ESIA

Environmental and
Social Impact Assessment
product: 4342
Environmental and Social Impact Assessment
Centre for Financial and Management Studies, SOAS, University of London
First Published 2013
All rights reserved. No part of this course material may be reprinted or reproduced or utilised in any form or by any
electronic, mechanical, or other means, including photocopying and recording, or in information storage or retrieval
systems, without written permission from the Centre for Financial & Management Studies, SOAS, University of London.
Environmental and Social Impact
Assessment
Course Introduction and Overview
Contents
1 Introduction 3
2 Course Content 3
3 Course Structure 4
4 The Course Authors 6
5 Study Materials 6
6 Studying the Course 8
Specimen Examination 13
Glossary 15
2 University of London
1 Introduction
As you will learn in this course, the intended beneficiaries or investors are not
the only audiences to whom it must be demonstrated that that a projects
technical, institutional and financial attributes warrant that the project will be
worthwhile. The effects a project will have (i.e. its impacts) on the envi-
ronment, nearby communities and the wider society must also be investi-
gated, so that these can be taken into consideration by the decision-makers
who determine whether or not the project should proceed.
The most widely used techniques to investigate projects environmental and
social implications are Environmental Impact Assessment (EIA) and Social
Impact Assessment (SIA), or Environmental and Social Impact Assessment
(ESIA). Many governments, project financiers and project developers require
ESIA or EIA.
Two types of project assessment can be distinguished:
Ex ante assessment: determining in advance (before it is implemented)
whether or not a project is worthwhile and should proceed and, if so, in
what format this is sometimes called project appraisal or evaluation
Ex post assessment: assessing the performance of a project after it has
been implemented and completed (i.e. retrospectively) this is
sometimes called (environmental) auditing or performance monitoring.
This course covers the ex ante ESIA of projects. It also introduces tools that are
used to support ESIA, ways of improving the effectiveness of ESIA, and other
techniques, besides ESIA, that are used to investigate the environmental and
social implications of projects and other initiatives.
2 Course Content
The course is divided into eight units of study, each to be completed within
one week.
Unit 1
The first unit of the course introduces ESIA, the functions and tools of
Environmental and Social Impact Assessment. It provides an overview of the
origins and variations in application. It discusses the purpose and the drivers
for ESIA, and it describes the overall ESIA process, including the structuring
of ESIAs. This unit also looks at the success of ESIA, and includes a discussion
on Social Impact Assessment (SIA).
Unit 2
Unit 2 explains how the foundation is laid for ESIA via the screening, scoping,
project description, and baseline description steps. It discusses the fundamen-
tals of screening, approaches to screening, the purpose of scoping, scoping
procedure, identification of alternatives and data collection, interpretation
and report.
Centre for Financial and Management Studies 3

Unit 3
Unit 3 is concerned with impact assessment. It covers impact identification
and prediction, discussing a number of the tools available to facilitate impact
identification. It also covers impact significance evaluation, looking at judging
significance with and without management, significance criteria and methods
for judging and presenting significance evaluations. In addition, this unit dis-
cusses the distribution of impacts, taking into consideration social equity.
Unit 4
Unit 4 deals with the management hierarchy the mitigation of negative im-
pacts (undesirable consequences) and the enhancement of positive impacts
(benefits), which is a key purpose of ESIA, and how mitigation relates to pro-
ject design. In addition, this unit covers the management and monitoring plan,
reporting the ESIA and decision making.
Unit 5
Unit 5 focuses on stakeholder engagement (also known as public consultation)
in ESIA. It covers its aims and benefits, stakeholder identification and analysis,
how stakeholder engagement fits in with the ESIA process, the nature and ex-
tent of involvement in stakeholder engagement, methods for stakeholder en-
gagement and stakeholder engagement in practice.
Unit 6
Unit 6 is concerned with improving the effectiveness of ESIA. It covers ESIA
planning and project management, including a discussion of the ESIA team,
the project manager, and project scheduling and budgeting. It is also con-
cerned with implementation and follow-up, covering monitoring, auditing
and the linkage between ESIA and the Environmental Management System
(EMS).
Unit 7
Unit 7 discusses other assessment techniques. It covers thematically focused
forms of impact assessment specifically heath impact assessment, mental
well-being impact assessment, economic impact assessment, gender impact
assessment, and cultural/heritage impact assessment. It also deals with spe-
cialised assessment techniques in particular, risk assessment and life-cycle
assessment.
Unit 8
Unit 8 focuses on strategic and emerging forms of impact assessment. It begins
by exploring approaches to widening the scope of impact assessment so as to
explore cumulative and strategic impacts. Thereafter, emerging forms of as-
sessment, namely integrated assessment and sustainability assessment, are
examined.
3 Course Structure
Unit 1
1.1 Introduction
1.2 Origins and Variations in Application
1.3 Purpose of ESIA
1.4 Drivers for ESIA
1.5 The Overall ESIA Process
1.6 Structuring ESIAs
1.7 Success of ESIA
1.8 Social Impact Assessment
1.9 Summary and Conclusions
Unit 2
2.1 Introduction
2.2 Screening
2.3 Scoping
2.4 Project Description
2.5 Baseline Description
2.6 Data Collection, Interpretation and Reporting
Unit 3
3.1 Introduction
3.2 Impact Identification and Prediction
3.3 Impact Significance Evaluation
3.4 Social Impacts and Social Equity
Unit 4
4.1 Introduction
4.2 Impact Mitigation and Enhancement
4.3 The Management and Monitoring Plan
4.4 Reporting the ESIA
4.5 ESIA and Decision-Making
Unit 5
5.1 Introduction
5.2 Aims and Benefits of Stakeholder Engagement
5.3 Methods for Securing Stakeholder Engagement
5.4 Stakeholder Engagement in Practice
Unit 6
6.1 Introduction
6.2 ESIA Planning and Project Management

6.3 Implementation and Follow-up

Unit 7
7.1 Introduction
7.2 Thematically Focused Forms of Impact Assessment
7.3 Specialised Assessment Techniques
Unit 8
8.1 Introduction
8.2 Widening the Scope of Impact Assessment
8.3 Emerging Forms of Impact Assessment
4 The Course Authors

Theo Hacking is a Senior Research Associate at the University of Cambridge.
He has spent most of his career working in industry and as a consultant in the
fields of environmental management, sustainable development and corporate
social responsibility. He has specialised in social and environmental impact
assessment and has a particular interest in enhancing the effectiveness of im-
pact assessment as a tool for sustainable development. Dr Hacking has a PhD
from the University of Cambridge, and his thesis explores the Sustainability
Assessment of mining projects. His initial degrees were BSc Eng (Civil) and
MSc Eng (Environmental) from the University of the Witwatersrand. He is an
active member of the International Association of Impact Assessment.
Candice Kent is a technical writer with a PhD from the University of Cam-
bridge. Her thesis investigates the intersections between science and literature.
She has an Engineering Degree from the University of the Witwatersrand
(Wits) in South Africa, and has practiced as a project engineer in the industrial
minerals sector. Furthermore, she has postgraduate degrees in physics from
both Wits and the University of Cambridge, and has lectured at the former in
the Departments of Engineering, Physics and English.
5 Study Materials
Your main study guide will be the course text and is divided, as noted above,
into eight units, which will introduce the topics to be studied each week and
indicate when you are to study the set readings, in the textbook or Course
Reader, and suggest questions and exercises for you to work on. It will also
prompt your work on the case study you have chosen.
Textbook
One textbook will be supplied to you for this course:
John Glasson, Riki Therivel and Andrew Chadwick (2012) Introduction to

Environmental Impact Assessment, Third Edition, London and New York:
Routledge.
Course Reader
In addition, you will receive a Course Reader, with scholarly and topical
articles and examples. You will be guided through all of this reading as you
work through the course.
Case Studies
Some exercises in the course will involve using a case study, to illustrate the
technical and theoretical issues that you will be studying in the course. You
must select one of the following for this purpose.
Case Study 1 Environmental Assessment Report for the Padma

Multipurpose Bridge Project, Bangladesh.
The proposed project involves the construction of about 6.15km-long main
bridge and transition structures, river training works, bridge connecting ap-
proach roads and associated structures, among other elements. The project
area is located in the south-central part of Bangladesh (Munshiganj, Shariat-
pur and Madaripur Districts). The design life of the proposed project is 100
years. Two types of considerations were included in the environmental as-
sessment: greenhouse gas emissions and climate change impacts. The draft
environmental assessment report (Bangladesh Bridge Authority, 2010) can be
found at the Asian Development Banks website:
http://www.adb.org/Documents/Environment/BAN/35049/35049-01-ban-
eia.pdf
Case Study 2 Environmental Impact Statement for the Mackenzie Gas

