1
2

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II. ESM policy and principles
5.	 This section sets out the policy framework for the ESM Guidelines, including objectives, scopeof application, primary users and a set of five guiding principles.

Objectives
6.	 The objectives of the ESM Guidelines are to:• provide a systematic procedure for identifying and assessing potential ES risks and impacts
of project proposals supported by ITTO and for avoiding, minimizing, mitigating andmanaging adverse impacts;• strengthen the integration of ES safeguards into the ITTO project cycle;• enhance the ES benefits and opportunities generated by ITTO-supported field projects; and• enhance the contribution of ITTO-supported field projects to the ES goals of ITTO
member countries and to internationally agreed forest-related goals.

Scope of application
7.	 The ESM Guidelines apply to all field-project proposals entering the ITTO project cycle,
whether developed or co-developed by members or the Secretariat. They include projects that
affect forest management, forest landscape restoration and the production, processing andsupply chains of forest products, including capacity building and demonstration projects.

Users
8.	 The ESM Guidelines are intended primarily for use by:• ITTO members in formulating and reviewing project concept notes and proposals for
submission to the ITTO Secretariat;• the ITTO Secretariat in the initial screening of project proposals and in monitoring project
implementation and evaluating completed projects; and• the Expert Panel for the Technical Appraisal of Project and Pre-Project Proposals in reviewing
and scoring project proposals that have cleared the Secretariat’s initial screening process.
9.	 The Secretariat will also use the ESM Guidelines in formulating project concepts and proposals,
including collaborative and joint projects with other organizations and institutions.

Principles
10. The ESM Guidelines enshrine the following five closely interrelated principles essential forachieving ITTO’s core objectives. The principles flow from the Sustainable Development Goals(SDGs) set out in the 2030 Agenda for Sustainable Development and the Global Forest Goals(GFGs) set out in the UN Strategic Plan for Forests 2017–2030. All field projects financed inpart or in whole by ITTO will reflect these principles.

ITTO environmental and social management guidelines

Principle 1: Environmental sustainability
Environmental sustainability encompasses the essential functions provided by forest ecosystems,
including soil and water conservation, carbon sequestration and disaster risk reduction, as well as
forest biodiversity values. Consistent with SDG 15 and GFGs 2 and 3, ITTO is committed toconserving, maintaining and where possible restoring forest ecosystem services, conserving andsustainably using biodiversity, and maintaining and enhancing forest health and vitality.

Principle 2: Social sustainability
Social sustainability refers to the people, households, communities, workers and other societalgroups living in and around an area or active in an enterprise that may be affected (positively or
negatively) by a project. Consistent with SDG 8 and GFG 2, ITTO is committed to maintaining
and enhancing forest-based socioeconomic benefits and opportunities, supporting job creation andsafe and healthy working conditions, and preserving cultural heritage.

Principle 3: Gender equality and empowering women
Gender equality is a matter of human rights and a core ITTO value. Consistent with SDG 5 andthe ITTO Policy Guidelines on Gender Equality and Empowering Women, ITTO is committed togender mainstreaming and enhancing gender-equality outcomes across its policy and project work.
ITTO recognizes that the achievement of its objectives will be accelerated by projects and otheractivities that seek to close the gender gap and to empower women at all levels.

Principle 4: Good governance
Governance is the process of making and implementing decisions. Consistent with SDG 17 and
GFG 5, ITTO recognizes that good governance is based on participatory, transparent, responsive
and inclusive decision-making; coherent cross-sectoral policies; accountable and effective
institutions; and the rule of law. ITTO is committed to promoting good governance, which isessential for achieving project objectives.

Principle 5: Security of tenure to forest land and access to forest resources
Secure tenure to forest land and access to forest resources is an important aspect of good governance.
Tenure security is essential for the livelihoods, subsistence, well-being and resilience of forestdependent communities and for realizing sustainable forest management (SFM) at the local level.
Consistent with SDG 1, ITTO is committed to fully recognizing and supporting the ownership,
control and customary rights of local communities and indigenous peoples to forest land andresources.

