International Finance Corporation’s
Performance Standards on
Social & Environmental Sustainability

April 30, 2006

Performance Standards on
Social and Environmental Sustainability
April 30, 2006

TABLE OF CONTENTS

Introduction to the Performance Standards on Social and Environmental Sustainability
Performance Standard 1: Social and Environmental Assessment and Management Systems
Performance Standard 2: Labor and Working Conditions
Performance Standard 3: Pollution Prevention and Abatement
Performance Standard 4: Community Health, Safety and Security
Performance Standard 5: Land Acquisition and Involuntary Resettlement
Performance Standard 6: Biodiversity Conservation and Sustainable Natural Resource Management
Performance Standard 7: Indigenous Peoples
Performance Standard 8: Cultural Heritage

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Performance Standards on
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April 30, 2006

Introduction
1. International Finance Corporation (IFC) applies the Performance Standards to manage socialand environmental risks and impacts and to enhance development opportunities in its private sector
financing in its member countries eligible for financing.1 The Performance Standards may also be
applied by other financial institutions electing to apply them to projects in emerging markets.
Together, the eight Performance Standards establish standards that the client2 is to meet throughout
the life of an investment by IFC or other relevant financial institution:
Performance Standard 1: Social and Environmental Assessment and Management System
Performance Standard 2: Labor and Working Conditions
Performance Standard 3: Pollution Prevention and Abatement
Performance Standard 4: Community Health, Safety and Security
Performance Standard 5: Land Acquisition and Involuntary Resettlement
Performance Standard 6: Biodiversity Conservation and Sustainable Natural Resource Management
Performance Standard 7: Indigenous Peoples
Performance Standard 8: Cultural Heritage
2. Performance Standard 1 establishes the importance of: (i) integrated assessment to identify thesocial and environmental impacts, risks, and opportunities of projects; (ii) effective community
engagement through disclosure of project-related information and consultation with local
communities on matters that directly affect them ; and (iii) the client’s management of social andenvironmental performance throughout the life of the project. Performance Standards 2 through 8
establish requirements to avoid, reduce, mitigate or compensate for impacts on people and theenvironment, and to improve conditions where appropriate. While all relevant social andenvironmental risks and potential impacts should be considered as part of the assessment,
Performance Standards 2 through 8 describe potential social and environmental impacts that requireparticular attention in emerging markets. Where social or environmental impacts are anticipated, theclient is required to manage them through its Social and Environmental Management System
consistent with Performance Standard 1.
3. In addition to meeting the requirements under the Performance Standards, clients must comply
with applicable national laws, including those laws implementing host country obligations underinternational law.
4. A set of Guidance Notes, corresponding to the Performance Standards, offers helpful guidanceon the requirements contained in the Performance Standards, including reference materials, and on
good sustainability practices to help clients improve project performance.

1

IFC will apply the Performance Standards to projects it finances, consistent with the provisions in theaccompanying IFC’s Policy on Social and Environmental Sustainability. IFC’s institutional disclosure of
information will be pursuant to IFC’s Policy on Disclosure of Information.
2
The term “client” is used throughout the Performance Standards broadly to refer to the party responsible for
implementing and operating the project that is being financed, or the recipient of the financing, depending on the
project structure and type of financing. The term “project” is defined in Performance Standard 1.

iPerformance Standard 1
Social and Environmental Assessment and Management Systems
April 30, 2006

Introduction
1. Performance Standard 1 underscores the importance of managing social and environmental
performance throughout the life of a project (any business activity that is subject to assessment andmanagement). An effective social and environmental management system is a dynamic, continuous
process initiated by management and involving communication between the client, its workers, andthe local communities directly affected by the project (the affected communities). Drawing on theelements of the established business management process of “plan, implement, check, and act,” thesystem entails the thorough assessment of potential social and environmental impacts and risks fromthe early stages of project development, and provides order and consistency for mitigating andmanaging these on an ongoing basis. A good management system appropriate to the size andnature of a project promotes sound and sustainable social and environmental performance, and canlead to improved financial, social and environmental project outcomes.

Objectives§§§§

To identify and assess social and environment impacts, both adverse andbeneficial, in the project’s area of influence
To avoid, or where avoidance is not possible, minimize, mitigate, or compensate
for adverse impacts on workers, affected communities , and the environment
To ensure that affected communities are appropriately engaged on issues that
could potentially affect them
To promote improved social and environment performance of companies throughthe effective use of management systems

Scope of Application
2. This Performance Standard applies to projects with social or environmental risks and impacts
that should be managed, in the early stages of project development, and on an ongoing basis.

Requirements
Social and Environmental Management System
3. The client will establish and maintain a Social and Environmental Management Systemappropriate to the nature and scale of the project and commensurate with the level of social andenvironmental risks and impacts. The Management System will incorporate the following elements:(i) Social and Environmental Assessment; (ii) management program ; (iii) organizational capacity; (iv)training; (v) community engagement; (vi) monitoring; and (vii) reporting.

Social and Environmental Assessment
4. The client will conduct a process of Social and Environmental Assessment that will consider in
an integrated manner the potential social and environmental (including labor, health, and safety) risks
and impacts of the project. The Assessment process will be based on current information, including
an accurate project description, and appropriate social and environmental baseline data. The
Assessment will consider all relevant social and environmental risks and impacts of the project,including the issues identified in Performance Standards 2 through 8, and those who will be affectedby such risks and impacts. Applicable laws and regulations of the jurisdictions in which the project

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operates that pertain to social and environmental matters, including those laws implementing hostcountry obligations under international law, will also be taken into account.
5. Risks and impacts will be analyzed in the context of the project’s area of influence. This area ofinfluence encompasses, as appropriate: (i) the primary project site(s) and related facilities that theclient (including its contractors) develops or controls , such as power transmission corridors, pipelines,
canals, tunnels, relocation and access roads, borrow and disposal areas, construction camps; (ii)associated facilities that are not funded as part of the project (funding may be provided separately by
the client or by third parties including the government), and whose viability and existence depend
exclusively on the project and whose goods or services are essential for the successful operation of
the project; (iii) areas potentially impacted by cumulative impacts from further planned developmentof the project, any existing project or condition, and other project-related developments that are
realistically defined at the time the Social and Environmental Assessment is undertaken; and (iv)
areas potentially affected by impacts from unplanned but predictable developm ents caused by the
project that may occur later or at a different location. The area of influence does not include potential
impacts that would occur without the project or independently of the project.
6. Risks and impacts will also be analyzed for the key stages of the project cycle, including preconstruction, construction, operations, and decommissioning or closure. Where relevant, theAssessment will also consider the role and capacity of third parties (such as local and national
governments, contractors and suppliers), to the extent that they pose a risk to the project,recognizing that the client should address these risks and impacts commensurate to the client’s
control and influence over the third party actions. The impacts associated with supply chains will beconsidered where the resource utilized by the project is ecologically sensitive, or in cases where low
labor cost is a factor in the competitiveness of the item supplied. The Assessment will also consider
potential transboundary effects, such as pollution of air, or use or pollution of international
waterways, as well as global impacts, such as the emission of greenhouse gasses.
7. The Assessment will be an adequate, accurate, and objective evaluation and presentation of theissues, prepared by qualified and experienced persons. In projects with significant adverse impacts
or where technically complex issues are involved, clients may be required to retain external experts
to assist in the Assessment process.
8. Depending on the type of project and the nature and magnitude of its risks and impacts, theAssessment may comprise a full-scale social and environmental impact assessment, a limited or
focused environmental or social assessment, or straightforward application of environmental siting,pollution standards, design criteria, or construction standards. When the project involves existing
business activities, social and/or environmental audits may need to be performed to determine any
areas of concern. The types of issues, risks and impacts to be assessed, and the scope of thecommunity engagement (see paragraphs 19 through 23 below) can also vary considerably,
depending on the nature of the project, and its size, location, and stage of development.
9. Projects with potential significant adverse impacts that are diverse, irreversible, or
unprecedented will have comprehensive social and environmental impact assessments. This
assessment will include an examination of technically and financially feasible1 alternatives to the1“Technical feasibility” is based on whether the proposed measures and actions can be implemented withcommercially available skills, equipment and materials, taking into consideration prevailing local factors such as
climate, geography, demography, infrastructure, security, governance, capacity and operational reliability.
“Financial feasibility” is based on commercial considerations, including the relative magnitude of the incremental

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source of such impacts, and documentation of the rationale for selecting the particular course ofaction proposed. In exceptional circumstances , a regional, sectoral or strategic assessment may berequired.
10. Narrower scopes of Assessments may be conducted for projects with limited impacts that are
few in number, generally site-specific, largely reversible, and readily addressed through mitigation
measures.
11. Projects with minimal or no adverse impacts will not be subject to further assessment beyond
their identification as such.
12. As part of the Assessment, the client will identify individuals and groups that may be differentiallyor disproportionately affected by the project because of their disadvantaged or vulnerable status .2
Where groups are identified as disadvantaged or vulnerable, the client will propose and implement
differentiated measures so that adverse impacts do not fall disproportionately on them and they are
not disadvantaged in sharing development benefits and opportunities.

