This guidance note provides practical information for the Secretariat, accredited entities and executing entities, countries and other stakeholders in categorizing the environmental and social risks of activities supported by GCF.

This document notes that accredited entities implement their own environmental and social management systems (ESMS) to manage the environmental and social risks and impacts associated with activities and meet the requirements of GCF policies and ESS, including the conduct of due diligence of activities supported by GCF. As such, this guidance note clarifies the requirements for environmental and social risk categories as described in the Environmental and Social Policy and provides guidance on the process for determining how projects and activities are categorized. This guidance note is not a GCF policy and it does not substitute for the need to exercise sound judgment in making decisions related to the environmental and social risk categories of activities.