- Board of Directors approves the EBRD’s 2024 Environmental and Social Policy
- Enhanced risk management and grievance mechanisms introduced
- Stronger safeguards for supply chains, biodiversity and human rights
The European Bank for Reconstruction and Development (EBRD) has approved an updated Environmental and Social Policy, reinforcing its commitment to sustainability in the projects it finances. The new policy introduces enhanced measures to mitigate environmental and social risks, while helping ensure a lasting positive impact across the Bank’s regions.
Key updates include a more robust, risk-based approach to project assessment. Higher-risk projects will undergo stringent evaluations to identify and manage potential impacts early, ensuring that all projects meet sustainability standards and deliver positive outcomes.
The updated policy also strengthens the EBRD’s supply chain requirements, holding borrowers responsible for ensuring that suppliers comply with international standards on labour practices, human rights and environmental protection. Audits may be conducted to verify compliance.
In line with global priorities, the policy enhances biodiversity protection by introducing stricter measures to safeguard natural habitats and ecosystems. Projects affecting biodiversity will face rigorous scrutiny, including mandatory mitigation measures where necessary.
The new policy also advances the Bank’s commitment to human rights and social inclusion, with a greater emphasis on safeguarding vulnerable populations and promoting gender equality. The policy aims to ensure that the benefits of EBRD-supported projects are shared equitably.
Lastly, the updated policy enhances the requirement for accessible and transparent grievance mechanisms, allowing stakeholders to raise concerns about environmental or social impacts in a safe and timely manner.
Henrik Linders, Managing Director, Environment and Sustainability at the EBRD, said: “This milestone builds on more than 20 years of experience in managing risk and unlocking opportunities across all our sectors. It reinforces our commitment to sustainability, ensuring environmental and social integrity on a project-by-project level. I’m happy that our new policy reflects our leadership in sustainability, helping us to address today’s most pressing challenges across our countries.”
The EBRD’s Environmental and Social Policy is updated every five years. It outlines the principles and standards that guide the Bank’s investment decisions and is implemented by its Environment and Sustainability Department.