IFC deepens commitment on climatic change

The International Finance Corporation (IFC) says its new global environmental and social standards framework is being developed reflect its strategic commitment on climatic change.

The Director of Environment and Social Development of IFC, Greg Radford, said “The policy is of critical importance for private sector clients that need a high level of certainty on roles, responsibilities, and performance expectations before entering into a financial transaction.

“It is also to strengthen standards and improve on better ways of addressing emerging issues that have reshaped the operating environment.”

The framework, which is currently undergoing consultations among stakeholders, will be effective by January 2011 and focus on the policy and performance standards in social and environmental sustainability.

It will also consider policy on disclosure of information accompanied by performance standards, guidance notes, and environment, health and safety guidelines.

These will provide private sector clients with a clear and comprehensive view of requirements in their engagement with IFC.

Radford explained this in Accra at a media briefing after a stakeholders’ consultation on the IFC’s operating standards involving some 45 participants from Ghana, Liberia, Nigeria, South Africa, Uganda and the United States of America.

The consultation was also part of a series of global consultations with academics, civil society groups, financial institutions, government officials, private sector representatives, and other resource persons to discuss ways of improving IFC’s standards on sustainability.

“IFC is committed to being a leader in sustainable banking through a process of continuous improvement, and our stakeholder’s views are critical in helping us to adapt and remain relevant.”

IFC’s experiences over the years have shown that companies that do not manage their environment and social issues face both financial and reputational risks; at IFC, one of the core principles is to manage climate change and sustainable business.

“At IFC we have environmental and social performance standards that apply to all our investments; we ensure that the local communities where we operate are well protected.”

Mary-Jean Lindile Ndlovu, IFC’s Country Manager for Ghana and sub-Saharan Africa, said: “Updating IFC’s performance standards is important for Africa, as it will help continue implementing innovative projects that improve sustainable economic growth in the region.

“It is important to ensure that the people who are affected by our projects are adequately consulted so that we can address their concerns and improve the impact of our initiatives,” she stressed.