Project, Canada
The Mackenzie Gas Project proposes to build a 1,196-kilometre pipeline sys-
tem in order to link northern natural gas producing wells to southern markets.
The main Mackenzie Valley Pipeline would connect to an existing natural gas
pipeline system in north-western Alberta. The proposed Project crosses four
Aboriginal regions in Canadas Northwest Territories. The gas fields can sup-
ply about 800 million cubic feet per day of natural gas over the life of the Pro-
ject. In total, as much as 1.2 billion cubic feet per day of natural gas could be
available initially to move through the Mackenzie Valley Pipeline, which es-
timated at $16 billion will entail cooperation among many different com-
panies, communities, settlement regions, regulatory agencies and gov-
ernments.
http://www.mackenziegasproject.com/theProject/regulatoryProcess/applic
ationSubmission/Applicationscope/EIS.html
Case Study 3 Environmental and Social Impact Assessment for the Gulf Power
Plant, Kenya and IFC Supplemental Environmental and Social Ac-
tion Plan.
The project is the development of a green-field 80 MW Heavy Fuel Oil fired
power plant, including a 66kv interconnector and backup metering equipment

on a 20 years build-own-and-operate basis along the NairobiMombasa high-

way. The Project will have a 20-year Power Purchase Agreement with Kenya
Power and Lighting Company, the national transmission and distribution
company. The developer of the Project is Gulf Power Limited, a special pur-
pose company incorporated in Kenya by a consortium of Kenyan investors
with a view to enter the power generation business in Kenya. The Project is
expected to generate 60-80 MW using medium speed diesel engines. The key
environmental and social impacts include air quality, noise, occupational
health and safety, community health and safety, traffic management, hazard-
ous material and waste management, and access to water during both con-
struction and operation.
http://www.ifc.org/ifcext/spiwebsite1.nsf/2bc34f011b50ff6e85256a550073ff1
c/449695dfaaf3b48b852578a100762cd6?opendocument
These reports are extensive and consist of a number of documents for exam-
ple, Padma is 600 pages, and Mackenzie considerably more. Although it will
not be necessary for you to read all of the report it will be beneficial for you to
browse or search through it in order to be able to relate a real report to the
theoretical content of the course. You will also get a sense of the structure and
content of such reports and learn how to interpret them, as well as how to
write them.
Should you be interested in looking at further examples of EIAs, SIAs and
ESIAs for recent major projects within various sectors, possible sources are:
Possible Sources: Examples:

Financiers/ The World Bank; www.worldbank.org; from the website select
International Projects and Operations and then Advanced Search.
Development The International Finance Corporation (IFC);
Agencies www.ifc.org/projects; select a Category A or B project.
Regulators Canadian Environmental Assessment Agency Registry;
www.ceaa.gc.ca/050/index_e.cfm
Projects/ Companies Sakhalin; www.sakhalinenergy.ru/en/; from the website
choose library.
6. Glossary
Term: Description
Biophysical The non-human environment, including living organisms (plants and
animals) and non-living matter (e.g. water and air).
Cultural/ Assessment of impacts on anything that may have aesthetic,
Heritage architectural, historical, scientific, social, spiritual, linguistic or
Impact technological value. It may encompass the natural environment,
Assessment buildings, objects and/or more intangible components, such as
indigenous knowledge systems or rituals.
Cumulative Assessment of impacts due to numerous separate developments,
Effects which might be insignificant on their own, but which can interact or
Assessment combine to cause significant impacts.
Economic Assessment of the impacts of a project on the wider economy, which

Impact can be direct, indirect, induced or fiscal.
Assessment
Engagement Process of interacting with stakeholders to produce better decisions/
outcomes. The level of engagement may increase in level, as follows:
inform, consult, involve, collaborate, empower.
Equator Initiative of financial institutions whereby the signatories commit to
Principles assessing potential investments in accordance with the International
Finance Corporations Performance Standards on Social and
Environmental Sustainability, which include ESIA. (www.equator-
principles.com).
Health Impact A combination of procedures, methods and tools by which a policy,
Assessment programme or project may be judged as to its potential effects on the
health of a population, and the distribution of those effects within the
population. (World Health Organisation)
Impact Any change (beneficial or adverse) in the environment (social or
biophysical) as a result of human activity.
Integrated Forms of impacts assessment that aim to: align/ combine a number of
Assessment established assessment techniques (e.g. EIA+SIA); and/or to compare/
explore interrelationships between themes (e.g. biophysical & social).
Life-Cycle Compilation and evaluation of the inputs, outputs and the potential
Assessment environmental impacts of a product system throughout its life cycle.
(ISO, 2006)
Mitigation Measures to prevent/ eliminate, reduce/ minimise, remediate/ repair
or compensate adverse impacts.
Significance The significance of impacts is typically determined by considering
their magnitude/ severity, extent, duration and probability. Opposite
ends of the spectrum are:
Highly significant impacts: Impacts that are diverse, irreversible
and/or unprecedented.
Low significance/ insignificant impacts: Impacts that are generally
site-specific, largely reversible, and in relation to adverse
impacts readily addressed by mitigation.
Social Anything relating to humans and their interactions, including

economic, cultural, human rights, health and safety concerns.
Stakeholders Interested or affected parties, including: neighbouring communities
and businesses; local, regional and national governments (i.e. the
authorities); employees, contractors, and suppliers; Nongovernmental
Organisations (NGOs) and Community-based Organisations (CBOs);
and media groups.
Strategic A systematic, on-going process for evaluating, at the earliest possible
Environmental stage of publicly accountable decision-making, the environmental
Assessment quality, and consequences, of alternative visions and development
intentions incorporated in policy, planning or programme initiatives,
ensuring full integration of relevant biophysical, economic, social and
political considerations. (Partidrio, 1999:64)
Sustainability Assessment processes that aim to determine whether or not an
Assessment initiative will contribute to sustainable development. (Pope et al.,
2004).

Triple bottom- Term used in the business literature to refer to companies expanding
line their traditional focus on the financial bottom-line to also take into
account (biophysical) environmental and social performance, i.e.
people, planet and profit.
Vulnerable People who are differentially or disproportionately sensitive to change
individuals or (or in need of change), since they are underrepresented,
groups disadvantaged or lacking in power/ influence/ capacity. Typical
examples are children, the elderly, minority groups, indigenous
peoples, women, and people with disabilities.
7 Studying the Course

As you work through the course materials, there are various exercises that are
designed to consolidate your knowledge and skills. We recommend that you
do the exercises, most of which take half an hour or less, before you look at
any model answers that are given in the unit.
At certain points we will ask you to reflect on various aspects of the policy
and process where you work. It will be valuable for you and your fellow stu-
dents to share these reflections on the OSC (the online study centre). Short
notes setting out the issue and the approach will enrich your, and your fellow
students, experience of the course.
Please feel free to raise queries with your tutor and with your fellow students
if there are things that are not clear to you. Do this as soon as you find a prob-
lem, because waiting will hold you up as you work through the course.
We hope that you will find the course instructive, useful and occasionally
challenging.
8 Assessment
There are two assignments for this course, one after four weeks and one after
eight weeks. Together they account for 30% of the grade for the course. In ad-
dition there is a three-hour written examination, which counts for the other
70%. The specimen examination, which shows the format of the final exam but
not the questions you will get, is printed at the end of this Course Introduc-
tion.
Your performance on each course is assessed through two written
assignments and one examination. The assignments are written after
weeks four and eight of the course session and the examination is written
at a local examination centre in October.
The assignment questions contain fairly detailed guidance about what is re-
quired. All assignment answers are limited to 2,500 words and are marked
using tutor-marking guidelines. When you receive your grade it is accompa-
nied by comments on your paper, including advice about how you might im-
prove, and any clarifications about matters you may not have understood.
These comments are designed to help you master the subject and to improve
your skills as you progress through your programme.
The written examinations are unseen (you will only see the paper in the
exam centre) and written by hand, over a three hour period. We advise that
you practice writing exams in these conditions as part of you examination
preparation, as it is not something you would normally do.
You are not allowed to take in books or notes to the exam room. This means
that you need to revise thoroughly in preparation for each exam. This is espe-
cially important if you have completed the course in the early part of the year,
or in a previous year.
Preparing for assignments and examinations

There is good advice on preparing for assignments and exams and writing
them in Sections 8.2 and 8.3 of Studying at a Distance by Talbot. We recom-
mend that you follow this advice.
The examinations you will sit are designed to evaluate your knowledge and
skills in the subjects you have studied: they are not designed to trick you. If
you have studied the course thoroughly, you will pass the exam.
Understanding assessment questions