Management Program
13. Taking into account the relevant findings of the Social and Environmental Assessment and theresult of consultation with affected communities, the client will establish and manage a program of
mitigation and performance improvement measures and actions that address the identified social andenvironmental risks and impacts (the management program).
14. Management programs consist of a combination of operational policies, procedures andpractices. The program may apply broadly across the client’s organization, or to specific sites,
facilities, or activities. The measures and actions to address identified impacts and risks will favor the
avoidance and prevention of impacts over minimization, mitigation, or compensation, wherevertechnically and financially feasible. Where risks and impacts cannot be avoided or prevented,
mitigation measures and actions will be identified so that the project operates in compliance withapplicable laws and regulations, and meets the requirements of Performance Standards 1 through 8(see paragraph 16 below). The level of detail and complexity of this program and the priority of theidentified measures and actions will be commensurate with the project’s risks and impacts.
15. The program will define desired outcomes as measurable events to the extent possible, withelements such as performance indicators, targets, or acceptance criteria that can be tracked overdefined time periods , and with estimates of the resources and responsibilities for implementation.
Recognizing the dynamic nature of the project development and implementation process, theprogram will be responsive to changes in project circumstances , unforeseen events, and the resultsof monitoring (see paragraph 24 below).

cost of adopting such measures and actions compared to the project’s investment, operating and maintenancecosts and whether this incremental cost could make the project nonviable to the client.
2This status may stem from an individual’s or group’s race, color, sex, language, religion, political or other
opinion, national or social origin, property, birth or other status. The client should also consider factors such as
gender, ethnicity, culture, sickness, physical or mental disability, poverty or economic disadvantage, anddependence on unique natural resources.

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Action Plan
16. Where the client identifies specific mitigation measures and actions necessary for the project tocomply with applicable laws and regulations and to meet the requirements of Performance Standards
1 through 8, the client will prepare an Action Plan. These measures and actions will reflect theoutcomes of consultation on social and environmental risks and adverse impacts and the proposed
measures and actions to address these, consistent with the requirements under paragraph 21. The
Action Plan may range from a brief description of routine mitigation meas ures to a series of specificplans.3 The Action Plan will: (i) describe the actions necessary to implement the various sets ofmitigation measures or corrective actions to be undertaken; (ii) prioritize these actions; (iii) include
the time-line for their implementation; (iv) be disclosed to the affected communities (see paragraph26); and (v) describe the schedule and mechanism for external reporting on the client’s
implementation of the Action Plan.

Organizational Capacity
17. The client will establish, maintain, and strengthen as necessary an organizational structure thatdefines roles, responsibilities, and authority to implement the management program, including the
Action Plan. Specific personnel, including management representative(s), with clear lines of
responsibility and authority should be designated. Key social and environmental responsibilities
should be well defined and communicated to the relevant personnel and to the rest of theorganization. Sufficient management sponsorship and human and financial resources will be
provided on an ongoing basis to achieve effective and continuous social and environmental
performance.

Training
18. The client will train employees and contractors with direct responsibility for activities relevant to
the project’s social and environmental performance so that they have the knowledge and skills
necessary to perform their work, including current knowledge of the host country’s regulatory
requirements and the applicable requirements of Performance Standards 1 through 8. Training will
also address the specific measures and actions required under the management program , including
the Action Plan, and the methods required to perform the action items in a competent and efficientmanner.

Community Engagement
19. Community engagement is an on-going process involving the client’s disclosure of information.
When local communities may be affected by risks or adverse impacts from a project, the engagement
process will include consultation with them. The purpose of community engagement is to build andmaintain over time a constructive relationship with these communities. The nature and frequency ofcommunity engagement will reflect the project’s risks to and adverse impacts on the affected
communities. Community engagement will be free of external manipulation, interference, or
coercion, and intimidation, and conducted on the basis of timely, relevant, understandable andaccessible information.
3

For example, Resettlement Action Plans, Biodiversity Action Plans, Hazardous Materials Management Plans,
Emergency Preparedness and Response Plans, Community Health and Safety Plans, and Indigenous Peoples
Development Plans.

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Disclosure
20. Disclosure of relevant project information helps affected communities understand the risks,
impacts and opportunities of the project. Where the client has undertaken a process of Social andEnvironmental Assessment, the client will publicly disclose the Assessment document.
Ifcommunities may be affected by risks or adverse impacts from the project, the client will provide such
communities with access to information on the purpose, nature and scale of the project, the durationof proposed project activities, and any risks to and potential impacts on such communities. For
projects with adverse social or environmental impacts, disclosure should occur early in the Social andEnvironmental Assessment process and in any event before the project construction commences,and on an ongoing basis (see paragraph 26 below).

Consultation
21. If affected communities may be subject to risks or adverse impacts from a project, the client will
undertake a process of consultation in a manner that provides the affected communities with
opportunities to express their views on project risks, impacts, and mitigation measures, and allows
the client to consider and respond to them. Effective consultation: (i) should be based on the priordisclosure of relevant and adequate information, including draft documents and plans; (ii) should
begin early in the Social and Environmental Assessment process; (iii) will focus on the social andenvironmental risks and adverse impacts, and the proposed measures and actions to address these;and (iv) will be carried out on an ongoing basis as risks and impacts arise. The consultation process
will be undertaken in a manner that is inclusive and culturally appropriate. The client will tailor its
consultation process to the language preferences of the affected communities, their decision-making
process, and the needs of disadvantaged or vulnerable groups.
22. For projects with significant adverse impacts on affected communities, the consultation process
will ensure their free, prior and informed consultation and facilitate their informed participation.
Informed participation involves organized and iterative consultation, leading to the client’s
incorporating into their decision-making process the views of the affected communities on mattersthat affect them directly, such as proposed mitigation measures, the sharing of development benefits
and opportunities, and implementation issues. The client will document the process, in particular themeasures taken to avoid or minimize risks to and adverse impacts on the affected communities.

Grievance Mechanism
23. The client will respond to communities’ concerns related to the project. If the client anticipatesongoing risks to or adverse impacts on affected communities, the client will establish a grievancemechanism to receive and facilitate resolution of the affected communities’ concerns and grievances
about the client’s environmental and social performance. The grievance mechanism should bescaled to the risks and adverse impacts of the project. It should address concerns promptly, using
an understandable and transparent process that is culturally appropriate and readily accessible to all
segments of the affected communities , and at no cost and without retribution. The mechanism
should not impede access to judicial or administrative remedies. The client will inform the affected
communities about the mechanism in the course of its community engagement process.

Monitoring
24. As an element of its Management System, the client will establish procedures to monitor andmeasure the effectiveness of the management program. In addition to recording information to track
performance and establishing relevant operational controls, the client should use dynamic
mechanisms, such as inspections and audits, where relevant, to verify compliance and progress
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toward the desired outcomes. For projects with significant impacts that are diverse, irreversible, or
unprecedented, the client will retain qualified and experienced external experts to verify its monitoring
information. The extent of monitoring should be commensurate with the project’s risks and impacts
and with the project’s compliance requirements. Monitoring should be adjusted according toperformance experience and feedback. The client will document monitoring results, and identify andreflect the necessary corrective and preventive actions in the amended management program. The
client will implement these corrective and preventive actions, and follow up on these actions toensure their effectiveness.

ReportingInternal Reporting
25. Senior management in the client organization will receive periodic assessments of theeffectiveness of the management program, based on systematic data collection and analysis. The
scope and frequency of such reporting will depend upon the nature and scope of the activities
identified and undertaken in accordance with the client’s management program and other applicableproject requirements.

External Reporting on Action Plans
26. The client will disclose the Action Plan to the affected communities. In addition, the client will
provide periodic reports that describe progress with implementation of the Action Plan on issues thatinvolve ongoing risk to or impacts on affected communities, and on issues that the consultation
process or grievance mechanism has identified as of concern to those communities. If the
management program results in material changes in, or additions to, the mitigation measures or
actions described in the Action Plan on issues of concern to the affected communities, the updated
mitigation measures or actions will also be disclosed. These reports will be in a format accessible tothe affected communities. The frequency of these reports will be proportionate to the concerns ofaffected communities but not less than annually.

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Performance Standard 2
Labor and Working Conditions
April 30, 2006

Introduction
1. Performance Standard 2 recognizes that the pursuit of economic growth through employment
creation and income generation should be balanced with protection for basic rights of workers. For
any business, the workforce is a valuable asset, and a sound worker-management relationship is a
key ingredient to the sustainability of the enterprise. Failure to establish and foster a sound workermanagement relationship can undermine worker commitment and retention, and can jeopardize a
project. Conversely, through a constructive worker-management relationship, and by treating theworkers fairly and providing them with safe and healthy working conditions, clients may create
tangible benefits, such as enhancement of the efficiency and productivity of their operations.
2. The requirements set out in this Performance Standard have been in part guided by a number ofinternational conventions negotiated through the International Labour Organization (ILO) and theUnited Nations (UN) .1

Objectives§§§§

To establish, maintain and improve the worker-management relationshipTo promote the fair treatment, non-discrimination and equal opportunity of workers,
and compliance with national labor and employment laws
To protect the workforce by addressing child labor and forced labor
To promote safe and healthy working conditions, and to protect and promote thehealth of workers

Scope of Application
3. The applicability of this Performance Standard is established during the Social andEnvironmental Assessment process, while implementation of the actions necessary to meet therequirements of this Performance Standard is managed through the client’s Social andEnvironmental Management System. The assessment and management system requirements are
outlined in Performance Standard 1.
4. Throughout this Performance Standard, the term “workers” is used to refer to employees of theclient, as well as to certain types of non-employee workers described in paragraph 17. The
application of this Performance Standard will vary depending on the type of workers, as follows:§§
5.

Employees: All the requirements of this Performance Standard, except for therequirements under paragraphs 17 and 18, apply
Non-Employee Workers: The requirements of paragraph 17 apply

Supply chain2 issues are addressed in paragraph 18.

1

These conventions are:
ILO Convention 87 on Freedom of Association and Protection of the Right to Organize
ILO Convention 98 on the Right to Organize and Collective Bargaining
ILO Convention 29 on Forced LaborILO Convention 105 on the Abolition of Forced LaborILO Convention 138 on Minimum Age (of Employment)
ILO Convention 182 on the Worst Forms of Child LaborILO Convention 100 on Equal Remuneration
ILO Convention 111 on Discrimination (Employment and Occupation)
United Nations Convention on the Rights of the Child, Article 32.1

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Performance Standard 2
Labor and Working Conditions
April 30, 2006

Requirements
Working Conditions and Management of Worker Relationship
Human Resources Policy
6. The client will adopt a human resources policy appropriate to its size and workforce that sets out
its approach to managing employees consistent with the requirements of this Performance Standard.
Under the policy, the client will provide employees with information regarding their rights undernational labor and employment law, including their rights related to wages and benefits. This policy
will be clear and understandable to employees and will be explained or made accessible to each
employee upon taking employment.