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III. ESM standards and requirements
Environmental and social standards
11.	 As shown in Table 1, the ESM Guidelines focus on seven interconnected environmental andsocial standards (ESSs) under the broad umbrella of the five principles. These ESSs provide aframework for managing and improving the performance and success of ITTO field projects.
Table 1: ITTO environmental and social standards
No.

Standard

Area of ITTO work

ESS 1

Stakeholder engagement

Cross-cutting

ESS 2

Gender analysis

Cross-cutting

ESS 3

Conservation of biodiversity and protection of ecosystem services

Cross-cutting

ESS 4

Forest-based climate-change mitigation(including carbon storage in wood products) and adaption

Cross-cutting

ESS 5

Sustainable management of natural tropical forests

Reforestation and forest
management

ESS 6

Restoration and rehabilitation of degraded forest landscapes

Reforestation and forest
management

ESS 7

Forest product production and processing (wood and non-wood)

Forest industry

ESS scope and requirements
12.	 The scope and associated requirements of each of the seven ESSs are set out below.

ESS 1: Stakeholder engagement
Scope: ESS 1 applies to all ITTO field projects.
Requirements: Depending on the project area and focus, stakeholders might include forest owners,
users and workers, women, local communities, indigenous peoples, non-governmental organizations,the scientific community, the philanthropic community, the private sector, local authorities anddonor organizations active in the area. All project proposals will:• identify, analyze and involve stakeholders through a stakeholder analysis in line with the guidancecontained in Appendix A of the ITTO Manual for Project Formulation, building, whereapplicable, on existing stakeholder processes and analyses;• ensure that stakeholders are appropriately engaged in all stages of the project cycle; and• promote secure tenure and access to forest land and resources by user groups, including subsistenceusers of non-wood forest products.

ESS 2: Gender analysis
Scope: ESS 2 is related to and builds on ESS 1 and applies to all ITTO field projects.
Requirements: Consistent with Section V (Element 2) of the ITTO Policy Guidelines on Gender
Equality and Empowering Women, all project proposals will:• ensure that men and women are provided with equitable opportunities to be included in stakeholder
consultations and decision-making during project formulation, implementation and evaluation;

ITTO environmental and social management guidelines•   be gender sensitive by examining and describing gender roles, norms, relations and potential
project impacts through gender analyses in line with the guidance contained in Appendix D of
the ITTO Manual for Project Formulation; and•   seek to generate gender co-benefits in project design by incorporating gender equality and theempowerment of women in the project design process.

ESS 3: Conservation of biodiversity and protection of ecosystem services
Scope: ESS 3 applies to all ITTO field projects.
Requirements: All project proposals will
• apply integrated conservation and development approaches in defining project interventions toensure that all project impacts are adequately managed;• include provisions to minimize human–wildlife conflicts and bushmeat-related issues that mightarise due to project activities;• minimize and carefully scrutinize project interventions that could affect primary forests, critical
habitats, or environmentally sensitive or high-value conservation areas or pose risks to endangeredor threatened species;• avoid interventions that could have negative impacts on forest health or increase the vulnerabilityof forests to diseases, pests, invasive alien species or wildfire;• avoid interventions that could have negative impacts on soil and water resources;• comply with relevant national, subnational and local environmental laws and regulations; and• comply with the ITTO member’s applicable international obligations (e.g. as a party to theConvention on Biological Diversity, the Convention on International Trade in Endangered Speciesof Wild Fauna and Flora, and the Ramsar Convention on Wetlands of International Importance).
Projects involving timber harvesting and production will adhere to the ITTO/IUCN Guidelines for
the Conservation and Sustainable Use of Biodiversity in Tropical Timber Production Forests.