Examination and assignment questions are set to test different knowledge and
skills. Sometimes a question will contain more than one part, each part testing
a different aspect of your skills and knowledge. You need to spot the key
words to know what is being asked of you. Here we categorise the types of
things that are asked for in assignments and exams, and the words used. All
the examples are from CeFiMS examination papers and assignment questions.
Definitions
Some questions mainly require you to show that you have learned some concepts, by set-
ting out their precise meaning. Such questions are likely to be preliminary and be supple-
mented by more analytical questions. Generally Pass marks are awarded if the answer
only contains definitions. They will contain words such as:
Describe
Define
Examine
Distinguish between
Compare
Contrast
Write notes on
Outline
What is meant by
List
Reasoning
Other questions are designed to test your reasoning, by explaining cause and effect. Con-
vincing explanations generally carry additional marks to basic definitions. They will include
words such as:
Interpret
Explain
What conditions influence

What are the consequences of

What are the implications of
Judgment
Others ask you to make a judgment, perhaps of a policy or of a course of action. They will
include words like:
Evaluate
Critically examine
Assess
Do you agree that
To what extent does
Calculation
Sometimes, you are asked to make a calculation, using a specified technique, where the
question begins:
Use indifference curve analysis to
Using any economic model you know
Calculate the standard deviation
Test whether
It is most likely that questions that ask you to make a calculation will also ask for an appli-
cation of the result, or an interpretation.
Advice
Other questions ask you to provide advice in a particular situation. This applies to law ques-
tions and to policy papers where advice is asked in relation to a policy problem. Your advice
should be based on relevant law, principles, evidence of what actions are likely to be effec-
tive.
Advise
Provide advice on
Explain how you would advise
Critique
In many cases the question will include the word critically. This means that you are ex-
pected to look at the question from at least two points of view, offering a critique of each
view and your judgment. You are expected to be critical of what you have read.
The questions may begin
Critically analyse
Critically consider
Critically assess
Critically discuss the argument that
Examine by argument
Questions that begin with discuss are similar they ask you to examine by argument, to
debate and give reasons for and against a variety of options, for example
Discuss the advantages and disadvantages of
Discuss this statement
Discuss the view that
Discuss the arguments and debates concerning
The grading scheme

Details of the general definitions of what is expected in order to obtain a
particular grade are shown below. Remember: examiners will take account of
the fact that examination conditions are less conducive to polished work than
the conditions in which you write your assignments. These criteria are used in
grading all assignments and examinations. Note that as the criteria of each
grade rises, it accumulates the elements of the grade below. Assignments
awarded better marks will therefore have become comprehensive in both their
depth of core skills and advanced skills.
70% and above: Distinction, as for the (6069%) below plus:

shows clear evidence of wide and relevant reading and an engagement
with the conceptual issues
develops a sophisticated and intelligent argument
shows a rigorous use and a sophisticated understanding of relevant
source materials, balancing appropriately between factual detail and key
theoretical issues. Materials are evaluated directly and their assumptions
and arguments challenged and/or appraised
shows original thinking and a willingness to take risks
6069%: Merit, as for the (5059%) below plus:

shows strong evidence of critical insight and critical thinking
shows a detailed understanding of the major factual and/or theoretical
issues and directly engages with the relevant literature on the topic
develops a focussed and clear argument and articulates clearly and
convincingly a sustained train of logical thought
shows clear evidence of planning and appropriate choice of sources and
methodology
5059%: Pass below Merit (50% = pass mark)

shows a reasonable understanding of the major factual and/or
theoretical issues involved
shows evidence of planning and selection from appropriate sources,
demonstrates some knowledge of the literature
the text shows, in places, examples of a clear train of thought or argument
the text is introduced and concludes appropriately
4549%: Marginal Failure

shows some awareness and understanding of the factual or theoretical
issues, but with little development
misunderstandings are evident
shows some evidence of planning, although irrelevant/unrelated
material or arguments are included
044%: Clear Failure

fails to answer the question or to develop an argument that relates to the
question set
does not engage with the relevant literature or demonstrate a
knowledge of the key issues
contains clear conceptual or factual errors or misunderstandings

Specimen exam papers

Your final examination will be very similar to the Specimen Exam Paper that
is printed at the end of this Introduction. It will have the same structure and
style and the range of question will be comparable.
CeFiMS does not provide past papers or model answers to papers. Our
courses are continuously updated and past papers will not be a reliable guide
to current and future examinations. The specimen exam paper is designed to
be relevant to reflect the exam that will be set on the current edition of the
course
Further information
The OSC will have documentation and information on each years
examination registration and administration process. If you still have ques-
tions, both academics and administrators are available to answer queries.
The Regulations are also available at www.cefims.ac.uk/regulations.shtml,
setting out the rules by which exams are governed.
UNIVERSITY OF LONDON
CENTRE FOR FINANCIAL AND MANAGEMENT STUDIES
MSc Examination
Postgraduate Diploma Examination
for External Students 91DFMC
ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT
SPECIMEN EXAMINATION
This is a specimen examination paper designed to show you the type of

examination you will have at the end of the year for the course, Environ-
mental and Social Impact Assessment. The number of questions and the
structure of the examination will be the same but the wording and the require-
ments of each question will be different. Best wishes for success in your final
examination.
The examination must be completed in THREE hours.

Answer THREE questions, selecting at least ONE question from EACH sec-
tion. The examiners give equal weight to each question; therefore, you are ad-
vised to distribute your time approximately equally between three questions.
DO NOT REMOVE THIS PAPER FROM THE EXAMINATION ROOM. IT MUST

BE ATTACHED TO YOUR ANSWER BOOK AT THE END OF THE
EXAMINATION
University of London, 2013 PLEASE TURN OVER

Answer THREE questions, at least ONE from EACH section. Answer all
parts of the questions.
Section A
(Answer at least ONE question from this section)

1 Discuss the purpose of Environmental and Social Impact Assessment and
the key drivers (or motivations) of its use, including reference to both
social and biophysical factors.
2a What is the purpose of the screening and scoping steps of a typical ESIA
process? You should explain clearly key similarities and differences.
b What is a baseline description, and why is it an important component of
an ESIA? [50% each part]
3 Discuss the tools and methods used to identify, predict and evaluate the
significance of different types of impacts. Detail, with your reasons, the
sorts of impacts that should be prioritised for mitigation or enhancement.
4a Explain the management hierarchy that should be adopted to mitigate
adverse (or negative) impacts. [60%]
b Give a typical outline (or table of contents) of an ESIA report. Describe at
least two features of a good ESIA report. [40%]
Section B
(Answer at least ONE question from this section)

5a With reference to a real or hypothetical project, detail the benefits of using
stakeholder engagement (or public consultation) as an integral part of the
ESIA process. [60%]
b Give examples of challenges that might arise in stakeholder engagement
(or public consultation), and how these problems might be addressed.
[40%]
6 Discuss the processes of implementation and follow-up, focusing on

monitoring, auditing and EMSs.
7 Describe three examples of thematically focused or specialised forms of
assessment, which may be used in addition to and/or to enhance tradi-
tional EIA. Explain the additional insight that could be provided by each
of these.
8a What is Strategic Environmental Assessment (SEA), and why is it argued
that it is should be undertaken in advance of project-level ESIAs (or
EIAs)?
b Emerging forms of impact assessment, such as Integrated Assessment and
Sustainability Assessment, aim to introduce enhancements or address
limitations of conventional ESIA. Discuss this. [50% each part]
[END OF EXAMINATION]
Environmental and Social Impact
Assessment
Unit 1 Introduction to
Environmental and Social
Impact Assessment (ESIA)
Contents
1.1 Introduction 3
1.2 Origins and Variations in Application 4
1.3 The Purpose of ESIA 6
1.4 Drivers for ESIA 9
1.5 The Overall ESIA Process 10
1.6 Structuring ESIAs 11
1.7 Success of ESIA 13
1.8 Social Impact Assessment 14
1.9 Summary and Conclusions 20
References and Websites 20
Appendix I: Social Impacts 22

Unit Content
This first unit gives an overview of the origins and variations in application
of Environmental and Social Impacts Assessment (ESIA). It also discusses
the purpose and the drivers for ESIA; it describes the overall ESIA process,
including the structuring of ESIAs, and considers the effectiveness of ESIA.
Finally, it concludes with a section that focuses on Social Impact Assessment
(SIA).
Learning Outcomes
After completing this unit and the associated readings, you will be able to:
discuss the origin, purpose and drivers of ESIA
describe the typical steps in ESIA
explain the role and scope of SIA in relation to ESIA
discuss the key issues in SIA.
Readings for Unit 1

