IFC Performance Standards

IFC’s Performance Standards define clients’ responsibilities for managing their environmental and social risks.

The IFC Performance Standards in a nutshell

Together, the eight Performance Standards establish standards that the client is to meet throughout the life of an investment:

IFC Performance Standards (PS): Situation Today

  • IFC standards are THE benchmark standards for FI’s E&S risks management.
  • An estimated 80% of total project finance debt in emerging market economies is based on IFC PS .
  • Adherence to IFC PS and framework is international good banking practice and significantly reduces risks.
  • In many emerging countries an estimated 20% of FIs have an ESMS in place.
  • In many emerging countries an estimated 50% are on the way.
  • Central banks are starting to require E&S management from their FIs.

IFC PS‏ – no need to be afraid of them

  • >70% of worlds project finance is already based on PS
  • Developed in cooperation with developing countries
  • Generally far lower than EU standards, sometimes even lower than local African standards, very often identical
  • Represents „good industrial practice“ but not „best industrial practice“
  • Full of „common sense“
  • Gives valuable benchmark information and tips to clients
  • Leaves room for manoeuvring: „the client should…“
  • Overcome weaknesses of local legislation (e.g.. insufficient EIAs)‏
  • Adherence to IFC PS is international best banking practice and significantly reduces banks risks

Information related to IFC Performance Standards and their application in financial institutions in developing countries: Knowledge base