Washington D.C., March 2, 2005
—The International Finance Corporation, the private sector arm of the World Bank Group, today launched its annual Sustainability Report for fiscal 2004. This is the third year IFC has produced such a report, and for the first time, the report carries an independent commentary by the Corporate Citizenship Company, a U.K.based consultancy.
The report provides a full picture of IFC’s social, environmental, and corporate governance initiatives. Highlights include an update and review of IFC’s environmental and social safeguards and disclosure policy; examples of the Corporation’s leadership on sustainability services for emerging market banks and private equity funds; and ongoing adoption of the IFC-led Equator Principles by banks and financial institutions.
The report also outlines IFC’s commitment to expand its portfolio of renewable energy and energy efficiency projects and the establishment of a program to promote gender equality and business opportunities for women. Continuing challenges include forging an approach to human rights as an issue in private sector development, implementing recommendations from the Extractive Industries Review, and helping clients tackle HIV/AIDS in their businesses and communities.
“Sustainability is a core operating principle of IFC’s work, and this report demonstrates how our clients are taking it up in emerging markets worldwide. We are seeing a shift in the market as private sector players increasingly realize the value of building businesses in which all impactsfinancial, economic, social and environmental—are managed effectively. We are proud of our leadership role, and we will maintain this momentum,” said Assaad Jabre, IFC’s Acting Executive Vice President.
“This report showcases the remarkable range of sustainability initiatives underway at IFC, from community investments at the grassroots to sustainable business training for clients to cross-border infrastructure projects. IFC’s greatest strength is its ability to engage across a broad spectrum of clients, sectors, and countries. This report highlights the flow of ideas and innovation that maintain IFC’s catalytic role,” commented Rachel Kyte, IFC’s Director for Environment and Social Development.
In its commentary, the Corporate Citizenship Company remarks on IFC’s progress to date and commends the policy reviews now taking place. It notes, “This report presents IFC’s principles and its five strategic priorities in relation to sustainability clearly and upfront. It includes important policy commitments and makes good use of case studies that help readers to understand IFC activities.”
The mission of IFC (
www.ifc.org
) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications
.