Working Relationship
7. The client will document and communicate to all employees and workers directly contracted by
the client their working conditions and terms of employment, including their entitlement to wages andany benefits.

Working Conditions and Terms of Employment
8. Where the client is a party to a collective bargaining agreement with a workers ’ organization,such agreement will be respected. Where such agreements do not exist, or do not address working
conditions and terms of employment (such as wages and benefits, hours of work, overtime
arrangements and overtime compensation, and leave for illness, maternity, vacation or holiday) theclient will provide reasonable working conditions and terms of employment that, at a minimum,
comply with national law.

Workers’ Organizations
9. In countries where national law recognizes workers ’ rights to form and to join workers ’organizations of their choosing without interference and to bargain collectively, the client will comply
with national law. Where national law substantially restricts workers ’ organizations, the client will
enable alternative means for workers to express their grievances and protect their rights regarding
working conditions and terms of employment.
10. In either case described in paragraph 9, and where national law is silent, the client will notdiscourage workers from forming or joining workers’ organizations of their choosing or frombargaining collectively, and will not discriminate or retaliate against workers who participate, or seek
to participate, in such organizations and bargain collectively. Clients will engage with such worker
representatives. Worker organizations are expected to fairly represent the workers in the workforce.

Non-Discrimination and Equal Opportunity
11. The client will not make employment decisions on the basis of personal characteristics unrelated
to inherent job requirements. The client will base the employment relationship on the principle ofequal opportunity and fair treatment, and will not discriminate with respect to aspects of theemployment relationship, including recruitment and hiring, compensation (including wages andbenefits), working conditions and terms of employment, access to training, promotion, termination of
employment or retirement, and discipline. In countries where national law provides for nondiscrimination in employment, the client will comply with national law. When national laws are silent
on non-discrimination in employment, the client will meet this Performance Standard. Special
measures of protection or assistance to remedy past discrimination or selection for a particular job
based on the inherent requirements of the job will not be deemed discrimination.
2

Supply chain refers to both labor and material inputs for the life-cycle of a good or service.

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Labor and Working Conditions
April 30, 2006

Retrenchment
12. The client will develop a plan to mitigate the adverse impacts of retrenchment on employees, if it
anticipates the elimination of a significant number of jobs or a layoff of a significant number of
employees. The plan will be based on the principle of non-discrimination and will reflect the client’s
consultation with employees , their organizations and, where appropriate, the government.

Grievance Mechanism
13. The client will provide a grievance mechanism for workers (and their organizations, where they
exist) to raise reasonable workplace concerns. The client will inform the workers of the grievancemechanism at the time of hire, and make it easily accessible to them . The mechanism should involve
an appropriate level of management and address concerns promptly, using an understandable andtransparent process that provides feedback to those concerned, without any retribution. The
mechanism should not impede access to other judicial or administrative remedies that might beavailable under law or through existing arbitration procedures , or substitute for grievancemechanisms provided through collective agreements .

Protecting the Work ForceChild Labor
14. The client will not employ children in a manner that is economically exploitative, or is likely to be
hazardous or to interfere with the child’s education, or to be harmful to the child’s health or physical,
mental, spiritual, moral, or social development. Where national laws have provisions for theemployment of minors, the client will follow those laws applicable to the client. Children below theage of 18 years will not be employed in dangerous work.

Forced Labor
15. The client will not employ forced labor, which consists of any work or service not voluntarily
performed that is exacted from an individual under threat of force or penalty. This covers any kind of
involuntary or compulsory labor, such as indentured labor, bonded labor or similar labor-contracting
arrangements.

Occupational Health and Safety
16. The client will provide the workers with a safe and healthy work environment, taking into accountinherent risks in its particular sector and specific classes of hazards in the client’s work areas ,including physical, chemical, biological, and radiological hazards. The client will take steps toprevent accidents, injury, and disease arising from, associated with, or occurring in the course ofwork by minimizing, so far as reasonably practicable, the causes of hazards. In a manner consistent
with good international industry practice,3 the client will address areas, including: the identification ofpotential hazards to workers, particularly those that may be life-threatening; provision of preventive
and protective measures, including modification, substitution, or elimination of hazardous conditions
or substances; training of workers; documentation and reporting of occupational accidents, diseases,
and incidents; and emergency prevention, preparedness and response arrangements.

3

Defined as the exercise of professional skill, diligence, prudence and foresight that would reasonably be
expected from skilled and experienced professionals engaged in the same type of undertaking under the same orsimilar circumstances globally.

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Labor and Working Conditions
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Non-Employee Workers
17. For purpose of this Performance Standard, “non-employee workers” refers to workers who are:(i) directly contracted by the client, or contracted through contractors or other intermediaries; and (ii)performing work directly related to core functions essential to the client’s products or services for a
substantial duration. When the client contracts non-employee workers directly, the client will use
commercially reasonable efforts to apply the requirements of this Performance Standard, except forparagraphs 6, 12, and 18. With respect to contractors or other intermediaries procuring nonemployee workers , the client will use commercially reasonable efforts to: (i) ascertain that thesecontractors or intermediaries are reputable and legitimate enterprises; and (ii) require that thesecontractors or intermediaries apply the requirements of this Performance Standard, except forparagraphs 6, 12, and 13.

Supply Chain
18. The adverse impacts associated with supply chains will be considered where low labor cost is afactor in the competitiveness of the item supplied. The client will inquire about and address childlabor and forced labor in its supply chain, consistent with paragraphs 14 and 15 above.

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Performance Standard 3
Pollution Prevention and Abatement
April 30, 2006

Introduction
1. Performance Standard 3 recognizes that increased industrial activity and urbanization often
generate increased levels of pollution to air, water, and land that may threaten people and theenvironment at the local, regional, and global level.1 On the other hand, along with international
trade, pollution prevention and control technologies and practices have become more accessible andachievable in virtually all parts of the world. This Performance Standard outlines a project approach
to pollution prevention and abatement in line with these internationally disseminated technologies
and practices. In addition, ht is Performance Standard promotes the private sector’s ability tointegrate such technologies and practices as far as their use is technically and financially feasible
and cost-effective in the context of a project that relies on commercially available skills andresources.

Objectives§§

To avoid or minimize adverse impacts on human health and the environment by
avoiding or minimizing pollution from project activities
To promote the reduction of emissions that contribute to climate change

Scope of Application
2. The applicability of this Performance Standard is established during the Social andEnvironmental Assessment process, while implementation of the actions necessary to meet therequirements of this Performance Standard is managed through the client’s Social andEnvironmental Management System. The assessment and management system requirements are
outlined in Performance Standard 1.

Requirements
General Requirements
3. During the design, construction, operation and decommissioning of the project (the project lifecycle) the client will consider ambient conditions and apply pollution prevention and control
technologies and practices (techniques) that are best suited to avoid or, where avoidance is not
feasible, minimize or reduce adverse impacts on human health and the environment while remaining
technically and financially feasible and cost-effective.2 The project-specific pollution prevention andcontrol techniques applied during the project life-cycle will be tailored to the hazards and risks
associated with project emissions and consistent with good international industry practice,3 as

1

For the purposes of this performance standard, the term “pollution” is used to refer to both hazardous and nonhazardous pollutants in the solid, liquid, or gaseous forms, and is intended to include other forms such as
nuisance odors, noise, vibration, radiation, electromagnetic energy, and the creation of potential visual impacts
including light.
2“Technical feasibility” and “financial feasibility” are defined in Performance Standard 1. “Cost-effectiveness” isbased on the effectiveness of reducing emissions relative to the additional cost required to do so.
3
Defined as the exercise of professional skill, diligence, prudence and foresight that would reasonably be
expected from skilled and experienced professionals engaged in the same type of undertaking under the same orsimilar circumstances globally. The circumstances that skilled and experienced professionals may find whenevaluating the range of pollution prevention and control techniques available to a project may include, but are notlimited to, varying levels of environmental degradation and environmental assimilative capacity as well as varying
levels of financial and technical feasibility.

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Pollution Prevention and Abatement
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reflected in various internationally recognized sources , including IFC’s Environmental, Health and
Safety Guidelines (the EHS Guidelines).

Pollution Prevention, Resource Conservation and Energy Efficiency
4. The client will avoid the release of pollutants or, when avoidance is not feasible, minimize orcontrol the intensity or load of their release. This applies to the release of pollutants due to routine,
non-routine or accidental circumstances with the potential for local, regional, and transboundary
impacts .4 In addition, the client should examine and incorporate in its operations resource
conservation and energy efficiency measures, consistent with the principles of cleaner production.

Wastes
5. The client will avoid or minimize the generation of hazardous and non-hazardous wastematerials as far as practicable. Where waste generation cannot be avoided but has been minimized,
the client will recover and reuse waste; where waste can not be recovered or reused, the client willtreat, destroy, and dispose of it n
i an environmentally sound manner. If the generated waste isconsidered hazardous,5 the client will explore commercially reasonable alternatives for its
environmentally sound disposal considering the limitations applicable to its transboundary
movement.6 When waste disposal is conducted by third parties, the client will use contractors thatare reputable and legitimate enterprises licensed by the relevant regulatory agencies.

Hazardous Materials
6. The client will avoid or, when avoidance is not feasible, minimize or control the release ofhazardous materials resulting from their production, transportation, handling, storage and use forproject activities. The client will avoid the manufacture, trade, and use of chemicals and hazardous
materials subject to international bans or phase-outs due to their high toxicity to living organisms,
environmental persistence, potential for bioaccumulation, or potential for depletion of the ozone
layer,7 and consider the use of less hazardous substitutes for such chemicals and materials.