Textbook
John Glasson, Riki Therivel and Andrew Chadwick (2012) Introduction to
Environmental Impact Assessment, sections of Chapters 1 Introduction and
principles, 8 An overview of UK practice to date, and 12 Improving the
effectiveness of project assessment.
Course Reader
UNEP Case Studies: 1.1: Environmental impact assessment from a
Sudanese perspective, and 1.2: State of the Environment in Sudan.
Video
The video Environmental impact assessment: useful tool or just another
fashion? available of Youtube at
http://www.youtube.com/watch?v=CJWUR2x_aGk.
It was made by UNESCO-IHE Water Management participants about
environmental impact assessment, is it a useful tool or just another
fashion?
Case Study
Please select an ESIA from the options given in the Course Introduction
and Overview.
Unit 1 Introduction to Environmental and Social Impact Assessment (ESIA)
1.1 Introduction
Environmental Impact Assessment (EIA) is applied primarily to prevent or
minimise the adverse effects, and maximise the positive effects, of major
development proposals such as highways, power stations, water resource
projects and large-scale industrial facilities. However, more limited forms of
EIA can be used to ensure that smaller scale projects, such as road re-
alignment and upgrading and housing subdivisions, conform to appropriate
environmental standards. Developments and projects are often a conse-
quence of implementing a policy or plan; for example, an extended highway
network may be an outcome of a new transport policy. EIA is therefore
closely linked to Strategic Environmental Assessment (SEA), which concen-
trates on the highest levels of decision-making: Policies, Programmes and
Plans (PPPs):
SEA aims to ensure that account be taken of the environment in considering
high-level development alternatives and options. (We consider SEA in a
further in Unit 8.)
Both EIA and SEA are structured approaches for acquiring and assessing
information about the environment before decisions are made with regard to
developments or policies. They offer a prognosis of how the environment is
expected to change if certain alternative actions are implemented and make
recommendations on how to optimally manage environmental changes if
one alternative is selected and implemented.
EIA and SEA are growing in scope to incorporate prediction and evaluation
of social, economic and health impacts as well as environmental impacts.
There are two main reasons for this trend. First, it is a response to the
demands of those who may be affected. Secondly, social and economic
impacts may be a direct cause of environmental impacts. Thus, EIA and SEA
have progressed, in terms of scope of study and methods of analysis and
evaluation, toward integration of a range of issues relevant to decision-
making. The extent of integration depends to some extent on the definition
of the environment in national legislation and policies. In some countries
and international organisations the definition is broad, incorporating bio-
physical (green) and social (including cultural and health) dimensions. In
other jurisdictions the definition is more restricted, with the emphasis on
biophysical impacts.
EIA and SEA are useful as tools to promote sustainable development by
integrating environmental and other considerations into the planning of a
wide range of proposed actions. In Unit 8 we will consider how they are
evolving into emerging forms of sustainability assessment.
Video
Please watch Video 1.1: Environmental impact assessment: useful tool or just another
fashion? produced by UNESCO-IHE Water Management participants, at
http://www.youtube.com/watch?v=CJWUR2x_aGk

1.2 Origins and Variations in Application

Environmental Impact Assessment (EIA) is by far the most successful of the
impact assessment techniques. Its development has been a result of support
from governments and international funding agencies, such as the World
Bank and the African and Asian Development Banks. Principle 17 of the Rio
Declaration on Environment and Development emphasises the important
role of EIA:
Environmental impact assessment, as a national instrument, shall be
undertaken for proposed activities that are likely to have a significant
adverse impact on the environment and are subject to a decision of a
competent national authority.
The first EIA legislation was enacted in the USA in 1969. Since then it has
spread across the globe, in a wide variety of guises, to the extent that there
are now at least 120 countries with EIA systems. Somewhat surprisingly, the
introduction of EIA has been swifter in some developing countries than in a
number of developed countries, since they had fewer established planning
procedures that needed to be reorganised. The adoption of EIA has also
been a common string attached to international aid; however, the existence
of EIA regulations on paper does not necessarily correspond with effective
implementation on the ground.
The evolution of EIA can be divided into four overlapping phases. The
introduction and early development of EIA took place from around 1970
1975, during which period the mandate and foundations of EIA were
established in the USA. These were then adopted by a few other countries,
such as Australia, Canada and New Zealand.
The second phase in the evolution of ESIA (from the mid 70s to early 80s)
saw an increase in scope and sophistication. More advanced techniques,
such as risk assessment were developed; guidance on process implementa-
tion was introduced; social impacts began to be considered; and, public
inquiries and reviews drove innovations in leading countries. The take up of
ESIA remained limited but included developing countries, such as China,
Thailand and the Philippines.
The third phase of process strengthening and integration took place from
the early 80s to early 90s). ESIA practice and experience were reviewed;
scientific and institutional frameworks of ESIA were updated; coordina-
tion of ESIA with other processes (e.g. project appraisal, land use
planning) was implemented. In this phase ecosystem-level changes and
cumulative effects began to be addressed, and monitoring and other
follow-up mechanisms began to receive attention. Many more countries
adopted EIA. The European Community and the World Bank respectively
established supra-national and international lending requirements.
The final phase of strategic and sustainability orientation, extends from the
early 90s to date. During this period elements of EIA have been enshrined
in international agreements; there has been a marked increase in interna-
tional training, capacity building and networking activities; and
sustainability concepts and criteria are now included in EIA practice. EIA
is now applied in all OECD countries and in a large number of developing

and transitional countries.
While these major trends in EIA process development can be identified, it is
important to bear in mind that, with the exception of the early pioneers, the
phases and timescales identified do not necessarily correspond to the
development of EIA in particular countries. In all countries more strategic,
sustainability-based approaches are still at a relatively early stage.
Strategic Environmental Assessments (SEAs) emerged in the middle to late
1980s as it became clear that the EIA procedures in many countries did not
require the application of EIA to policies, programmes and plans (PPPs).
However, it was realised that the implementation of such actions could have
significant environmental consequences. Thus, informally at first, SEAs were
implemented for such actions. Over time, various moves have been initiated
to introduce administrative requirements for use of SEA and then to amend
existing EIA laws or to introduce new ones focusing on SEA.
A common misconception is that Social Impact Assessment (SIA) came
into use far more recently than EIA; however, this is not the case. The same
act that formally brought EIA into existence in the USA also required
actions significantly affecting the quality of the human environment to be
assessed. SIA was applied for the first time in the early 1970s in connection
with the construction of the Trans-Alaska oil pipeline. However, SIA has
generally remained under-funded and neglected compared with EIA, and
its status and influence has grown more slowly. Reasons for this include
the continuing uncertainties and ambiguities over its legal status, the
existence of a wide diversity of methodologies, inadequate data availab-
ility and a lack of expertise. The profile of SIA has grown in recent years
with the shift in focus from environmental conservation to sustainable
development. SIA guidelines have been developed by many organisations.
Many countries have enacted EIA legislation, usually for major projects, but
the coverage varies with the definition of environment that is used. In some
countries it only encompasses biophysical (or natural/ green/ non-human)
issues; whereas in others it is defined broadly to also include social, cultural,
economic, health and other similar issues. The narrower definition is more
common in developed countries and the broader in developing countries.
Certain countries have adopted an intermediate approach and, besides
biophysical impacts, also require the assessment of indirect social impacts
caused by biophysical impacts, and/or the assessment of adverse (or nega-
tive) social impacts.
To avoid confusion, an impact assessment that covers both social and
biophysical issues can be labelled Environmental and Social Impact Assessment
(EIA) or Social and Environmental Impact Assessment (ESIA). In countries that
use broad definitions of environment EIA = ESIA. In the prescribed text-
book SIA is regarded as being an integral part of EIA; however, in these
notes ESIA is used to avoid ambiguity.
Because EIA and SIA have similar objectives and approaches, and because of
the frequent lack of sharp distinction between them, there is an increasing
(although not universal) trend towards integration. Critics of integration

argue that this may cause biophysical matters to be diluted or overshad-

owed by social or economic considerations and that it may encourage the
trading off of the biophysical environment.
Readings John Glasson, Riki

Therivel and Andrew
Chadwick (2012)
Please first read Section 2.4.2: Socio-economic impacts, pp. 32223 in your textbook by Introduction to
Glasson et al. Environmental Impact
Assessment, Section
Focus your reading with the following questions: 2.4.2 of Chapter 12
Improving the
effectiveness of project
Why is there a need for SIA?
assessment;
What are the current shortcomings of SIA? and UNEP Case Study
1.1: Environmental
What are the advantages of including SIA in an ESIA? impact assessment
Then read UNEP Case Study 1.1: Environmental impact assessment from a Sudanese from a Sudanese
perspective, reprinted
perspective, and make notes on the issues related to the discussion above. in your Course Reader
Activity
Establish the coverage of statutory ESIA in your country of birth/ residence. Is it limited
to biophysical ESIA or is the assessment of social impacts also covered?
Asking a government official or practitioner involved with ESIA locally is likely to be
the most straightforward way to establish this. Alternatively, finding the definition of
environment in the local legislation can be a convenient indicator. For example, in the
Canadian Environmental Assessment Act (2012) environment is defined as the
components of the Earth, and includes:
(a) land, water and air, including all layers of the atmosphere;
(b) all organic and inorganic matter and living organisms; and
(c) the interacting natural systems that include components referred to in
paragraphs (a) and (b).
The South African National Environmental Management Act (1998) contains essentially
the same definition, but adds a fourth component, namely: the physical, chemical,
aesthetic and cultural properties and conditions of the foregoing that influence human
health and well-being.
The above definitions suggest that both countries require the assessment of impacts on
the biophysical environment. The addition to the South African definition suggests that
the assessment of adverse social impacts caused indirectly by biophysical impacts is also
required in that country.
A more detailed analysis of the regulations and their interpretation is needed to establish
the full extent to which various types of impacts (e.g. direct social impacts) are required
by the local ESIA regulations. You are not expected to undertake a detailed analysis at
this stage, but merely to gain some indication of the coverage.
1.3 The Purpose of ESIA