ESS 4: Forest-based climate-change mitigation (including carbon storage in wood
products) and adaptation
Scope: ESS 4 applies to all ITTO field projects.
Requirements: All project proposals will:• maintain and where possible enhance the role of forests as sinks and reservoirs for greenhousegases by, for example, maintaining or increasing forest area, maintaining or enhancing forest
carbon stocks, improving forest health, and reducing the risk of wildfire;• maintain and where possible increase the resilience and adaptive capacity of forest ecosystems andforest-dependent local communities to disasters and the impacts of climate change; and• comply with the relevant international obligations of the ITTO member as a party to the United
Nations Framework Convention on Climate Change and the Paris Agreement on climate change
and contribute to the member’s forest-related nationally determined contributions.

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ESS 5: Sustainable management of natural tropical forests
Scope: ESS 5 applies to all ITTO field projects that deal with SFM and are sited all or partially innatural tropical forests.
Requirements: All project proposals will be consistent with the requirements set out in ESSs 1–4.
In addition:• All project proposals will
– adhere to the ITTO Voluntary Guidelines for the Sustainable Management of Natural Tropical
Forests; and– benefit local forest-dependent communities wherever possible and avoid activities that could
reduce the income-generating capacity of the rural poor and forest-dwelling communities.
• Project proposals involving timber harvesting at any scale will:– apply reduced impact logging techniques to minimize environmental damage;– comply with applicable national, subnational and local SFM performance standards andlabour and worker-safety standards; and– comply with the ITTO member’s relevant international obligations (e.g. as a member of theInternational Labour Organization).

ESS 6: Restoration and rehabilitation of degraded forest landscapes
Scope: ESS 6 applies to all ITTO field projects that deal with the restoration and rehabilitation of
degraded forest landscapes, reforestation, and/or forest plantation development and management.
Requirements: All project proposals will be consistent with the requirements set out in ESSs 1–4.
In addition, all project proposals:• involving forest restoration, forest rehabilitation or reforestation will
– adhere to the ITTO Guidelines for Forest Landscape Restoration in the Tropics; and– comply with the ITTO member’s commitments under the United Nations Convention
to Combat Desertification and contribute to the member’s national action programme.
• involving the management or development of plantation forests will
– adhere to the ITTO Guidelines for the Establishment and Sustainable Managementof Planted Tropical Forests; and– select tree species in close consultation with local stakeholders, taking into accountthe ecological, social, cultural and economic values of the species.

ITTO environmental and social management guidelines

ESS 7: Forest product production and processing (wood and non-wood)
Scope: ESS 7 applies to all ITTO field projects that involve the production or processing of woodand non-wood forest products.
Requirements: All project proposals will be consistent with the requirements set out in ESSs 1–4.
In addition:• All project proposals will
– benefit local forest-dependent communities through, for example, the creation of decent jobs,
entrepreneurship, market opportunities, and enhanced local incomes and income diversification;– promote the efficient and innovative production and processing of forest products;– be aligned with and contribute to national forest-sector plans;– comply with applicable national, subnational and local labour standards (e.g. regarding worker
health and safety, child labour, and sexual harassment) and water- and air-quality standards; and– comply with the ITTO member’s relevant international obligations (e.g. as a member of theInternational Labour Organization).
• All projects involving wood production or processing will
– seek to build the capacity of forest operators and processors; and– reduce waste generation, avoid hazards posed by waste to human health and the environment,
and, where possible, enhance recycling.