Emergency Preparedness and Response
7. The client will be prepared to respond to process upset, accidental, and emergency situations ina manner appropriate to the operational risks and the need to prevent their potential negative
consequences. This preparation will include a plan that addresses the training, resources,
responsibilities, communication, procedures, and other aspects required to effectively respond to
emergencies associated with project hazards. Additional requirements on emergency preparedness
and response are found in paragraph 12 of Performance Standard 4.

Technical Guidance
8. The client will refer to the current version of the EHS Guidelines when evaluating and selecting
pollution prevention and control techniques for the project. These Guidelines contain theperformance levels and measures that are normally acceptable and applicable to projects. Whenhost country regulations differ from the levels and measures presented in the EHS Guidelines, clients
will achieve whichever is more stringent. If less stringent levels or measures are appropriate in view

4

In reference to transboundary pollutants, including those covered under the Convention on Long-range
Transboundary Air Pollution.
5
As defined by local legislation or international conventions.
6
Consistent with the objectives of the Basel Convention on the Control of Transboundary Movements ofHazardous Wastes.
7
Consistent with the objectives of the Stockholm Convention on Persistent Organic Pollutants and the Montreal
Protocol on Substances that Deplete the Ozone Layer. Similar considerations will apply to certain World HealthOrganization (WHO) classes of pesticides.

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Performance Standard 3
Pollution Prevention and Abatement
April 30, 2006of specific project circumstances, the client will provide full and detailed justification for any proposed
alternatives. This justification will demonstrate that the choice for any alternate performance levels is
consistent with the overall requirements of this Performance Standard.

Ambient Considerations
9. To address adverse project impacts on existing ambient conditions,8 the client will: (i) consider anumber of factors, including the finite assimilative capacity9 of the environment, existing and future
land use, existing ambient conditions, the project’s proximity to ecologically sensitive or protectedareas, and the potential for cumulative impacts with uncertain and irreversible consequences; and (ii)promote strategies that avoid or, where avoidance is not feasible, minimize or reduce the release ofpollutants, including strategies that contribute to the improvement of ambient conditions when the
project has the potential to constitute a significant source of emissions in an already degraded area.
These strategies include, but are not limited to, evaluation of project location alternatives andemissions offsets.

Greenhouse Gas Emissions
10. The client will promote the reduction of project-related greenhouse gas (GHG) emissions in amanner appropriate to the nature and scale of project operations and impacts.
11. During the development or operation of projects that are expected to or currently produce
significant quantities of GHGs,10 the client will quantify direct emissions from the facilities owned orcontrolled within the physical project boundary and indirect emissions associated with the off-site
production of power used by the project. Quantification and monitoring of GHG emissions will be
conducted annually in accordance with internationally recognized methodologies.11 In addition, theclient will evaluate technically and financially feasible and cost-effective options to reduce or offset
project-related GHG emissions during the design and operation of the project. These options may
include, but are not limited to, carbon financing, energy efficiency improvement, the use of renewableenergy sources, alterations of project design, emissions offsets, and the adoption of other mitigation
measures such as the reduction of fugitive emissions and the reduction of gas flaring.

Pesticide Use and Management
12. The client will formulate and implement an integrated pest management (IPM) and/or integrated
vector management (IVM) approach for pest management activities. The client’s IPM and IVM
program will entail coordinated use of pest and environmental information along with available pest
control methods, including cultural practices, biological, genetic and, as a last resort, chemical means
to prevent unacceptable levels of pest damage.
8

Such as air, surface and groundwater, and soils.
The capacity of the environment for absorbing an incremental load of pollutants while remaining below a
threshold of unacceptable risk to human health and the environment.
10
The significance of a project’s contribution to GHG emissions varies between industry sectors. The thresholdfor this Performance Standard is 100,000 tons CO2 equivalent per year for the aggregate emissions of directsources and indirect sources associated with purchased electricity for own consumption. This or similar
thresholds will apply to such industry sectors or activities as energy, transport, heavy industry, agriculture,
forestry, and waste management in order to help promote awareness and reduction of emissions.
11
Estimation methodologies are provided by the Intergovernmental Panel on Climate Change (IPCC), various
international organizations, and relevant host country agencies.
9

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Performance Standard 3
Pollution Prevention and Abatement
April 30, 2006

13. When pest management activities include the use of pesticides, the client will select pesticides
that are low in human toxicity, known to be effective against the target species, and have minimal
effects on non-target species and the environment. When the client selects pesticides, the selection
will be based on whether the pesticides are packaged in safe containers, are clearly labeled for safeand proper use, and have been manufactured by an entity currently licensed by relevant regulatory
agencies.
14. The client will design its pesticide application regime to minimize damage to natural enemies andprevent the development of resistance in pests. In addition, pesticides will be handled, stored,
applied, and disposed of in accordance with the Food and Agriculture Organization’s International
Code of Conduct on the Distribution and Use of Pesticides or other good international industry
practice.
15. The client will not use products that fall in World Health Organization Recommended
Classification of Pesticides by Hazard Classes Ia (extremely hazardous) and Ib (highly hazardous);or Class II (moderately hazardous), if the project host country lacks restrictions on distribution anduse of these chemicals, or if they are likely to be accessible to personnel without proper training,equipment, and facilities to handle, store, apply, and dispose of these products properly.

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Performance Standard 4
Community Health, Safety and Security
April 30, 2006

Introduction
1. Performance Standard 4 recognizes that project activities, equipment, and infrastructure often
bring benefits to communities including employment, services, and opportunities for economic
development. However, projects can also increase the potential for community exposure to risks andimpacts arising from equipment accidents, structural failures, and releases of hazardous materials .
Communities may also be affected by impacts on their natural resources, exposure to diseases, andthe use of security personnel. While acknowledging the public authorities ’ role in promoting thehealth, safety and security of the public, this Performance Standard addresses the client’s
responsibility to avoid or minimize the risks and impacts to community health, safety and security that
may arise from project activities. The level of risks and impacts described in this PerformanceStandard may be greater in projects located in conflict and post-conflict areas.

Objectives§§

To avoid or minimize risks to and im pacts on the health and safety of the local
community during the project life cycle from both routine and non-routine
circumstances
To ensure that the safeguarding of personnel and property is carried out in alegitimate manner that avoids or minimizes risks to the community’s safety andsecurity

Scope of Application
2. The applicability of this Performance Standard is established during the Social andEnvironmental Assessment process, while implementation of the actions necessary to meet therequirements of this Performance Standard is managed through the client’s Social andEnvironmental Management System. The assessment and management system requirements are
outlined in Performance Standard 1.
3. This Performance Standard addresses potential risks and impacts to the affected communityfrom project activities. Occupational health and safety standards are found in paragraph 16 of
Performance Standard 2, and environmental standards to prevent impacts on human health and theenvironment due to pollution are found in Performance Standard 3.

Requirements
Community Health and Safety Requirements
General Requirements
4. The client will evaluate the risks and impacts to the health and safety of the affected community
during the design, construction, operation, and decommissioning of the project and will establish
preventive measures to address them in a manner commensurate with the identified risks andimpacts. These measures will favor the prevention or avoidance of risks and impacts overminimization and reduction.
5. Where the project poses risks to or adverse impacts on the health and safety of affected
communities, the client will disclose the Action Plan and any other relevant project-related
information to enable the affected communities and relevant government agencies to understand
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Performance Standard 4
Community Health, Safety and Security
April 30, 2006

these risks and impacts, and will engage the affected communities and agencies on an ongoingbasis consistent with the requirements of Performance Standard 1.

Infrastructure and Equipment Safety
6. The client will design, construct, and operate and decommission the structural elements orcomponents of the project in accordance with good international industry practice,1 and will give
particular consideration to potential exposure to natural hazards, especially where the structuralelements are accessible to members of the affected community or where their failure could result ininjury to the community. Structural elements will be designed and constructed by qualified andexperienced professionals, and certified or approved by competent authorities or professionals.
When structural elements or components, such as dams, tailings dams, or ash ponds, are situated inhigh-risk locations, and their failure or malfunction may threaten the safety of communities, the client
will engage one or more qualified experts with relevant and recognized experience in similar projects,
separate from those responsible for the design and construction, to conduct a review as early as
possible in project development and throughout the stages of project design, construction, andcommissioning. For projects that operate moving equipment on public roads and other forms ofinfrastructure, the client will seek to prevent the occurrence of incidents and accidents associatedwith the operation of such equipment.

Hazardous Materials Safety
7. The client will prevent or minimize the potential for community exposure to hazardous materials
that may be released by the project. Where there is a potential for the community (including workers
and their families) to be exposed to hazards, particularly those that may be life-threatening, the client
will exercise special care to avoid or minimize their exposure by modifying, substituting or eliminating
the condition or substance causing the hazards. Where hazardous materials are part of existing
project infrastructure or components, the client will exercise special care when conducting
decommissioning activities in order to prevent exposure to the community. In addition, the client will
exercise commercially reasonable efforts to control the safety of deliveries of raw materials and oftransportation and disposal of wastes, and will implement measures to avoid or control community
exposure to pesticides in accordance with the requirements outlined in paragraphs 6 and 12 through15 of Performance Standard 3.

Environmental and Natural Resource Issues
8. The client will avoid or minimize the exacerbation of impacts caused by natural hazards, such as
landslides or floods that could arise from land use changes due to project activities.
9. The client will also avoid or minimize adverse impacts due to project activities on soil, water, andother natural resources in use by the affected communities .

Community Exposure to Disease
10. The client will prevent or minimize the potential for community exposure to water-borne, waterbased, water-related, vector-borne disease, and other communicable diseases that could result fromproject activities. Where specific diseases are endemic in communities in the project area ofinfluence, the client is encouraged to explore opportunities during the project life cycle to improve
environmental conditions that could help reduce their incidence.