The International Association for Impact Assessment defines ESIA as (IAIA,
2009):
The process of identifying, predicting, evaluating and mitigating the

biophysical, social, and other relevant effects of development proposals
prior to major decisions being taken and commitments made.
ESIA is predicated on the notion that decision-makers should understand

the consequences of their decisions before they act that is, it is a decision-
aiding process. It provides information to the projects developer/ propo-
nent/ designers, the host-country authorities, local communities and other
stakeholders about the biophysical and social consequences of a proposed
project, and the best means to maximise the benefits (positive impacts) and
to mitigate the adverse consequences (negative impacts). Hence, ESIA is not
simply a matter of preparing a report, and obtaining approval (where local
regulations exist).
An impact is any beneficial or adverse change in the environment (social or
biophysical) as a result of human activity. Impacts may be direct, secon-
dary/ indirect, induced, unplanned/ non-normal or cumulative (see
definitions and examples in Table 1.1). The assessment of direct impacts can
be comparatively straightforward compared to the assessment of the other
types of impacts.
Table 1.1 Types of impacts
Types Definitions Examples

Direct/ Impacts that result from the direct/ Reduced
Primary primary interactions between some unemployment due to
feature of the project and the social the creation of new
and/or biophysical environment. They jobs.
generally occur at the same time and in
the same space as the activity.
Indirect/ Impacts that follow on from the direct Reduction in
Secondary impacts, i.e. knock-on effects. They can agricultural production
occur later in time, or at a different place, due to soil erosion.
from the causal activity, or as a result of a
complex pathway.
Induced Impacts that result from other In-migration of non-
developments or activities that are project people to the
encouraged to happen as a consequence project area.
of the project.
Unplanned/ Impacts that result from unintentional Chemical spillage
Non-normal events within the project (e.g. during transport to the
breakdowns, failures) or in the external site.
environment affecting the project (e.g.
natural disaster).
Cumulative Impacts due to numerous separate Contamination of a
developments, which might be water source due to
insignificant on their own, but which can numerous effluent
interact or combine to cause significant discharges.
impacts.

Activity
Consider a project that you have worked on, experienced as an affected party, or have
heard about. It could be a new road, petrol filling station, shopping centre, or other
development near your home. Write down some of the impacts that you believe the
project may cause/ has caused. Try to find at least one potential/ actual biophysical
impact and one social impact of the types identified in Table 1.1.
Have you identified any positive impacts?
If not, why do you think the project was approved?
Whilst the purpose of ESIA is to provide information for decision-making

on the environmental and social consequences of proposed actions, it also
has as the function of promoting sustainable development through the
identification of appropriate enhancement and mitigation measures. The
concept of sustainable development has gained increasing international
acceptance in the last two decades. It is, perhaps, most effectively de-
scribed, by the Brundtland report (1987), as development that meets the
needs of todays generation without compromising those of future genera-
tions. This can be formally stated in terms of the twin principles of intra-
and inter-generational equity. In practice, these principles mean improving
the welfare of the worlds peoples and not maintaining opportunities for
the generations that follow by not undermining the earths ecological
systems. Sustainable development is an evolving concept, which is contin-
ually being redefined and reinterpreted. UNEP (2002) summarises the
challenge facing sustainable development by highlighting three overriding
indicators:
First, human activity is estimated to currently consume or pre-empt
40 per cent of net primary productivity on land.
Second, 60 per cent of the worlds population live close to or under
the poverty line.
Third, the worlds population is projected to double by mid-century.
If these trends are allowed to continue unchecked by adjustments to policy
and technology, the global environment and community are at risk. For
development to be sustainable, adverse environmental and social impacts
must be minimised and social impacts enhanced; hence the growing import-
ance of ESIA.
ESIA, therefore, has both short-term and long-term goals. The immediate
goal is: to identify appropriate measures to mitigating the potential negative
impacts of development proposals and to enhance their benefits, and to
inform the process of decision-making regarding their approval, including
setting the environmental and social terms and conditions.
The long-term goal of ESIAs collectively is to promote sustainable develop-
ment by ensuring that development proposals do not threaten critical
resources, natural areas and components of the ecosystem, whilst bringing
about benefits to society. They must also prevent developments from com-
promising the safety, wellbeing, lifestyle and/or livelihood of any
community or individual.
Priority issues that set the context for ESIA vary from location to lo-
cation. Unfortunately, in many parts of the world the serious damage to
the environment already exists. Africa, with the worlds poorest and
most resource-dependent populations, carries the highest health burden
due to severe environmental problems. These include desertification and
soil degradation, declining food security, and increasing water scarcity
and stress in north, east and southern Africa. The Asian and Pacific
regions have experienced rapid economic growth, urbanisation and
industrialisation. These have helped in poverty alleviation but have
simultaneously increased pressure on land and water resources, and
have caused widespread environmental degradation and high pollution
levels. The high population densities in southern and southeast Asia
mean that mega-cities have become a particular focus of environmental
and health concerns.
In Eastern Europe and Central Asia a legacy of industrial pollution and
contaminated land remains, in spite of progress with economic restruc-
turing and environmental clean-up. In many areas, emissions of
particulates, sulphur dioxide (SO2), lead and harmful chemicals continue
to expose the residents to health risks, and, in the Balkans, war and
regional conflict have exacted a heavy environmental and social toll.
In Latin America and the Caribbean approximately three-quarters of the
population live in urban areas. Many cities are poor, overcrowded,
polluted and lack basic infrastructure. The major green issue is the
destruction of tropical forests and consequent loss of biodiversity, which
is especially serious in the Amazon basin.
In the Middle East most land is either subject to desertification or vul-
nerable to deterioration from saline, alkaline and/or nutrient deposition.
Water resources are under severe pressure and groundwater sources are
in a critical condition. Rapid and uncontrolled urbanisation has caused
worsening air and water pollution in urban centres.
Reading UNEP Case Study 1.2:

State of the
Environment in Sudan,
Please now read the second UNEP Case Study, State of the Environment in Sudan.
reprinted in your
When you have finished reading, draw up a list of key environmental and social Course Reader.
challenges facing your country of origin or your country of residence.
1.4 Drivers for ESIA

The use of ESIA is driven by the following factors:
Legislative requirements: some form of impact assessment, usually EIA,
may be prescribed in law. Even when there is no specific requirement
to consider social impacts, there may be a range of regulations that
apply to social issues (e.g. such as employment conditions, ambient
noise levels, protection of heritage sites, residential zoning
requirements, sanitation standards).

Requirements of the projects financiers: more than 80% of commercial

project financing is provided by institutions that have adopted
the Equator Principles (www.equator-principles.com). These
principles commit the financiers to assessing potential investments
in accordance with the International Finance Corporations
Performance Standards on Social and Environmental Sustainability,
which include ESIA (IFC, 2012).
Pressure from communities, consumers, non-governmental organisations
(NGOs), employees, investors and/or other lobbying groups: the conduct
of businesses and government agencies is under increasing
scrutiny. It is not only necessary to demonstrate that efforts have
been made to minimise negative impact, but also to show that the
development will bring positive benefits to local communities and
wider society.
Commitments to sustainable development: most governments and many
companies expose commitments to sustainable development via
policies and other public statements. To walk the talk it is necessary
to incorporate biophysical and social considerations into their
planning and decision-making.
Tangible benefits: by helping the proponent to understand the
consequences of its activities ESIA can contribute to:
costs and/or time savings by, for example, avoiding
management time spent on conflict resolution
maintaining the informal license to operate from society
by ensuring that the host communities benefit from and are
not unduly disadvantaged by projects
enhancing the organisations reputation, which can lead to
improved performance via, for example, increased
customer loyalty.
John Glasson, Riki
Reading Therivel and Andrew
Chadwick (2012)
Please now read Section 8.7: Costs and benefits of ESIA (based on experience in the Introduction to
Environmental Impact
UK), pp. 21719 in Glasson et al. Assessment, Section
8.7 of Chapter 8 An
Make sure your notes enable you to answer the following questions. overview of UK practice
to date.
In what ways, and to what extent, does an ESIA increase project costs?
How are these costs offset by the benefits of ESIAs?
1.5 The Overall ESIA Process

