Compliance to IFC Performance Standards
When the potential environmental and social impacts associated with a financial institution’s client/investees are significant, the financial institution should apply the IFC’s Performance Standards as a benchmark for identifying and managing these risks.
The IFC Performance Standards are an international benchmark for identifying and managing environmental and social risk and has been adopted by many organizations as a key component of their environmental and social risk management. IFC’s Environmental, Health, and Safety (EHS) Guidelines provide technical guidelines with general and industry-specific examples of good international industry practice to meet IFC’s Performance Standards.
In many countries, the scope and intent of the IFC Performance Standards is addressed or partially addressed in the country’s environmental and social regulatory framework.
IFC’s Sustainability Framework articulates the Corporation’s strategic commitment to sustainable development, and is an integral part of IFC’s approach to risk management. The Sustainability Framework comprises IFC’s Policy and Performance Standards on Environmental and Social Sustainability.
Why our client should comply with IFC PS?
Guard Against Unforeseen Risks and Impacts. Implementing the Performance Standards helps companies identify and guard against interruptions in project execution, legal claims, brand protection, and accessing international markets.
Improve Financial and Operational Performance. IFC believes that meeting the Performance Standards helps clients improve their bottom line. Implementation of the Standards can help optimize the management of inputs such as water and energy, and minimize emissions, effluents, and waste, leading to a more efficient and cost-effective operation
Social License To Operate. In addition, the Standards help clients find ways to maximize local development benefits and encourage the practice of good corporate citizenship. This often results in greater acceptance of the project by local communities and governments, allowing companies to acquire a social license to operate. Enhanced brand value and reputation may also be attractive to new investors or financiers
Gain an International Stamp of Approval. The “Equator Principles,” which have been adopted by more than 70 of the world’s leading investment banks in developed and developing countries, are based on IFC’s Performance Standards. These principles are estimated to cover nearly 90% of project financing in emerging markets