1

Defined as the exercise of that degree of skill, diligence, prudence and foresight that would reasonably andordinarily be expected from skilled and experienced professionals engaged in the same type of undertaking under
the same or similar circumstances globally.

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Community Health, Safety and Security
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11. The client will prevent or minimize transmission of communicable diseases that may be
associated with the influx of temporary or permanent project labor.

Emergency Preparedness and Response
12. The client will assess the potential risks and impacts from project activities and inform affected
communities of significant potential hazards in a culturally appropriate manner. The client will also
assist and collaborate with the community and the local government agencies in their preparations to
respond effectively to emergency situations, especially when their participation and collaboration arenecessary to respond to such emergency situations. If local government agencies have little or no
capacity to respond effectively, the client will play an active role in preparing for and responding toemergencies associated with the project. The client will document its emergency preparedness andresponse activities, resources, and responsibilities, and will disclose appropriate information in the
Action Plan or other relevant document to affected communities and relevant government agencies.

Security Personnel Requirements
13. When the client directly retains employees or contractors to provide security to safeguard its
personnel and property, it will assess risks to those within and outside the project site posed by its
security arrangements. In making such arrangem ents, the client will be guided by the principles of
proportionality, good international practices in terms of hiring, rules of conduct, training, equippingand monitoring of such personnel, and applicable law. The client will make reasonable inquiries tosatisfy itself that those providing security are not implicated in past abuses , will train them adequately
in the use of force (and where applicable, firearms) and appropriate conduct toward workers and the
local community, and require them to act within the applicable law. The client will not sanction any
use of force except when used for preventive and defensive purposes in proportion to the nature andextent of the threat. A grievance mechanism should allow the affected community to express
concerns about the security arrangements and acts of security personnel.
14. If government security personnel are deployed to provide security services for the client, theclient will assess risks arising from such use, communicate its intent that the security personnel act ina manner consistent with paragraph 13 above, and encourage the relevant public authorities todisclose the security arrangements for the client’s facilities to the public, subject to overriding security
concerns.
15. The client will investigate any credible allegations of unlawful or abusive acts of security
personnel, take action (or urge appropriate parties to take action) to prevent recurrence, and reportunlawful and abusive acts to public authorities when appropriate.

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Performance Standard 5
Land Acquisition and Involuntary Resettlement
April 30, 2006

Introduction
1. Involuntary resettlement refers both to physical displacement (relocation or loss of shelter) andto economic displacement (loss of assets or access to assets that leads to loss of income sources ormeans of livelihood) as a result of project-related land acquisition.1 Resettlement is considered
involuntary when affected individuals or communities do not have the right to refuse land acquisition
that results in displacement. This occurs in cases of: (i) lawful expropriation or restrictions on land
use based on eminent domain;2 and ii) negotiated settlements in which the buyer can resort toexpropriation or impose legal restrictions on land use if negotiations with the seller fail.
2. Unless properly managed, involuntary resettlement may result in long-term hardship andimpoverishment for affected persons and communities, as well as environmental damage and social
stress in areas to which they have been displaced. For these reasons, involuntary resettlement
should be avoided or at least minimized. However, where it is unavoidable, appropriate measures tomitigate adverse impacts on displaced persons and host communities 3 should be carefully planned
and implemented. Experience demonstrates that the direct involvement of the client in resettlement
activities can result in cost-effective, efficient, and timely implementation of those activities, as well as
innovative approaches to improving the livelihoods of those affected by resettlement.
3. Negotiated settlements help avoid expropriation and eliminate the need to use governmental
authority to remove people forcibly. Negotiated settlements can usually be achieved by providing fair
and appropriate compensation and other incentives or benefits to affected persons or communities ,and by mitigating the risks of asymmetry of information and bargaining power. Clients areencouraged to acquire land rights through negotiated settlements wherever possible, even if they
have the legal means to gain access to the land without the seller’s consent.

Objectives
§
§

§
§

To avoid or at least minimize involuntary resettlement wherever feasible byexploring alternative project designs
To mitigate adverse social and economic impacts from land acquisition or
restrictions on affected persons’ use of land by: (i) providing compensation for lossof assets at replacement cost; and (ii) ensuring that resettlement activities are
implemented with appropriate disclosure of information, consultation, and theinformed participation of those affected
To improve or at least restore the livelihoods and standards of living of displaced
persons
To improve living conditions among displaced persons through provision ofadequate housing with security of tenure4 at resettlement sites

Scope of Application
4. The applicability of this Performance Standard is established during the Social andEnvironmental Assessment process, while implementation of the actions necessary to meet the1

Land acquisition includes both outright purchases of property and purchases of access rights, such as rights -ofway.
2
Such restriction may include restrictions of access to legally designated nature conservation areas.
3
A host community is any community receiving displaced persons.
4
A res ettlement site offers security of tenure if it protects the resettled persons from forced evictions.

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Performance Standard 5
Land Acquisition and Involuntary Resettlement
April 30, 2006

requirements of this Performance Standard is managed through the client’s Social andEnvironmental Management System. The assessment and management system requirements are
outlined in Performance Standard 1.
5. This Performance Standard applies to physical or economic displacement resulting from thefollowing types of land transactions:§§Type I: Land rights for a private sector project acquired through expropriation orother compulsory proceduresType II: Land rights for a private sector project acquired through negotiatedsettlements with property owners or those with legal rights to land, including
customary or traditional rights recognized or recognizable under the laws of thecountry, if expropriation or other compulsory process would have resulted upon the
failure of negotiation5

Paragraph 18 and part of paragraph 20 below apply to displaced persons with no recognizable legal
right or claim to the land they occupy.
6. This Performance Standard does not apply to resettlement resulting from voluntary landtransactions (i.e., market transactions in which the seller is not obliged to sell and the buyer cannot
resort to expropriation or other compulsory procedures if negotiations fail). In the event of adverse
economic, social, or environmental impacts from project activities other than land acquisition (e.g.,loss of access to assets or resources or restrictions on land use), such impacts will be avoided,
minimized, mitigated or compensated for through the process of Social and Environmental
Assessment under Performance Standard 1. If these impacts become significantly adverse at any
stage of the project, the client should consider applying the requirements of Performance Standard 5,even where no initial land acquisition was involved.

Requirements
General Requirements
Project Design
7. The client will consider feasible alternative project designs to avoid or at least minimize physicalor economic displacement, while balancing environmental, social, and financial costs and benefits.

Compensation and Benefits for Displaced Persons
8. When displacement cannot be avoided, the client will offer displaced persons and communities
compensation for loss of assets at full replacement cost and other assistance6 to help them improveor at least restore their standards of living or livelihoods, as provided in this Performance Standard.
Standards for compensation will be transparent and consistent within the project. Where livelihoodsof displaced persons are land-based, or where land is collectively owned, the client will offer landbased compensation, where feasible.7 The client will provide opportunities to displaced persons andcommunities to derive appropriate development benefits from the project.

5

These negotiations can be carried out by the private sector company acquiring the land or by an agent of thecompany. In the case of private sector projects in which land rights are acquired by the government, thenegotiations may be carried out by the government or by the private company as an agent of the government.
6
As described in paragraphs 18 and 20.
7
See also footnote 9.

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Performance Standard 5
Land Acquisition and Involuntary Resettlement
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Consultation
9. Following disclosure of all relevant information, the client will consult with and facilitate theinformed participation of affected persons and communities, including host communities, in decisionmaking processes related to resettlement. Consultation will continue during the implementation,
monitoring, and evaluation of compensation payment and resettlement to achieve outcomes that areconsistent with the objectives of this Performance Standard.

Grievance Mechanism
10. The client will establish a grievance mechanism consistent with Performance Standard 1 toreceive and address specific concerns about compens ation and relocation that are raised bydisplaced persons or members of host communities , including a recourse mechanism designed toresolve disputes in an impartial manner.

Resettlement Planning and Implementation
11. Where involuntary resettlement is unavoidable, the client will carry out a census with appropriatesocio-economic baseline data to identify the persons who will be displaced by the project, todetermine who will be eligible for compensation and assistance, and to discourage inflow of people
who are ineligible for these benefits. In the absence of host government procedures, the client will
establish a cut-off date for eligibility. Information regarding the cut-off date will be well documented
and disseminated throughout the project area.
12. In the case of Type I transactions (acquisition of land rights through the exercise of eminent
domain) or Type II transactions (negotiated settlements) that involve the physical displacement ofpeople, the client will develop a resettlement action plan or a resettlement framework based on a
Social and Environmental Assessment that covers, at a minimum, the applicable requirements of thisPerformance Standard regardless of the number of people affected. The plan or framework will be
designed to mitigate the negative impacts of displacement, identify development opportunities, andestablish the entitlements of all categories of affected persons (including host communities), withparticular attention paid to the needs of the poor and the vulnerable (see Performance Standard 1,
paragraph 12). The client will document all transactions to acquire land rights, as well ascompensation measures and relocation activities. The client will also establish procedures to monitor
and evaluate the implementation of resettlement plans and take corrective action as necessary. A
resettlement will be considered complete when the adverse impacts of resettlement have beenaddressed in a manner that is consistent with the objectives stated in the resettlement plan orframework as well as the objectives of this Performance Standard.
13. In the case of Type II transactions (negotiated settlements) involving economic (but not physical)
displacement of people, the client will develop procedures to offer to the affected persons andcommunities compensation and other assistance that meet the objectives of this PerformanceStandard. The procedures will establish the entitlements of affected persons or communities and will
ensure that these are provided in a transparent, consistent, and equitable manner.
The
implementation of the procedures will be considered complete when affected persons orcommunities have received compensation and other assistance according to the requirements of thisPerformance Standard. In cases where affected persons reject compensation offers that meet therequirements of this Performance Standard and, as a result, expropriation or other legal procedures
are initiated, the client will explore opportunities to collaborate with the responsible government
agency, and if permitted by the agency, play an active role in the resettlement planning,
implementation, and monitoring.

