Environmental and Social Impact Assessment (ESIA) is a management tool that is used in developed and developing countries to identify and address the likely significant effects of a proposed development. Although there are specific requirements set out in the legislation of individual countries, the common principles are relevant to any ESIA in any country.

ESIA is an iterative process, and although a document is submitted for approval before construction, the process should be carried through into the construction and operational phases, with additional mini-assessments undertaken as new issues are identified.

An ESIA should be undertaken at a level that is commensurate with the scale, complexity and sensitivity of the individual project. The key stages in the process include proposal definition, screening, scoping, impact assessment, mitigation, review, decision-making, audit and monitoring. A good ESIA is integrated into the project development process and should not be seen as a barrier to development or as an unnecessary cost. As well as being a stepping-stone to consent from regulators and financial backers, it is a management tool for use during project planning and execution and will help avoid unnecessary impacts, delays and unexpected costs.

The key issues associated with the installation of new cross-country pipelines vary between projects but often relate to land-take, biodiversity, heritage, pollution control, disruption of livelihoods, community safety, traffic management, loss of remoteness, communicable diseases and employment and trade opportunities.

The following issues are considered during a typical ESIA but the list should be regarded as indicative as some will not be relevant to every project.

  • Assessment of the baseline social and environmental conditions
  • Consideration of feasible environmentally and socially preferable alternatives
  • Requirements under host country laws and regulations, applicable international treaties and agreements
  • Protection of human rights and community health, safety and security (including risks, impacts and management of project’s use of security personnel)
  • Protection of cultural property and heritage
  • Protection and conservation of biodiversity, including endangered species and sensitive ecosystems in modified, natural and critical habitats, and identification of legally protected areas
  • Sustainable management and use of renewable natural resources (including sustainable resource management through appropriate independent certification systems)
  • Use and management of dangerous substances
  • Major hazards assessment and management
  • Labour issues (including the four core labour standards), and occupational health and safety
  • Fire prevention and life safety
  • Socio-economic impacts
  • Land acquisition and involuntary resettlement
  • Impacts on affected communities, and disadvantaged or vulnerable groups
  • Impacts on indigenous peoples, and their unique cultural systems and values
  • Cumulative impacts of existing projects, the proposed project, and anticipated future projects
  • Consultation and participation of affected parties in the design, review and implementation of the project
  • Efficient production, delivery and use of energy
  • Pollution prevention and waste minimisation, pollution controls (liquid effluents and air emissions) and solid and chemical waste management.

An action plan and/or environmental management system is usually used to aid management of the issues identified in the ESIA. These documents should identify who is responsible for which actions and set delivery of the actions within the project timeframe.

Audits and inspections are then undertaken to monitor compliance with the various commitments that have been made during the course of project development. This also facilitates feedback into the ESIA process for future projects, as the audit reports can be used to distinguish between mitigation measures that work well and those that are less satisfactory.