Category B Project

From Open Risk Manual


There can be a range of potential environmental and social risks within Projects classified as Category B. In general terms, higher risk Category B Projects will be treated similarly to Category A Projects, while lower risk Category B Projects may be treated with a lighter regime.

  • Environmental and Social Impact Assessment may be required; alternatively, limited or focused environmental and social assessment may be appropriate.
  • Assessment of Human Rights risks and impacts required.
  • Climate Change risks assessment may be required.
  • Review and confirmation required on how the Project and transaction meet each of the Equator Principles (potentially with support from Independent Environmental and Social Consultant) as appropriate.
  • Client required to develop/maintain Environmental and Social Management System as appropriate and Environmental and Social Management Plan.
  • Client required to demonstrate Stakeholder Engagement commensurate with potential risk to affected communities, including Indigenous Peoples where relevant.
  • Client may be required to establish effective grievance mechanisms for use by affected communities and workers, scaled appropriately.
  • Independent Environmental and Social Consultant potentially to carry out review of all mechanisms assessing compliance with the Equator Principles, as appropriate; other due diligence may satisfy this requirement.
  • Client required to covenant to:
    • comply with Environmental and Social Standards (as further detailed below), including with relevant host country laws,
    • comply with management/action plans to ensure relevant Equator Principles compliance,
    • report on and document compliance with relevant environmental and social obligations and local law, and
    • decommission facilities appropriately.
  • Independent monitoring and reporting may be required.
  • Client may be required to report on various environmental and social metrics, including Greenhouse Gas Emissions and Human Rights when relevant.