The people impacted might be located in only one section of one factory, or spread across a wide geographic area. Environmental and social assessments are a crucial tool for determining the range and significance of projected impacts. Various types of assessments can be conducted, depending on the nature and complexity of the project. New projects might require detailed environmental and social impact assessments for both the proposed site and for alternative sites. Modernizations or expansions might require reviewing a project s existing environmental and social impacts and assessing how new funding will affect this baseline.
Assessments are more than a paperwork requirement, of course.
In addition to providing us with important information, well-prepared assessments are valuable tools for effective project implementation and management. Performance requirements IFC has developed safeguard policies for environmental and social issues that project sponsors should review before conducting their assessments. Sponsors should also review our sectoral guidelines environmental, health, and safety guidelines specific to particular industries, sectors, or types of project. During the appraisal process, IFC identifies which of these policies and guidelines are applicable to a project. If IFC invests, the project s performance is monitored against these policies and guidelines.