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Land Acquisition and Involuntary Resettlement
April 30, 2006

Displacement
14. Displaced persons may be classified as persons: (i) who have formal legal rights to the land theyoccupy; (ii) who do not have formal legal rights to land, but have a claim to land that is recognized orrecognizable under the national laws 8; or (iii) who have no recognizable legal right or claim to theland they occupy.9 The census will establish the status of the displaced persons.
15. Land acquisition for the project may result in the physical displacement of people as well as theireconomic displacement. As a result, requirements for both physical displacement and economic
displacement may apply.

Physical Displacement
16. If people living in the project area must move to another location, the client will: (i) offer displaced
persons choices among feasible resettlement options, including adequate replacement housing or
cash compensation where appropriate; and (ii) provide relocation assistance suited to the needs ofeach group of displaced persons, with particular attention paid to the needs of the poor and thevulnerable. Alternative housing and/or cash compensation will be made available prior to relocation.
New resettlement sites built for displaced persons will offer improved living conditions.
17. In the case of physically displaced persons under paragraph 14 (i) or (ii), the client will offer the
choice of replacement property of equal or higher value, equivalent or better characteristics andadvantages of location, or cash compensation at full replacement value where appropriate.10
18. In the case of physically displaced persons under paragraph 14 (iii), the client will offer them achoice of options for adequate housing with security of tenure so that they can resettle legally without
having to face the risk of forced eviction.
Where these displaced persons own and occupy
structures, the client will compensate them for the loss of assets other than land, such as dwellings
and other improvements to the land, at full replacement cost, provided that these people occupy the
project area prior to the cut-off date for eligibility. Compensation in kind will be offered in lieu of cash
compensation where feasible. Based on consultation with such displaced persons, the client will
provide relocation assistance sufficient for them to restore their standards of living at an adequate
alternative site.11 The client is not required to compensate or assist those who encroach on the
project area after the cut-off date.
19. Where communities of Indigenous Peoples are to be physically displaced from their communallyheld traditional or customary lands under use, the client will meet the applicable requirements of thisPerformance Standard, as well as those of Performance Standard 7 (in particular paragraph 14).

Economic Displacement
20. If land acquisition for the project causes loss of income or livelihood, regardless of whether or
not the affected people are physically displaced, the client will meet the following requirements:
8

Such claims could be derived from adverse possession or from customary or traditional law.
Such as opportunistic squatters and recently arrived economic migrants who occupy land prior to the cut-off
date.
10
Payment of cash compensation for lost assets may be appropriate where: (a) livelihoods are not land-based; (b)livelihoods are land-based but the land taken for the project is a small fraction of the affected asset and theresidual land is economically viable; or (c) active markets for land, housing, and labor exist, displaced persons
use such markets, and there is sufficient supply of land and housing. Cash compensation levels should be
sufficient to replace the lost land and other assets at full replacement cost in local markets.
11
Relocation of informal settlers in urban areas often has trade-offs. For example, the relocated families may
gain security of tenure, but they may lose advantages of location.
9

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Performance Standard 5
Land Acquisition and Involuntary Resettlement
April 30, 2006

§
§

§

§

§

§

Promptly compensate economically displaced persons for loss of assets or accessto assets at full replacement cost
In cases where land acquisition affects commercial structures, compensate theaffected business owner for the cost of reestablishing commercial activities
elsewhere, for lost net income during the period of transition, and for the costs ofthe transfer and reinstallation of the plant, machinery or other equipment
Provide replacement property (e.g., agricultural or commercial sites) of equal or
greater value, or cash compensation at full replacement cost where appropriate, topersons with legal rights or claims to land which are recognized or recognizable
under the national laws (see paragraph 14 (i) and (ii))
Compensate economically displaced persons who are without legally recognizableclaims to land (see paragraph 14 (iii)) for lost assets (such as crops, irrigation
infrastructure and other improvements made to the land) other than land, at full
replacement cost. The client is not required to compensate or assist opportunistic
settlers who encroach on the project area after the cut-off date
Provide additional targeted assistance (e.g., credit facilities, training, or job
opportunities) and opportunities to improve or at least restore their income-earning
capacity, production levels, and standards of living to economically displaced
persons whose livelihoods or income levels are adversely affected
Provide transitional support to economically displaced persons, as necessary,
based on a reasonable estimate of the time required to restore their incomeearning capacity, production levels, and standards of living

21. Where communities of Indigenous Peoples are economically displaced (but not relocated) as aresult of project-related land acquisition, the client will meet the applicable requirements of thisPerformance Standard, as well as those of Performance Standard 7 (in particular paragraphs 12 and13).

Private Sector Responsibilities under Government-Managed Resettlement
22. Where land acquisition and resettlement are the responsibility of the host government, the client
will collaborate with the responsible government agency, to the extent permitted by the agency, toachieve outcomes that are consistent with the objectives of this Performance Standard. In addition,
where government capacity is limited, the client will play an active role during resettlement planning,
implementation and monitoring, as described below in paragraphs 23 through 25.
23. In the case of Type I transactions (acquisition of land rights through expropriation or other legal
procedures) involving physical or economic displacement, and Type II transactions (negotiatedsettlements) involving physical displacement, the client will prepare a plan (or a framework) that,together with the documents prepared by the responsible government agency, will address therelevant requirements of this Performance Standard (the General Requirements, except forparagraph 13, and requirements for Physical Displacement and Economic Displacement above).
The client may need to include in its plan: (i) a description of the entitlements of displaced persons
provided under applicable laws and regulations; (ii) the measures proposed to bridge any gaps
between such entitlements and the requirements of this Performance Standard; and (iii) the financial
and implementation responsibilities of the government agency and/or the client.
24. In the case of Type II transactions (negotiated settlements) involving economic (but not physical)
displacement, the client will identify and describe the procedures that the responsible government
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Performance Standard 5
Land Acquisition and Involuntary Resettlement
April 30, 2006

agency plans to use to compensate affected persons and communities. If these procedures do notmeet the relevant requirements of this Performance Standard (the General Requirements, except forparagraph 12, and requirements for Economic Displacement above), the client will develop its own
procedures to supplement government action.
25. If permitted by the responsible government agency, the client will, in collaboration with suchagency: (i) implement its plan or procedures established in accordance with paragraph 23 or 24
above; and (ii) monitor resettlement activity that is undertaken by the government agency until suchactivity has been completed.

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Performance Standard 6
Biodiversity Conservationand Sustainable Natural Resource Management
April 30, 2006

Introduction
1. Performance Standard 6 recognizes that protecting and conserving biodiversity—the variety oflife in all its forms, including genetic, species and ecosystem diversity—and its ability to change andevolve, is fundamental to sustainable development. The components of biodiversity, as defined in
the Convention on Biological Diversity, include ecosystems and habitats, species and communities,
and genes and genomes, all of which have social, economic, cultural and scientific importance. This
Performance Standard reflects the objectives of the Convention on Biological Diversity to conserve
biological diversity and promote use of renewable natural resources in a sustainable manner. This
Performance Standard addresses how clients can avoid or mitigate threats to biodiversity arisingfrom their operations as well as sustainably manage renewable natural resources.

Objectives§§

To protect and conserve biodiversity
To promote the sustainable management and use of natural resources through the
adoption of practices that integrate conservation needs and development priorities

Scope of Application
2. The applicability of this Performance Standard is established during the Social andEnvironmental Assessment process, while implementation of the actions necessary to meet therequirements of this Performance Standard is managed through the client’s Social andEnvironmental Management System. The assessment and management system requirements are
outlined in Performance Standard 1.
3. Based on the Assessment of risks and impacts and the vulnerability of the biodiversity and thenatural resources present, the requirements of this Performance Standard are applied to projects inall habitats, whether or not those habitats have been previously disturbed and whether or not they
are legally protected.

Requirements
Protection and Conservation of Biodiversity
4. In order to avoid or minimize adverse impacts to biodiversity in the project’s area of influence(see Performance Standard 1, paragraph 5), the client will assess the significance of project impacts
on all levels of biodiversity as an integral part of the Social and Environmental Assessment process.
The Assessment will take into account the differing values attached to biodiversity by specificstakeholders, as well as identify impacts on ecosystem services. The Assessment will focus on the
major threats to biodiversity, which include habitat destruction and invasive alien species. Whenrequirements of paragraphs 9, 10, or 11 apply, the client will retain qualified and experienced
external experts to assist in conducting the Assessment.

Habitat
5. Habitat destruction is recognized as the major threat to the maintenance of biodiversity.
Habitats can be divided into natural habitats (which are land and water areas where the biologicalcommunities are formed largely by native plant and animal species, and where human activity has
not essentially modified the area’s prim ary ecological functions) and modified habitats (where there
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Performance Standard 6
Biodiversity Conservationand Sustainable Natural Resource Management
April 30, 2006

has been apparent alteration of the natural habitat, often with the introduction of alien species ofplants and animals, such as agricultural areas). Both types of habitat can support importantbiodiversity at all levels, including endemic or threatened species .

Modified Habitat
6. In areas of modified habitat, the client will exercise care to minimize any conversion ordegradation of such habitat, and will, depending on the nature and scale of the project, identify
opportunities to enhance habitat and protect and conserve biodiversity as part of their operations.

