Maximising social value of infrastructure development

Theme 3: Environment, Social and Governance
Practitioner Module 2
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Introduction

The integration of Gender Equality, Disability, and Social Inclusion (GEDSI) principles within Environmental, Social, and Governance (ESG) frameworks has become fundamental in shaping the future of infrastructure development. Notably, the “S” in ESG now encompasses aspects of GEDSI, underscoring that true social impact cannot be achieved by trickle-down effects alone, but rather through intentional and targeted action. This shift is mirrored across the landscape of climate finance, multilateral development banks, international financial institutions, and development finance institutions, all of which have recently strengthened their social policies. There is now a wider and deeper recognition that managing social risks must sit at the heart of infrastructure projects. Many financiers have gone further, requiring the delivery of measurable social benefits to the most vulnerable groups as a precondition for investment.

For countries in which the UK’s Foreign, Commonwealth & Development Office (FCDO) is engaged, addressing GEDSI issues is not only a social imperative but also an essential requirement for unlocking increasingly competitive sources of finance, especially as climate mitigation projects command ever-larger flows of funding. Infrastructure is a key entry point for this social transformation at scale. The UK’s expertise in this area is exemplified by the GEDSI Lens Toolkit for Infrastructure Project Developers, developed by the Green Cities and Infrastructure Programme (GCIEP), which provides practical guidance for embedding GEDSI considerations throughout the infrastructure project cycle—from early design through to delivery and operation.
Robust compliance frameworks, including the UK’s Gender Equality Act and the Public Sector Equality Duty, underpin responsible infrastructure development. In the global context, most lenders and investors rely on high-standard frameworks (such as the IFC Performance Standards), which serve as global benchmarks for managing a broad spectrum of social risks. Such safeguarding is especially critical in infrastructure and construction settings, where the influx of migrant labour, project operations in remote areas, security provisions, and processes like resettlement introduce heightened risks of sexual exploitation, harassment, and abuse (SEAH) and gender-based violence.

Recognising that economic needs and opportunities vary widely, infrastructure investments should be tailored to enable full participation by women, people with disabilities, youth, and those in informal sectors. Each infrastructure sector offers unique entry points for advancing social and economic inclusion. Embedding universal design principles ensures that infrastructure is accessible, safe, and beneficial for all, leading not only to social gains but also commercial benefits, such as increased number of users. Initiatives like 2X Global’s criteria have prompted most international financial institutions to require demonstrable GEDSI impact, especially in infrastructure. Measures such as inclusive procurement foster diverse and resilient supply chains by creating opportunities for MSMEs and entrepreneurs from marginalised groups.

Responsible land governance is essential to achieve equitable impact of infrastructure delivery. Land tenure in terms of ownership and security must be considered when adjudicating land-use management and allocation for public infrastructure.

Effective and representative stakeholder engagement is a core pillar of successful infrastructure planning and delivery. Engaging not just community leaders, but also civil society and representative organisations, supports more equitable agreements and long-term buy-in.

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