IFC Performance Standards

Abstract

Abstract The International Finance Corporation (IFC) Safeguard Policies have been the basis for IFC's leadership and approach to environmental and social sustainability. Based largely on the World Bank's operational policies, IFC adopted its current set of Safeguard Policies in 1998 in order to manage environmental and social issues in the private sector business environment in emerging markets. IFC embarked on an ambitious two-year process in FY04 to update all of the Safeguard Policies through a single initiative to develop the next generation of a policy framework based on a clear, concise and comprehensive policy on social and environmental sustainability. Following an intensive review and analysis of the strengths, weaknesses, and gaps in coverage of the current Safeguard Policies, IFC has recast the Safeguards as a Policy and Performance Standards on Social and Environmental Sustainability. The Performance Standards are often considered the defacto standards even in the absence of IFC participation in the project. They could potentially apply to all projects in developing countries. The Performance Standards contain clear and concise requirements geared toward project outcomes and promote performance improvement through monitoring, reporting and feedback. They place new emphasis on implementation through management systems, deal with social and environmental issues in a more integrated manner, and strengthen policy coverage of issues such as pollution, climate change, and biodiversity. In addition, the Performance Standards address a number of additional subjects of direct concern to the private sector such as labor and working conditions and community health and safety. IFC's social and environmental standards are the building blocks for our approach to sustainability and are embodied in IFC's Safeguard policies, Environmental Health and Safety Guidelines, and Disclosure Policy. Together these provide a framework to help our clients manage project risks and improve their performance, and help IFC improve development outcomes and maximize the development impact of our investments.