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IV. ESM risk and impact assessment process
Risk categories
13.	 The ITTO ESM process identifies three ES risk categories for project proposals, as shown in
Table 2. Annex 1 provides an indicative list of the types of proposal that fall into these risk
categories.6
Table 2: ITTO risk categories for project proposals
Category

Risk level

Scope of impacts

Typical measures

A

High

Projects with potential significant adverse
environmental or social risks or impacts that are
diverse, irreversible or unprecedented

Compensation
Mitigation
Minimization

B

Moderate

Projects with 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

Mitigation
Minimization

C

Low/none

Projects with minimal or no adverse environmental
or social risks or impacts

Impact avoidanceor prevention(as needed)

ES risk assessment process
14.	 The ESM risk assessment process consists of the following three levels of analysis that
correspond to a proposal’s potential risk category (as set out in Table 2):
1. Environmental and social review for category C proposals
2. Environmental and social analysis (ESA) for category B proposals
3. Environmental and social impact assessment (ESIA) for category A proposals.
15.	 These analyses are triggered by an initial “ES screening”, which is required for all project
proposals and should be included in proposals before submission to the ITTO Secretariat.

ES screening—all proposals
16.	 The purpose of ES screening is to provide an initial assessment of a proposal’s potential risks andimpacts (negative and positive). It is conducted by the project proponent using the ES checklist
questionnaire contained in Annex 2, which is based on the ESS requirements set out in Section
III. Proponents will assign their best estimate of a project’s risk category (i.e. A, B or C) basedon responses to the ES checklist, taking into account Annex 1 as a reference, where appropriate.

6

Annex 1 is informational in a broad sense. Terms like “significant”, “moderate” and “small-scale” are elastic, qualitativeand subjective. Whether a project proposal’s potential risks are high, moderate or low (category A, B or C) will need
to be assessed on a case-by-case basis.

ITTO environmental and social management guidelines

ES review—category C proposals
17.	 If the results of the ES screening indicate that the proposal may be category C (low/no risk),
the project proponent will: 1) prepare a concise narrative justification of the category C rating;and 2) conduct an ES review consistent with the guidance contained in appendices A, B and Dof the ITTO Manual for Project Formulation. The results of the ES review, together with thecompleted ES checklist and category C justification, will be included in the project proposal
submitted to the ITTO focal point for transmission to the ITTO Secretariat. The ITTO
Secretariat will consider the ES review, checklist and justification as part of its regular projectscreening before forwarding proposals to the Expert Panel for the Technical Appraisal of Project
and Pre-project Proposals (hereinafter referred to as the Expert Panel).

ES analysis—category B proposals
18.	 If the results of the initial ES screening indicate that the proposal may be category B (moderate risk),
the proponent has the following three options:
1. prepare an ESA consistent with the guidance contained in Annex 3;
2. modify/reformulate the proposal to reduce potential risks, such that the proposal may qualify
for category C (minimal/no risk); or
3. formulate a pre-project proposal based on key conceptual elements of the original proposal,
consistent with guidance in the ITTO Manual for Project Formulation.
19.	 The ESA may be prepared internally if capacity exists, or the proponent may engage an external
expert to undertake the ESA. Whether the ESA is prepared internally or externally, the project
proponent will include the ESA report as an annex to the project proposal submitted to the
ITTO focal point for transmission to the ITTO Secretariat. The ITTO Secretariat will review
the ESA report as part of its regular project screening process before forwarding proposals to
the Expert Panel for appraisal and ES clearance.

ES impact assessment—category A proposals
20.	 If the results of the ES screening indicate that the proposal may be category A (high risk), theproponent has the following four options:
1. prepare an ESIA consistent with the guidance contained in Annex 3;
2. modify or reformulate the proposal to reduce potential risks, such that the project may
qualify as category B (moderate risk) or C (low/no risk) and prepare an ESA consistent withparagraph 19 above and Annex 3;
3. formulate a pre-project proposal based on key conceptual elements of the original proposal,
consistent with guidance in the ITTO Manual for Project Formulation; or
4. withdraw the proposal.
21.	 An ESIA is more comprehensive than an ESA. It is recommended, but not required, that ESIAs
are prepared by external experts to ensure independent and credible analyses and findings.
Whether an ESIA is prepared internally or externally, the project proponent will include the
ESIA report as an annex to the project proposal submitted to the ITTO focal point fortransmission to the ITTO Secretariat. The Secretariat will review the ESIA report as part of its
regular project screening process before forwarding proposals to the Expert Panel for its
appraisal and ES clearance.

