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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 Standard 1: Assessment and Management of Environmental and Social Risks and Impacts

IFC Performance Standard 2: Labor and Working Conditions

IFC Performance Standard 3: Resource Efficiency and Pollution Prevention

IFC Performance Standard 4: Community Health, Safety, and Security

IFC Performance Standard 5: Land Acquisition and Involuntary Resettlement

IFC Performance Standard 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources

IFC Performance Standard 7: Indigenous Peoples

IFC Performance Standard 8: Cultural Heritage

 

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 PSces banks risks

  • 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

All IFC Performance Standards at a glance

IFC PS 1IFC PS 2IFC PS 3IFC PS 4IFC PS 5IFC PS 6IFC PS 7IFC PS 8

IFC Performance Standard 1: Assessment and Management of Environmental and Social Risks and Impacts

IFC Performance Standard 2: Labor and Working Conditions

IFC Performance Standard 3: Resource Efficiency and Pollution Prevention

IFC Performance Standard 4: Community Health, Safety, and Security

IFC Performance Standard 5: Land Acquisition and Involuntary Resettlement

IFC Performance Standard 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources

IFC Performance Standard 7: Indigenous Peoples

IFC Performance Standard 8: Cultural Heritage