ESIA typically comprises the steps shown in Figure 1.1. The steps are
shown sequentially; however, in practice, there are likely to be many
overlaps and iterations. Statutory ESIA (or SIA) processes in different
jurisdictions have variations in the terminology subdivisions, timing, and
sequencing.
As shown, the discrete steps run alongside the parallel processes of:
project planning and design, which encompasses the appraisal of the
technical and financial feasibility
stakeholder engagement (to be developed in Unit 5)

research and data collection (again, see Unit 5)
Figure 1.1 Steps in a typical SIA process
Screening (see Unit 2.2)

Data Collection and Research (see Unit 5.3)
Scoping (see Unit 2.3)

Stakeholder Engagement (see Unit 5.2)
Project Description (see Unit 2.4)
Project planning & design

Baseline Description (see Unit 2.6)
Assessment of Impacts (see 3.2 and 3.3)
Impact Mitigation & Enhancement (see Unit 4.3)
Reporting the ESIA (see Unit 4.4)
Review and Decision-Making (see Unit 4.5)
Implementation and Follow-up (see Unit 6.4)
Reading John Glasson, Riki

Therivel and Andrew
Chadwick (2012)
Now please read Section 1.2.2 EIA: a process (pp. 45) in Glasson et al. Introduction to
After reading the section, compare Figure 1.1 above with Figure 1.1 on p. 4 of
Assessment, Section
1.2.2 of Chapter 1
Glasson et al. Introduction and
principles.
Even though the sub-division and terminology is somewhat different, can you see
that the steps are essentially the same?
Take a look at an example of the contents of an Environmental Impact Statement (EIS) in
Table 1.1 on p. 6 in Glasson et al. Take note of how the outputs from the above steps are
ultimately reported. (We will explore this further in Unit 4.)
1.6 Structuring ESIAs

ESIA involves linking human activities to the impacts that they are likely to
have on the (social and biophysical) environment. Many environmental
management models do not explicitly separate out the causal mechanisms;
however, in the International Standards Organisation (ISO) Environmental
Management Systems (EMSs) standards, ISO14001 and ISO14004, the
mechanisms that can cause impacts are referred to as aspects. This can be
illustrated in Figure 1.2:

Figure 1.2 Activity aspect impact linkage model
Project Impacts
Activities Aspects
Effects
Causes Pressures, mechanisms
Change in Conditions/States
EXAMPLES:
Waste disposal Contaminated seepage Groundwater pollution
Open pit mining Dewatering of aquifers Loss of water supply

Employment opportunities Development of local
skills
Infrastructure construction Noise Disturbance of residents

Land clearing Loss of agricultural
land
(Source: Adapted from Snchez and Hacking, 2002)
The ISO EMSs approach was conceived for, and has been mostly applied
to, the improvement of operational (biophysical) environmental manage-
ment. However, the approach can be used to enhance the ESIA of
projects, including the assessment of social impacts. (It can be challenging
to isolate cause-effect relationships when exploring human responses to
change.)
The approach is further elaborated in the units that follow, which elabo-
rate the key ESIA steps in Figure 1.3, below. You will learn, amongst
other things, how the ESIA results can be summarised using matrices.
Figure 1.3 Key steps in Environmental and Social Impact Assessment
Strategic Screening Impact

Proposal Decision Implementation
Planning & Scoping Assessment EIA audit
and post
terms and conditions project
of approval analysis
Baseline Surveillance/compliance Impact

existing data monitoring Monitoring management,
checking
and impact Design
management Baseline effect/ reassessment
plan for compliance monitoring
implementation
Proactive activity
and operation
monitoring/assessment Ongoing
auditing
Information
to an EMS
(such as
ISO 14000)
Reading
Please read Chapter 12.5.1 Standards and regulations on EMS, pp. 33637 in Glasson John Glasson, Riki Therivel
and Andrew Chadwick
et al. (2012) Introduction to
If you have had previous exposure to EMSs, compare your experience with the
Assessment, Section 12.5.1
of Chapter 12 Improving
requirements for EMAS and ISO registration; otherwise, try to assess the practicality of the effectiveness of project
these requirements. assessment
1.7 Success of ESIA

The benefits of ESIA were identified by a seminal study that examined the
effectiveness of EIA worldwide. This study was initiated by the Interna-
tional Association for Impact Assessment (IAIA) a professional association
representing impact assessment practitioners. The list here is adapted from
Sadler (1996):
improved project design/siting
more informed decision-making (with improved opportunities for
public involvement in decision-making)
more environmentally sensitive decisions
increased accountability and transparency during the development
process
improved integration of projects into their environmental and social
setting
reduced environmental damage
more effective projects in terms of meeting their financial and/or
socio-economic objectives
a positive contribution towards achieving sustainability.
Source: Adapted from Sadler (1996)
Despite widespread agreement on these benefits, it is recognised that they

do not occur uniformly or consistently in all countries or organisations. A
number of difficulties and constraints, generally although not universally
applicable, prevent and hinder ESIA from consistently delivering these
benefits. Hindrances to ESIA identified by the same study mentioned above
are outlined here, these include:
small-scale projects not included in most ESIA systems; although their
cumulative impacts may be significant over time
difficulties in ensuring adequate and useful public involvement (or
participation)
insufficient integration of ESIA work at key decision points in relation
to feasibility and similar studies in the project life-cycle, with some
major decisions being made even before ESIAs are completed
lack of consistency in selection of developments requiring specific
ESIA studies
weak procedures for obtaining early agreement on the scope of ESIA
studies

inadequate understanding of the relative roles of baseline description

and impact prediction
poor integration of biophysical impacts with social (including
economic and health) impacts
production of ESIA reports which are not easily understood by
decision makers and the public because of their length and technical
complexity
lack of mechanisms to ensure that ESIA reports are considered in
decision-making
weak linkages between ESIA report recommendations on mitigation
and monitoring and project implementation and operation
limited technical and managerial capacities in many countries to
implement ESIAs.
Source: Adapted from Sadler (1996)
Even though the study was published in 1996, it is still referenced widely
and, somewhat disconcertingly, the findings are still considered to be
relevant. As the next generation of experts in the field, you may be well
placed to rise to address some of these challenges!
Activity
Reflect on the strengths and weaknesses of the ESIA system within your country of
birth or of residence. (If you do not yet have specific knowledge concerning the ESIA
system, then consider the management of environmental and/or social issues more
generally.)
Are there cultural values/social structure, economic system/conditions, education,
public attitudes, political structure, and/or institutional/technical capacity issues
which prevent or constrain effective ESIA?
What is the nature of the challenge(s), and what measures could be taken to
improve the situation?
1.8 Social Impact Assessment

The International Association for Impact Assessment defines SIA as:
Social Impact Assessment includes the processes of analysing,
monitoring and managing the intended and unintended social
consequences, both positive and negative, of planned interventions
(policies, programs, plans, projects) and any social change processes
invoked by those interventions. Its primary purpose is to bring about a
more sustainable and equitable biophysical and human environment.
[] SIA is best understood as an umbrella or overarching framework
that embodies the evaluation of all impacts on humans and on all the
ways in which people and communities interact with their socio-cultural,
economic and biophysical surroundings.
(IAIA, 2003)
The key motivations for including social concerns in ESIA include:

the realisation that the biophysical environment will only be
successfully managed by adopting a holistic view, i.e. it cannot be
managed independently of social matters
the desire to have non-biophysical areas of concern considered in

decision-making
the adoption of sustainable development as a development goal
which, by definition, requires the adoption of a holistic perspective
the need to integrate social performance requirements into business.
Social, economic and environmental interests may be intertwined. For
example, a water resource development initiative causes changes in the
hydrological regime of the river downstream of the project. The changes in
the quality of water and the flow may significantly reduce an area of reeds
used by local villagers to make baskets and other articles. Selling these
products provides an important source of income. Without the resource of
the reeds, the villagers have to find an alternative source of income. They
do so by exploiting trees that they process into charcoal. By exploiting this
resource they contribute to an already serious problem of deforestation
and add to the attendant problems of soil depletion and erosion that
accompany deforestation. This chain of events can be prevented if the
socio-economic importance of downstream natural resources is investi-
gated and the likely impacts predicted. It would be possible either to
protect the reeds, through controlled discharges, or to provide an alterna-
tive economic resource that could be exploited without adding to existing
environmental degradation.
SIA may be undertaken on its own, in parallel with EIA, or as part of an
integrated ESIA, and there is on-going debate regarding whether greater
integration or separation is most desirable. In this course an integrated
approach is favoured, since social and biophysical concerns are intercon-
nected.
Social and socio-economic are used interchangeably as umbrella terms to
refer to non-biophysical impacts. Table 1.2 summarises the components that
may be covered by these terms.
There is room for ambiguity with both Social and socio-economic, since
social may be interpreted as excluding economic impacts and socio-
economic as excluding purely social (e.g. cultural) impacts. In this unit
social is used as the umbrella term.
Therefore, a social impact is a beneficial or adverse change to any of the
components listed in Table 1.2 as a result of a project. It is important to
note that social impacts may result from impacts on the biophysical
environment, i.e. indirectly. Furthermore, it includes not only tangible
impacts, such as loss of agricultural land, but also more subtle impacts,
such as shifts in peoples expectations, demands, values and beliefs. In this
unit all issues that may impinge on humans are considered pertinent to
SIA.

