The New Development Bank aims to ensure that all projects financed by its funds are implemented in a sustainable way and their ESG impacts are assessed, minimised and mitigated during project implementation.
The principles of sustainability and sound management are incorporated into the Bank’s policies and NDB Environmental and Social Framework. NDB’s projects are to be implemented in a way conducive to achieve development goals with transparency and collaboration. Besides being economically viable, environmentally sound and socially responsible, NDB-financed projects aim at improved operational performance, efficient procurement and adherence with good corporate governance practices.
The NDB believes that environmental and social sustainability are crucial to addressing the infrastructure gaps and sustainable development needs consistent with national laws and regulations, and its mandate.
According to the NDB Environmental and Social Framework, the Bank is guided by the following:
Inclusive and Sustainable Development
Ensuring inclusive sharing of development benefits and opportunities, including among traditionally deprived sections such as the poor, the disadvantaged, women, children and minorities, is a principle focus area of the NDB.
The Bank recognizes the importance of maintaining policy and operating standards that promote sustainable development, are aligned with international good practices, and effectively respond to environmental and social risks.
The NDB promotes the use of strong country and corporate systems in the management of environmental and social risks and impacts. The Bank also assists in further strengthening the country systems through a variety of mechanisms in both the public and the private sector.
Environmental and Social Interests
The NDB integrates the principles of environmental and social sustainability in its policies and operations to ensure that its financing and investments in infrastructure and sustainable development projects have minimal adverse impact on the environment and people.
The Bank seeks to promote mitigation and adaptation measures to address climate change. The NDB aims to build upon existing green economic growth initiatives and provide support for new ones at regional, national, sub-national and private sector levels. The Bank also encourages climate proofing of its infrastructure financing and investments to build resilience to climate change.
Conservation of Natural Resources
The NDB promotes the conservation of natural resources, including energy and water, and it supports sustainable land use management and urban development.
The Bank believes that gender equality is important to successful and sustainable economic development, and accordingly the Bank considers it imperative to mainstream gender equality issues in all of its operations.
Please click here to download the NDB Diversity Policy that defines the diversity principles of the Bank and responsibilities for its implementation.
The NDB uses a precautionary approach to justify discretionary decisions in situations where there is the possibility of environmental and social harm resulting from project decisions.
Co-operative Functioning and Knowledge Dissemination
The NDB seeks to complement the existing efforts of multilateral financial institutions, regional financial institutions and other agencies. In addition, the NDB intends to disseminate knowledge gained with its development partners.