Environmental and Social Sustainability
IFC and Environmental and Social Sustainability
Growing public awareness of environmental, social, and corporate governance issues is driving changes in the products consumers buy, how companies do business, and how investment decisions are made. IFC's environmental, social, and corporate governance expertise helps private sector clients succeed in this changing global environment by realizing their financial potential while maintaining a strong focus on environmental, social, and governance issues such as climate change, access to water, disclosure and transparency, and the impact business operations may have on local communities. IFC's expertise includes:
• Risk management. IFC helps companies identify, reduce, and manage the environmental, social, and corporate governance risks associated with their services, products, and business operations.
• Advisory services in sustainable business. IFC
works with companies to adopt the environmental, social, and governance practices and technologies that create a competitive edge and promote the broad adoption of these practices to transform markets and improve people's lives.
• Global environmental and social standard setting. IFC's Policy and Performance Standards on Social and Environmental Sustainability set high standards for achieving sustainable development.
• Global standard setting on corporate governance. IFC's Corporate Governance Methodology has been widely adopted by other development finance institutions (DFIs). The DFI Working Group on Corporate Governance launched the DFI Toolkit on Corporate Governance, which is based on IFC's methodology.
MIGA and Environmental and Social Sustainability
MIGA strives for positive development outcomes in the investment projects it insures. An important component of such outcomes is the environmental and social Sustainability of projects, which the Agency expects to achieve by applying a comprehensive set of environmental and social performance standards.
MIGAs environmental and social sustainability policies are derived from its extensive experience insuring investments around the world. The policies are a powerful tool for identifying risks, reducing development costs, and improving project sustainability—benefiting affected communities and preserving the environment. During the underwriting process, MIGA identifies the policies and guidelines applicable to a project. Projects are expected to comply with those policies and guidelines, as well as applicable local, national, and international laws.