This week IFC is launching a review and an update of our performance standards and disclosure policy. We’ll also be consulting with external stakeholders to get their input.

Updating the sustainability framework – officially known as the Policy and Performance Standards on Social and Environmental Sustainability and the Policy on Disclosure of Information – reflects our commitment to financing socially and environmentally sustainable projects and to our strategic pillar on climate change.

When the Board approved the policies in April 2006, they directed that the Corporation conduct a review after the first three years. The review aims to capture lessons learned from implementation over the last three years and evolutions in transparency and sustainability in the global marketplace.

A Critical Role

The framework plays a critical role in our projects, as it provides clients with clear expectations of what their roles, responsibilities, and performance expectations are before they enter into a financial transaction.

"Transparency and accountability are fundamental to fulfilling our development mandate," said Bruce Moats, Director, Corporate Relations.

The review process, led by CES and Corporate Relations, should take about 18 months and will lead to updated versions by January 2011.

Consulting with Stakeholders

IFC staff will be reaching out to stakeholders over the coming months to solicit their feedback on what has or has not worked, what is unclear, and what is missing from the performance standards and the disclosure policy.

“IFC is committed to being a leader in sustainable banking through a process of continuous improvement, and our stakeholders’ views are critical in helping us adapt and remain relevant,” said Greg Radford, Director, Environment and Social Development.

“Consultation is essential to ensure that our updated environmental and social management framework balances the expectations of all stakeholders,” he noted.

Our clients, civil society groups, communities directly affected by IFC projects, IFC Internal Evaluation Group, Equator Banks, and others will be able to communicate their ideas and comments through various online channels and face-to-face sessions, or via regional workshops.

The first round of consultations is scheduled to run from September 14 until November 13, 2009.

IFC staff are invited to pass this information along to their networks to help us achieve the highest level of participation possible.

For more information on the review and update process, please visit: www.ifc.org/policy review. To find out about the Sustainability Knowledge Network, click here.

Contributed by Katia Theriault, Environment and Social Development/ Communications Practice Group

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