Table 1.2 Meaning of terms: social, economic and socio-economic
Terms Components Descriptions

National/ regional economic growth, employment levels, export
Macro-economic
Economic earnings etc.
Micro-economic Local employment, business activity, earnings and income.
Socio-economic
Fiscal Government costs and revenues.

Infrastructure and Demand for/ availability of infrastructure services and facilities.
services
Demographics Population size, distribution and composition.
Financial or subsistence means whereby people secure a living, i.e.
Livelihoods the combination of resources used and activities undertaken to secure
a living.
Shared customs and value systems, which make a social or ethnic
group distinct.
Traditional knowledge, beliefs and practices.
Cultural/
Language or dialect.
Heritage Archaeological, historical and cultural artefacts.
Structures/features with religious or spiritual significance.
Aesthetics and sense of place.
Social structures, organisations, patterns of interaction and
Community/ Way relationships.
Social
of life The way people behave and relate to family, friends and cohorts on a
daily basis.
Sense of place, wellbeing, security and/or belonging.
Socio-
Perceptions of amenity or safety.
psychological
Fears and aspirations about the future.
Absence of communicable diseases, non-communicable diseases,
Physical and malnutrition, injuries, and mental disorders.
Health
mental health Quality of the air and water, availability and quality of food, level of
Social/ Socio-economic
exposure to hazards, and adequacy of sanitation.

Ability to participate in decisions that affect their lives.
Decree of equity and non-discrimination.
(Purely) Social
Political/ governance
Level of democratisation, absence of corruption, etc.
systems
Personal and property rights.
Human rights Access to and control over resources.
Respect for civil liberties.
Source: Adapted from Hacking, 2006
There are a number of key differences between the social and biophysical
environments. The key differences include the following effects:
social impacts can vary in desirability, ranging from positive to
negative, whereas biophysical impacts are usually negative
unlike the biophysical environment, the social environment reacts in
anticipation of change
besides disturbances that can affect other species (e.g. noise), humans
are affected by changes in the distinctly human environment (e.g.
political leadership).
Appendix I lists possible social impacts. The relevance of these impacts will
be dependent on contextual factors. Many of these impacts are difficult to
measure and their quantification will involve analysis of a number of
variables. It is therefore more practical to rely on basic dimensions of social

change as a reference point for defining and mitigating impacts.
According to UNEP (2002) the key characteristics and variables that are
often correlated with adverse social impacts of development proposals
include:
demographic change: e.g. size and composition of resident population,
influx of temporary work force or new recreational users (disrupts the
cohesion of a small, stable community)
economic change: e.g. new patterns of employment/ income, real estate
speculation (marginalises long-term, older residents);
environmental change: e.g. alterations to land use, natural habitat and
hydrological regime (loss of subsistence or livelihood in resource
dependent community); and
institutional change: e.g. in the structure of local government or
traditional leadership, zoning by-laws or land tenure (reduced access
or loss of control leads to disempowerment or impoverishment of the
established population).
Furthermore, the main types of social impact that occur as a result of these
project-related changes can be grouped into five overlapping categories:
lifestyle impacts on the way people behave and relate to family,
friends and cohorts on a day-to-day basis
cultural impacts on shared customs, obligations, values, language,
religious belief and other elements which make a social or ethnic
group distinct
community impacts on infrastructure, services, voluntary
organisations, activity networks and cohesion
amenity/quality of life impacts on sense of place, aesthetics and
heritage, perception of belonging, security and livability, and
aspirations for the future
health impacts on mental, physical and social well being, although
these aspects are also the subject of health impact assessment (as you
will see in Unit 7 Other Assessment Techniques).
The International Association of Impact Assessment (IAIA) has produced a
document entitled International Principles for Social Impact Assessment,
IAIA Special Publication Series No. 2. This can be found on the IAIA web-
site, www.iaia.org (It also appears in Impact Assessment and Project Appraisal,
volume 21, number 1, March 2003, pgs. 511.) The core values of SIA accord-
ing to the above document are:
1 There are fundamental human rights that are shared equally across
cultures, and by males and females alike.
2 There is a right to have those fundamental human rights protected by
the rule of law, with justice applied equally and fairly to all, and
available to all.
3 People have a right to live and work in an environment which is
conducive to good health and to a good quality of life and which
enables the development of human and social potential.
4 Social dimensions of the environment specifically but not exclusively
peace, the quality of social relationships, freedom from fear, and

belongingness are important aspects of peoples health and quality

of life.
5 People have a right to be involved in the decision-making about the
planned interventions that will affect their lives.
6 Local knowledge and experience are valuable and can be used to
enhance planned interventions.
The fundamental principles of development identified by the IAIA (2003)
are:
1 Respect for human rights should underpin all actions.
2 Promoting equity and democratisation should be the major driver of
development planning, and impacts on the worst-off members of
society should be a major consideration in all assessment.
3 The existence of diversity between cultures, within cultures, and the
diversity of stakeholder interests need to be recognised and valued.
4 Decision making should be just, fair and transparent, and decision-
makers should be accountable for their decisions.
5 Development projects should be broadly acceptable to the members of
those communities likely to benefit from, or be affected by, the
planned intervention.
6 The opinions and views of experts should not be the sole consideration
in decisions about planned interventions.
7 The primary focus of all development should be positive outcomes,
such as capacity building, empowerment, and the realisation of human
and social potential.
8 The term, the environment, should be defined broadly to include
social and human dimensions, and in such inclusion, care must be
taken to ensure that adequate attention is given to the realm of the
social.
The principles specific to SIA practice identified by the IAIA (2003) are:
1 Equity considerations should be a fundamental element of impact
assessment and of development planning.
2 Many of the social impacts of planned interventions can be predicted.
3 Planned interventions can be modified to reduce their negative social
impacts and enhance their positive impacts.
4 SIA should be an integral part of the development process, involved in
all stages from inception to follow-up audit.
5 There should be a focus on socially sustainable development, with SIA
contributing to the determination of best development alternative(s)
SIA (and ESIA) have more to offer than just being an arbiter between
economic benefit and social cost.
6 In all planned interventions and their assessments, avenues should be
developed to build the social and human capital of local communities
and to strengthen democratic processes.
7 In all planned interventions, but especially where there are
unavoidable impacts, ways to turn impacted peoples into beneficiaries
should be investigated.
8 The SIA must give due consideration to the alternatives of any
planned intervention, but especially in cases when there are likely to
be unavoidable impacts.
9 Full consideration should be given to the potential mitigation
measures of social and environmental impacts, even where impacted
communities may approve the planned intervention and where they
may be regarded as beneficiaries.
10 Local knowledge and experience and acknowledgment of different

local cultural values should be incorporated in any assessment.
11 There should be no use of violence, harassment, intimidation or undue
force in connection with the assessment or implementation of a
planned intervention.
12 Developmental processes that infringe the human rights of any section
of society should not be accepted.
1.8.1 Reflection on social impact assessment

In his chapter on social impact assessment, Frank Vanclay (1999) addresses a
number of complex, fundamental issues affecting SIA, which are as relevant
today as when he first raised them. He explains that they are best expressed
as questions to which definitive answers cannot be given. These questions
are listed below, for you to reflect on, along with a brief summary of Van-
clays discourse for the first two, so as to serve as a guide for how you
should approach the others.
Who has legitimate interests in the community?
How is the affected community to be defined and identified?
A stable community is one in which the rate of change of members is low.
Yet projects often bring in newcomers, who may have different values and
behaviours, and attitudes to the project. Are such newcomers to be con-
sidered part of the community? Rural rezoning, rural-urban fringe
development, and tourism are examples. The new arrivals may be seasonal
inhabitants. They may be in a more dominant position than the members of
the original community. In the case of areas of natural beauty and ecological
significance the broader community, of a nation and beyond, may be con-
cerned for its protection, whereas the local people may wish for economic
opportunities. There are also future communities to be considered. Thus the
community is not one community, but several publics.
What should be the role of community participation in the social
impact assessment?
It is necessary to consider the extent and validity of the knowledge and
opinion of local communities. There may be cases where the public is
opposed to a project, yet independent assessment shows it to be beneficial.
Or the community may favour a project that is considered by experts to have
significant social and/or environmental problems. Public opinion may be
manipulated by the media.
Also reflect on some of the other questions he poses, namely:
What is the role of community participation in the social impact
assessment?
What is the role of compensation in social impact assessment?
What impacts are to be considered?
How should impacts be weighted?
By the end of the course you should be better placed to provide well in-
formed answers to the above. You may find it useful to write brief answers
to the questions now, and compare them with your views at the end of your
study.

