FOR IMMEDIATE RELEASE
June 13, 2019
Today, the International Finance Corporation (IFC) CEO Philippe Le Houérou announced structural and operational adjustments that aim to fundamentally change the way environmental and social issues are managed at an institution that has a significant role in financing development projects throughout the world.
Having worked alongside partners to advocate for reforms and improvements in IFC accountability for more than 20 years, CIEL applauds the plans outlined by Mr. Le Houérou to address systemic problems in the IFC’s approach to Environmental and Social Governance (ESG) and transform the way this World Bank institution operates.
By deciding to “improve E&S risk management and accountability throughout the project cycle” and close gaps in the IFC’s responsiveness to complaints from affected communities, the IFC has the opportunity to become a responsible model and leader, not only with its clients but also with many other financial institutions using its Environmental and Social Performance Standards as a benchmark for best practice.
In April, CIEL welcomed initial statements about the move toward improved accountability at the IFC. With the adjustments to the ESG Advice and Solutions department, the creation of a new Environmental and Social Policy and Risk department, increases in staff, and inclusion of more social specialists working with private sector clients and communities, the IFC is moving solidly on its commitment to improve its engagement with affected communities.
CIEL recognizes the significance and potential impact of these positive changes at the IFC. We look forward to monitoring how these pieces will have impacts in practice, and we will continue our support for communities in Latin America and around the world as they again knock on the IFC’s doors for remedy and accountability. These communities directly impacted by the IFC have long stated their willingness to share their knowledge and experience from the other side of development, and CIEL will continue to support amplifying their voices at every opportunity.