NGOs welcome reforms to IFC sustainability policies

11 August 2011

NGOs have welcomed updates to the International Finance Corporation’s (IFC’s) guidelines for sustainable investment, which they say increase transparency.

Last week, the IFC released details of its new Sustainability Framework, which will come into effect in 2012.

The framework includes the Performance Standards, which set the environmental and social standards projects must meet to receive financing from the institution. The Performance Standards also underpin the Equator Principles, voluntary sustainability guidelines that commercial banks apply to project finance.

William Bulmer, IFC director for environment, social and governance, said: “In addition to supporting IFC’s own clients, the Performance Standards have become a global benchmark for sustainable business. We recognise this and have welcomed the very positive feedback from external stakeholders during our update process.”