Natural Habitat
7. In areas of natural habitat, the client will not significantly convert or degrade1 such habitat,
unless the following conditions are met:§§§

There are no technically and financially feasible alternatives
The overall benefits of the project outweigh the costs, including those to theenvironment and biodiversity
Any conversion or degradation is appropriately mitigated

8. Mitigation measures will be designed to achieve no net loss of biodiversity where feasible, andmay include a combination of actions, such as :§§§Post-operation restoration of habitats
Offset of losses through the creation of ecologically comparable area(s) that is
managed for biodiversity2
Compensation to direct users of biodiversity

Critical Habitat
9. Critical habitat is a subset of both natural and modified habitat that deserves particular attention.
Critical habitat includes areas with high biodiversity value3, including habitat required for the survivalof critically endangered or endangered species ;4 areas having special significance for endemic or
restricted-range species; sites that are critical for the survival of migratory species; areas supporting
globally significant concentrations or numbers of individuals of congregatory species; areas withunique assemblages of species or which are associated with key evolutionary processes or provide
key ecosystem services; and areas having biodiversity of significant social, economic or cultural
importance to local communities.
10. In areas of critical habitat, the client will not implement any project activities unless the following
requirements are met:§

There are no measurable adverse impacts on the ability of the critical habitat tosupport the established population of species described in paragraph 9 or thefunctions of the critical habitat described in paragraph 91

Significant conversion or degradation is: (i) the elimination or severe diminution of the integrity of a habitat
caused by a major, long-term change in land or water use; or (ii) modification of a habitat that substantiallyreduces the habitat’s ability to maintain viable population of its native species.
2
Clients will respect the ongoing usage of such biodiversity by Indigenous Peoples or traditional communities.
3
Such as areas that meet the criteria of the World Conservation Union (IUCN) classification.
4
As defined by the IUCN Red List of Threatened Species or as defined in any national legislation.

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Performance Standard 6
Biodiversity Conservationand Sustainable Natural Resource Management
April 30, 2006§§

There is no reduction in the population of any recognized critically endangered or
endangered species 5
Any lesser impacts are mitigated in accordance with paragraph 8

Legally protected Areas
11. In circumstances where a proposed project is located within a legally protected area,6 the client,in addition to the applicable requirements of paragraph 10 above, will meet the following
requirements :§§§Act in a manner consistent with defined protected area management plans
Consult protected area sponsors and managers, local communities , and other key
stakeholders on the proposed project
Implement additional programs, as appropriate, to promote and enhance theconservation aims of the protected area

Invasive Alien Species
12. Intentional or accidental introduction of alien, or non-native, species of flora and fauna into areas
where they are not normally found can be a significant threat to biodiversity, since some alien
species can become invasive, spreading rapidly and out-competing native species.
13. The client will not intentionally introduce any new alien species (not currently established in the
country or region of the project) unless this is carried out in accordance with the existing regulatory
framework for such introduction, if such framework is present, or is subject to a risk assessment (aspart of the client’s Social and Environmental Assessment) to determine the potential for invasive
behavior. The client will not deliberately introduce any alien species with a high risk of invasive
behavior or any known invasive species, and will exercise diligence to prevent accidental orunintended introductions.

Management and Use of Renewable Natural Resources
14. The client will manage renewable natural resources in a sustainable manner.7 Where possible,
the client will demonstrate the sustainable management of the resources through an appropriate
system of independent certification.8
15. In particular, forests and aquatic systems are principal providers of natural resources, and need
to be managed as specified below.

5

As defined by the IUCN Red List of Threatened Species or as defined in any national legislation.
An area may be designated as legally protected for different purposes. This Performance Standard refers toareas legally designated for the protection or conservation of biodiversity, including areas proposed bygovernments for such designation.
7
Sustainable resource management is the management of the use, development and protection of resources in away, or at a rate, which enables people and communities, including Indigenous Peoples, to provide for theirpresent social, economic and cultural well-being while also sustaining the potential of those resources to meet thereasonably foreseeable needs of future generations and safeguarding the life-supporting capacity of air, waterand soil ecosystems.
8
An appropriate certification system would be one which is independent, cost-effective, based on objective andmeasurable performance standards and developed through consultation with relevant stakeholders, such as local
people and communities, indigenous peoples, civil society organizations representing consumer, producer, andconservation interests. Such a system has fair, transparent, independent decision-making procedures that avoid
conflicts of interest.
6

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Performance Standard 6
Biodiversity Conservationand Sustainable Natural Resource Management
April 30, 2006

Natural and Plantation Forests
16. Clients involved in natural forest harvesting or plantation development will not cause any
conversion or degradation of critical habitat. Where feasible, the client will locate plantation projects
on unforested land or land already converted (excluding land that is converted in anticipation of the
project). In addition, the client will ensure that all natural forests and plantations over which they
have management control are independently certified as meeting performance standards compatible
with internationally accepted principles and criteria for sustainable forest management.9 Where a
pre-assessment determines that the operation does not yet meet the requirements of such an
independent forest certification system, the client will develop and adhere to a time-bound, phased
action plan for achieving such certification.

Freshwater and Marine Systems
17. Clients involved in the production and harvesting of fish populations or other aquatic species
must demonstrate that their activities are being undertaken in a sustainable manner, throughapplication of an internationally accepted system of independent certification, if available, or throughappropriate studies carried out in conjunction with the Social and Environmental Assessment
process.

9

See footnote 7.

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Performance Standard 7
Indigenous Peoples
April 30, 2006

Introduction
1. Performance Standard 7 recognizes that Indigenous Peoples, as social groups with identities
that are distinct from dominant groups in national societies, are often among the most marginalized
and vulnerable segments of the population. Their economic, social and legal status often limits theircapacity to defend their interests in, and rights to, lands and natural and cultural resources, and may
restrict their ability to participate in and benefit from development. They are particularly vulnerable if
their lands and resources are transformed, encroached upon by outsiders, or significantly degraded.
Their languages, cultures, religions, spiritual beliefs, and institutions may also be under threat.
These characteristics expose Indigenous Peoples to different types of risks and severity of impacts,
including loss of identity, culture, and natural resource-based livelihoods, as well as exposure to
impoverishment and disease.
2. Private sector projects may create opportunities for Indigenous Peoples to participate in, andbenefit from, project-related activities that may help them fulfill their aspiration for economic andsocial development. In addition, this Performance Standard recognizes that Indigenous Peoples may
play a role in sustainable development by promoting and managing activities and enterprises aspartners in development.

Objectives
§

§

§
§

§

To ensure that the development process fosters full respect for the dignity, humanrights, aspirations, cultures and natural resource-based livelihoods of Indigenous
Peoples
To avoid adverse impacts of projects on communities of Indigenous Peoples, orwhen avoidance is not feasible, to minimize, mitigate, or compensate for suchimpacts , and to provide opportunities for development benefits, in a culturally
appropriate manner
To establish and maintain an ongoing relationship with the Indigenous Peoples
affected by a project throughout the life of the project
To foster good faith negotiation with and informed participation of Indigenous
Peoples when projects are to be located on traditional or customary lands under
use by the Indigenous Peoples
To respect and preserve the culture, knowledge and practices of Indigenous
Peoples

Scope of Application
3. The applicability of this Performance Standard is established during the Social andEnvironmental Assessment process, while implementation of the actions necessary to meet therequirements of this Performance Standard is managed through the client’s Social andEnvironmental Management System. The assessment and management system requirements are
outlined in Performance Standard 1.
4. There is no universally accepted definition of “Indigenous Peoples”. Indigenous Peoples may bereferred to in different countries by such terms as “Indigenous ethnic minorities,” “aboriginals,” “hilltribes,” “minority nationalities,” “scheduled tribes,” “first nations,” or “tribal groups.”

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Indigenous Peoples
April 30, 2006

5. In this Performance Standard, the term “Indigenous Peoples” is used in a generic sense to referto a distinct social and cultural group possessing the following characteristics in varying degrees:§§§§

Self-identification as members of a distinct indigenous cultural group andrecognition of this identity by others
Collective attachment to geographically distinct habitats or ancestral territories in
the project area and to the natural resources in these habitats and territories
Customary cultural, economic, social, or political institutions that are separate fromthose of the dominant society or culture
An indigenous language, often different from the official language of the country or
region6. Ascertaining whether a particular group is considered as Indigenous Peoples for the purpose ofthis Performance Standard may require technical judgment.

Requirements
General Requirements
Avoidance of Adverse Impacts
7. The client will identify through a process of Social and Environmental Assessment allcommunities of Indigenous Peoples who may be affected by the project within the project’s area ofinfluence, as well as the nature and degree of the expected social, cultural (including cultural
heritage1), and environmental impacts on them, and avoid adverse impacts whenever feasible.
8. When avoidance is not feasible, the client will minimize, mitigate or compensate for these
impacts in a culturally appropriate manner. The client’s proposed action will be developed with theinformed participation of affected Indigenous Peoples and contained in a time-bound plan, such as
an Indigenous Peoples Development Plan, or a broader community development plan with separate
components for Indigenous Peoples consistent with the requirements of paragraph 9.2

Information Disclosure, Consultation and Informed Participation
9. The client will establish an ongoing relationship with the affected communities of Indigenous
Peoples from as early as possible in the project planning and throughout the life of the project. In
projects with adverse impacts on affected communities of Indigenous Peoples, the consultation
process will ensure their free, prior, and informed consultation and facilitate their informed
participation on matters that affect them directly, such as proposed mitigation measures, the sharingof development benefits and opportunities, and implementation issues . The process of community
engagement will be culturally appropriate and commensurate with the risks and potential impacts to
the Indigenous Peoples. In particular, the process will include the following steps :§§Involve Indigenous Peoples’ representative bodies (for example, councils of elders
or village councils, among others)
Be inclusive of both women and men and of various age groups in a culturally
appropriate manner

1

Additional client requirements on protection of cultural heritage are set out in Performance Standard 8.
The determination of the appropriate plan will require technical judgment. A community development plan may
be appropriate when Indigenous Peoples are integrated into larger affected communities.
2

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Performance Standard 7
Indigenous Peoples
April 30, 2006§§§

Provide sufficient time for Indigenous Peoples’ collective decision-making
processes
Facilitate the Indigenous Peoples’ expression of their views, concerns, andproposals in the language of their choice, without external manipulation,interference, or coercion, and without intimidation
Ensure that the grievance mechanism established for the project, as described in
Performance Standard 1, paragraph 23, is culturally appropriate and accessible for
Indigenous Peoples

Development Benefits
10. The client will seek to identify, through the process of free, prior, and informed consultation withand the informed participation of the affected communities of Indigenous Peoples, opportunities for
culturally appropriate development benefits. Such opportunities should be commensurate with thedegree of project impacts, with the aim of improving their standard of living and livelihoods in a
culturally appropriate manner, and to fostering the long-term sustainability of the natural resource on
which they depend. The client will document identified development benefits consistent with therequirements of paragraphs 8 and 9 above, and provide them in a timely and equitable manner.

