Environmental and Social Management Framework

Objective of the Environmental and Social Management Framework (ESMF)
The ECPCGC will take steps to mitigate any issues related to environmental or social issues prior to approving a loan guarantee. Loans Guaranteed by ECPCGC will be subject to World Bank Policies and Safeguards as well as national environmental, health and safety regulatory requirements in each host country. The Environmental and Social Management Framework (ESMF) will assist Participating Lenders (PLs) and MSMEs in OECS to identify appropriate methods and tools to assess and manage the potential environmental and social risks and impacts of the project.

Environmental and Social Risk Screening
PLs will be required to screen all MSMEs loan applications to ensure eligibility for funding and that the MSME loan applicant’s operations/business does not negatively affecting the environment, human health, safety and security, communities and threaten biodiversity and cultural heritage.

Further details outlining the screening process can be obtained from the Supplementary Guidelines for Screening MSME Applications.

World Bank Excluded Activities
MSME activities that fall under the World Bank’s ‘Exclusion List’ are not eligible to participate in the ECPCGC because they are either illegal or represent unacceptably high environmental and social risk.