IFC to strengthen environmental, social standards

THE WORLD Bank Group’s International Finance Corp. (IFC) is drafting stronger standards for environmental and social protection that projects needing its help will have to observe, Greg Radford, IFC environmental and social development director, told reporters in a briefing yesterday.

The IFC expects consultations with clients and other stakeholders, which aim to get their feedback for consideration as inputs to the envisioned stronger standards, to be completed by December. A consultation is scheduled today with select members of civil society organizations, the academe and the business sector. Another session is scheduled for October.

The standards, which were conceptualized in 2006, define IFC clients’ roles and responsibilities in managing the social and environmental risks and impacts, as well as maximizing the development opportunities of the projects it finances, a press statement read.

The standards involve labor and working conditions, resource efficiency, community health and safety, resettlement of adversely affected communities, as well as protecting biodiversity, cultural heritage and property.

“What we want is, when we finance projects, environmental and social risks will also be mitigated. That could mean addressing environmental issues like biodiversity. For the social aspect, our clients should ensure that local communities are actively consulted,” Mr. Radford said.

“It is important to ensure that there is appropriate monitoring of these projects. In loan agreements, there is a requirement that the client reports to us about their performance. But for medium- and high-risk projects, we make it a point that we go there and see for ourselves how these projects are faring,” he explained.

“It is easy to make [the project] look good on paper, but we need to ensure that there are really positive outcomes on the ground.” — MJKRC