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Figure 1: ES screening process
ES screening of project proposals
by proponent using ES checklist

Category C

Prepare
ES review

Category A

Category B

Formulatepre-projectPrepare ESA

Reformulate
as category C

Formulatepre-projector withdraw
proposal

Prepare ESIA

Reformulate as
category B andprepare ESA

Submit proposal to ITTO focal point and ITTO Secretariat

Note: ES = environmental and social; ESA = environmental and social analysis; ESIA = environmental and social impact assessment.

ES implementation, monitoring and evaluation
22.	 For a project proposal approved by the Council (based on the recommendation of the relevant
committee) and subsequently funded, the project’s ES aspects will become an integral part ofproject implementation, monitoring and evaluation, as follows:•  Category C projects will be implemented consistent with the relevant provisions of the
ITTO Manual for Project Formulation and monitored and evaluated consistent with the
ITTO Manual for Project Monitoring, Review, Reporting and Evaluation.
•  Category A and B proposals will be implemented, monitored and evaluated consistent with
the ES Management Plan (ESMP) contained in the respective ESA or ESIA report.
23. Table 3 illustrates how ES safeguards are integrated into the ITTO project cycle, from project
proposal formulation and appraisal through project implementation, monitoring and evaluation.

ITTO environmental and social management guidelines

Table 3: Environment and social review steps, responsible parties and requirements
Project cycle

ES review steps
Step 1: ES screening to determine
whether category A, B or C

Steps 1 & 2
Project formulation

Step 3
Submission ofproject proposal
to ITTO

Step 6
Project
implementation

Involved
party

Guidance
document(s)Proponent

Focal point

ESM guidelines(ES checklist)

Step 2:

ESM guidelines

Category C

Conduct ES review

Proponent

Focal point

Category B

Prepare ESA

Category A

Prepare ESIAInternal orexternal expert

Proponent
Focal point

Category C

Include ES review(with checklist andnarrative justification)

Category B

Annex ESA

Category A

Annex ESIA

ES screening
Step 4
Project proposal
screening, appraisal ES appraisaland clearance
ES clearance
Step 5
Project approvaland funding

Responsible
party/person

ITTO project manualand its appendicesA, B and D
ESM guidelines
ESM guidelines

Focal point

Proponent

ITTO project manualand its appendicesA, B and D

Focal point

Proponent

ESM guidelines

Secretariat

ESM guidelines

Expert Panel

Secretariat

ESM guidelines

Expert Panel

Secretariat

Expert Panel report

ES approvalCouncilCommittee

Committee report
Council decision

ES funding

Donor(s)Secretariat

Category C

ES implementation

Category B

ESA implementation

Category A

ESIA implementation

Category C
Step 7
Project monitoring Category B
and evaluation
Category A

Executingagency(ies)

ES supervision

Secretariat

ESA supervision

Secretariat

ESIA supervision

Secretariat

Project proposal
Donor allocation
guidance
Project manualand its appendicesInternal or
ESMPexternal expert (from ESA report)
Internal or
ESMPexternal expert (from ESIA report)
ITTO monitoring andevaluation manual
Internal or
ESMPexternal expert (from ESA report)
Internal or
ESMPexternal expert (from ESIA report)

Note: ES = environmental and social; ESM = environmental and social management; ESA = environmental and social analysis;
ESIA = environmental and social impact assessment; ESMP = environmental and social management plan.

