Civil society raises concerns of widespread IFC noncompliance with its own Performance Standards on greenhouse gas emissions

4 October 2023

New analysis by US-based organisation Bank Climate Advocates (BCA) – involving a review of over 300 projects – has raised concerns that the International Finance Corporation (IFC), the World Bank’s private investment arm, has failed to ensure compliance with its own Performance Standards related to greenhouse gas emissions.

In an unpublished briefing shared with the Bretton Woods Project, BCA noted: “In nearly all cases, IFC failed to…[adhere] to the requirements of its own policies pertaining to greenhouse gas (GHG) emissions quantification, alternatives analysis, mitigation, disclosure and affected communities impact assessment that apply before it approves financing for a project.”

BCA and 11 other civil society organisations (CSOs) raised concerns with IFC’s management in May, and 14 CSOs wrote to the IFC in September, urging corrective action, noting, “IFC Management must adhere to its board adopted policies now…including those applicable to GHG emissions and climate change. Failure to do so runs afoul of its obligations and results in the IFC systematically working against its own mandate for sustainable development and poverty reduction by causing harm to communities in its investment regions.” IFC provided a preliminary response to the concerns in July.