Activity
Choose a local development that you have some familiarity with and identify its potential
social impacts and their causes.
How might these vary with the project life-cycle?
Which are the most important impacts?
Have you identified any benefits (positive impacts)?

ESIA is predicated on the notion that decision-makers should understand
the consequences of their decisions before they act in other words, it is a
decision-aiding process. Before deciding whether or not to proceed with a
proposal it is appropriate to not only consider technical, institutional and
financial attributes, but also to predict its impacts on the natural envi-
ronment, nearby communities and wider society. Impacts can be direct,
indirect, induced, unplanned or cumulative.
The most widely used techniques to appraise projects environmental and
social implications are EIA and SIA, or Environmental and Social Impact
Assessment (ESIA). Many countries have enacted EIA legislation, usually for
major projects, but the coverage varies with the definition of environment
that is used. In some countries it is defined broadly to include social impacts.
Even when there is no specific requirement to consider social impacts, there
may be a range of regulations that apply to social issues, and stakeholders
may expect to be informed about these impacts.
ESIAs use is driven by the requirements of regulators and/or the projects
financiers, pressure from communities and other lobbying groups, commit-
ments to sustainable development and tangible benefits (e.g. costs and/or
time savings).
References and Websites

Brundtland Commission (1987) Our Common Future, Oxford UK:
Oxford University Press.
Cashmore M (2004) The interminable issue of effectiveness: substantive

purposes, outcomes and research challenges in the advancement of
environmental impact assessment theory, Impact Assessment and Project
Appraisal, 22(4) pp 295310.
Equator Principles: www.equator-principles.com
Hacking T (2006) Assessment for Sustainable Development: Theoretical

Framework and Mining Sector Case Studies from Canada, Namibia, and South
Africa, PhD thesis, University of Cambridge.
IAIA (International Association for Impact Assessment) (2003) Social

Impact Assessment International Principles, www.iaia.org
IAIA (2009) What Is Impact Assessment?, www.iaia.org (Accessed: 12/06/12).
IFC (2012) Performance Standards on Social & Environmental Sustainability,

International Finance Corporation.
Sadler B (1996) Environmental Assessment in a Changing World: Evaluating Practice

to Improve Performance: Final report of the International Study of the Effectiveness of
Environmental Assessment, Canadian Environmental Assessment Agency
(CEAA)/ International Association for Impact Assessment (IAIA).
Snchez LE and T Hacking (2002) An approach to linking environmental impact

assessment and environmental management systems, Impact Assessment and
Project Appraisal, 20(1) pp.2538.
United Nations Environment Programme (UNEP) 2003, Studies of EIA Practice in

Developing Countries, ISBN No: 9280722980, Case Studies: 1.1: Environmental
impact assessment from a Sudanese perspective, and 1.2: State of the
Environment in Sudan
Vanclay F (1999) Social Impact Assessment, in Handbook of Environmental Impact

Assessment, Vol. Volume 1 (Ed: J Petts) Oxford: Blackwell Science, pp.30126.

Appendix I: Social Impacts

Individual and household level
1. death, death of family member
2. arrest, imprisonment, detention, torture, intimidation or other
abuse of human rights inflicted on individual
3. reduced availability of food and adequate nutrition
4. reduced control over fertility (availability of contraception, and
empowerment)
5. reduced level of health and fertility (ability to conceive)
6. reduced mental health increased stress, anxiety, alienation,
apathy, depression
7. uncertainty about impacts, development possibilities, and social
change
8. actual personal safety, hazard exposure
9. experience of stigmatisation and deviance labelling
10. reduction in perceived quality of life
11. reduction in standard of living, level of affluence
12. worsening of economic situation, level of income property values
13. decreased autonomy, independence, security of livelihood
14. change in status or type of employment, or becoming unemployed
15. decrease in occupational opportunities, potential, diversity,
flexibility in employment
16. moral outrage, blasphemy, religious affront, violation of sacred
sites
17. upset (objection/opposition to the project), NIMBY (not in my
back yard)
18. dissatisfaction due to failure of a project to achieve heightened
expectations
19. annoyance (dust, noise, strangers, more people)
20. disruption to daily living, way of life (having to do things
differently)
21. reduction in environmental amenity value
22. perception of community, community cohesion, integration
23. community identification and connection to place (do I belong
here?)
24. changed attitude towards local community, level of satisfaction
with the neighbourhood
25. disruption to social networks
26. alteration in family structure and stability (divorce)
27. family violence
28. gender relations within the household
29. changed cultural values
30. changed perceptions about personal health and safety, risk, fear of
crime
31. changed leisure opportunities
32. quality of housing
33. homeliness
34. density and crowding
35. aesthetic quality, outlook, visual impacts
36. workload, amount of work needed to be undertaken to

survive/live reasonably
Community and institutional level

1. death of people in the community
2. violation of human rights, freedom of speech
3. adequacy of physical infrastructure (water supply, sewerage,
services and utilities)
4. adequacy of community social infrastructure, health, welfare,
education, libraries, etc.
5. adequacy of housing in the community
6. workload of institutions, local government, regulatory bodies
7. cultural integrity (continuation of local culture, tradition, rites)
8. rights over, and access to, resources
9. influences on heritage and other sites of archaeological, cultural or
historical significance
10. loss of local language or dialect
11. debasement of culture
12. equity (economic, social, cultural)
13. changed equity /social justice issues in relation to minority or
indigenous groups
14. gender relations in the community
15. economic prosperity
16. dependency/autonomy/diversity/viability of the community
17. unemployment level in the community
18. opportunity costs (loss of other options)
19. actual crime
20. actual violence
21. social tensions, conflict or serious divisions within the community
22. corruption, credibility and integrity of government
23. level of community participation in decision making
24. social values about heritage and biodiversity
Source: Adapted from F Vanclay (updated version) Summary of work on IAIA
International Guidelines and Principles for Social Impact Assessment.


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Environmental and

Social Impact Assessment

4 The Course Authors 6

6 Studying the Course 8

Centre for Financial and Management Studies 3

Centre for Financial and Management Studies 5

6.3 Implementation and Follow-up

4 The Course Authors

John Glasson, Riki Therivel and Andrew Chadwick (2012) Introduction to

Case Study 1 Environmental Assessment Report for the Padma

Case Study 2 Environmental Impact Statement for the Mackenzie Gas

Centre for Financial and Management Studies 7

on a 20 years build-own-and-operate basis along the NairobiMombasa high-

Possible Sources: Examples:

Economic Assessment of the impacts of a project on the wider economy, which

Social Anything relating to humans and their interactions, including

Centre for Financial and Management Studies 9

7 Studying the Course

Preparing for assignments and examinations

Understanding assessment questions

Centre for Financial and Management Studies 11

What are the consequences of

The grading scheme

70% and above: Distinction, as for the (6069%) below plus:

6069%: Merit, as for the (5059%) below plus:

5059%: Pass below Merit (50% = pass mark)

4549%: Marginal Failure

044%: Clear Failure

Centre for Financial and Management Studies 13

Specimen exam papers

This is a specimen examination paper designed to show you the type of

The examination must be completed in THREE hours.

DO NOT REMOVE THIS PAPER FROM THE EXAMINATION ROOM. IT MUST

University of London, 2013 PLEASE TURN OVER

Centre for Financial and Management Studies 15

(Answer at least ONE question from this section)

(Answer at least ONE question from this section)

6 Discuss the processes of implementation and follow-up, focusing on

1.2 Origins and Variations in Application 4

1.3 The Purpose of ESIA 6

1.4 Drivers for ESIA 9

1.5 The Overall ESIA Process 10

1.6 Structuring ESIAs 11

1.7 Success of ESIA 13

1.8 Social Impact Assessment 14

1.9 Summary and Conclusions 20

References and Websites 20

Appendix I: Social Impacts 22

Readings for Unit 1

Centre for Financial and Management Studies 3

1.2 Origins and Variations in Application

is now applied in all OECD countries and in a large number of developing

Centre for Financial and Management Studies 5

argue that this may cause biophysical matters to be diluted or overshad-

Readings John Glasson, Riki

1.3 The Purpose of ESIA

The process of identifying, predicting, evaluating and mitigating the

ESIA is predicated on the notion that decision-makers should understand

Table 1.1 Types of impacts

Types Definitions Examples