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Annex 1: Indicative types of project proposals,
by risk category
Category A—high risk
Examples include project proposals that:• Involve large-scale industrial forestry• Involve extensive new road construction using heavy equipment• Involve extensive forest clearing or forest land-use change• Negatively affect primary forests or other high-conservation-value forests• May significantly increase forest vulnerability to fire, diseases or pests• May adversely affect critical habitats or highly sensitive ecosystems• May adversely affect the rights, lands, resources or territories of indigenous peoples• May adversely affect the rights, roles or influence of women• Adversely affect sources of local income• Involve the significant displacement or resettlement of people• Significantly reduce water quality, quantity or flow
• Significantly increase the risk of flooding, mudslides or other disasters• Produce significant greenhouse-gas emissions• Pose serious occupational or health risks• Generate deliverables that cannot be sustained over time by the implementing country

Category B—moderate/medium risk
Examples include project proposals that involve/include:• Medium-scale reforestation/restoration• Medium-scale wood product production and processing• Minor to moderate forest clearing or forest land-use change• Moderate expansion/intensification of planted forests• Interventions with potential negative socioeconomic effects(e.g. increased conflict between user groups)• Short-distance road construction through forest landscapes• Limited human resettlement

Category C—minimal or no risk
Examples include project proposals that focus on:• Education, training or capacity building• Demonstration activities, including reduced impact logging techniques• Forest policy development• Forest management planning and studies• Community forest management activities(e.g. small-scale watershed and habitat management or small-scale infrastructure)• Small-scale reforestation/restoration• Small-scale forest-based enterprises• Field surveys and forest inventories (including remote sensing and geospatial analysis)• Research and extension services

ITTO environmental and social management guidelines

Annex 2: ITTO environmental and social screening
checklist questionnaire
Project document number:
Evaluator:
Date:
This environmental and social (ES) checklist questionnaire is for use by project proponents in
conducting initial ES screening of the potential risks/impacts of a project proposal based on available dataand information.1 For each question, please provide one of the following answers: yes, no, unknown or
not applicable (N/A). Based on the completed checklist, please rate potential project risks/impacts as
category A (high risk), category B (moderate risk) or category C (low/no risk).
PART 1—PRINCIPLES
For questions 1–11: Do project activities/interventions have the potential to—

Answer (yes,no, unknownor N/A)

Principle 1: Environmental sustainability
1. Adversely affect the essential functions of forest ecosystems, for example by reducing
carbon sequestration, increasing disaster risk or impairing forest health, water quality
or air quality?
2. Adversely affect (directly or indirectly) nationally or internationally threatened or
endangered species (listed or proposed for listing) or their habitats?
Brief justification of answers to questions 1–2

Principle 2: Social sustainability
3. Adversely affect the livelihoods, subsistence or well-being of communities of people,
including marginalized or vulnerable individuals or groups or people living in poverty?
4. Adversely affect forest-based socioeconomic benefits and opportunities, working
conditions or cultural heritage?
Brief justification of answers to questions 3–4

Principle 3: Gender equality and empowering women
5. Adversely affect gender equality or the situation of women and girls?
6. Discriminate against women based on gender or make it difficult for women toparticipate in, influence and benefit from project design and implementation?
Brief justification of answers to questions 5–6

1

The content and level of detail in an ES screening will vary widely depending on the scale, scope and nature of the project proposal.

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Principle 4: Good governance
7. Provide less than meaningful stakeholder participation during any part of the projectprocess or demonstrate a lack of transparency, accountability or inclusive decisionmaking?
8. Foster a non-cross-sectoral approach to issue identification and resolution?
9. Fail to follow the rule of law?
Brief justification of answers to questions 7–9

Principle 5: Security of tenure to forest land and access to forest resources
10. Trigger land conflicts or worsen unresolved issues concerning legal or customary
rights to forest land or access to forest resources?
11. N egatively affect indigenous peoples in terms of their rights, lands, resources or
traditional livelihoods, or encroach on territories customarily used or occupied
by indigenous peoples?
Brief justification of answers to questions 10–11

