Environmental and Social Performance Standard 1 Edition 1

We begin with an overview of Environmental and Social Performance Standard 1 (ESPS 1). This standard is especially relevant because it applies to all projects requiring IDB financing. The module also highlights its cross-cutting role within the Bank’s Environmental and Social Policy Framework.

A core requirement of ESPS 1 is that each project must establish an Environmental and Social Management System (ESMS) tailored to its needs. In this module, you will study the seven fundamental components of an ESMS, including a project-specific E&S framework and elements of a risk management program. This program covers mitigation and performance improvement measures, actions to address risks and impacts, monitoring mechanisms, and instruments for outreach and engagement with affected people and other stakeholders. The module also emphasizes the importance of organizational capacity throughout the project cycle.

In this module, you will solve two practical case studies through questionnaires based on fictional projects. Your answers will assess how well the seven elements of an implementing agency’s ESMS align with the requirements of ESPS 1, considering the expected risks, impacts, and scope of each project. This exercise mirrors the type of evaluation you may need to perform for projects in your own organization that seek IDB financing. To complete the cases and answer the questionnaires, you will have access to two videos that provide project context and a mock website of the executing agency, which you may consult as often as needed.