IFC

IFC assigns responsibility for decision-making and oversight of the sustainability strategy on the highest governing body, while implementation responsibility is assigned to various functions, teams, or committees. There is a stewardship policy that supports environmental transitions and social best practices, encompassing client and stakeholder engagement, advocacy, and partnerships. This policy outlines criteria for successful stewardship outcomes, escalation routes for unsuccessful efforts, and defines when escalations should occur.

Time-bound and measurable targets are established for providing products, services, and capital related to climate solutions, with progress tracked accordingly. In addition, IFC transparently identifies nature-related impacts linked to its offerings and engages with key sectors, clients, and investees on these impacts. IFC also has a strategy in place to support climate adaptation and resilience, with at least one example provided.

Disclosures include the monetary amounts or shares of products, services, and capital allocated to women-owned businesses, small and medium-sized enterprises, and low-income and lower-middle-income countries, as well as operational disclosures by country, such as employee numbers or revenue.

IFC has a sustainability strategy which is guided by a Sustainability Framework and Performance Standards, aimed at enhancing material impact and sustainability outcomes, yet there is no evidence of an impact materiality assessment across its value chain. Recommendations include disclosing third-party assurance of target reporting and linking senior executive remuneration to sustainability targets. IFC should give more clarity on financing activities related to fossil fuels and high-emitting sectors. Whilst IFC discloses its investments in agribusiness and forestry, there is no further evidence found that the assessed entity discloses the amount and/or share (in monetary terms) of its provision of products, services and capital linked to its priority sectors and areas representing their highest negative impact on nature. IFC requires clients to have adaptive management plans for biodiversity and sets out a more specific requirement for clients involved in the area of critical habits. However, it is unclear whether IFC required a set of strategies for nature-protection and restoration. Further recommendations include monitoring scope 3 emissions, detailing footprint calculation methodology, establishing a transition plan, and ensuring emissions reductions align with interim targets. It is also suggested to disclose client breakdowns by income group and processes to avoid negative impacts on low-income countries. Although worker’s rights are included in performance standards, it is unclear if all fundamental rights are integrated into risk assessments. Lastly, the entity is advised to identify social risks related to net zero transition and provide examples of actions taken on salient human rights issues in recent activities.

This scorecard refers to information in English which was publicly available by July 15 2024. AuM and Total assets are stated in USD for comparability and have been calculated based on reported local currency values multiplied by applicable IMF currency converter values.