Part 2: Environmental and social standards
For questions 1–30: If implemented, is the project likely to—
ESS 1: Stakeholder analysis
1.Ensure that stakeholders will be engaged in all stages of the project cycle, including
implementation, monitoring and evaluation?
2. Improve existing forest-related land-tenure arrangements?
ESS 2: Gender analysis
3. Provide equitable opportunities for men and women in stakeholder consultations
and decision-making during project formulation, implementation and evaluation?
4. Generate gender co-benefits in project interventions?
5. Include then collection of quantitative or qualitative sex-disaggregated data?
ESS 3: Conservation of biodiversity and protection of ecosystem services
6. Reflect an integrated conservation and development approach in defining projectinterventions to manage impacts?
7. Adhere to the ITTO/IUCN Guidelines for the Conservation and Sustainable Useof Biodiversity in Tropical Timber Production Forests?
8. Comply with relevant national/subnational/local environmental laws and regulations?

Answer (yes,no, unknownor N/A)ITTO environmental and social management guidelines

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9. Comply with your country’s international obligations (e.g. as a party to the Convention
on Biological Diversity, the Convention on International Trade in Endangered Speciesof Wild Fauna and Flora and the Ramsar Convention on Wetlands of International
Importance)?
10. Exacerbate human–wildlife conflicts or bushmeat issues?
11. Degrade primary forests, critical habitats or environmentally sensitive or highconservation-value areas, or pose risks to endangered or threatened species?
12. Increase forest vulnerability to diseases, pests, invasive alien species or wildfire?
13. Increase the risk of disasters (e.g. floods, landslides)?
ESS 4: Forest-based climate-change mitigation (including carbon storage in wood products)
and adaptation
14. Maintain or increase/enhance forest area and/or carbon stocks?
15. Increase the risk of wildfire?
16. Maintain or increase the resilience and adaptive capacity of forest ecosystems
and local communities to natural disasters and the impacts of climate change?
17. Comply with your country’s relevant international obligations as a party to the United
Nations Framework Convention on Climate Change and the Paris Agreement on
climate change and contribute to its forest-related nationally determined contributions?
ESS 5: Sustainable management of natural tropical forests
18. Benefit local communities?
19. Adhere to the ITTO Voluntary Guidelines for the Sustainable Managementof Natural Tropical Forests?
20. Apply reduced impact logging techniques?
21. Comply with applicable national/subnational/local SFM performance standards
and safety standards for forest workers (e.g. loggers and equipment operators)?
22. Comply with your country’s relevant international obligations(e.g. as a member of the International Labour Organization)?
ESS 6: Restoration and rehabilitation of degraded forest landscapes
23. Adhere to the ITTO Guidelines for Forest Landscape Restoration in the Tropics?
24. Adhere to the ITTO Guidelines for the Establishment and Sustainable Managementof Planted Tropical Forests?
25. Select tree species for planting in close consultation with local stakeholders, taking
into account the ecological, social, cultural and economic values of the species?
ESS 7: Forest product production and processing (wood and non-wood)
26. Create local employment, business or market opportunities?
27. Promote the efficient and innovative production and processing of forest products?

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28. Comply with national/subnational/local air- and water-quality standards and labour
standards for production workers (e.g. regarding health and safety, child labour andsexual harassment)?
29. Comply with your country’s relevant international obligations (e.g. as a party to theConvention on Biological Diversity, the Convention on International Trade in Endangered
Species of Wild Fauna and Flora and the Ramsar Convention on Wetlands ofInternational Importance, or as a member of the International Labour Organization)?
30. Reduce waste and/or increase recycling?

ITTO environmental and social management guidelines

Annex 3: Key elements of an ITTO environmental andsocial impact assessment and environmental
and social analysis
A. Elements of an environmental and social impact assessment
An environmental and social (ES) impact assessment (ESIA)1 is prepared for project proposals rated
as category A—that is, projects with potentially significant adverse environmental or social risks
and/or impacts that are diverse, irreversible or unprecedented. An ESIA report will include thefollowing sections:

1. Project description
This section concisely describes the proposed project, including proponents and other participants
and their roles; location and geographic extent (with a map); and objectives, expected results/
outcomes/outputs and main activities, including a log frame.