Special Requirements
11. Because Indigenous Peoples may be particularly vulnerable to the project circumstances
described below, the following requirements will also apply, in the circumstances indicated, in
addition to the General Requirements above. When any of these Special Requirements apply, theclient will retain qualified and experienced external experts to assist in conducting the Assessment.

Impacts on Traditional or Customary Lands under Use
12. Indigenous Peoples are often closely tied to their traditional or customary lands and natural
resources on these lands. While these lands may not be under legal ownership pursuant to nationallaw, use of these lands, including seasonal or cyclical use, by communities of Indigenous Peoples fortheir livelihoods, or cultural, ceremonial, or spiritual purposes that define their identity and community,
can often be substantiated and documented. Paragraphs 13 and 14 below specify the requirementsthat the client will follow when traditional or customary lands are under use in a manner described inthis paragraph.
13. If the client proposes to locate the project on, or commercially develop natural resources locatedwithin, traditional or customary lands under use, and adverse impacts 3 can be expected on the
livelihoods, or cultural, ceremonial, or spiritual use that define the identity and community of the
Indigenous Peoples, the client will respect their use by taking the following steps:§

The client will document its efforts to avoid or at least minimize the size of land
proposed for the project3

Such adverse impacts may include impacts from loss of access to assets or resources, or restrictions on landuse, resulting from project activities.

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Indigenous Peoples
April 30, 2006

§

§

§

§

The Indigenous Peoples’ land use will be documented by experts in collaboration
with the affected communities of Indigenous Peoples without prejudicing any
Indigenous Peoples’ land claim 4
The affected communities of Indigenous People will be informed of their rights withrespect to these lands under national laws, including any national law recognizing
customary rights or use
The client will offer affected communities of Indigenous Peoples at least
compensation and due process available to those with full legal title to land in thecase of commercial development of their land under national laws, together with
culturally appropriate development opportunities; land-based compensation orcompensation-in-kind will be offered in lieu of cash compensation where feasible
The client will enter into good faith negotiation with the affected communities ofIndigenous Peoples , and document their informed participation and the successful
outcome of the negotiation

Relocation of Indigenous Peoples from Traditional or Customary Lands
14. The client will consider feasible alternative project designs to avoid the relocation of Indigenous
Peoples from their communally held5 traditional or customary lands under use. If such relocation is
unavoidable, the client will not proceed with the project unless it enters into a good faith negotiation
with the affected communities of Indigenous Peoples , and documents their informed participation andthe successful outcome of the negotiation. Any relocation of Indigenous Peoples will be consistent
with the Resettlement Planning and Implementation requirements of Performance Standard 5.
Where feasible, the relocated Indigenous Peoples should be able to return to their traditional or
customary lands, should the reason for their relocation cease to exist.

Cultural Resources
15. Where a project proposes to use the cultural resources, knowledge, innovations, or practices ofIndigenous Peoples for commercial purposes, the client will inform the Indigenous Peoples of: (i)their rights under national law; (ii) the scope and nature of the proposed commercial development;and (iii) the potential consequences of such development. The client will not proceed with suchcommercialization unless it: (i) enters into a good faith negotiation with the affected communities ofIndigenous People; (ii) documents their informed participation and the successful outcome of thenegotiation; and (iii) provides for fair and equitable sharing of benefits from commercialization of suchknowledge, innovation, or practice, consistent with their customs and traditions.

4

While this Performance Standard requires substantiation and documentation of the use of such land, clientsshould also be aware that the land may already be under alternative use, as designated by the host government.
5
Where members of the affected communities of Indigenous Peoples individually hold legal title, or where therelevant national law recognizes customary rights for individuals, the requirements of Performance Standard 5 will
apply, rather than the requirements under this heading.

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Performance Standard 8
Cultural Heritage
April 30, 2006

Introduction
1. Performance Standard 8 recognizes the importance of cultural heritage for current and future
generations. Consistent with the Convention Concerning the Protection of the World Cultural andNatural Heritage, this Performance Standard aims to protect irreplaceable cultural heritage and to
guide clients on protecting cultural heritage in the course of their business operations. In addition,
the requirements of this Performance Standard on a project’s use of cultural heritage are based inpart on standards set by the Convention on Biological Diversity.

Objectives§§

To protect cultural heritage from the adverse impacts of project activities andsupport its preservation
To promote the equitable sharing of benefits from the use of cultural heritage inbusiness activities

Scope of Application
2. The applicability of this Performance Standard is establis hed during the Social andEnvironmental Assessment process, while implementation of the actions necessary to meet therequirements of this Performance Standard is managed through the client’s Social andEnvironmental Management System. The assessment and management system requirements are
outlined in Performance Standard 1.
3. For the purposes of this Performance Standard, cultural heritage refers to tangible forms ofcultural heritage, such as tangible property and sites having archaeological (prehistoric),
paleontological, historical, cultural, artistic, and religious values, as well as unique naturalenvironmental features that embody cultural values, such as sacred groves. However, for the
purpose of paragraph 11 below, intangible forms of culture, such as cultural knowledge, innovations
and practices of communities embodying traditional lifestyles, are also included. The requirements ofthis Performance Standard apply to cultural heritage regardless of whether or not it has been legally
protected or previously disturbed.

Requirements
Protection of Cultural Heritage in Project Design and Execution
Internationally Recognized Practices
4. In addition to complying with relevant national law on the protection of cultural heritage, including
national law im plementing the host country’s obligations under the Convention Concerning theProtection of the World Cultural and Natural Heritage and other relevant international law, the client
will protect and support cultural heritage by undertaking internationally recognized practices for theprotection, field-based study, and documentation of cultural heritage. If the requirements ofparagraphs 7, 8, 9, 10 or 11 apply, the client will retain qualified and experienced experts to assist in
the Assessment.

Chance Find Procedures
5. The client is responsible for siting and designing a project to avoid significant damage to cultural
heritage. When the proposed location of a project is in areas where cultural heritage is expected to

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Performance Standard 8
Cultural Heritage
April 30, 2006

be found, either during construction or operations, the client will implement chance find procedures
established through the Social and Environmental Assessment. The client will not disturb any
chance finds further until an Assessment by a competent specialist is made and actions consistent
with the requirements of this Performance Standard are identified.

Consultation
6. Where a project may affect cultural heritage, the client will consult with affected communities
within the host country who use, or have used within living memory, the cultural heritage for longstanding cultural purposes to identify cultural heritage of importance, and to incorporate into theclient’s decision-making process the views of the affected communities on such cultural heritage.
Consultation will also involve the relevant national or local regulatory agencies that are entrusted withthe protection of cultural heritage.

Removal of Cultural Heritage
7. Most cultural heritage is best protected by preservation in its place, since removal is likely toresult in irreparable damage or destruction of the cultural heritage. The client will not remove any
cultural heritage, unless the following conditions are met:§§§

There are no technically or financially feasible alternatives to removal
The overall benefits of the project outweigh the anticipated cultural heritage loss
from removal
Any removal of cultural heritage is conducted by the best available technique

Critical Cultural Heritage
8. Critical cultural heritage consists of (i) the internationally recognized heritage of communities
who use, or have used within living memory the cultural heritage for long-standing cultural purposes;and (ii) legally protected cultural heritage areas, including those proposed by host governments forsuch designation.
9. The client will not significantly alter, damage, or remove any critical cultural heritage. In
exceptional circumstances , where a project may significantly damage critical cultural heritage, and its
damage or loss may endanger the cultural or economic survival of communities within the hostcountry who use the cultural heritage for long-standing cultural purposes , the client will: (i) meet therequirements of Paragraph 6 above; and (ii) conduct a good faith negotiation with and document the
informed participation of the affected communities and the successful outcome of the negotiation. In
addition, any other impacts on critical cultural heritage must be appropriately mitigated with theinformed participation of the affected communities.
10. Legally protected cultural heritage areas are important for the protection and conservation ofcultural heritage, and additional measures are needed for any projects that would be permitted under
the applicable national laws in these areas. In circumstances where a proposed project is locatedwithin a legally protected area or a legally defined buffer zone, the client, in addition to therequirements for critical cultural heritage cited above in Paragraph 9, will meet the following
requirements :§§Comply with defined national or local cultural heritage regulations or the protectedarea management plans
Consult the protected area sponsors and managers, local communities and otherkey stakeholders on the proposed project

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Cultural Heritage
April 30, 2006§

Implement additional programs, as appropriate, to promote and enhance theconservation aims of the protected area

Project’s Use of Cultural Heritage
11. Where a project proposes to use the cultural resources, knowledge, innovations, or practices of
local communities embodying traditional lifestyles for commercial purposes, the client will inform
these communities of: (i) their rights under national law; (ii) the scope and nature of the proposedcommercial development; and (iii) the potential consequences of such development. The client will
not proceed with such commercialization unless it: (i) enters into a good faith negotiation with theaffected local communities embodying traditional lifestyles; (ii) documents their informed participationand the successful outcome of the negotiation; and (iii) provides for fair and equitable sharing of
benefits from commercialization of such knowledge, innovation, or practice, consistent with theircustoms and traditions.

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