Multisector / ADB's corporate management, policy and strategy development

The ADB Board approved the SPS in July 2009 and it came into effect in January 2010. The SPS consolidated three previous policies on environment, involuntary resettlement, and

indigenous peoples. The SPS (para 82) mandated a policy review by IED five years after becoming effective to assess its effectiveness in achieving ADB's objectives. The IED 2019

corporate evaluation was preceded by an operational review of the SPS in 2014 and 2016.

Over the past 10 years, ADB has made significant efforts to improve the capacity of DMCs and its clients to manage social and environment risks. At the same time, the country context, development needs, systems, and capacities of DMCs and clients have evolved considerably. ADB has rolled out new lending instruments (i.e. policy-based loan, results-based loan, and other new lending modalities) which require different approaches in assessing and managing safeguards risks. Between 20102018, the size of ADB's portfolio doubled, with increase private sector financing; and non-infrastructure sector projects (health, education, technical vocational education and training), where the capacities of the executing and implementing agencies are weak. The shift from predominately standalone investment projects to a more diverse portfolio including multitranche financing facility, policy-based loans, and results-based lending, wherein interlinkages between social and environment risks are complex, and processing times are shorter, create challenges for current safeguard processes and resources. The SPS did not anticipate the current increases in private sector financing, greater diversity in the use of financial intermediaries, general corporate finance

loans, private equity investments and other innovative financing modalities. Furthermore, for the Strategy 2030 period, there is a need to consider the suitability of the existing safeguard policy framework to fragile and conflict affected situations (FCAS) and small island developing states (SIDS). Thus, there is a need to examine whether the current SPS provisions remain relevant and robust enough to ensure SPS policy objectives are fully implemented.

Implementation of environment and social safeguards in ADB projects improved

Governance framework in DMCs to uphold environment and social safeguards in ADB projects improved

ADB's safeguard policies strengthened

Safeguards policy procedures streamlined and requirements improved

Stakeholder engagement plan implemented

Preparatory measures for roll-out of the revised safeguard policy implemented