Category B Project

Definition

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.