2. Analysis of the legal, policy and administrative framework
This section concisely describes the legal, regulatory and administrative (jurisdictional) framework
within which the project will take place. It identifies national, subnational and local laws andregulations pertaining to the ES aspects of the project, as well as the requirements of co-financing
partners, if applicable.

3. Stakeholder engagement, including womenThis section builds on the stakeholder and gender analyses conducted during initial project
formulation. It describes how stakeholders (women and men) have been further engaged to help
identify and describe potential ES risks/impacts and the measures needed to address them. It
summarizes the views, inputs and expectations in this regard by stakeholder group, including
women. It also outlines opportunities for further stakeholder consultations, as appropriate.

4. Baseline data
This section describes existing ES conditions in the project area. This includes biophysical conditions(e.g. area of forest; forest health and related threats; soil and water conditions; and species diversity)and socioeconomic conditions (e.g. use of and access to forests and forest resources; forest-based andother income-generating enterprises; microfinancing; and the roles of women and men). Where
appropriate, the section also includes a description of the roles of forests and forest resources at thelandscape level.

5. Risk/impact assessment
This section is at the heart of the ESIA report. Building on responses to the ES checklist questionnaire,the section itemizes and describes ES risks and impacts with reference to the baseline data in section
4, makes predictions about their probability and assesses their significance. This section should give
particular attention to risks/impacts with respect to the seven ITTO ES standards, such as potential
adverse effects on ecosystem services, community livelihoods and cultural heritage.

1

The content and level of detail in an ESIA will vary widely depending on the scale, scope and nature of the project proposal.

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6. Analysis of options
This section considers options for reducing and mitigating the impacts/risks identified in section 5,
for example by modifying or eliminating project components, adding additional safeguards, andincorporating or enhancing capacity-building activities. The analysis should identify the preferred
option and explain why it was chosen.

7. Environmental and social management planThis section sets out the specific measures to be undertaken to manage (avoid, minimize, mitigate orcompensate) the risks/impacts associated with the preferred option in section 6. An ES management
plan (ESMP) will include cost estimates for the measures to be taken (including compliance), which
will be reflected in the project budget. It describes the executing agency’s technical and financial
capacity to undertake specific ES management measures (i.e. implement the ESMP) on a sustained
basis over time and, where needed, provides for capacity-building activities (which should also bereflected in the budget). An ESMP also outlines a process or schedule for public consultations andincludes a grievance mechanism for resolving disputes, should they arise.

B. Elements of an environmental and social analysis
An ES analysis (ESA) is prepared for a project proposal rated category B—that is, a project withpotential limited adverse environmental or social risks and/or impacts that are few in number,generally site-specific, largely reversible and readily addressed through mitigation measures. An ESA
report will include sections 1, 2, 3, 4, 5 and 7 for category A proposals but in an abbreviated way,reflecting the site-specific and limited nature of potential risks/impacts. The content and level ofdetail in an ESA will vary widely depending on the scale, scope and nature of the project proposal.

POLICY DEVELOPMENT

23
Environmental and Social Management Guidelines

This publication provides a systematic procedurefor integrating environmental and social safeguards
into the ITTO project-cycle process. It builds on andconsolidates guidance contained in various ITTO
guidelines and manuals and draws on best practices
in other global bodies in mitigating and preventing
harm to the environment.

ITTO
Environmental and Social
Management Guidelines

International Tropical Timber Organization

Policy development series 23

International Organizations Center, 5th Floor, Pacifico-Yokohama, 1-1-1, Minato-Mirai, Nishi-ku, Yokohama, 220-0012, Japan
Tel 81-45-223-1110 Fax 81-45-223-1111 Email itto@itto.int Web www.itto.int© ITTO 2020

ITTO

International Tropical Timber Organization